Blinken's Africa tour: US and South Africa commit to strengthening bilateral cooperation and economic ties

In the first strategic dialogue between South Africa and the US in seven years, both the countries have committed to strengthening bilateral cooperation and economic ties. International Relations and Cooperation Minister Naledi Pandor hosted US Secretary of State Antony Blinken,who is on a three nation Africa tour, on Monday in Pretoria.

Pandor described the US as one of South Africa's important partners.

"I believe this is a strategic partnership based on common values, and is the foundation of strengthening bilateral engagements between our two countries. Our gathering here after a quiet period of almost seven years, presents an opportunity to reintegrate on various fronts. I believe we should place the economic recovery in Africa [at] the front and centre of our agenda," Pandor said.

In her opening remarks ahead of the talks, Pandor told Blinken the US needed to relook at tariffs on steel and aluminium from South Africa. The US makes up about 17% of South Africa's export-output market.

"Our objective should be to expand two-way trade and investment which contribute to shared growth of countries. A start would be to quickly resolve the long-standing trade issues around market access, including removing tariffs on SA steel and aluminium imports into the US. The South African government has been hard at work to make it easier for foreign investors to invest in our country," Pandor said.

South Africa is the largest US trade partner in Africa.

Pandor welcomed the growth in two-way trade in goods from $13.9 billion in 2010 to $21 billion in 2021.

In 2021, the US ranked as the second largest destination for South Africa’s exports globally. South African firms have also become significant foreign investors.

"Investments from South Africa into the US are on the increase, with the US accounting for 17.4% of total South African outward FDI to the world. There is, however, much more we can, and should do. As was discussed earlier this year at the meeting of the 12th Annual Bilateral Forum (ABF), our objective should be to significantly expand two-way trade and investment that will contribute to the shared growth and prosperity of the people of South Africa and the US," the minister said.

Pandor also stressed on resolving the longstanding unresolved trade issues around market access, including the removal of Section 232 tariffs on South African steel and aluminium imports into the US.

"The president and his economic team, as we will hear later during our deliberations, have been hard at work making it easier for foreign investors to invest in our country and to advance our trade and investment relations for mutual benefit," Pandor said.

The US is South Africa’s third largest trading partner with more than 600 US companies operating within South African borders.

On rising costs of food and fuel prices, the minister said that world is going through an extraordinarily difficult period and many countries are having to contend with high costs of fuel, food and transport.

"The current global economic environment, which is marked by rising inequality, conflict, unequal technological advances and environmental degradation brought about by climate change, has huge implications for food security and agricultural systems, especially in Africa," she said.

Turning to climate change, Blinken said the US was committed to helping South Africa transition to a low-carbon economy.

"Climate is affecting both countries, and I think we all feel the urgency now. We have to find a way for an energy transition that allows us to meet most goals while supporting those most affected by climate change," Blinken said adding that focusing on economic trade, health and climate change was crucial for both countries.

He said South Africa was a critical voice globally and his visit to the rainbow nation is to reinforce relations between the two countries.

United States Secretary of State Antony Blinken believes his strategic dialogue visit to South Africa is the start of a new chapter in efforts to strengthen economic ties between the two countries.

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