By Simon Nare
While the South African government was unable to strike a deal with the United States over its tariff hikes before the deadline, it said it was encouraged by the prospect of reviewing them if the two countries could reach an agreement later.
Minister in The Presidency Khumbudzo Ntshavheni told reporters on Thursday following a Cabinet meeting that there was a provisional agreement with the US that allowed the country to push for a review on the 30% tariff increase on imported goods to America following the deadline.
She said that negotiations with US President Donald Trump’s administration were ongoing, and she confirmed that President Cyril Ramaphosa and Trump discussed bilateral trade relations over the phone.
“The president’s call to President Trump, it was part of supporting our negotiation efforts and he continues to engage to make sure there is room for negotiations.
“There cannot be agreements on the phone call. The technical team must do the actual work. There is always room for negotiations. We have always indicated that there is room for negotiations,” the minister said.
Ntshavheni said that the tariffs would affect several sectors, but car manufacturing and agriculture would be the hardest hit, with 30,000 jobs mostly in those two sectors, at risk.
She said the government was focused on saving and creating new jobs, which included intensifying diversification efforts and strengthening global supply chain integration, as the country geared towards expanding its export markets to Asia, Europe, the Middle East and across Africa to enhance the country’s economic resilience.
“In the agricultural sector, we have found other markets in China for other products. We will give the details of the products that are redirected. It’s not only about redirecting, but also complimenting the market supply.
“We would prefer to keep our American markets and other markets and also diversify to new entry,” she said.
The minister said the government was looking at increasing efforts to get most of the South Africa’s agriculture products to Chinese markets as it was one the most populated countries in the world.
Ntshavheni said Cabinet received an update on the framework deal with the US, confirming that there was a provision to review tariffs after the deadline.
The minister said government the newly formed Export Support Desk would serve as a direct point of contact for companies affected by the tariffs.
Other interventions included measures to assist companies to absorb the tariffs and facilitate long-term resilience and growth strategies to protect jobs and production capacity.
“Is Cabinet confident of an agreement will be reached with the US as it relates to tariffs, we would not be putting efforts in the negotiations if we were not hopeful that there is room to reach an agreement,” she said.
However, Ntshavheni said the country would not bend over backwards and change transformation laws to appease the US.
The Trump administration has made a raft of demands, including that South Africa abandons laws that were put in place after apartheid ended in 1994 and are aimed at addressing persisting racial inequality.
She said the laws were non-negotiable as they were set up to build an equal and prosperous society.
“There has not been any law in this country that has been adopted by the democratic Parliament since 1994 that has been made to be punitive.
“The laws that have been adopted in this country and passed by Parliament and assented to by various presidents of the Republic have always been made in the best interests of South Africa,” the minister told reporters.
She added that if any laws were to be changed, they would be in the best interest of South Africa.
INSIDE POLITICS