Luanda: The Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, recently met with Connie Hamilton, the Assistant United States Trade Representative for Africa, during the United States of America-Africa Summit in Luanda, Angola. The discussion focused on strengthening trade and investment relationships between South Africa and the United States.
According to South African Government News Agency, the meeting followed South Africa’s submission of a proposed Framework Deal to the US on 20 May 2025. This deal outlines strategies to enhance mutual trade benefits and investment relations. The submission was promptly followed by a meeting between President Cyril Ramaphosa and President Donald Trump in Washington on 21 May 2025.
The Framework Deal aims to address US concerns about non-tariff barriers, trade deficits, and commercial relations through a two-way procurement of strategic goods. It also seeks to resolve market access issues and promote bilateral investments in a mutually beneficial manner. South Africa is advocating for exemptions on key export products, such as autos, auto parts, steel, and aluminum, from Section 232 duties, alongside a maximum tariff application of 10% as a worst-case scenario.
Moreover, South Africa is pressing for exemptions for small and medium enterprises, counter-seasonal products, and goods the US lacks productive capacity for. During the meeting, South Africa raised concerns about the impact of reciprocal tariffs on African countries.
A significant outcome of the meeting is the US’s development of a trade-matters template for engagement with sub-Saharan African countries. This template, once approved internally by the US Administration, will be shared with South Africa, which expressed readiness to engage with it.
Given the developments and the looming deadline for the expiry of the 90-day pause on 9 July 2025, African countries, including South Africa, have advocated for an extension. This extension would allow countries to prepare their proposed deals in line with the new template.
Minister of Trade, Industry and Competition, Parks Tau, emphasized the potential need for South Africa to re-submit its Framework Deal according to the new template and encouraged local industries to exercise strategic patience as the government continues to engage with the US to secure South African interests.