The statement issued by the Department of Trade, Industry and Competition yesterday evening, suggesting a “reset” in trade relations with the USA is inevitable, is deeply concerning and raises far more questions than answers.
While the Democratic Alliance welcomes the decision not to retaliate against the 30% tariff threat, it is clear the offer on the table will not satisfy a US administration that is driving a hard bargain, and will not win a deal that protects our exporters.
It now rests on Minister Tau to make a winning offer in the short window that remains, after running down the clock for far too long. The eyes of all the workers and businesses who face economic hardship from these tariffs are on him.
The Department must also change its habit of keeping South Africans in the dark, NDA or not. Will goods currently at sea that land in the US on August 1st be subject to tariffs? How is the Department planning to commit our firms legally to investments in US mining and recycling industries? Have these firms been consulted? Will our trade offer consider the non-tariff barriers that the United States have repeatedly referenced in their communication on South Africa?
The ANC has done very little to build trust and confidence to protect our trade relationship, protect Foreign Direct Investments, and protect exports to the United States. The DA has repeatedly called for an ANC change of heart towards the U.S. in order to protect our economy and jobs.
South African exporters are 30 hours away from having to face the painful reality of effectively losing access to one of our biggest markets for the next three years at least.
The DA will continue to do everything in our power, in government and out, to support economic policies in South Africa which will grow the economy and create jobs.
If the 30% tariff threat materalises, the ANC will have a lot to answer for as the jobless queues get inevitably longer.
Minister Parks Tau must understand the urgency of now. Tau’s time is ticking!