'The IBSA has already begun to yield important benefits for us. For example, in our own ministry we have benefited from the interaction with the small business agencies of India and Brazil.'

Davies said such cooperation would shape the paradigm of new trade agreements.

The minister said that during a recent Organisation for Economic Cooperation and Development (OECD) ministerial conference in Paris he had met Indian Commerce and Industry Minister Anand Sharma and others who had 'indicated a political willingness to move in this direction'.

'When we met with Minister Sharma we had absolute agreement on the broad direction we need to move in, but what we also realised was that there is quite a bit of work that we need to do to really make this relationship click.

'We are not at our potential and I think this is true in the area of governmental agreements and also true in terms of business to business relationships.'

Davies described as 'quite an impressive increase' the fact that trade between India and South Africa had moved from about $46 million in 1993 to about $6 billion currently.

'But there is the potential to double that by 2012 as a target,' he concluded.