Pretorias trade minister and Beijings minister of commerce have agreed on a deal to boost bilateral trade

Pretoria and Beijing have signed a new trade agreement to deepen economic ties, grant South African exports duty-free access to the Chinese market, and expand investment flows.

The China-Africa Economic Partnership Agreement (CAEPA) was signed by South African Trade, Industry and Competition Minister Parks Tau and Chinese Commerce Minister Wang Wentao.

The agreement was signed in Beijing, where Tau is leading the South African delegation to the Joint Economic and Trade Commission (JETC) meeting, and follows his official welcome by Wang at China's Ministry of Commerce.

Formally titled the Framework Agreement on Economic Partnership for Shared Prosperity, CAEPA is expected to be followed by negotiations on an Early Harvest Agreement by the end of March 2026, which would unlock duty-free access for South African exported products and further enhance Chinese investment into South Africa.

The Department of Trade, Industry and Competition said the framework agreement covers cooperation in trade, investment, new energy and multilateral engagement, and aims to provide a stable and predictable environment for economic cooperation, while remaining consistent with World Trade Organization principles and the development objectives of both countries.

Both sides have committed to expanding bilateral trade, including promoting the export of South African agricultural products and high-value manufactured goods to China. South Africa already exports several agricultural products to China, including citrus and rooibos tea.

"As China-South Africa relations continue to deepen, new opportunities emerge for South African businesses seeking to enter the Chinese market, particularly in sectors such as mining, agriculture, renewable energy and technology," Tau said.

China will also send an inward buying mission to South Africa and has invited the country to participate in the Country and Business Exhibitions at the 9th China International Import Expo, scheduled to take place in Shanghai in November 2026. South Africa has further been invited to a steel investment event aimed at promoting investment opportunities in the local steel industry.

Tau said South Africa remains a major destination for Chinese investment on the African continent, with Chinese automotive companies already investing in the local economy and creating much-needed employment opportunities.

He added that negotiations under CAEPA would seek to identify complementarities between the two economies, while ensuring safeguards are built into the agreement to protect South Africa's industrial capacity.

South Africa is China's largest trading partner in Africa, while China remains South Africa's biggest trading partner globally, underscoring the strategic importance of the bilateral economic relationship.

Government said the signing of the framework agreement, together with the outcomes of the JETC meeting, signals the urgency both countries attach to growing trade and investment relations and strengthening cooperation between their respective private sectors.

First published by IOL

(RT.com)