South Africa is close to concluding a trade agreement with the United States that could reduce tariffs and protect local jobs, trade minister Parks Tau said during a trade and investment event in the Drakensberg on Saturday.
Tau noted that the two countries are "on the verge of negotiating an agreement around tariffs, and how they can be reciprocally beneficial." He did not disclose further details but confirmed that discussions had made progress.
© DTIC
The negotiations come after the United States imposed 30% tariffs on South African exports in August under the administration of President Donald Trump. The tariffs have placed pressure on key sectors, including automotive manufacturing and citrus production, both of which rely heavily on U.S. market access.
Tau recently met with U.S. Trade Representative Jamieson Greer in Washington, where he described the talks as "tough," noting that they involved several challenging topics. Among them were U.S. concerns about South Africa's Black Economic Empowerment (BEE) policies and what Tau referred to as "so-called" claims made by Trump regarding the alleged genocide of white Afrikaans farmers.
"The government will not abandon BEE," Tau stated, reaffirming South Africa's commitment to its economic transformation framework. He added: "It's tough discussions, sometimes uncomfortable, and we continue to engage with them and build trust."
Officials from the U.S. Trade Representative's office have not yet commented on the status of the negotiations.
The potential trade agreement is seen as an important step in maintaining stable relations between the two countries and safeguarding thousands of South African jobs linked to exports. The outcome of the talks is expected to determine whether existing tariffs can be reduced or restructured to ensure continued market access for South African goods in the United States.
Source: The South African
