SA Resubmits Revised Trade Proposal to US: Seeks LNG, AGOA Renewal & Tesla Investment

In a significant move to deepen economic ties with the United States, South Africa has formally submitted a revised trade and investment framework to the U.S. government. This development follows high-level diplomatic engagements in Washington D.C. earlier this week and reflects South Africa’s strategic intent to expand bilateral trade, foster investment, and promote regional industrial development.

South African Minister of Trade, Industry and Competition, Parks Tau, confirmed during a media briefing that the proposal had been presented to the Office of the U.S. Trade Representative (USTR) on Monday and subsequently revised and resubmitted on Tuesday evening. The revisions were informed by consultations with domestic stakeholders, including the South African Revenue Service (SARS), and a range of government departments.

Tau noted that the initial feedback from the USTR was “constructive,” with key areas identified for further elaboration. “Our proposal focuses on trade and investment areas in which we think there's opportunity to increase trade between ourselves,” he stated.

LNG Procurement and Energy Security

A central theme of the discussions was South Africa’s emerging need to secure energy resources, especially natural gas. Tau highlighted the nation’s “appetite to procure LNG (Liquefied Natural Gas) from the U.S.”—a point that was received positively during meetings both with the U.S. Ambassador and at the White House. The LNG talks are intended to help offset an impending gas shortage, which has significant implications for South Africa’s energy strategy and industrial development.

AGOA Renewal: A Continental Priority

Another focal point of the proposal is the African Growth and Opportunity Act (AGOA), which is currently under review by the U.S. Congress. Tau underscored the agreement’s critical importance to South Africa’s exports and broader African economic integration.

South Africa’s revised document reiterates its support for AGOA’s reauthorisation, with the Minister revealing that African trade ministers had reached a consensus to present a united front to the U.S. “We have agreed to develop a collective approach with regards to AGOA,” he said, indicating that a detailed South African proposition will be showcased at the forthcoming U.S.-Africa Forum.

Strengthening Trade Architecture: SACU, Digital Trade & Minerals

The revised framework also outlines mechanisms for enhancing bilateral trade through existing regional and technological platforms. Among these are:

• Southern African Customs Union (SACU): The document clarifies tariff and non-tariff barriers within SACU, which South Africa uses to negotiate trade terms as a collective.

• Digital Trade: Recognising the burgeoning digital economy, the proposal includes specific provisions aimed at fostering cross-border digital services and innovation.

• Critical Minerals: South Africa emphasized its position as a vital supplier of U.S.-listed critical minerals, particularly highlighting that it provides 12 of the U.S.’s critical minerals—being the primary source for nine of them. Minister Tau cited a recent deal involving ASP Isotopes and a South African company for helium beneficiation as a promising sign of growing U.S. investor interest.

Strategic Investment Partnerships and the EEP Model

Tau also spoke extensively about the success of the Equity Equivalence Programme (EEP), a South African initiative that enables multinational corporations to meet Broad-Based Black Economic Empowerment (B-BBEE) targets through strategic investment rather than shareholding dilution.

Significant investments under the EEP include:

• Ford Motor Company: Through the establishment of an automotive supply chain fund.

• Citibank: With its recent commitment to developing the Vaal Special Economic Zone.

“These initiatives deliver tangible outcomes for local enterprise development and job creation,” said the Minister, emphasizing the model’s effectiveness in attracting quality investment while advancing socio-economic objectives.

Pursuing Tesla and High-Tech Manufacturing

In a particularly ambitious note, Minister Tau revealed that South Africa is actively pursuing investment from Tesla, the American electric vehicle and clean energy giant. “We are continuing to pursue Tesla with regards to investing in South Africa as part of the original equipment manufacturers,” he stated.

Referring to a previous engagement with Tesla CEO Elon Musk in New York, Tau hinted at renewed interest from the company in considering South Africa as a manufacturing base. “I suspect today was a bit more indicative of an appetite to engage with us... we’re going to continue to pursue that discussion,” he added.

Reinforcing G20 Leadership and Future Collaboration

The South African delegation also expressed gratitude to the USTR for their active participation in the recent G20 Trade and Investment Working Group meetings hosted in the Western Cape. Minister Tau emphasized South Africa’s commitment to keeping trade at the core of G20 deliberations and extended future invitations to U.S. counterparts for deeper bilateral cooperation.

Next Steps: Immediate Negotiations and High-Impact Focus

The submission of the revised framework signals the beginning of a new phase in South Africa-U.S. economic engagement. According to Tau, negotiations will commence immediately, with both governments agreeing to focus on high-impact sectors such as energy, manufacturing, digital trade, and critical minerals.

“This is not just about bilateral trade—it’s about reshaping our economic relationship to respond to global shifts in energy, technology, and inclusive growth,” Tau concluded.

As South Africa positions itself as a leading gateway to the African continent, the revised framework represents a bold step forward in building a resilient and mutually beneficial trade architecture with the United States.