The government of national unity (GNU) wants SA’s trade agreements with the country’s biggest trading partners including China, the EU and US to be reviewed so that they are more mutually beneficial, high-level department of trade, industry and competition (DTIC) and international relations and co-operation (Dirco) sources have told Business Day.
That agenda is expected to be pushed by Dirco minister Ronald Lamola, who since his appointment this year has strongly advocated economic diplomacy.
It is also understood to be high on DTIC minister Parks Tau’s list of priorities as he pushes an African economic agenda through the African Continental Free Trade Area (AfCFTA).
Tau has just returned from high-level meetings in Ethiopia, in which it is understood work has begun to iron out trade, tariff and custom differences among those signatories to AfCFTA.
Donald Trump, who won the US presidential election last week, is expected to take office in January.
It is not clear whether SA’s Agoa preferential trade agreement with the US will continue to enjoy bipartisan support in that country under the Trump presidency.
“We need a review of all of bilateral trade agreements,” said one government insider. “We are currently in a period of review with some European countries especially on the matter of SA’s agricultural and steel exports,” said another government insider.
“We also need to look at our trade agreements with China among all others. Our trade deficit with China continues to grow, and they are not making strategic investments into SA ... bar a few,” said the source.
SA wants much stronger diplomatic, bilateral and trade relations with its trading partners to jump-start SA’s economic growth, which President Cyril Ramaphosa believes could reach 3% by the end of 2025.
The government’s push for economic diplomacy — with SA being central to the rest of Africa — is expected to peak during the G20 summit next year.
SA will use its permanent seat in the G20 to showcase Africa’s economic potential when the country hosts the meeting of heads of state in 2025, Lamola told Business Day in October. “We will have to be engaging. We will be doing so in SA’s national interest. Economic diplomacy is the focal point.
“There is a big interest in future investments in SA and we are working hand in glove with the DTIC to try to achieve 2% economic growth in SA by 2025,” said Lamola.
Business Day reported last week that agriculture minister John Steenhuisen has big plans to better exploit SA’s good standing in Brics, comprising Brazil, Russia, India, China, SA, Iran, Egypt, Ethiopia and the United Arab Emirates.
“Europe is our largest market, but looking at existing trade agreements we need to find ways to deepen and widen them,” said Steenhuisen.
“We need to expand our citrus and beef export potential.
“And why is China buying so much of its wine from Australia and France?
“We should be exporting apples to India and in the Middle East. There is huge demand for SA’s agricultural products.
“Lamb alone is huge,” said Steenhuisen.
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