The South African government, through department of trade, industry and competition, has said they are pushing for the United States’ 90-day tariff hike deadline to be pushed further. The deadline ends on Wednesday.
The department said the government has submitted a framework deal with the US, which outlines measures to enhance mutually beneficial trade and investment relations.
“The framework deal addresses US concerns relating to, among others, non-tariff barriers, trade deficit, and commercial relations through two-way procurement or import of strategic goods. It aims to also resolve long-standing market access issues of interest to both sides and to promote bilateral investments in a mutually beneficial manner,” the department stated.
“One of the key issues that emerged from the meeting is that the US is developing a trade-matters template which will be the basis for its engagements with countries in sub-Saharan Africa.”
More time is needed
Trade, industry and competition minister, Parks Tau, said following President Cyril Ramaphosa and a high-level delegation’s trip to the US, a meeting between South Africa and US officials happened on the sidelines of the US-Africa Business Summit.
“In view of this development, including the limited time between now and the deadline for the expiry of the 90-day pause, scheduled for 9 July 2025, African countries, including South Africa, have advocated for the extension of the 90-day deadline to enable countries to prepare their proposed deals in accordance with the new template,” he said.
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Tau said in that regard, South Africa may need to resubmit its framework deal under the new template. It is thus expected that the deadline may be shifted.
“We urge the South African industry to exercise strategic patience and not take decisions in haste, and that government will continue to use every avenue to engage the US government to find an amicable solution to safeguard South African interests in the US market,” he said.
Tau further noted that in looking for alternative markets, their renewed intent with the European Union (EU) focuses on a Clean Trade and Investment Partnership (CTIP), backed by an initial R90 billion commitment, which opens vital duty-free access for exports in key sectors like dairy for the local production of
Amarula.
“In the Gulf, we have value that is waiting to be extracted. We have been having fruitful consultations with Saudi Arabia to conclude our long-overdue Joint Economic Commission. The commission will unlock investment in agriculture,” he said.
Citrus industry awaits verdict
Meanwhile, the chief executive officer of the Citrus Growers’ Association, Dr Boitshoko Ntshabele, said uncertainty regarding US import tariffs is causing anxiety as growers are increasingly unable to plan for the full season.
“Securing favourable access to the US market should be a priority, and so should improving access to China and India, two countries currently imposing tariffs on South African citrus. Without improved access in all markets and opening new markets, the increase in citrus production cannot be channelled into new jobs.
“But in the current uncertain trade environment, and considering the economic pressures many of our growers experience, continued growth in our sector should not be taken for granted. It requires constant action from a range of role players,” he said.
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