STAFF WRITER
THE South African government says it is following a raft of measures to find a lasting solution to the 30% tariffs imposed on that country’s goods by the Donald Trump led government.
The South African Ministries of International Relations and Cooperation and Trade, Industry and Competition released a statement on Wednesday saying they are following all diplomatic channels that will safeguard regional integration in line with the Southern African Customs Union (SACU), looking at other markets and finding options to the high tariffs.
South Africa is the only country in the Southern African Development Community that still has to shoulder a 30% tariff regime after the US government revised most of the tariffs for countries in the regional block to below 17%.
“Continuation of negotiations with the US South Africa is committed to a principled approach, and we will continue to use all available diplomatic channels to negotiate a mutually beneficial trade deal with the United States, one that respects our national interests while advancing our long- standing partnership.
“Such a deal will be pursued in a pragmatic manner that preserves regional integration and the SACU common external tariff, noting that SACU accounts for 9% of our global exports and must be preserved.The South African Government is working with industry to consider aspects of the Framework Deal that can be modified, in a manner that promotes predictability in trade,” the statement said.
The South African government said they will implement an Economic Response Package which includes the establishment of an Export Support Desk, which will serve as a direct point of contact for companies affected by the US tariff hike.
“ The aim of this support measure is to support the diversification of export markets for increased resilience and facilitate the entry into alternative markets for affected exporters. The Desk will provide
updates on developments and tailored advisory services to exporters on alternative destinations, guidance on market entry processes, insights into compliance requirements and linkages to South African Embassies and High Commissions abroad,” the SA government said..
They are also implementing 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.
The South African government also said they will implement a Localisation Fund Support (LSF) which stands ready to contribute to the national effort to support South African companies impacted by the imposition of 30% import tariffs by the United States.
“In collaboration with the dtic, IDC and other agencies – LSF will issue an open call from firms operating in affected value chains, with the aim of providing targeted competitiveness and efficiency support,” they said.
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