Ramaphosa: SA Engages US for Fair Trade Deal, Leverages Minerals and Exports

Ramaphosa stressed that government’s priority is to safeguard continued access to the American market — South Africa’s second-largest trading partner — while promoting bilateral investment flows.

 

President Cyril Ramaphosa has confirmed that South Africa is pursuing active negotiations with the United States to secure a fair and sustainable trade and investment arrangement, with government representatives currently in Washington advancing formal discussions. Speaking during a question-and-answer session in the National Assembly on Tuesday, the President underlined that South Africa’s approach is rooted in dialogue, engagement, and economic pragmatism.

Protecting Market Access and Investment

Ramaphosa stressed that government’s priority is to safeguard continued access to the American market — South Africa’s second-largest trading partner — while promoting bilateral investment flows.

“We are on the ground, and we are working the ground in the United States as we speak. Our people, who are in the United States now, are fully fired up with this approach. The Minister of Trade and Industry and the Minister of International Relations will soon be joining them to advance those discussions,” Ramaphosa told MPs.

He confirmed that South Africa had submitted a negotiation package to Washington, building on an earlier submission made in May 2025. The package outlines key trade objectives, including mineral beneficiation, industrial cooperation, and easing tariff pressures.

Cushioning the Impact of Tariffs

The engagement comes against the backdrop of a 30% tariff hike on selected South African exports to the US, which has affected a range of industries. Domestically, government has responded with relief measures such as the Localisation Support Fund and the Export and Competitiveness Support Programme. These instruments provide working capital, equipment financing, and market development support to help businesses weather the tariff shock and diversify export markets.

The President said that by working closely with industry, labour, and trade unions, government is ensuring that affected sectors receive support while also boosting competitiveness for long-term sustainability.

Engagement Versus Retaliation

Ramaphosa’s approach faced criticism from EFF leader Julius Malema, who accused government of “appeasement” and “juniorising” South Africa in its dealings with the US. He questioned why South Africa had not imposed retaliatory tariffs, as done by China, Canada, and the European Union.

Responding, Ramaphosa defended government’s decision, noting that consultations with exporters, importers, and trade unions had guided the strategy. “Our option is informed by what we want to gain. And what we want to gain is to continue exporting to the United States as much as possible, to enable our companies to invest in the US, and to also get US companies to invest in us,” he explained.

Leveraging South Africa’s Strengths

The President emphasised that South Africa is not entering the negotiations from a position of weakness. Instead, the country is leveraging its critical minerals and processing capacity as bargaining tools.

“Our leverage has to do with the natural resources that we have, the minerals that we have, which the United States needs … Even as we may well want to export critical minerals, we want them to leave the shores of South Africa as finished products, so that we beneficiate what we will finally sell to them,” Ramaphosa said.

He acknowledged that US trade policy can sometimes be unpredictable, but stressed that South Africa will negotiate firmly and independently. “We have said we will not be bullied. We will stand as a sovereign country and negotiate to get the best deal for South Africa. That’s precisely what we do,” he told Parliament.

New Ambassador to Washington

Responding to further questions, Ramaphosa confirmed that the appointment of South Africa’s new ambassador to Washington will be announced soon. He assured MPs that the nominee would be “capable, sufficiently well experienced, well versed in world views and world politics, and who knows the American market extremely well.”

Looking Ahead

Analysts suggest that South Africa’s diplomatic strategy reflects a balancing act: protecting immediate export interests while laying the foundation for longer-term economic resilience through diversification and industrialisation. If successful, the negotiations could secure South Africa’s foothold in the US market, safeguard jobs, and enhance its global standing in the trade of critical minerals and manufactured goods.