South Africa Plans $1 Billion LNG Trade Deal With US, Seeks Duty-Free Car Exports

South Africa has proposed a new trade deal with the United States that involves buying liquefied natural gas (LNG) from the US for 10 years, in exchange for duty-free exports of 40,000 vehicles annually, along with steel and aluminum shipments. This deal follows tense discussions between South African President Cyril Ramaphosa and then-US President Donald Trump, aiming to reset bilateral relations and support South Africa's struggling economy. The United States would also invest in South African gas infrastructure, including fracking, while South Africa would benefit from duty-free imports of automotive components for US car production. The agreement is expected to generate approximately $900 million to $1.2 billion in trade annually and addresses South Africa's significant trade deficit with the US, which had threatened 30-percent tariffs. Ramaphosa highlighted the establishment of an economic cooperation channel between the two countries to further engage on tariffs and broader trade issues, with potential to expand trade in sectors such as gas, mining, agriculture, and nuclear products. Negotiations are ongoing, with South Africa presenting the proposal to the US Trade Representative for further consideration.