Vidostream | News, sport and opinion from the Vidostream's US Edition

https://vidostream.com

South Africa revises trade agreement with US

Pretoria says the measure is a response to the 30% tariff the Trump administration imposed on the country’s exports

FILE PHOTO: South Africa's Minister of Trade, Industry and Competition Parks Tau. © Wikipedia

FILE PHOTO: South Africa's Minister of Trade, Industry and Competition Parks Tau. © Wikipedia

South Africa’s Department of Trade, Industry and Competition (DTIC) and the Department of Agriculture have confirmed that they will submit a “generous” revised trade offer to the United States in response to reciprocal tariffs imposed on Pretoria.

The Cabinet has approved a revised trade offer which will be submitted on Tuesday as part of the government’s five-point response to the 30% unilateral tariff imposed by the US on SA imports. The government’s revised offer is one of five measures responding to the US’s unilateral tariff hikes which began last Friday.

Addressing the media on Tuesday morning, DTIC and Agriculture ministers Parks Tau and John Steenhuisen respectively, also unveiled that they had assembled a high-level team comprising the presidency and the two departments to spearhead the tariff negotiations with the US.

However, both also said South Africa was seeking trade agreements beyond the US. They also revealed that Washington additionally requested South Africa to lower tariffs, aligning with the European Union (EU) trade regime as outlined in the SADC-EU Economic Partnership Agreement. 

South Africa rejects industry push to favor US in mineral tradeREAD MORE: South Africa rejects industry push to favor US in mineral trade

While Steenhuisen could not fully explain the offer’s contents, he described the revised proposal as “broad, generous, and open,”meeting the desired ambition criteria.

”This is a broad, generous and open offer ... and I think if one would look at the trade and tariff perspective I think this offer represents something that would be good for the United States and also good for South Africa,” Steenhuisen said.

He said he hopes the US will accept the offer in a good gesture.

”We have to navigate the seas that are in front of us and this is perhaps a new way that things are going to go forward and I think we must do what we can to improve relations with the US and retain access to their markets. 

“I think it’s in their interests to have a good relationship with the most industrialised and largest economy in the continent,” Steenhuisen said.

The two ministers, however, stressed the importance for the country to look beyond the US and explore other markets globally.

“We must make sure we don’t put all our eggs in one basket and we look for other markets like China, Japan, the Middle East and so on.

”These are huge opportunities that remain untapped for us as South Africa and perhaps this crossroads that we are at now with this tariffs situation is more of an incentive to move more determinedly towards securing these new markets for South Africa’s goods,” Steenhuisen said. 

Tau concurred with Steenhuisen, saying that South Africa had diversified at this point, and the entire Cabinet was involved in this diversification process.

How Trump’s trade policies could spell disaster for this regionREAD MORE: How Trump’s trade policies could spell disaster for this region

“Part of our reality is that we have to invoke all members of the national executive  to be part of the pool of people and we would be able to provide the necessary support behind that pool of people. 

“We are committed to strengthening our relationships, particularly under the AfCFTA, to build regional resilience,” said Tau. 

“We will also continue the work we have started with our European partners towards enhancing our trade and investment relations in a manner that unlocks sustainable growth and development and entrenches South Africa in new supply-chains,” he said.

The ministers said they have put together a high-level team from Agriculture that will be led by the Presidency to go and engage the US on a number of trade issues. Tau said he was engaging with the department of Mineral Resources and Petroleum to also be more involved.

The government’s response to the US tariffs is anchored on five key elements which are to secure a deal and reduce tariffs,  to alternate markets, and foster an economic response package to vulnerable companies and workers.

Others include a trade defense against import surge and dumping while they demand side interventions to leverage buying power by local consumers, private sector, and government.

Source: RT

We are using cookies to give you the best experience on our website. By continuing to browse, you are agreeing to our Cookie Policy.
You did not use the site, Click here to remain logged. Timeout: 60 second