Trade, Industry and Competition Minister Parks Tau says South Africa continues to benefit from a wide network of preferential and non-preferential trade agreements covering 90 countries, representing 28% of global Gross Domestic Product (GDP).
Tau was addressing the Portfolio Committee on Trade, Industry and Competition supported by Deputy Minister Alexandra Abrahams on the state of South Africa’s trade relations, progress in ongoing negotiations, and the country’s strategy to navigate an increasingly volatile global trading environment.
In a statement on Tuesday, Tau told Parliament that global trade is undergoing seismic shifts, with rising unilateral measures, retaliatory tariffs, and disruptions in the multilateral trading system.
“The share of world trade governed by WTO [World Trade Organisation] rules has already dropped from 80% to 72% in 2025. These shifts, driven by growing geopolitical tensions and great-power competition, are creating uncertainty and weakening predictable rules-based trade,” he said.
Tau said there is a need for South Africa to strengthen its industrial base, diversify trade partners and build greater economic resilience.
He emphasised the importance of African economic integration, revealing that significant momentum has already been recorded under the African Continental Free Trade Area (AfCFTA). The AfCFTA which entered into force in May 2019, is expected to boost trade and economic growth on the continent. Trading under the AfCFTA regime commenced January 2021.
“South Africa exports under the AfCFTA have increased from R485 million in 2024 to R1.386 billion in the first seven months of 2025. Imports under AfCFTA also rose substantially.
“South Africa implemented the agreement in January 2024, and by 2025, 24 African countries had begun trading preferentially.
“New market access is now unlocked in 13 non-SADC [Southern African Development Community] countries. Recent breakthroughs include agreement on critical rules of origin for autos and textiles, opening new opportunities for South African industry,” he said.
He said South Africa continues to engage the United States on a reciprocal trade deal that will lower the current tariff imposed that will make South African exports more competitive.
“While South Africa’s access to the African Growth Opportunity Act (AGOA) expired at the end of September, there is strong bipartisan support in Washington for renewal. And current proposals include a one-year and a two-year extension, though no bill has yet been tabled,” the Minister said.
The Minister highlighted the Butterfly Strategy adopted by the department to mitigate global risk and expand export growth, and said it will assist with objectives to grow South African 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,” he said. – SAnews.gov.za
