"The two countries also agreed to explore areas of defence-industrial co-operation, in the aviation, avionics, command-control-communications, air-to-air missile technology, grenade launches and maritime environments."

The agreement was signed by Defence Minister Lindiwe Sisulu and her Argentinian counterpart Dr Nilda Garré onboard the SAS Drakensberg, which was in Argentina to participate in the naval exercise ATLASUR VIII with the Argentine, Brazilian and Uruguayan navies in the southern Atlantic Ocean.

"This was an achievement by the navies of the Southern hemisphere countries that ensured continued co-operation in maritime security and to gauge their readiness to address the ongoing global security challenges they face," Mabaya said.

Sisulu was quoted saying: "The most obvious of these are terrorism, piracy in the high seas, proliferation of nuclear weapons among rogue countries, biological and chemical ware, cyber-warfare, resource scarcity and climate change. These threats present major challenges to the deployment of our Armed Forces. Deterrence is not enough. Our Armed Forces must be able to anticipate and act swiftly to address these threats whenever they arise.

"The South African Defence Industries are technologically highly advanced and diversified presenting the Argentine Ministry of Defence with a vast range of defence systems required for its modernisation programmes," she said.

The SAS Drakensberg was supporting the submarine Challotte Maxeke in the joint exercise.

The naval vessel and the submarine departed for South Africa on Sunday so that they could arrive home on December 3 in time for Christmas, Mabaya said.