JOHANNESBURG – Trade, Industry and Competition Minister Parks Tau says while South Africa and China have made in-principle agreements to enhance trade ties, this should not be seen as a quick solution to the ongoing trade ructions with the US.
Addressing the media during a press briefing yesterday morning, Tau said there were discussions with China regarding an announcement at this year’s Forum for China-Africa Cooperation (Focac) for lower duty trade with the second-largest economy in the world, but this was being studied.
“It is not as simple as opening up floodgates [to China]. There have been a few developments with regard to China. These include the fact that China announced at Focac this year that it will reduce tariffs to 0 per cent for all countries but one.
“We took the opportunity to engage with the Chinese to say: ‘What does this mean?’. How do we implement it?’ This was two weeks ago. They said we need to sign the China-Africa economic partnership agreement, or some form of economic agreement, so we are able to unlock this.”
The briefing comes after South Africa failed to announce a trade deal framework with the US after weeks of negotiations with trade representatives from the largest economy in the world.
Tau said South Africa is sitting with colleagues to discuss the details and trade-offs concerning the China offer and potential trade agreements with other regions that could become strategic trade partners for South Africa.
“You have to think about how you safeguard your own market and, which industries will be impacted. There is a bit of detail to be done, but the negotiations are ongoing and we are modelling the sort of offer we will be able to give.”
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