South Africa–US Trade Framework Deal: Strategic Trade Relations and Market Access Opportun
Full Media Statement on the South Africa–United States of America Engagement
On Wednesday, 24 June 2025, on the sidelines of the United States of America-Africa Summit in Luanda, Angola, the Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi engaged with the Assistant United States Trade Representative responsible for Africa, Ms Connie Hamilton.
The meeting followed the submission by South Africa on a proposed Framework Deal with the US on 20 May 2025 which outlines measures to enhance mutually beneficial trade and investment relations with the US. The submission of the Framework Deal was immediately followed by an engagement between President Cyril Ramaphosa and President Donald Trump in Washington on 21 May 2025.
The Framework Deal addresses US concerns relating to, among others, non-tariff barriers, trade deficit, and commercial relations though two-way procurement or import of strategic goods. It aims to also resolve long-standing market access issues of interests to both sides and to promote bilateral investments in a mutually beneficial manner.
South Africa is also seeking, through the Framework Deal to have some of the key export products exempted from the Sections 232 duties, including autos and auto parts, and steel and aluminium through tariff rate quotas. South Africa is also seeking the maximum tariff application of 10%, as a worst-case situation. The Framework also seeks exemption for Small and Medium Enterprises, counter-seasonal products and products that the US does not have productive capacity for.
In the Luanda session with Ms Hamilton, South Africa used the meeting to continue to raise its concerns with the impact of the reciprocal tariffs on especially African countries. In this regard, 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. It was advised that the template will be shared as soon as it has gone through the internal approval processes within the US Administration. South Africa welcomed this indication and expressed a preparedness to engage with the said template once finalised.
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. We reiterated this position in the engagement with Ms Hamilton.
“In this regard, we are of the view that South Africa may need to re-submit its Framework Deal in accordance with the new template. It is thus expected that the deadline may be shifted,” says the Minister of Trade, Industry and Competition, Mr Parks Tau.
“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 amicable solution to safeguard South African interests in the US market,” adds Tau.
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South Africa–US Trade Framework: A Strategic Step for African Economic Diplomacy
The proposed trade framework deal between South Africa and the United States marks a pivotal development in African trade policy and international market access. The emphasis on reducing non-tariff barriers, seeking exemption from Section 232 tariffs, and fostering bilateral investment represents a shift toward strategic trade alignment with global superpowers.
By prioritizing exports like autos, steel, aluminium, and counter-seasonal agricultural goods, South Africa aims to position itself as a reliable trade partner while safeguarding domestic industries from harsh reciprocal duties. The proposed tariff rate quotas and calls for exemptions for SMEs (Small and Medium Enterprises) indicate a deep understanding of the structural vulnerabilities of African economies.
Strategic Market Access and Tariff Exemptions
One of the critical highlights of the South Africa–US trade deal is the push for market access and the targeted exemption from punitive tariffs. Section 232 of the US Trade Expansion Act allows tariffs on the grounds of national security. However, applying this broadly to key African exports like steel and aluminium has hurt bilateral trade relationships.
Through the Framework Deal, South Africa seeks to negotiate tariff rate quotas that allow continued exports under reasonable conditions, as well as a cap of 10% maximum tariff for strategic products. These measures, if adopted, would represent significant progress for trade relations across the continent.
The Role of the New US Trade Template in Africa
During the meeting, the US disclosed plans to standardize trade engagements across sub-Saharan Africa via a new trade matters template. This template will govern how the US structures deals with African partners moving forward. South Africa’s proactive stance to re-align its proposal based on this template demonstrates readiness for compliance and collaboration.
This opens a new chapter for US–Africa trade relations that may bring uniformity, predictability, and transparency into negotiations. More importantly, it allows African countries to prepare their trade frameworks using the same benchmarks, fostering a more equitable playing field.
Importance of Strategic Patience in International Trade Negotiations
Minister Parks Tau’s remarks about exercising “strategic patience” resonate with a broader diplomatic philosophy. As South Africa urges its industry to avoid rushed decisions, it signals confidence in the negotiation process and trust in government capacity to advocate for national interests.
International trade negotiations, particularly those involving major players like the United States, are complex and require consensus-building, technical alignment, and time. The 90-day pause extension, if approved, will provide room for refinement and inclusion of all required clauses in the final deal.
Implications for African Continental Trade Policy
This development doesn’t only affect South Africa but could set a precedent for other African nations. It aligns with the aspirations of the African Continental Free Trade Area (AfCFTA) by pushing for fairer access to global markets and championing the removal of barriers to exports from Africa.
If successful, the framework could serve as a blueprint for future African trade arrangements with global powers, encouraging inclusivity, long-term investment, and enhanced competitiveness of African economies.
Conclusion: A Historic Opportunity for South Africa and Africa at Large
The South Africa–US Framework Deal is not just about tariffs—it’s about reshaping the structure of trade, correcting imbalances, and unlocking new paths for African economic growth. From reciprocal tariffs to regulatory clarity, and from market access to SME protection, this deal offers comprehensive strategic value.
As the new US trade template is finalized and adopted, South Africa’s readiness to engage reflects an ambition to lead Africa’s trade diplomacy. This proactive approach will likely strengthen its voice on the global stage while reinforcing regional trade resilience.
