SAfrica poses no threat to US economy or its national security: Govt

Johannesburg, Aug 5 (PTI) South Africa poses no threat to the US economy or its security, the government said here, adding that the 30 per cent tariff on the country is 'inscrutable." “South Africa's minimal 0.25 per cent share of total US imports makes the 30 per cent tariff on our country are inscrutable, especially when these same tariffs have been applied indiscriminately to all US trading partners globally. Minister of Trade, Industry and Competition Parks Tau and Minister of International Relations and Cooperation Ronald Lamola said in a joint statement on Monday.

"South Africa poses no trade threat to the US economy nor its national security,” the statement added.

“South Africa isn't just a trading partner—we're a major investor in the US, with our companies sustaining American jobs. Similarly, over 600 US companies in South Africa contribute to our industrial growth and create employment,” they said, adding that South Africa’s goal is to preserve and grow the mutually beneficial relationships with the US.

  The ministers said that South Africa’s agriculture exports are even counter-seasonal, filling the gaps in the US market rather than replacing domestic products, such as in the case of citrus exports.

The ministers also challenged the calculation of the US-SA “trade deficit” as announced by Trump, claiming that it ignores the substantial US trade surplus in services, as well as the complementary nature of the bilateral trade and investment relations between the two countries.

But against the reality of the impact on local trade and industry, the ministers announced some mitigation plans. These include the establishment of an Export Support Desk, which will serve as a direct point of contact for companies affected by the US tariff hike, as well as support with diversification of markets.

The desk will provide support measures for the diversification of export markets for increased resilience and facilitate the entry into alternative markets for affected exporters.

Measures to assist companies to absorb the tariff and facilitate long-term resilience and growth strategies to protect jobs and productive capacity in South Africa are also being finalised.

The ministers said that South Africa has been strengthening trade and investment partnerships with various trade partners.

“These efforts are bearing fruit, targeting markets across Africa, as well as in Asia, Europe, Middle East, and Americas,” they said.

“We are also working with the Department of Labour on measures to mitigate potential job losses, using existing instruments within its entities that can be adjusted to respond to the current challenges,” the statement said.

“While facing global trade challenges, South Africa is proactively building a more resilient agricultural sector. We've made significant progress in opening up vast new markets like China and Thailand, securing vital protocols for products like citrus and others,” they added.

Singling out China alone as a USD 200 billion market, the ministers expressed confidence in expanding South Africa’s reach and creating new opportunities for its agricultural producers.

The US is currently South Africa’s third biggest trading partner, behind the European Union and China.

(“Because) The US accounts for 7.5 per cent of our global exports, we will continue to engage the US with a view to conclude a deal that advances the interests of both countries.

"South Africa seeks to conclude deals that promote value addition and industrialisation, rather than extractive relations that deprive the country of the ability to beneficiate our mineral wealth by mimicking extractive colonial era trade relations,” the statement firmly asserted.

“While the current measures present challenges, it also presents opportunities to build and accelerate the implementation of the African Continental Free Trade Agreement and to develop new partnerships in markets that have remained untapped, including ASEAN and Türkiye,” the ministers shared. PTI FH RD RD RD