South Africa stated its intention to purchase liquefied natural gas (LNG) from the United States on Monday in a proposed agreement valued at approximately $1 billion annually, as reported by AFP. The decision follows tense discussions between South African President Cyril Ramaphosa and U.S. President Donald Trump last week at the White House. Both leaders sought to mend strained relations and secure critical trade agreements essential to South Africa’s struggling economy.
As part of the arrangement, South Africa would secure an exemption from duties on the export of 40,000 vehicles to the U.S. each year. Cabinet minister Khumbudzo Ntshavheni detailed the deal in a newspaper commentary. Under the proposed agreement, South Africa would import liquefied natural gas (LNG) from the United States for a 10-year period.
As outlined in the pact the United States will contribute to developing gas infrastructure in South Africa, including advancements in fracking. In return, South Africa would be allowed to export 40,000 vehicles annually to the U.S. without duties, along with 385,000 tons of steel and 132,000 tons of aluminum. According to Ntshavheni, the deal is expected to generate between $900 million and $1.2 billion in trade per year.
Ramaphosa emphasized the opportunity to expand and diversify trade between South Africa and the United States across multiple sectors, including gas, mining, critical minerals, agriculture, and nuclear products. The proposed agreement also allows for the duty-free import of South African automotive components to support U.S. car manufacturing.
“These are numbers contained in the trade deal proposal that South Africa has presented to the USTR (US Trade Representative) for consideration and further negotiations,” Ramaphosa’s spokesman Vincent Magwenya told AFP.
The United States has also committed to attending the Group of 20 (G20) summit in Johannesburg this November. Previously, Trump had considered skipping the event, which South Africa will host as part of its presidency this year.
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