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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Issued by: The Department of Trade, Industry and Competition (the dtic)
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