Pretoria — The Southern African Customs Union (SACU) is looking at a proposal for South Africa and Singapore to have a free trade agreement, President Thabo Mbeki said Thursday.

President Mbeki is hosting his Singaporean counterpart Sellapan Ramanathan for discussions on bilateral political, economic and trade issues.

Briefing reporters following their meeting, President Mbeki said South Africa wanted to have such an agreement with Singapore, but added that there were processes to follow.

"We as South Africa want this free trade agreement with Singapore but we are members of the Southern African Customs Union," Mr Mbeki said

"Other countries like Namibia, Lesotho and Botswana are part of that, so, to engage in such a process requires the agreement of the customs union."

This was a matter receiving "urgent attention" from SACU said the president, going on to explain that in the context of a free trade agreement, concerned countries could agree to eliminate tariffs, quotas and preferences on most if not all goods traded between them.

President Nathan said Singapore already had such agreements with countries including India, Japan, China, Australia and New Zealand.

"Free trade arrangements are working in may of these places and I don't see why not with South Africa," he said adding that SACU had to act swiftly to take the process forward.

President Nathan said among all fields in which the two countries were strengthening relations, the key focus was trade, which was "showing growth."

Figures from the South African Department of Foreign Affairs showed that total trade between the two countries doubled in 2006, compared to the previous year.

According to the figures, South Africa exported goods in the region of R3.1 million to Singapore in 2006 and imported about R7.1 million.

Singapore is also making inroads in terms of assisting South Africa with the development of critical skills needed for economic growth.

Already, 600 South Africans have been to that country taking part in various skills development programmes in the areas of tourism, international relations, trade and investment promotion, among others.

"In these exchanges, experiences shared have been useful. We are prepared to offer more opportunities for training," President Nathan said.

Singapore, he explained, is sponsoring a number of scholarships for South Africans to study at that country's institutions of higher learning, particularly in areas of strategic defence and international relations.

There are also scholarship opportunities in the areas of public policy and administration.

Furthermore, South African universities, including the University of Johannesburg had memoranda of understanding with their Singaporean counterparts for exchange programmes.

Such exchange programmes are considered key in the Joint Initiative for Priority Skills Acquisition (JIPSA) in South Africa.

JIPSA is aimed at addressing skills shortages in order to achieve the objectives of the Accelerated and Shared Growth Initiative for South Africa (AsgiSA).

AsgiSA seeks to increase the country's annual economic growth rate to 6 percent per year by 2010. This, to halve poverty and unemployment by 2014.

While in South Africa, President Nathan and his 22-member delegation, is expected to meet with the Singaporean business community based in South Africa.

In Gauteng, he will visit the Mandela Museum in Soweto and lay a wreath at the Hector Peterson Memorial.

In the coastal provinces, the president is expected to visit Robben Island, participate in the Foundation Stone Laying Ceremony for the Straits Chemicals at Coega Village in Port Elizabeth and visit the Gandhi Settlement and Luthuli Museum in Durban.