South Africa has submitted a revised trade and investment framework to the United States, seeking to strengthen bilateral economic ties. This announcement was made by the Minister of Trade, Industry and Competition, Parks Tau, who was part of the South African delegation that met with the U.S. Trade Representative (USTR) earlier this week.
The Minister explained that the updated proposal reflects feedback received during the initial engagement and incorporates input from key domestic institutions such as the South African Revenue Service (SARS) and other relevant departments.
According to Minister Tau, the revised proposal outlines several priority areas for collaboration, including energy security. With South Africa anticipating a shortage in natural gas supplies, the country is looking to the U.S. as a potential supplier of liquefied natural gas (LNG). This matter featured prominently in the discussions with U.S. officials and was met with positive interest. Tau emphasized that this is one of the key areas that South Africa intends to pursue further.
African Growth and Opportunity Act
The framework also addresses the African Growth and Opportunity Act (AGOA), a U.S. trade program that offers duty-free access to African exports. With AGOA’s reauthorization currently before the U.S. Congress, South Africa is working closely with other African nations to develop a coordinated strategy for its renewal. Minister Tau stressed AGOA’s importance to South Africa’s export-driven sectors and confirmed that a detailed position paper will be presented at the upcoming U.S.-Africa Forum. The goal is to ensure continuity and long-term benefits from the program for both African countries and U.S. partners.
Beyond AGOA and energy, the proposal also covers other strategic areas such as digital trade, critical minerals, and the Southern African Customs Union (SACU). The document offers clarity on tariff and non-tariff issues, given South Africa’s role in negotiating trade deals on behalf of SACU. It also acknowledges the rapid growth of digital commerce and seeks to enhance cooperation in this field. Of particular interest is South Africa’s role as a major supplier of critical minerals—providing nine out of twelve minerals that the U.S. deems essential. A recent helium beneficiation agreement between U.S.-based ASP Isotopes and a South African company underscores the growing investor interest in this sector.
In terms of investment, Minister Tau highlighted the success of South Africa’s Equity Equivalence Programme (EEP), which allows multinational corporations to fulfill empowerment obligations through investment rather than equity transfer. Companies such as Ford and Citibank have participated in this initiative, investing in local supply chains and special economic zones. Tau also revealed ongoing efforts to attract Tesla to the country’s automotive manufacturing sector. Discussions with Tesla CEO Elon Musk have already taken place, and the South African government remains hopeful about future collaboration.
In closing, Minister Tau reaffirmed South Africa’s dedication to building a robust economic partnership with the United States. He noted that formal negotiations on the revised framework would begin soon, with both sides committed to advancing cooperation in high-impact sectors. The South African delegation also expressed appreciation for the USTR’s involvement in recent G20 trade meetings and extended an invitation for continued engagement in upcoming forums.