South Africa is taking a major step toward duty-free access to the Chinese market after Trade Minister Parks Tau signed a Framework Agreement on Economic Partnership with his Chinese counterpart, Wang Wentao. The agreement sets the stage for an Early Harvest deal expected by March 2026, which would allow South African exports to enter China without tariffs.
US Tariffs Push South Africa to Diversify
The move comes amid growing trade tensions with the United States. Last year, U.S. President Donald Trump imposed a 30% tariff on several South African exports, including agricultural products, automotive goods, and textiles. Only 35% of exports, such as copper, pharmaceuticals, semiconductors, and critical minerals, were exempted. These tariffs have accelerated South Africa’s push to explore new markets and reduce reliance on the U.S.
Chinese Investment Opportunities Highlighted
Deputy Trade Minister Zuko Godlimpi emphasized that the partnership offers opportunities for Chinese investments in manufacturing, services, energy transition, and infrastructure. He described the agreement as a chance to forge “a mutually beneficial future” while strengthening economic ties between the two nations.
Trade Imbalance and Future Goals
Currently, South African exports to China are dominated by minerals, while Chinese exports to South Africa are mostly manufactured goods. Both countries aim to rebalance this trade relationship, ensuring broader benefits for South Africa’s industrial and export sectors.
Strategic Move Amid Global Trade Shifts
The agreement is seen as a strategic response to global trade turbulence, protecting South African businesses from shocks and positioning the country for growth. By securing duty-free access to China, South Africa strengthens its ties with a key economic partner and opens doors to new investment and trade opportunities. Source: Reuters
