ANC NEC meeting has no plans to stop US tariffs, say analysts

IOL News

3 days ago

On the sidelines of Day 3 of the ordinary ANC NEC sitting at the Germiston Civic Centre in Ekurhuleni, Gauteng.
Image: ANC
THE ANC is unlikely to resolve its differences with the US in time to avert the impending 30% tariff on South African exports.
This is according to some political analysts as the party held its National Executive Committee (NEC) meeting in Johannesburg at the weekend.
The tariff is expected to take effect on August 7, as announced by the Trump administration on Thursday.
South Africa is the only country from sub-Saharan Africa singled out in the announcement, reflecting the US's strained relationship with Pretoria.
Other African nations, including Lesotho and Zimbabwe, have been hit with a 15% tariff, which will also come into effect in seven days.
The decision is a huge blow to South Africa, as the US is its second-biggest trading partner and comes despite trying to agree a trade deal, which included buying US liquefied natural gas, simplifying rules for poultry imports and investing in US industries like mining.
On Saturday, ANC NEC member Dr Kgosientsho Ramokgopa told journalists that there had been a focused discussion on the US tariffs, describing it as 'spirited and robust'.
Ramokgopa said the negotiations between South Africa and the US were ongoing, adding that both countries would be able to find each other.
However, political analyst Zakhele Ndlovu said although the NEC was expected to talk about the issue, there is not much that the ANC can do.
He said Trump was not happy with many things including domestic and foreign policies.
'The ANC needs to figure out how to deal with generally hostile Republican administrations, and the Trump administration, in particular. Trump's beef with the ANC centres around domestic and foreign policies. On the domestic front, Trump is unhappy with the Expropriation bill, BEE and Diversity, Equity and Inclusion (DEI).
"On foreign policy, Trump is bitter about the decision to take Israel to the ICJ (International Court of Justice),'' Ndlovu said, adding that the time has come for the ANC to stop confusing its interests as the country's interests.
'I don't see the ANC coming up with any solution here. It is caught between a rock and a hard place,'' he said.
Ramaphosa held talks with Trump in May in a bid to mend relations but this failed to make any headway.
In July, the US House Foreign Affairs Committee passed a bill to review the US-South Africa relations due to objections over its foreign policy and potentially imposing sanctions on senior ANC leaders.
The bill accuses the ANC of undermining US interests by maintaining close relationships with Russia and China, which are among its allies and trading partners. It also accuses South Africa of backing Palestinian militant group Hamas in its conflict in Gaza with Israel- an accusation South Africa has denied.
Last week, Trump indicated he did not plan to attend the G20 summit taking place later this year in Johannesburg.
Another political analyst, Ntsikelelo Breakfast, said the ANC is wasting time discussing the tariff imposed by the US, adding that there is nothing the party can do to avoid the situation.
'There is no way out here. The European Union (EU) signed for 15% this week, and who are we if the EU can give in. I thought we were able to convince Trump and his administration after the meeting in May but clearly Trump did not buy it and now there is legislation to sanction ANC leaders,' said Breakfast, adding that this means Trump has taken a hard stance towards South Africa and the ANC.
Breakfast said that Trump's threat to skip the G20 summit also cemented his position about South Africa, saying 'this is a smack in the face'.