Washington, D.C. – South Africa has submitted a revised framework proposal to the United States, focusing on expanding trade and investment relations between the two countries.
This is according to the Minister of Trade, Industry and Competition, Parks Tau, who was part of the delegation that met with the U.S. Trade Representative (USTR) on Monday.
The Minister addressed members of the media at the invitation of President Cyril Ramaphosa following high-level engagements held at the White House in Washington D.C. on Wednesday.
Tau confirmed that the initial proposal was met with constructive feedback from the USTR, identifying key areas that required further elaboration.
Following consultations with South African stakeholders, including the South African Revenue Service (SARS) and other departments, a revised document was resubmitted on Tuesday evening.
“Our proposal focuses on trade and investment areas in which we think there’s opportunity to increase trade between ourselves. We indicated that given our impending shortage on gas, the appetite to procure LNG (Liquefied Natural Gas) from the U.S., which was both in our discussions with the Ambassador and also in our discussions at the White House, was positively received, and it’s one of the areas that we will be following up on,” the Minister said.
The framework also includes provisions related to the African Growth and Opportunity Act (AGOA), which is currently under consideration for reauthorisation by the U.S. Congress.
Tau emphasised the importance of AGOA to South Africa, and noted that African trade ministers have agreed to develop a collective approach to engage the U.S. on the future of the agreement. A detailed South African proposition is expected to be presented at the upcoming U.S.-Africa Forum.
“The feedback we received in our engagements on Monday with regards to AGOA was that this is a matter that currently is in Congress, so it would be important for us to follow up in Congress with regards to the reauthorisation of AGOA.
“Having met with the trade ministers in Africa at the recent Africa Continental Free Trade Area Council of Ministers, we have agreed to develop a collective approach with regards to AGOA, and the U.S. has also indicated that they would be convening a U.S.-Africa Forum, where we intend to present in detail our proposition on AGOA but as South Africa, we have it in our document that the reauthorisation of AGOA is important,” Tau said.
In addition to AGOA, the proposal covers several strategic areas, including:
- The Southern African Customs Union (SACU): The document clarifies tariff and non-tariff issues, given that South Africa negotiates trade terms as part of this customs union.
- Digital Trade: Provisions were included to reflect the growing importance of the digital economy.
- Critical Minerals: South Africa is currently a key supplier of 12 of the USA’s listed critical minerals, with nine of those sourced primarily from South Africa. The Minister pointed to a recent transaction involving ASP Isotopes and a South African company for helium beneficiation, signalling growing U.S. investor appetite in this sector.
“Of the USA’s list of critical minerals, we supply 12 of those critical minerals to the U.S. market. We are the main provider of nine of those 12 critical minerals to the U.S. market, so they are an important partner with regards to critical minerals,” Tau said.
The South African delegation also expressed appreciation to the USTR for their participation in the recent G20 Trade and Investment Working Group hosted in the Western Cape.
Tau reaffirmed the country’s commitment to placing trade at the center of G20 deliberations and extended invitations to U.S. counterparts for future engagements.
Addressing investment matters, the Minister highlighted the success of South Africa’s Equity Equivalence Programme (EEP) designed to allow multinationals to meet local empowerment requirements through strategic investments instead of equity transfers.
Notable participants include Ford, through an automotive supply chain fund, and Citibank, which recently invested in the Vaal Special Economic Zone.
“We continue to attract meaningful investment under the EEP model, with tangible benefits for local enterprise development,” said Tau.
He also noted ongoing efforts to attract Tesla to invest in South Africa’s automotive manufacturing sector, citing previous conversations with CEO Elon Musk.
“We are continuing to pursue Tesla with regards to investing in South Africa as part of the original equipment manufacturers, and we intend to pursue that discussion with them… We met with Elon Musk in New York last year…
“I suspect today was a bit more indicative of an appetite to engage with us. But like any other investor, we’re going to continue to pursue investments into the South African economy and to pursue partnerships,” the Minister said.
Tau concluded by reaffirming South Africa’s commitment to strengthening trade and investment ties with the U.S. He said negotiations will commence almost immediately following the revised proposal submission, with both sides agreeing to deepen collaboration across several high-impact sectors. – SAnews.gov.za
