D-day for the South African economy less than a WEEK away
Back in April of this year, US President Donald Trump instituted 30% tariffs on South Africa for all goods imported into America. But facing tremendous backlash worldwide, Trump hit pause on the tariffs for 90 days. This takes us to next weeks' D-day for the South African economy. Trade talks with the US started in May, but have not resulted in any concrete framework as yet. Image: File
Unfortunately, the Minister of Trade, Industry and Competition (DTIC), Parks Tau, has shared little in the way of progress on crucial US-SA trade talks. All he can confirm is that South Africa is (one of many countries) asking for more time, reports The Citizen .
Interestingly, it appears to be US delegates that are dragging their heels on trade talks. South Africa is yet to hear anything after a trade delegation submitted several proposals to the US back in May. The DTIC put forward a framework agreement focusing on trade and investment. And it identified key areas for growth in each nation's markets. However, as of now, it appears to have done little to stave of D-day for the South African economy … US insistence that South Africa must reform politically does not sit well with ANC leadership. Image: File
As such, it appears the acrimonious relationship between the US and South Africa is grounded instead in ideological differences. There have been reports that President Ramaphosa's unwavering stance on BEE and denial of land expropriation has raised the hackles of US delegates.
Nevertheless, last week, the Deputy Minister of Trade met with a US representative on the sidelines of a summit in Luanda, Angola. South Africa used the meeting to raise its concerns about the impact of the reciprocal tariffs in Africa. Worst-case scenario, South Africa is seeking a maximum tariff application of 10%. Vehicles like the South African-built Ford Ranger are exported all over the world and will suffer if 30% Trump tariffs go ahead next week. Image: File
In a bid to avert D-day for the South African economy, the DTIC wants key export products exempted from the Section 232 tariffs. These include cars and car parts, as well as steel and aluminium. Although time is running out the DTIC is confident: 'The proposed framework will go through the internal approval processes in the US administration. South Africa welcomes this and has expressed a preparedness to engage once it is finalised.'
Meanwhile, government is urging industry to exercise strategic patience and not take any decisions in haste. 'Government will continue to use every avenue to engage with the US to find an amicable solution to safeguard our interests in the US market,' concludes the department.
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