The South African government plans to use the 90-day suspension of the imposition of “reciprocal” tariffs by the United States to try to negotiate a bilateral trade deal with the US that benefits both countries.
Trade minister Parks Tau said South Africa was moving to finalise a “mutually beneficial” trade offer to the US, and normalise its relations with that country, Engineering News reported, citing an interview on Radio 702.
He referred to the African Growth and Opportunities Act (AGOA), a US law that offers African countries, including South Africa, duty-free access to US markets without those countries being required to offer similar benefits to the US.
Tau indicated that the South African government was preparing to make a firm offer that took account of the US administration’s indication that it no longer favoured unilateral trade arrangements and was seeking “agreements that go both ways”, Engineering News said.
“Tau gave the assurance to vulnerable sectors, including the automotive and agricultural industries, that the engagement would be oriented towards finding solutions and to tackling the uncertainty that made it difficult for business to make long-term investment decisions,” it reported.
African trade ministers would meet in the Democratic Republic of Congo next week to deliberate on their response to the new US position ahead of the next round of AGOA discussions, which were scheduled to take place in June or July, ahead of a final review decision by the US Congress in September.
