South Africa is engaging with the United States to negotiate a US trade deal, following the imposition of 30% tariffs on certain South African exports. Government representatives are currently in Washington to participate in formal discussions with US officials.
Ongoing Negotiations in the United States
President Cyril Ramaphosa told Parliament that a South African delegation, including representatives from the Presidency and the Department of Trade, Industry and Competition, is meeting with stakeholders in New York and Washington. These meetings involve US legislators, business leaders, and government officials. Trade and Industry Minister Parks Tau and International Relations Minister Ronald Lamola are also participating in discussions.
The negotiations build on a proposal submitted by South Africa in May, which is being revised according to current US trade policy for sub-Saharan Africa. The aim is to maintain access to the US market, support investment flows, and facilitate trade between the two countries.
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Domestic Measures for Affected Businesses
In response to the tariff increase, South Africa has introduced initiatives to assist domestic businesses. These include the Localisation Support Fund and the Export and Competitiveness Support Programme, which provide financial and equipment support to companies affected by the tariffs.
The government has emphasised that these measures aim to maintain export capacity, diversify markets, and reduce the economic impact on local industries. Approximately 600 US-based companies operate in South Africa, employing a significant number of workers, which is a factor considered in the government’s response.
International Trade Context
During a virtual BRICS meeting, President Ramaphosa highlighted the broader effects of global trade shifts on emerging economies, including unilateral tariff actions. He encouraged member countries to support reforms at the World Trade Organisation and collaborate to address challenges in international trade.
Perspectives on Retaliatory Measures
Opposition leaders, including EFF’s Julius Malema, have suggested that South Africa could consider retaliatory tariffs in response to US trade actions. Government officials have stated that the current strategy focuses on engagement and negotiation to address trade issues while considering potential impacts on employment and investment.
Next Steps
South Africa is continuing formal negotiations in the United States, and officials are scheduled to hold further discussions in the coming days. Additionally, the government has confirmed that a new ambassador to the United States will be appointed soon, with qualifications and experience in international trade and diplomacy.
