SA’s trade talks with the US are gaining momentum as senior government leaders and officials lay the groundwork for President Cyril Ramaphosa’s visit to that country later this month.
Ramaphosa is expected to use the UN General Assembly next week to hold bilateral talks with several counterparts and to meet executives from leading international companies.
Trade minister Parks Tau has travelled ahead for negotiations on a possible trade agreement with Washington, while international relations and co-operation minister Ronald Lamola is participating in UN special sessions. Other members of the delegation are due to report on their engagements during the course of the assembly.
“It means there’s traction. That means [there are decisions that require] ministerial decision-making powers,” minister in the presidency Khumbudzo Ntshavheni said in a post-cabinet media briefing.
“But what is fundamental is that the US and SA are continuing to engage on the proposals on the table so that we can find a common ground and mutual agreement on the proposals that have been put on the table.”
SA has yet to appoint a replacement for Ebrahim Rasool, who was expelled as SA’s ambassador to the US. But that has not hindered the trade talks, Ntshavheni said, because there are “enough boots on the ground”.
SA is seeking more favourable tariff on its exports to the US after the Trump administration imposed a 30% blanket tariff from August. Features of SA’s trade proposal to the US include:
- Importing 75-100 petajoules of liquefied natural gas for 10 years, unlocking $12bn.
- Agricultural market access by simplifying US poultry exports under the 2016 tariff rate quota and unlocking about $91m in trade. In addition, readiness to open market access for blueberries subject to protocols.
- SA firms committed to invest $3.3bn in US industries such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals and agri-machinery.
- Exemption of specific sectors from reciprocal tariffs to preserve supply chains, for example ship building, counter-seasonal agriculture trade, exports from small, medium and micro enterprises of less than $1m per annum.
SA is set to begin the General Assembly 80 high-level week at the UN headquarters with an investor round-table hosted by the trade, industry & competition department.
“It will feature a keynote from a senior SA minister, sector-focused panel dialogues with SA and US business leaders, and invaluable investor networking opportunities,” BrandSA said.
“These initiatives are designed to not only attract capital but also to cultivate a deeper understanding of SA’s dynamic economic landscape as the most diversified and industrialised economy on the African continent.
“Our presence at [the General Assembly] is a concerted effort to rebuild trust and reassert our position as Africa’s leading investment hub, particularly in the US market.”
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