Parks Tau: South Africa Fights to Secure US Trade Deal Amid Global Shifts

South Africa Fights to Secure US Trade Deal as Tau Ramps Up Industrial Transformation Agenda

South Africa is racing against time to secure its continued access to US trade benefits as it navigates a rapidly shifting global economy. In a determined budget vote address, newly appointed Minister of Trade, Industry and Competition Parks Tau revealed that South Africa has submitted a Framework Deal to the US and signed a “condition precedent” document with the US Trade Representative, a critical step before finalising negotiations.

At the heart of this push is South Africa’s inclusion in the Africa Growth and Opportunity Act (AGOA), a key trade lifeline for local exporters. The country is also responding to the recently proposed US-South Africa Bilateral Relations Review Act, a development that has sparked diplomatic concern.

“The collective efforts of business, labour, and civil society in engaging the US Congress are central to our strategy,” Tau said, describing these engagements as “a key lever” in defending South Africa’s place in the US trade framework.

Forging New Alliances with China, Japan and the EU

While working to preserve its US ties, South Africa is also expanding its global partnerships. Tau highlighted “advanced conversations” with China on green industrialisation and in-country beneficiation of critical minerals. These efforts aim to unlock value in South Africa’s Special Economic Zones (SEZs) and industrial parks, key to driving the country’s reindustrialisation agenda.

In Asia, South Africa is also reinvigorating trade relations with Japan through the InvestSA initiative and collaboration with the Japan External Trade Organisation (JETRO).

On the European front, Tau confirmed that the government is ready to maximise the R90 billion facilitation funding tied to the Clean Trade and Investment Partnership (CTIP) signed with the EU in March. CTIP is seen as pivotal to South Africa’s decarbonisation plans, particularly as the continent braces for the economic impact of the Carbon Border Adjustment Mechanism (CBAM), which Tau warns could shrink Africa’s GDP by nearly 1%.

Tau vowed that South Africa would champion fair multilateral trade rules at the 14th WTO Ministerial Conference in Cameroon next year, pushing back against imbalanced climate-related trade mechanisms.

IDC Commits R12 Billion to Transformation

Deputy Minister Zuko Godlimpi laid out bold transformation targets backed by fresh funding from the Industrial Development Corporation (IDC), which has revised its commitment to R12 billion for the 2025/2026 financial year.

Of that amount:

• R7.4 billion is dedicated to black industrialists,

• R3.5 billion to women-owned businesses, and

• R1.5 billion to youth-led enterprises.

The funds aim to shift the ownership and control of productive assets and expand export-linked opportunities across provinces.

In KwaZulu-Natal, SME canegrowers and avocado producers are being linked to global markets. In the North West, black grain producers are set to benefit from a second round of funding. The Eastern Cape is advancing green hydrogen and agro-processing, while Gauteng sees a surge in transformative funding via supplier development pipelines.

Other provincial projects include:

• R50 million farming aggregator funding in Limpopo, expected to create 400 jobs;

• Green hydrogen and biofuels initiatives in Mpumalanga;

• Revitalised agri-infrastructure in the Free State;

• And support for black-owned poultry, plastics, and solar businesses in the Western Cape.

R11 Billion Dtic Budget Backs Incentives and Infrastructure

The Department of Trade, Industry and Competition (Dtic) has seen its 2025/26 budget rise to R11 billion, up from R9.6 billion the previous year. A significant 35.15% is allocated to business incentives, while 10.2% is targeted at infrastructure investment, accounting for a R5.2 billion boost in the incentive programme.

With its eyes fixed on Washington and its feet firmly planted in industrial soil, South Africa is threading a delicate needle, balancing global diplomacy with bold domestic transformation. Parks Tau and Zuko Godlimpi’s vision reflects a nation determined not just to trade better, but to build back stronger, fairer, and greener.

{Source: IOL}

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