SA Engages US on New Trade Framework, Seeks Exemptions and Extended Deadline

South Africa is intensifying diplomatic efforts to solidify and expand its trade and investment relationship with the United States. At the recent United States of America–Africa Summit held in Luanda, Angola, Deputy Minister of Trade, Industry and Competition Zuko Godlimpi held crucial bilateral talks with Connie Hamilton, the US Assistant Trade Representative for Africa. The engagement follows the formal submission by South Africa of a proposed Framework Deal on 20 May 2025, aimed at addressing longstanding trade issues and creating new avenues for cooperation.

This Framework Deal, central to current negotiations, outlines mutually beneficial trade reforms and market access measures, and comes at a pivotal moment in US–Africa relations. A day after its submission, President Cyril Ramaphosa met with US President Donald Trump in Washington, signaling high-level political commitment to the process.

Framework Deal: A Comprehensive Trade Proposal

The proposed Framework Deal between South Africa and the US addresses several key issues, including:

• Non-tariff barriers that hinder South African exports,

• The persistent trade deficit between the two countries,

• Bilateral procurement mechanisms to enhance two-way trade in strategic goods,

• Exemptions for specific South African exports from punitive US tariffs under Section 232.

Specifically, South Africa is requesting that exports such as automobiles, auto parts, steel, and aluminium be exempted from Section 232 duties through tariff rate quotas (TRQs). In a worst-case scenario, South Africa proposes that the maximum tariff applied should not exceed 10%.

The Framework also advocates for exemptions on:

• Products from small and medium enterprises (SMEs),

• Counter-seasonal agricultural goods,

• Products the US does not produce domestically.

“This Framework represents a critical attempt to recalibrate our trade relationship with the US in a way that supports South African jobs, industrial growth, and value-added exports,” Godlimpi said.

US Developing New Trade Template for Sub-Saharan Africa One of the most significant developments arising from the Luanda discussions was the US disclosure that it is working on a new trade-matters template to guide its engagements with sub-Saharan African countries. This template is currently undergoing internal approval within the US administration and is expected to be shared with African partners soon.

South Africa welcomed the initiative, describing it as a positive step toward greater predictability and standardization in trade negotiations.

However, given the new direction indicated by this template, it is now expected that countries will have to align or revise their proposals accordingly.

“We are of the view that South Africa may need to re-submit its Framework Deal in accordance with the new template,” stated Minister of Trade, Industry and Competition Parks Tau.

Deadline Pressure: Advocating for Extension of 90-Day Pause

A critical concern emerging from the talks is the looming expiration of a 90-day pause period, which was set to allow African countries time to negotiate updated trade deals with the US. The deadline, currently scheduled for 9 July 2025, is seen as insufficient for fully aligning with the new US trade template.

As such, South Africa—alongside other African nations—has formally advocated for an extension of the 90-day deadline, citing the need to carefully revise proposals and ensure they meet new standards.

This pause period is crucial in light of reciprocal tariffs and duties imposed by the US, which have been detrimental to African exports, particularly in steel, aluminium, and agricultural goods.

Calls for Strategic Patience from Industry

Minister Parks Tau urged South African industry stakeholders to exercise “strategic patience” and avoid hasty decisions that may jeopardize the country’s long-term trade interests.

“Government will continue to use every avenue to engage the US government to find amicable solutions to safeguard South African interests in the US market,” said Tau.

He emphasized that maintaining access to the US market, which remains one of South Africa’s largest non-African trading partners, is vital for job creation, investment, and economic resilience.

What’s at Stake: Strategic Exports and Industrial Growth At stake are several critical sectors for South Africa, including:

• Automotive manufacturing, one of the country’s largest industrial employers and export earners.

• Metals and mining, where exports of steel and aluminium are vulnerable to high US tariffs.

• Agri-processing, particularly counter-seasonal fruit exports that help fill gaps in the US market.

• SMEs and emerging exporters, who may benefit greatly from exemptions and simplified trade pathways.

The proposed deal also seeks to deepen investment flows, encourage technology transfers, and create conditions for joint procurement opportunities that serve both nations’ strategic industries.

Looking Ahead: Continued Engagement and Policy Adaptation

As the July deadline approaches, all eyes are on the US trade office’s pending template, which will serve as the benchmark for finalising Framework Deals. South Africa remains committed to engaging constructively and ensuring that its revised proposal reflects both national interests and regional development goals.

Further engagements are anticipated over the coming weeks, including ministerial consultations and technical negotiations, as both countries navigate a complex trade environment marked by shifting geopolitics, protectionist pressures, and evolving economic alliances.

Toward a Modern, Mutually Beneficial Trade Framework

The ongoing dialogue between South Africa and the US signals a renewed commitment to building a modern, flexible, and fair trade relationship. Through the Framework Deal and future engagements under the forthcoming US trade template, South Africa hopes to secure durable access to the US market while advancing inclusive economic development and industrialization.

The road ahead may be complex, but with strategic alignment and diplomatic resolve, South Africa aims to safeguard its national economic interests and foster deeper ties with one of its most important trade partners.