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SA offers new trade deal to US

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Home Business & Economy

SA offers new trade deal to US

by Editorial Staff
1 year ago
in Business & Economy
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Keypoints:

  • Cabinet approves a generous revised offer addressing US sanitary and phytosanitary concerns
  • South Africa diversifies markets in Asia, Middle East, India amid ongoing US engagement
  • Democratic Alliance warns tariffs may stick without changes to race-based policies

SOUTH Africa’s Cabinet has approved a revised trade-deal offer to Washington, in a bid to ease the steep 30 percent tariff imposed by US President Donald Trump on South African exports last week. Trade, Industry and Competition Minister Parks Tau confirmed the development at a press conference on Tuesday.

According to Tau, the new proposal directly addresses the concerns raised in the US 2025 National Trade Estimates Report, particularly around sanitary and phytosanitary standards. He further noted that forthcoming shipments of poultry and pork from the US, arriving in two weeks’ time, serve as proof that these issues are being resolved.

A broad and generous proposal, say ministers

Agriculture Minister John Steenhuisen described the offer as ‘broad, generous and open,’ one that meets the US’s ambition criteria and is mutually beneficial.

However, Steenhuisen—also leader of the Democratic Alliance (the second-largest party in the coalition)—warned that the tariff may remain unless South Africa signals willingness to reform certain domestic race-based policies, including affirmative action, which have drawn criticism from the Trump administration.

Diversifying markets and pushing ahead

Beyond US engagement, the government is stepping up efforts to diversify trade. Parks Tau said South Africa is pursuing new markets across Asia, the Middle East, and India to safeguard jobs and mitigate risks from US tariff reprisals.

Political and economic implications

This revised offer follows months of failed negotiations ahead of the Trump-imposed deadline, which resulted in South Africa facing the highest tariff rate in sub-Saharan Africa.

The Democratic Alliance continues to assert that without a shift in domestic policy, particularly around race and affirmative action, the proposed deal may not sway Washington.

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Editorial Staff

Editorial Staff

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