JOHANNESBURG, South Africa: South Africa is set to sign a trade agreement with China that will allow duty-free access for some South African exports, as Pretoria seeks to diversify its markets and reduce reliance on the United States, the trade ministry said on Thursday.
Trade Minister Parks Tau is travelling to China to finalise and sign the agreement, which will grant selected South African products duty-free entry into the Chinese market and encourage Chinese investment in Africa’s most industrialised economy, the ministry said in a statement.
“This trip comes at a time when South Africa is pursuing an objective of market diversification and export growth,” Tau’s office said, without specifying which sectors would benefit from the deal.
Shift towards China
China is South Africa’s largest trading partner by country, followed by the United States.
Beijing overtook the European Union as Pretoria’s top trade partner in 2023, with South Africa exporting mainly minerals and agricultural products to China, according to government data.
During his visit, Tau is also expected to meet executives from Chinese companies interested in investing in South Africa, the ministry said.
US tariffs strain ties
The move comes against the backdrop of rising trade tensions with Washington.
In August last year, US President Donald Trump imposed a 30 percent tariff on some South African exports, the highest rate applied to any country in sub-Saharan Africa.
Pretoria has warned that the tariffs could cost thousands of jobs and said it is seeking to negotiate a more favourable trade arrangement with the United States.
Relations between South Africa and the Trump administration have deteriorated over the past year due to a range of political and policy disputes, straining the transatlantic relationship.
The government says expanding access to alternative markets is key to sustaining export growth and shielding the economy from the impact of higher US tariffs.
