By Thebe Mabanga
Trade, Industry and Competition Minister Parks Tau has called for a “reset” in South Africa’s trade relations with the United States, amid rising tensions over the so-called Liberation Day 30% tariffs on South African exports set to take effect on Friday.
“The intersection of geopolitical, domestic and trade issues best defines the current impasse between South Africa and the United States, and a reset is unavoidable.” Tau said in a statement released late in negotiations with Washington on Tuesday.
To counter, or hopefully stave off the tariffs, South Africa has offered to import $12 billion worth of liquified natural gas from the US over the next ten years, while exporting more poultry and blueberries into the world’s largest economy.
The two countries will also invest in critical minerals, pharmaceuticals and agricultural machinery and protect sectors such as ship building and exports from small and medium enterprises from the effects of these tariffs.
Tau emphasised South Africa’s diplomatic approach to resolve the standoff.
“South Africa took the decision not to retaliate to the reciprocal tariffs announced by the United States.” Tasu said.
“We also want to reiterate that we have no intention of decoupling from the United States either. Our view is that negotiations remain the best tool to deal with the issues that are on the table.”
The US is in the process finalising deals with 185 countries having achieved this with the United Kingdom, Vietnam, Indonesia, the Philippines, Japan and the European Union among others.
The UK, for example, won a reprieve of tariffs on its steel exports. South Africa, and many countries, would hope for similar victories for key sectors.
Tau said South has been in intense negotiations with the US and signed a document of conditions precedent and now awaits America’s counteroffer while preparing for several scenarios.
“We have planned for these scenarios and have not sat idle. We are working with other government departments on a response plan which includes a support desk within the DTIC. Our response package also focuses on demand side interventions in the impacted industries,” said Tau.
“The way forward is clear. President Ramaphosa has expressed our willingness to reset the trade relationship with the US and develop a solution which is mutually beneficial.”
INSIDE POLITICS