South Africa Excluded from China's Zero-Tariff Deal: eSwatini-Taiwan Ties Block SACU Trade Benefits

Dec 7, 2025 South Africa South Africa International Trade
South Africa Excluded from China's Zero-Tariff Deal: eSwatini-Taiwan Ties Block SACU Trade Benefits

South Africa, Botswana, Lesotho, and Namibia miss China's zero-tariff policy due to eSwatini's diplomatic ties with Taiwan, blocking collective SACU trade benef

China's ambitious promise of zero-tariff access for African nations has encountered an unforeseen obstacle for South Africa, the continent's largest trade partner with Beijing. Despite the lucrative offer, South Africa, alongside fellow Southern African Customs Union (SACU) members Botswana, Lesotho, and Namibia, finds itself excluded from these preferential trade terms.

The Taiwan Connection: A Diplomatic Hurdle for SACU

The core of the problem stems from eSwatini, another SACU member, which continues to maintain diplomatic recognition of Taiwan. Beijing views Taiwan as an integral part of China, to be reunified, by force if deemed necessary. While the majority of global powers, including the United States and most African nations, do not formally recognize Taiwan as an independent state, Washington has expressed strong opposition to any forceful takeover and actively supplies the self-ruled island with defensive weaponry.

SACU's Collective Bargaining Creates a Dilemma

The collective bargaining agreement governing SACU dictates that customs deals are negotiated as a unified bloc of five nations. This crucial stipulation means that if any single member, such as eSwatini, is excluded from a preferential trade deal due to its sovereign diplomatic stance, all other members are consequently denied access. John Steenhuisen, South Africa’s minister of agriculture, articulated this complexity, noting that duty-free access to China has been rendered “quite complicated” precisely because of South Africa's inextricable link to SACU's unified trade approach.

Therefore, eSwatini’s unwavering decision to continue diplomatic ties with Taiwan effectively prevents all SACU members from leveraging China's zero-tariff policy. This creates a significant economic hurdle for countries like South Africa, which stand to gain substantially from enhanced trade opportunities with the formidable Asian economic power.

By news 7 hours ago
Cameras from South Africa