CAPE TOWN: Uncertainty stemming from high import tariffs imposed by the United States is accelerating South Africa’s push to deepen economic ties with partners such as China – even if it means raising uncomfortable issues, said South Africa’s Trade, Industry and Competition Minister Parks Tau.

“China's importance has increased,” Tau told CNA on Wednesday (Feb 11), a few days after both nations signed a framework agreement for a new trade deal.

“This is our number one trading partner, so the fact that China has made the point and said, ‘Look, we're creating access to (our) market for you’ is a significant statement,” he added.

South Africa's Ministry of Trade and Industry said the agreement would start negotiations over a deal that would give some South African goods duty-free access to the Chinese market. 

The deal is expected to be finalised by the end of March.

The ministry said that in return, China will get enhanced investment opportunities in South Africa.

Washington has imposed 30 per cent tariffs on some South African goods under President Donald Trump’s reciprocal tariffs policy - one of the higher rates applied across the world. South Africa has said it is still negotiating with the US for a better deal.

The move also comes shortly after the Trump administration renewed a longstanding free-trade agreement between the US and African nations only until the end of this year.

“CONSCIOUS AND STRATEGIC DECISION”

Tau described the latest trade deal with Beijing as a “conscious and strategic decision” to build on an existing partnership.

“Part of the agreement is about how we create opportunities for South African companies to invest in China; how Chinese companies can invest in South Africa. We are significant importers of Chinese products, including automotives,” he pointed out.

He added that discussions include expanding Chinese automotive manufacturing in South Africa, where Chinese car sales have seen rapid growth.

For example, Chinese state-owned automobile manufacturer Beiji...