Amid shifts taking place in global trade, Trade, Industry and Competition Minister Parks Tau has emphasised the work being done by his department to ensure South Africa maintains its competitive position in the global trading arena.

During the National Council of Provinces budget vote speech, on July 24, he said the Department of Trade, Industry and Competition (dtic) had been in discussions with the US.

Having submitted a Framework Deal in May, Tau pointed out that the dtic had signed a conditions precedent document with the office of the US Trade Representative as a precursor to the finalisation of the negotiations.

Tau said this work was proceeding while South Africa continued to explore and strengthen other global markets and transform its role in global trade to ensure it moved beyond being a mere exporter of goods to becoming a creator of value, a regional connector, and a catalyst for shared prosperity, with Africa at the centre of global trade.

The Minister said the dtic’s collective work – which included input from business, organised labour and civil society – in engaging the US Congress was also a key lever in its “toolkit” for its approach to ensuring the continued inclusion of South Africa in the Africa Growth and Opportunity Act (Agoa) and to respond to the recently proposed US-South Africa Bilateral Relations Review Act.

“Undoubtedly, we are witnessing seismic shifts in global trade that present both challenges and opportunities in the re-ordering of the global economy.

“This zeitgeist moment is punctuated by a shift from a unipolar to a multipolar world. In turn, this moment is marked by intensifying global competition and growing geopolitical tensions,” Tau said.

He noted that policies such as the Carbon Border Adjustment Mechanism (CBAM) in the EU, and the CHIPS and Science Act and the Inflation Reduction Act in the US, create an increased protectionist environment which posed an “uphill battle” for the countries of the Global South, including South Africa.

He expressed that the EU’s CBAM alone had the potential to create an almost 1% contraction in GDP on the African continent.

“In the face of this, South Africa remains firm that the multilateral trading system with the World Trade Organisation and the UN at their core, must be preserved until all member States are able to reach their developmental goals.”

As previously reported in Engineering News, President Cyril Ramaphosa has assured that discussions with the US are ongoing and expressed optimism about the outcome of these engagements amid the threat of 30% tariffs on South African exports to the US looming from August 1.

Speaking on the sidelines of his visit to BMW Group South Africa’s operations in Tshwane, the President also acknowledged the Bill recently approved by the US House of Representatives Foreign Affairs Committee that seeks a full review of the bilateral relationship between the US and South Africa and also seeks to identify South African government officials and African National Congress leaders that are “eligible for the imposition of sanctions”.

Ramaphosa said discussions between both countries would continue as the Bill process unfolded in the US, noting that he was unsure as to the reason for the Bill.

AGRICULTURAL SECTOR RESPONSE

Meanwhile, during an RSA Group stakeholder dinner on July 24, Democratic Alliance leader and Agriculture Minister John Steenhuisen noted that the looming 30% tariff by the US would affect exports of citrus from South Africa.

“This is a deeply troubling development and one that we have not taken lightly,” he expressed.

While the Agoa preferences technically remain on the books, Steenhuisen said these tariffs, in practical terms, rendered the agreement inert.

“Let me be clear: South African agriculture did not deserve this treatment. We do not dump, we do not distort and we do not play geopolitical games with food."

Steenhuisen noted that his department continued to work with Tau and the dtic to ensure the full impact of US tariffs on the agricultural sector was well understood.

He noted that the agriculture department was supplying the evidence, the case studies and the “real-world perspectives” that only industry could provide.

“We are supporting proposals for tariff exemptions during off-season windows, as well as exploring transitional mechanisms such as limited-duty quotas, parallel phytosanitary agreements, and in some cases, reciprocal access to our own market for US produce, provided our biosecurity standards are respected.”

Additionally, Steenhuisen noted that, through the Southern Hemisphere Association of Fresh Fruit Exporters, his department was working with peer countries such as Chile, Peru and New Zealand to jointly lobby for fair and stable trade treatment of fresh produce.

“This multilateral coordination sends a strong message. Let us not waste this moment. If it takes a jolt to remind us of the risk of over-reliance, then let it be a productive jolt. However, the real solution lies not just in playing defence, but in going on the offensive. This is why we are doubling down on market access expansion.”

Over the past six months, Steenhuisen noted, his department had finalised new phytosanitary protocols for the export of avocados to China; table grapes to Vietnam and the Philippines; and maize to India.

He said negotiations were at an advanced stage with Indonesia, Thailand and Bangladesh.

“Our goal is simple – to ensure that no South African fruit producer is ever left dependent on the goodwill of a single trading partner.”

He noted that the department was also building institutional capacity locally by strengthening local plant health systems, expanding traceability capabilities and digitalising export certification platforms to align with the EU’s Green Deal and Asia’s growing demand for sustainability-linked imports.

“These investments are not just defensive; they are the launchpad for new growth,” he said.

“The story of South African agriculture has always been one of ingenuity, grit and partnership. We have overcome political transition, trade embargoes, droughts, pandemics, and port crises.

“We will overcome these current headwinds too. However, we will do it faster, and better, if we move together. My department is open for business, open for reform, and open for ideas,” he continued.