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As South Africa continues to pursue a longer extension to the US free trade act with Africa, trade, industry and competition minister Parks Tau told parliament the country’s trade volumes with the largest economy in the world have grown despite diplomatic rifts.
Tau tabled the budget vote for his department on Tuesday afternoon. On trade relations with the US, Tau told the mini-plenary that to date, the African Growth and Opportunity Act (Agoa) has been extended, protecting exporter jobs.
“I must also emphasise that when one clears through the noise, our trade with the US remains strong. Exports from South Africa increased from R238bn in 2024 to R260bn in 2025, with more than 89% of these under the most favoured nation principle,” he said.
The return of US President Donald Trump to the White House for a second non-consecutive term spelt trouble for South Africa, as he almost immediately took a hostile stance towards the country, parroting false reports of white genocide and state-backed land confiscation. Trump used these discredited claims to justify unilateral tariffs on South African exports entering the US market, some of which have been abandoned and others ruled unlawful by the US Supreme Court.
Agoa was ultimately extended in February to the end of 2028, despite bipartisan talks of continuing the act of Congress without South Africa’s participation because of its proximity to states such as Iran, Russia and China, and South Africa’s ongoing case against Israel at the International Court of Justice over its war with Hamas.
Our aim is to change the composition of trade with China from exports comprised mainly of commodities [at] 93% to significantly increasing manufactured and value-added products
— Parks Tau, trade, industry and competition minister
While trade with the US remains healthy, Tau said South Africa needs to strengthen trade ties with other key strategic trade partners, including the EU, China and the various other markets on the African continent.
“Parliament approved South Africa’s ascension as a sovereign member of the Afreximbank, thus unlocking investment opportunities.
“In the EU, the CTIP [clean trade and investment partnership] and the Global Gateway initiative are starting to bear fruit with EU investment in clean energy and in the pharmaceutical sector. This financial instrument is benefiting several provinces, including the three Cape provinces, in the context of transitioning to our green hydrogen ambitions. These include projects in Prieska, Coega and Saldanha Bay.”
Tau said South Africa started trading under the China-Africa economic partnership agreement framework in May, providing duty-free access to the 1.4-billion-strong market in targeted sectors. “Our aim is to change the composition of trade with China from exports comprised mainly of commodities [at] 93% to significantly increasing manufactured and value-added products.”
The government is also finding areas of interest for South African exporters and working on complementarities with South American counterparts, he said. “On Mercosur, our preferential trade agreement remains one of the most significant areas of potential expansion.”
South Africa is also unlocking investment in agriculture, oil and gas, mining, capital and chemical equipment with members of the Gulf Co-operation Council, he added.
TimesLIVE
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