SA and the US have begun discussing a new framework that would govern trade relations between the two countries, after the country submitted a trade package to the US on Monday.
The trade package was submitted to US trade representative Jamieson Greer during his meeting with trade, industry and competition (Dtic) minister Parks Tau, and agriculture minister John Steenhuisen. This was ahead of the meeting between President Cyril Ramaphosa and his US counterpart, Donald Trump, on Wednesday aimed at resetting relations between the two countries.
SA aims to persuade the US to lower its now-paused 31% tariff imposed on its exports, and obtain a renewal of the African Growth and Opportunity Act (Agoa) prior to its expiring in September, Parks said on Wednesday.
“Our proposal focuses on trade and investment areas in which we think there’s opportunity to increase trade between ourselves. We indicated that given our impending shortage on gas, the appetite to procure LNG (Liquefied Natural Gas) from the US, which was both in our discussions with the ambassador and also in our discussions at the White House, was positively received, and it’s one of the areas that we will be following up on,” Tau said during a media conference following the Trump and Ramaphosa meeting.
Recent US tariffs have effectively nullified some benefits of Agoa, affecting key SA export sectors such as agriculture and automotive manufacturing. This has prompted the SA government to seek alternative markets for its exports in a bid to ease reliance on the US.
“The feedback we received in our engagements on Monday with regard to Agoa was that this is a matter that currently is in Congress, so it would be important for us to follow up in Congress with regard to the reauthorisation of Agoa,” Tau said.
“Having met the trade ministers in Africa at the recent Africa Continental Free Trade Area Council of Ministers, we have agreed to develop a collective approach with regard to Agoa, and the US has also indicated that they would be convening a US-Africa Forum, where we intend to present in detail our proposition on Agoa, but as SA we have it in our document that the reauthorisation of Agoa is important,” Tau said.
“We also indicated the reality that with regard to the main products we sell into the US, these would include some of our minerals. Minerals, even under the reciprocal tariffs, have been excluded,” Tau explained, saying SA was willing to discuss a deal on critical minerals with the US.
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