Minister of trade, industry & competition Parks Tau says the framework deal SA submitted to the US proposes concessions such as liquefied natural gas (LNG) investment and auto exemptions from tariffs.
Tau was responding in writing to questions from EFF MP Nqobile Mhlongo, who asked whether the minister signed or sealed any trade agreements with his US counterpart during the government’s visit to Washington in May.
Mhlongo asked for full details of any specified agreements, including the sectors involved and projected benefits to SA, what the motivation behind the agreements was and how they align with the country’s development priorities and economic sovereignty.
Tau said the framework deal SA submitted to the US constitutes a proposal that will be subject to negotiations between the two countries.
“The framework agreement covered, among other elements, [the] procurement of US products such as LNG, complemented with US investment in gas infrastructure in SA and co-operation in key technologies to unlock production of gas in SA.
“[It also includes] addressing agricultural market access for both countries, promoting two-way investment and improving the investment climate, [and] areas of future co-operation including on tariffs, digital trade and critical minerals,” he said.
US President Donald Trump announced tariffs on auto imports in terms of section 232 of the US Trade Expansion Act, aimed at protecting the US industry. In April, he announced “reciprocal” tariffs of 60% but suspended them for 90 days.
Last week, he announced 30% tariffs on SA but allowed time until August to negotiate a trade deal. This is despite President Cyril Ramaphosa travelling to Washington in May with a delegation that included billionaire Johann Rupert and agriculture minister John Steenhuisen.
Tau said SA had its own set of demands for the US in the trade discussions, including provisions for auto and auto part imports to be made exempt from the section 232 tariffs announced earlier this year.
“In return, SA requested that the US consider the exemption of certain volumes of cars, parts, steel and aluminium from section 232 tariffs. While negotiations are under way, [SA asked] the US to maintain the reciprocal tariff at 10% or lower rate for other exports and maintain the Agoa [African Growth and Opportunity Act] preferential rate on MFN (most-favoured nation) duties.”
SA asked the US to further exempt counter-seasonal fresh produce and exports from SMEs of less than $1m (R17.9m) per annum from the reciprocal tariff and grant market access for citrus, avocados, lychees and mangoes, he said.
SA and the US did not sign any trade agreement during the working visit to the US, as the purpose of the visit was to reset bilateral relations and set up a framework of engagement, he said.
“The two countries recognised the Trade and Investment Framework Agreement as a platform for engagement to discuss issues of mutual interest. Further, SA used the opportunity to submit a framework deal to enhance mutually beneficial trade and investment relations, and mitigate against the reciprocal tariffs the US imposed against all countries, including SA.”
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