[CTC] South Africa submits revised trade and investment proposal to United States

[Arthur Stamoulis]

https://www.sanews.gov.za/south-africa/south-africa-submits-revised-trade-and-investment-proposal-usa

*South Africa submits revised trade and investment proposal to United
States*

By Dikeledi Molobela



5/22/25



Washington, D.C. – South Africa has submitted a revised framework proposal
to the United States, focusing on expanding trade and investment relations
between the two countries.



This is according to the Minister of Trade, Industry and Competition, Parks
Tau, who was part of the delegation that met with the U.S. Trade
Representative (USTR) on Monday.



The Minister addressed members of the media at the invitation of President
Cyril Ramaphosa following high-level engagements 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, identifying key areas that required further elaboration.



Following consultations with South African stakeholders, including the
South African Revenue Service (SARS) and other departments, a revised
document was resubmitted on Tuesday evening.



“Our proposal focuses on trade and investment areas in which we think
there's opportunity to increase trade between ourselves. We indicated that
given our impending shortage on gas, the appetite to procure LNG (Liquefied
Natural Gas) from the U.S., which was both in our discussions with the
Ambassador and also in our discussions at the White House, was positively
received, and it's one of the areas that we will be following up on,” the
Minister said.



The framework also includes provisions related to the African Growth and
Opportunity Act (AGOA), which is currently under consideration for
reauthorisation by the U.S. Congress.



Tau emphasised the importance of AGOA to South Africa, and noted that
African trade ministers have agreed to develop a collective approach to
engage the U.S. on the future of the agreement. A detailed South African
proposition is expected to be presented at the upcoming U.S.-Africa Forum.



“The feedback we received in our engagements on Monday with regards to AGOA
was that this is a matter that currently is in Congress, so it would be
important for us to follow up in Congress with regards to the
reauthorisation of AGOA.



“Having met with the trade ministers in Africa at the recent Africa
Continental Free Trade Area Council of Ministers, we have agreed to develop
a collective approach with regards to AGOA, and the U.S. has also indicated
that they would be convening a U.S.-Africa Forum, where we intend to
present in detail our proposition on AGOA but as South Africa, we have it
in our document that the reauthorisation of AGOA is important,” Tau said.



In addition to AGOA, the proposal covers several strategic areas, including:



   - The Southern African Customs Union (SACU): The document clarifies
   tariff and non-tariff issues, given that South Africa negotiates trade
   terms as part of this customs union.
   - Digital Trade: Provisions were included to reflect the growing
   importance of the digital economy.
   - Critical Minerals: South Africa is currently a key supplier of 12 of
   the USA’s listed critical minerals, with nine of those sourced primarily
   from South Africa. The Minister pointed to a recent transaction involving
   ASP Isotopes and a South African company for helium beneficiation,
   signalling growing U.S. investor appetite in this sector.



“Of the USA's list of critical minerals, we supply 12 of those critical
minerals to the U.S. market. We are the main provider of nine of those 12
critical minerals to the U.S. market, so they are an important partner with
regards to critical minerals,” Tau said.



The South African delegation also expressed appreciation to the USTR for
their participation in the recent G20 Trade and Investment Working Group
hosted in the Western Cape.



Tau reaffirmed the country’s commitment to placing trade at the center of
G20 deliberations and extended invitations to U.S. counterparts for future
engagements.



Addressing investment matters, the Minister highlighted the success of
South Africa’s Equity Equivalence Programme (EEP) designed to allow
multinationals to meet local empowerment requirements through strategic
investments instead of equity transfers.



Notable participants include Ford, through an automotive supply chain fund,
and Citibank, which recently invested in the Vaal Special Economic Zone.



“We continue to attract meaningful investment under the EEP model, with
tangible benefits for local enterprise development,” said Tau.



He also noted ongoing efforts to attract Tesla to invest in South Africa’s
automotive manufacturing sector, citing previous conversations with CEO
Elon Musk.



“We are continuing to pursue Tesla with regards to investing in South
Africa as part of the original equipment manufacturers, and we intend to
pursue that discussion with them... We met with Elon Musk in New York last
year...



“I suspect today was a bit more indicative of an appetite to engage with
us. But like any other investor, we're going to continue to pursue
investments into the South African economy and to pursue partnerships,” the
Minister said.



Tau concluded by reaffirming South Africa’s commitment to strengthening
trade and investment ties with the U.S. He said negotiations will commence
almost immediately following the revised proposal submission, with both
sides agreeing to deepen collaboration across several high-impact sectors. –
 SAnews.gov.za
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