South Africa Reviews Trade Negotiations Amid Shifting Global Landscape

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The Department of Trade, Industry and Competition (the dtic) presented an update to Parliament on the state of South Africa’s trade relations and ongoing negotiations, highlighting the country’s efforts to strengthen regional integration and navigate complex global trade dynamics.

Global Environment and Geopolitics

The presentation detailed rising global protectionism, weakening multilateral systems, and emerging trade tensions. Trends such as carbon border taxes (CBAMs), geopolitical instability, and retaliatory tariffs have created new market access challenges for developing economies like South Africa.

Trade Snapshot (2024)

Exports: R2.04 trillion globally
Imports: R1.7 trillion
Trade surplus: R341 billion
Key export markets: Africa, EU, China, USA, UK

AfCFTA Implementation

South Africa began implementing tariff concessions under the African Continental Free Trade Area (AfCFTA) in January 2024. As of March 2025, SA exported R820 million worth of goods under AfCFTA preferences. Remaining negotiations include finalising Rules of Origin for autos and textiles, and concluding Phase II protocols on Competition, Investment, Intellectual Property, and Women and Youth in Trade.

South Africa has tabled two of these protocols—on Competition Policy and Women and Youth in Trade—for parliamentary ratification.

SADC-EU Economic Partnership Agreement

Total trade with the EU grew to R798 billion in 2024. SA’s exports rose 82% since 2016, reaching R370 billion. Challenges remain around environmental trade restrictions, particularly citrus exports. The recent SA-EU Summit yielded a €4.7 billion investment pledge and discussions on electric vehicle trade and clean energy.

SACU+Mozambique–UK EPA

Trade with the UK reached R128 billion in 2024. Concerns were raised over the UK’s proposed CBAM, which could affect 4.2% of SA exports. South Africa continues to engage the UK for exemptions or transitional provisions.

SA-US Trade and AGOA

Total SA-US trade (goods and services) reached $26.3 billion in 2024. SA’s AGOA exports totaled $3.76 billion, representing 26% of exports to the US. However, the US has imposed a temporary 30% reciprocal tariff on SA goods, pending negotiations. SA has proposed a new trade framework to retain AGOA benefits and mitigate tariff impacts.

Other Agreements and Platforms

BRICS: Focus on investment, digital economy, and WTO reform.
G20: As 2025 G20 chair, SA has proposed priorities including green industrialisation and trade inclusivity.
SACU-MERCOSUR PTA and SACU-EFTA FTA: Reviews are underway, with efforts to improve utilisation of tariff preferences and market access.

Key Takeaways:

South Africa is expanding its trade footprint under AfCFTA, while managing uncertainty from protectionist policies globally.
Engagements with major partners—EU, US, UK, BRICS—are active, with trade diversification and industrialisation at the core.
Ratification of AfCFTA protocols on Competition and Women & Youth in Trade is progressing in Parliament.