South Africa has proposed a major trade deal to the United States, offering to import liquefied natural gas (LNG) in exchange for an exemption from vehicle export duties.
The proposal, announced by Minister to the Presidency Khumbudzo Ntshavheni, would see South Africa purchase between 75 and 100 petajoules of LNG annually from the United States over a 10-year period. The move is projected to unlock trade valued between 900 million and 1.2 billion dollars each year, translating to a potential total of 9 to 12 billion dollars over the decade.
While Washington has not yet made a decision on the offer, reports suggest the deal could serve as a lifeline for South Africa’s struggling economy and an opportunity to improve strained diplomatic ties with the United States.
The proposed agreement reflects Pretoria’s attempt to secure energy resources while protecting its key automotive export sector from rising international trade barriers.