Cape town: Trade, Industry and Competition Minister Parks Tau has stated that South Africa continues to benefit from an extensive network of trade agreements with 90 countries, encompassing both preferential and non-preferential accords and representing 28% of the global GDP.
According to South African Government News Agency, Minister Tau addressed the Portfolio Committee on Trade, Industry and Competition, supported by Deputy Minister Alexandra Abrahams, to discuss South Africa’s current trade relations, ongoing negotiations, and strategies for managing a volatile global trading environment. He highlighted the seismic shifts in global trade, noting the rise of unilateral measures, retaliatory tariffs, and disruptions within the multilateral trading system.
Minister Tau emphasized that the share of world trade governed by World Trade Organisation (WTO) rules is projected to fall from 80% to 72% by 2025 due to geopolitical tensions and great-power competition, which are causing uncertainty and undermining predictable, rules-based trade systems. He urged the need for South Africa to reinforce its industrial base, diversify trade partners, and enhance economic resilience.
Minister Tau underscored the significance of African economic integration, citing the progress achieved under the African Continental Free Trade Area (AfCFTA), which has been in effect since May 2019. The AfCFTA is anticipated to bolster trade and economic growth across the continent, with trading commencing in January 2021. South Africa’s exports under the AfCFTA increased from R485 million in 2024 to R1.386 billion in the first seven months of 2025, while imports also saw a substantial rise.
South Africa began implementing the AfCFTA in January 2024, and by 2025, 24 African countries had started preferential trading. New market access has been unlocked in 13 non-SADC countries, with recent breakthroughs including agreements on critical rules of origin for autos and textiles, opening new opportunities for South African industries.
Minister Tau also mentioned ongoing engagements with the United States concerning a reciprocal trade deal to lower tariffs and enhance the competitiveness of South African exports. Despite the expiration of South Africa’s access to the African Growth Opportunity Act (AGOA) at the end of September, there is strong bipartisan support in Washington for its renewal, with proposals for extensions ranging from one to two years.
The Minister highlighted the department’s Butterfly Strategy, designed to mitigate global risks and expand export growth, aiming to increase South African exports from R2 trillion to R3 trillion by 2030. “We will focus our efforts on implementation and adopt a coherent approach to our trade agenda,” he concluded.