SA braces for crucial US trade talks as tariffs threaten Agoa benefits

SOUTH Africa is preparing for significant diplomatic engagements with the United States following the 11% tariff relief announced by President Donald Trump, which have effectively nullified the African Growth and Opportunity Act (Agoa) benefits.

- SIPHELELE DLUDLA

This engagement is crucial as the South African government seeks to understand the implications of the new trade policies and formulate a fit-for-purpose response.

Minister of Trade, Industry and Competition, Ebrahim Patel, said the initial delays in the visit to the US were strategic, intended to coincide with expected announcements concerning global trade and tariffs.

“We thought it was important that when the announcement had been, we could enter the discussions informed accordingly,” Tau said.

“Our process has always been to engage with the US to find solutions and resolve problems rather than reacting with comments or decisions that might be counterproductive.”

He stressed the importance of understanding the broad implications of any US trade policies and renewed reciprocal arrangements, rather than unilateral retaliatory measures that may exacerbate the trade friction.

He said there was a maturing mutual context in the context of South Africa's developing economy while maintaining robust trade relationships.