WASHINGTON, DC – South Africa has submitted a revised framework proposal to the United States, focusing on expanding trade and investment ties between the two countries.
This is according to Parks Tau, a minister of trade, industry and competition, who was part of a delegation that met with the US Trade Representative (USTR) on Monday.
The minister spoke to media members at the invitation of President Cyril Ramaphosa following high-level engagement held at the White House in Washington, D.C. on Wednesday.
Tau confirmed that the initial proposal was met with constructive feedback from the USTR and identified key areas that needed further elaboration.
The revised documents were resubmitted Tuesday evening following consultations with South African stakeholders, including South Africa's Revenue Services (SARS) and other sectors.
“Our proposals focus on the trade and investment areas that we believe will have an opportunity to increase trade among ourselves,” the minister said.
“Given the pressing shortage of gas, the appetite for procuring LNG (liquefied natural gas) from the US has been received actively in both discussions with the ambassador and in the White House discussions, which is one of the areas we follow.”
The framework also includes provisions related to the African Growth and Opportunity Act (AGOA), which is currently being considered for re-approval by the US Congress.
Minister Tau highlighted the importance of Agoa to South Africa, noting that Africa's trade minister agreed to develop a collective approach to engaging the US in the future of the agreement.
Detailed South African proposals will be announced at the upcoming US Africa Forum.
“The feedback we received during Monday's engagement regarding Agoa is an issue that is currently in Congress, so it's important to follow up in Congress regarding Agoa's re-approval,” Minister Tau said.
“After meeting with African trade ministers at the African Continental Free Trade Sphere Council recently, I agreed to develop a collective approach with regard to Agoa. The US plans to provide detailed Agonia propositions, but that is important in South Africa.
In addition to the AGOA, the proposal covers several strategic areas, including:
South Africa Customs Union (SACU): The document clarifies the issue of tariffs and non-tariffs given that South Africa is negotiating terms of trade as part of this customs union. Digital Trade: Contains provisions to reflect the growing importance of the digital economy. Critical Minerals: South Africa is currently the 12 major suppliers of the listed important minerals in the United States, with nine of those sourced primarily from South Africa. The Minister pointed to recent transactions involving South African companies for ASP isotopes and helium benefits, signaling an increase in US investors' desire for the sector.
“Of the list of important US minerals, we supply the US market with 12 of these important minerals,” the minister said.
“We are a key partner in key minerals as we are the leading provider of nine out of 12 key minerals for the US market.”
The South African delegation also expressed gratitude to USTR for its recent participation in the G20 trade and investment working group held in the Western Cape.
Tau reaffirmed the country's commitment to placing trade at the heart of G20 deliberations and expanded the invitation to US counterparts for future engagement.
Addressing the investment issue, the Minister highlighted the success of the South African Stock Equity Equity Programme (EEP), designed to allow multinationals to meet local empowerment requirements through strategic investments instead of stock remittances.
Notable participants include Citibank, which recently invested in the VAAL economic zone.
“We continue to attract meaningful investments under the EEP model, bringing concrete benefits to local enterprise development,” said Minister Tau.
He also cited his previous conversation with CEO Elon Musk, pointing to his continued efforts to attract Tesla to invest in the South African auto manufacturing sector.
“We continue to pursue Tesla regarding investment in South Africa as part of the original equipment manufacturer and intend to pursue discussions with them…I met with Elon Musk of New York last year…” Minister Tau said.
“I think today we showed a little more desire to interact with us.
“But like other investors, we will continue to pursue investment in the South African economy and pursue partnerships.”
The Minister concluded by reaffirming South Africa's commitment to strengthening trade and investment ties with the United States.
He said negotiations began almost immediately after submission of the revised proposal, and that both sides agreed to deepen collaboration in several shocking sectors.
– sanews.gov.za
