Parks Tau Highlights Expanding Agreements and AfCFTA Gains

Trade, Industry and Competition Minister Parks Tau says South Africa is firmly positioned within the shifting global trading system, supported by a broad network of preferential and non-preferential trade agreements that now cover 90 countries and account for 28% of global GDP.

Speaking before the Portfolio Committee on Trade, Industry and Competition, Tau — accompanied by Deputy Minister Alexandra Abrahams — outlined the nation’s trade policy priorities, progress in current negotiations, and strategies for strengthening economic resilience amid rising global uncertainty.

Global Trade Landscape Under Pressure

In his briefing, Tau warned that the global trading environment is transforming rapidly, with escalating geopolitical tensions contributing to a weakening of the traditional multilateral system.

He noted that the volume of world trade governed by World Trade Organisation (WTO) rules declined from 80% to 72% by 2025, reflecting an international shift toward unilateral actions, retaliatory tariffs, and fragmented trade blocs.

“These shifts, driven by growing geopolitical tensions and great-power competition, are creating uncertainty and weakening predictable rules-based trade,” Tau said.

He stressed that South Africa must proactively adapt, deepen trade diversification, and fortify its domestic industrial capability to navigate the challenges of an increasingly unpredictable global order.

African Integration a Cornerstone of SA’s Trade Strategy

Tau highlighted Africa’s economic integration as one of South Africa’s most critical strategic priorities. The African Continental Free Trade Area (AfCFTA), which came into effect in May 2019 and began trading in January 2021, is already demonstrating significant progress.

South Africa’s exports under AfCFTA grew from R485 million in 2024 to R1.386 billion in the first seven months of 2025 — a nearly threefold increase. Imports also rose substantially, reflecting deepening intra-African trade flows.

As of 2025:

• 24 African countries are trading preferentially under the AfCFTA

• South Africa has unlocked new market access in 13 non-SADC countries

• Agreement has been reached on key rules of origin for the automotive and textile sectors

These advancements create new industrial opportunities for South African manufacturers, especially in value-added goods that can now compete more effectively across the continent.

Engagement With the United States Remains a Priority

Tau also provided an update on South Africa’s engagement with the United States regarding future trade arrangements.

The country’s access to the African Growth and Opportunity Act (AGOA) expired at the end of September, but Tau said there remains “strong bipartisan support” in Washington for renewal.

Two proposals — a one-year and two-year extension — have been discussed, although no formal bill has yet been tabled.

In the meantime, South Africa continues to negotiate a reciprocal trade deal aimed at reducing tariffs and ensuring competitive access for South African goods in the US market. Tau emphasised that maintaining stable market access to the US remains a critical element of South Africa’s global trade strategy.

The Butterfly Strategy: Expanding Markets and Reducing Risk

The Minister also highlighted the Butterfly Strategy, a trade diversification framework adopted by the Department of Trade, Industry and Competition (the dtic). The strategy aims to strengthen resilience by broadening export markets, reducing dependence on any single trading partner, and expanding opportunities across emerging economic regions.

The department has set an ambitious target: grow South Africa’s total exports from R2 trillion to R3 trillion by 2030.

“We will focus our efforts on implementation and adopt a coherent approach to our trade agenda,” Tau said, emphasizing that this strategy will help the country navigate global instability while unlocking new export pathways.

Strengthening SA’s Industrial Base in a Changing World

Tau concluded by stressing that South Africa must continue strengthening its domestic manufacturing capability, diversify its trading partners, and reinforce economic resilience to external shocks.

With global trade becoming more fragmented, the government aims to ensure that South African industries remain competitive, well-positioned, and supported by strong bilateral and continental partnerships.

As the global trading landscape continues to evolve, South Africa’s expanding network of agreements and strategic focus on African integration, US engagement, and market diversification position the country to secure new growth opportunities for local producers and exporters.