Minister of Trade, Industry and Competition Parks Tau has emphasised that South Africa remains committed to reaching a final agreement on trade deal with the US, despite current challenges.
Tau said the situation involves a mix of geopolitical, domestic, and trade issues. He insisted that a fresh start in relations between the two countries is necessary.
“South Africa took the decision not to retaliate to the reciprocal tariffs announced by the United States. We also want to reiterate that we have no intention of decoupling from the United States either. Our view is that negotiations remain the best tool to deal with the issues that are on the table,” said Tau.
He said the US is currently working on trade negotiations with about 185 countries. And it aims to finalise them by August 1.
SA not the only country
With this, he said South Africa is not in a unique position and remains committed as it waits for proper feedback on its own Framework deal.
Tau explained that the deal includes importing between 750 and 100 petajoules of liquefied natural gas over 10 years, a move that could unlock $12-billion.
It also covers agricultural market access by simplifying the rules for US poultry exports under the 2016 tariff rate quota. This could bring in about $91-million in trade.
“South African firms [have a] commitment to invest $3.3-billion in US industries such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals, and agri-machineru.
“Exemption of specific sectors from reciprocal tariffs to preserve supply-chainns. Such as… ship building, counter-seasonal agriculture trade, exports from MSMEs of less than $1-million per annum,” said Tau.
Response plan
He said a condition precedent document has been signed.
He added that the department is working with other parts of government on a response plan. This includes a support desk at the department and measures to support the affected industries.
Tau said President Cyril Ramaphosa has also shown support for rebuilding trade relations with the US.
“The DTIC has made this issue an apex priority since well before 2 April 2025. And we have centred South Africa and her people as our non-negotiable. Rest assured, we will not waiver in our mission to ensure we make South Africa prosper,” said Tau.