Natalie Nyathi
South Africa is likely facing the need to revise its proposed trade agreement with the United States, as the Trump administration is developing a new trade framework for engagements with sub-Saharan African nations. This development introduces uncertainty into the trade relationship between the two countries, particularly with existing agreements like the African Growth and Opportunity Act set to expire in September 2025.
The potential revision stems from a meeting in Luanda on June 24, 2025, where Deputy Trade Minister Zuko Godlimpi met with US Assistant Trade Representative Connie Hamilton. The US is creating a standardized “trade-matters template” for its dealings with sub-Saharan Africa, which will require South Africa to adjust its proposed Framework Deal. This deal, submitted to the US on May 20, includes measures to boost trade and investment, such as increased liquid natural gas imports, a joint fund for critical minerals exploration, and duty-free US quotas for the auto and steel industries.
South Africa is currently behind other nations like India and the UK in negotiating a trade deal with the US. The looming July 9 deadline, after which tariffs are scheduled to triple, adds further pressure. The US’s new approach emphasizes reciprocal trade and strategic alignment, potentially shifting away from a development-focused lens. This shift could impact South Africa’s preferential access to the US market, which it has enjoyed through AGOA.
The US’s changing trade policies, including increased tariffs, present both direct and indirect challenges for sub-Saharan Africa. While the direct impact on agrifood trade may be limited, the erosion of trade preferences could deepen the region’s vulnerability. South Africa, in particular, may experience adverse effects in sectors like wearing apparel, leather products, and other manufacturing.
Minister of Trade, Industry, and Competition Parks Tau has urged South African industries to remain patient and has assured that the government will explore all possible solutions to protect South African interests in the US market. The South African government is expected to engage with the US to find ways to align with the new trade template and safeguard its economic relationship with the United States.