South Africa finalises a duty-free trade agreement with China, aiming to diversify markets and attract investment amid strained US trade relations.
JOHANNESBURG: South Africa is finalising a duty-free trade agreement with China as it seeks to diversify its export markets.
Trade Minister Parks Tau is travelling to China to sign the pact, which will grant South African exports duty-free access to the Chinese market and aims to attract investment.
“This trip comes at a time when South Africa is pursuing an objective of market diversification and export growth,” the trade ministry said.
The ministry did not specify which sectors would benefit from the new duty-free access.
China became South Africa’s largest trading partner in 2023, overtaking the European Union.
South Africa primarily exports minerals and agricultural products to China.
Minister Tau will also meet with Chinese companies interested in investing in South Africa during his visit.
The deal comes as South Africa navigates strained trade relations with the United States.
The US imposed 30% tariffs on some South African products in August last year.
Pretoria fears these tariffs could cost thousands of jobs and is trying to negotiate a better trade deal with Washington.
Tensions between the South African government and the Trump administration have escalated over the past year.
These tensions have disrupted the transatlantic relationship over a range of issues.
