Dear Editor
The Presidency’s unconvincing response to the Democratic Alliance’s revelations that Mcebisi Jonas had his visa application declined by US authorities places the spotlight on Minister Parks Tau and the Department of Trade, Industry and Competition (DTIC) to secure a US trade deal in the two weeks left before the August 1st deadline.
The DA calls on Minister Tau to devote himself to avoiding this economic cliff edge.
Jonas has been missing in action since President Ramaphosa appointed him in April. Ongoing litigation in the US concerning MTN, whose board he chairs, in relation to MTN’s Irancell partnership should have disqualified him from being appointed in the first place.
Now, Minister Tau needs to show his mettle and dedicate his time to the negotiations. He must make an attractive offer to the Trump administration that addresses both the tariff and non-tariff barriers Trump referred to in his 7th July letter to President Ramaphosa.
Since President Donald Trump’s election in November, he has made clear his intention to use tariffs as a tool to “re-balance” USA trade relations. Trump’s intention to impose 30% tariffs on most South African goods should therefore not have come as a surprise. South Africa cannot afford inertia and inaction on Trump’s tariffs.
US tariffs will hit motor manufacturers in the Eastern Cape and Gauteng hardest, with vehicle exports comprising 22% of South Africa’s US exports.
Much of the R10,4 billion worth of agricultural products exported to the US come from the Western Cape, including almost all of our citrus exports. Combined, these three provinces are likely to see thousands of jobs lost, a devastating blow to the individuals, families and communities affected.
DTIC’s complacency is a risk hanging over the heads of every worker in our car factories and on our farms – it must take action as a matter of urgency.
The Department must tell South Africans whether it made written submissions to Congress on AGOA ahead of the 30th June deadline, and whether it is sending delegates to make oral submissions on 18th July. It must also provide details on whether this negotiation takes the form of a Trade & Investment Framework Agreement or a full bilateral trade deal.
South Africa has been silent on the non-tariff barriers Trump alluded to in his letter as reasons for imposing the 30% tariffs.
Unless concessions are made on BBBEE to use poverty as a metric for disadvantage rather than race, concessions on employment equity and removing the nil compensation clause in the Expropriation Act to protect property rights for all, it is unlikely that Trump will budge.
Regards
Toby Chance MP
DA Spokesperson on Trade, Industry & Competition