Parks Tau
JOHANNESBURG - Trade between South Africa and China is set to increase.
The two countries have signed a framework agreement for a new trade deal that could see fruit and other products shipped duty-free to China.
Government has been saying it’s looking for new opportunities after the US slapped South Africa with 30% tariffs on some goods.
Trade, Industry and Competition Minister Parks Tau was pictured signing the framework agreement with his Chinese counterpart, Wang Wentao.
But it sounds like the details need to be firmed up.
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A statement from his department says the agreement will be followed by negotiations and the conclusion of an Early Harvest Agreement by the end of March.
South Africa's exports to China include gold, iron ore and platinum-group metals and greater access will be welcomed.
But many sectors will be looking at the terms around Chinese imports since they have complained that it’s becoming hard for local manufacturers to compete.
Chinese cars have grown from almost nothing a few years ago to up to 15% of the market.
Government has, in fact, been looking at duties on Chinese imported vehicles.
But in the statement, Tau said Chinese automakers are investing in South Africa and that the country is looking forward to inviting more.