Rebuild Relations With the US

Statement by Toby Chance MP – DA Spokesperson on Trade, Industry & Competition:

The Democratic Alliance urges Minister Tau to work with his cabinet colleagues to re-build trade relations with the USA after the Senate renewed AGOA for a year, backdated to September 2025.

South Africa has been penalised with 30% tariffs under President Trump’s new tariff regime, compared to 15% or less for most of our African neighbours and competitors from South America and elsewhere.

AGOA’s renewal, giving South Africa most favoured nation status alongside other African countries within AGOA, provides some relief for our manufacturers and farmers but our overall competitiveness remains impaired because of issues which go beyond economics.

The USA has been consistent in insisting that South Africa addresses its non-tariff barriers before they will consider lowering the tariffs.

These include our race-based laws and discriminatory measures affecting procurement and employment, which impact all of the approximately 600 US businesses operating in South Africa.

The DA has consistently pressured Tau to review and replace the current discriminatory BEE system with empowerment that addresses actual needs and fosters community social investment, instead of forcing investors to give up large chunks of their businesses channelling that to enriching the same insiders over and over again.

Minister Tau must also urge DIRCO minister Ronald Lamola to entrench South Africa’s trade relationship firmly in the national interest and not to act on the ANC’s party political whims.

While re-building relations with the USA is vital, accelerating our efforts to open new markets and expand existing ones must be top-of-mind for Minister Tau and the trade desk at the DTIC.

40% of South Africa’s exports go to Africa, which under AfCFTA remains a relatively untapped market and South Africa offers a gateway for multinationals wanting to penetrate the African market.

We need to exploit these opportunities with renewed vigour.

Minister Tau must also report back to the portfolio committee on progress in appointing the Foreign Economic Representatives in key overseas markets, positions that have been vacant for over two years.

Aggressive on-the-ground lobbying is essential if SA is to achieve breakthrough growth in exports.