South Africa Makes Steady Progress in Trade Discussions with United States

26 September 2025 – South Africa Makes Steady Progress in Trade Discussions with United States, Says Minister Parks Tau. Trade, Industry, and Competition Minister Parks Tau says South Africa is making steady progress in trade discussions with the United States of America following a series of bilateral engagements in Washington the past week. Tau, joined by Minister of International Relations and Cooperation Ronald Lamola, met with the US Trade Representative on the sidelines of the 80th Session of the United Nations General Assembly (UNGA 80), which begins in New York this week.

Speaking after the meetings, Tau described the discussions as ‘constructive’ and confirmed that both sides had agreed to refine a draft text that will form the basis of a new trade framework. “We had the opportunity through our teams to go literally line by line into the document the US provided. On the basis of those discussions, we agreed that a revised text would be sent to South Africa early next week, allowing us to prepare a response and start negotiations in earnest.”

The Department of Trade, Industry, and Competition said the revised draft would be circulated among government departments and other stakeholders before South Africa submits a formal response. Formal negotiations with Washington are expected to begin within the next two to three weeks.

Tau said the talks had reinforced the importance of strengthening trade ties at a time when South Africa is seeking to expand market access for its exports and secure greater investment flows. “I’m encouraged by the progress we’re making. I think we have the potential to reach an agreement that would be mutually beneficial with the US government and would be able to facilitate investment.”

The visit to Washington comes as South Africa positions itself to balance long-standing trade partnerships with the United States while deepening cooperation with other global blocs, including BRICS. Tau and Lamola are expected to continue engagements in New York, where global leaders will gather for the UN General Assembly. The South African delegation will be led by President Cyril Ramaphosa, who landed in America on Monday morning.

Details of the Bilateral Engagements

Minister Tau’s meetings in Washington focused on addressing recent US tariffs imposed on South African imports, which have impacted key sectors. Reports indicate that the US has levied a 30% tariff on certain imports from South Africa, prompting urgent discussions to roll back these measures and establish a new bilateral trade framework. The talks with US Trade Representative Jamieson Greer were described as cordial and constructive, leading to an agreement on a roadmap for future negotiations.

These engagements build on ongoing efforts to renew or replace the African Growth and Opportunity Act (AGOA), which provides duty-free access to the US market for eligible African countries and is set to expire in 2025. South Africa, as Africa’s most industrialised economy, has been actively pushing for an extension or a new deal to maintain preferential trade terms. Previous AGOA forums, such as the 21st held in Washington in July 2024, saw Tau leading delegations to assess developments and advocate for renewal.

The discussions also touched on broader issues, including South Africa’s foreign policy and economic priorities. Lawmakers in Washington have expressed frustration over South Africa’s positions on certain matters, urging reforms in areas like black economic empowerment (BEE) and land expropriation to align with US concerns. However, President Ramaphosa has emphasised South Africa’s sovereignty, stating: “We will not be bullied. We will stand as a sovereign country, negotiate, and secure the best deal for South Africa.”

Broader Economic Implications

The potential new trade agreement could facilitate increased investment and market access, crucial for South Africa’s economic growth amid domestic challenges like retrenchments and slow recovery. The US remains a key trading partner, with South Africa exporting raw materials like platinum, gold, and aluminium, which are vital to the US economy, while importing finished products.

Critics, including EFF leader Julius Malema, have called for a firmer stance, suggesting retaliatory tariffs and a shift towards BRICS partners and the Global South instead of appeasing the US. Tau’s office, however, highlights the mutual benefits, noting that the talks signal new opportunities for South Africa.

Historical context shows consistent efforts to strengthen SA-US ties. Former Minister Ebrahim Patel engaged with US officials on AGOA and competition policy, while Deputy Minister Bulelani Magwanishe participated in summits like the Wall Street Project. The 20th AGOA Forum in 2023, hosted by South Africa, welcomed US delegations and pushed for extensions. Source: Central News.co.za