The Congress of South African Trade Unions notes with caution the signing of the Framework Agreement on Economic Partnership for Shared Prosperity (CAEPA) with the People’s Republic of China.

Whilst the Federation fully supports the African National Congress led government and in particular the Departments of Trade, Industry and Competition (DTIC) as well as Agriculture’s determined efforts to expand trade opportunities for South African goods, we must equally ensure at all times that the necessary safeguards are put in place in to protect South African jobs, businesses and value chains. 

Expanding trade and export opportunities as well as boosting investment is fundamental if we are to push the economy which has been stumbling along at 1% growth for the past two decades and saddled with 42.4% unemployment to the 3% growth rate needed to see jobs being created.

We appreciate that CAEPA provides a framework for talks about which products can be earmarked for tariff free access between the Chinese and South African economies.  We welcome reassurances by Minister Parks Tau that sectors and products that would be at an unfair competitive disadvantage to Chinese goods, will not be part of the final agreement and that all goods and sectors to be identified will be done through detailed consultation with Business and Labour at Nedlac.  This is critical to ensuring that we avoid past mistakes when protections were prematurely lifted for fragile industries leading to a bloodbath of South African jobs.

We are deeply concerned by the March 2026 deadline for the conclusion of the Early Harvest Agreement as we do not believe that this will be sufficient time to conclude engagements between government, business and labour on which products should be identified as well as to put in place the necessary safeguards to prevent the dumping of illicit goods.  We will continue to engage DTIC to ensure that these processes are managed tightly and that local jobs, goods, businesses and value chains receive the required protections.

It is critical that the 2026/27 Budget due to be tabled at Parliament on 25 February provides substantial additional resources to the South African Revenue Service (SARS) to boost its capacity to enforce full compliance with customs duties by all importers.  Imports from China have repeatedly seen high levels of under invoicing, fraud and corruption.  These have threatened local jobs and industries.  COSATU will continue to work closely with Treasury, DTIC and SARS to ensure this happens.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za