South Africa could have an outline of a possible trade deal with the United States by the end of October, following substantive progress in ongoing discussions between Pretoria and Washington, the Sunday Times reported over the weekend.
According to the front-page report, it is the first time that the Trump administration has replied “in text” since the Government of National Unity first tabled a trade proposal with the US in May.
The response marks the first exchange of draft texts in years and signals a return to negotiations of real technical depth.
This development provides a renewed basis for dialogue at a time of growing uncertainty in the global trade environment.
While government officials have avoided describing the development as a breakthrough, the fact that negotiations are now centred on specific textual proposals represents a meaningful step forward, Kgothatso Madisa reports for the Times.
The progress comes against the backdrop of prolonged tensions following the United States’ imposition of a 30% tariff on certain South African goods, primarily affecting the agriculture and automotive sectors.
The Minister of Trade, Industry and Competition, Parks Tau, confirmed that discussions had begun to elaborate on the content of the revised text and that both sides had agreed on further exchanges of documentation. The United States submitted an updated draft last week, following senior-level engagement.
According to the report, President Cyril Ramaphosa’s presence at the 80th session of the UN in New York has been instrumental in promoting some sort of trade arrangement with Washington.
Addressing the South Africa–US Trade and Investment Dialogue during the United Nations General Assembly, he emphasised that the African Growth and Opportunity Act (Agoa) had sustained employment in diverse sectors, from automotive assembly to advanced manufacturing. He also stressed that Agoa access was vital, not only for South African exporters but also for the more than 600 US companies operating locally.
Ramaphosa said tariffs had already disrupted supply chains and created uncertainty for both exporters and importers. He reaffirmed South Africa’s readiness to engage with the United States on solutions that are mutually beneficial and sustainable. He also welcomed the planned launch of a new bilateral trade and investment forum, scheduled to convene in South Africa in 2025.
Minister Tau confirmed that South Africa would submit its revised counteroffer within two to three weeks, pending cabinet approval. While lowering tariffs remains the anticipated outcome, he cautioned that the negotiations would not be straightforward. Formal sessions are expected before the end of October, with talks likely to intensify.
Tau added that discussions would be complex, given that the US viewed current arrangements as disadvantageous, while South Africa remained focused on protecting national interests, preserving jobs and safeguarding its industrial base.
He also highlighted that, even as negotiations progressed with Washington, South Africa was reinforcing trade links with Africa, which remained its most important trading destination. He pointed to the African Continental Free Trade Area as key to boosting intra-African trade and regional industrialisation.
Tau also said that although there seemed to be a willingness in certain US circles to extend Agoa, the decision ultimately rested with the US Congress.
