SA, US move closer to reciprocal deal

SOUTH Africa and the US are edging closer to formal negotiations on a reciprocal trade agreement, following weeks of intensive engagements aimed at resolving longstanding tariff disputes and strengthening bilateral economic ties.

- SIPHELELE DLUDLA

Speaking at the South Africa-US Trade and Investment Executive Dialogue in Washington on Wednesday night, Minister of Trade, Industry and Competition Parks Tau underscored the importance of the US as the country’s second-largest global trading partner, while South Afica remains the second-largest African destination for US exports.

“This underscores the critical importance of our bilateral relationship, both as a platform for two-way trade and as a gateway into the broader African market,’ Tau said.

However, he cautioned that challenges persist, particularly the proposed 30% tariff on selected South African exports, along with existing Section 232 tariffs on aed and aluminum, which risk undermining key sectors and eroding the benefits of the African Growth and Opportunity Act (Agoa).

Tau confirmed that South Africa and the US have been working on a draft text for a reciprocal trade agreement. Following initial exchanges, the US has provided a revised draft which Pretoria is now considering with relevant departments and stakeholders.