South Africa will present a “generous” new trade agreement to the United States in an effort to circumvent 30% tariffs, government ministers announced on Tuesday.
Washington imposed the substantial levy on certain South African exports on Friday, marking the highest tariff rate in sub-Saharan Africa, despite Pretoria’s diplomatic efforts to secure a more favourable arrangement and prevent widespread job losses.
Whilst ministers declined to release specifics of the proposed agreement, they confirmed that previously discussed measures to increase imports of American poultry, blueberries and pork had been finalised.
“When the document is eventually made public, I believe you would regard it as a very broad, generous and ambitious offer to the United States on trade,” Agriculture Minister John Steenhuisen stated during a press briefing.
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Government officials have warned that the 30% tariff could result in approximately 30 000 job losses across the economy.
“Our objective is to demonstrate that South African exports do not pose a threat to American industries and that our trading relationship is, in fact, complementary,” Trade Minister Parks Tau explained.
The United States ranks as South Africa’s third-largest trading partner, following the European Union and China.
However, South African exports account for merely 0.25% of total American imports and are “therefore not a threat to US production”, Tau said.
Steenhuisen revealed that American diplomats had raised concerns regarding South African domestic policies, which came as a “surprise given the fact we thought we were engaged in trade negotiations”.
The two nations remain at odds over a range of policy matters.
American President Donald Trump has criticised land redistribution and employment legislation designed to address racial inequalities that persist three decades after the end of apartheid.
“Issues such as expropriation without compensation and some of the race-based laws in the country are matters they now regard as barriers to conducting trade with South Africa,” he told AFP on the sidelines of the briefing.
“I believe we are witnessing some form of a new era whereby trade and tariffs are being utilised to address other issues, beyond what would generally constitute trade concerns,” Steenhuisen observed.
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