Negotiations between South Africa and the United States have stalled due to geopolitical, domestic and trade issues, says Parks Tau, Minister of Trade, Industry and Competition. However, it remains “the best tool to work through the issues that are on the table.”
By Michelle van der Spuy, senior journalist at African Farming and Landbouweekblad
Tau said in a statement by the department that South Africa is currently one of about 185 countries around the world that is trying to finalise negotiations with the US by 1 August.
According to Tau, “substantial feedback” from the US on the final status of the framework agreement tabled by South Africa earlier this year is still awaited. That agreement includes, inter alia:
- The importation of 750-1 000 petajoules of liquefied natural gas for a period of 10 years, unlocking $12 billion (R215 billion).
- To simplify market access for US poultry exports below the 2016 tariff quota rate, thus unlocking about $91 million (R1.629 billion) in trade. Furthermore, market access for blueberries will be opened, subject to the necessary protocols.
- South African companies have committed to invest $3.3 billion (R59 billion) in US industries, such as mining and metal recycling, while both governments have agreed to pursue joint investments in essential minerals, pharmaceuticals and agricultural machinery.
- The exemption of specific sectors from reciprocal tariffs to maintain supply chains, for example, shipbuilding, off-season agricultural trade and exports by micro, small and medium enterprises with a turnover of less than $1 million (R17.9 million) per year.
Government Prepares Response Strategy
Meanwhile, the department signed a stipulation document with the US and prepared its input for the US template for trade with sub-Saharan African countries.
“Despite the issues that emerged during this period, we put our best foot forward and brought together the consultants within our ranks. They delved deeply to ensure that South Africa was adequately prepared for various potential scenarios.
“We planned for these scenarios, and we didn’t sit still. We are working with other government departments on a response plan, which includes a support office within the department. Our response package also focuses on demand-side interventions for the affected industries.
Commitment to Restoring Trade Relations
“The road ahead is clear. Pres. Cyril Ramaphosa expressed our willingness to restore the trade relationship with the US and find a mutually beneficial solution.
“The department made this issue a priority long before 2 April, and the best interests of South Africa’s people are non-negotiable. Rest assured, we will not falter in our mission to ensure that we let South Africa thrive.”
