Dear Editor
The interventions announced by Ministers Parks Tau and Ronald Lamola earlier today demonstrate that neither will take accountability for the 30% tariff imposed on South African exports to the United States of America in the absence of a solid trade deal.
Whereas our Southern African Development Community (SADC) neighbours have managed to negotiate their tariffs down to 15%, Ministers Tau and Lamola have left South African businesses and exporters vulnerable and exposed to the ongoing trade war. This diplomatic negligence and trade paralysis on South Africa’s part demands an urgent shift in attitude and approach on both accounts.
Interestingly, the interventions announced demonstrate that it is indeed possible for the ANC to rapidly cut the red tape that is strangling South African business. The measures such as the limited block exemption under the Competition Act is welcome, however, it does not go far enough. This eleventh hour action begs the question: why has it taken so long?
Surely now is the time for a comprehensive red tape reduction and deregulation across the entirety of the South African economy? This will allow South Africa to pursue bold and far-reaching reforms, including pivoting from blunt instruments such as ownership under the guise of Broad-Based Black Economic Empowerment, towards genuine investment and social upliftment under equity equivalence programmes which would enable stronger foreign direct investment.
It is time that government gets serious about South African jobs and livelihoods, and this requires two sets of urgent reforms:
- A sustainable and supportive environment for business to grow and export;
- The pursuit of a genuinely non-aligned foreign policy that does not place petty party-political interests above the interests of the republic.
It is also high time for a career diplomat with an understanding of the Trump administration to urgently be appointed to Washington D.C. to better represent South African interests and begin the work of repairing diplomatic channels and protecting vital trade relationships upon which hundreds of thousands of local jobs depend.
This role is far too important to be left to political loyalty over professional expertise. Previous appointments have puts on full display the threat posed to South Africa’s prosperity by incompetent cadres and party hacks in key government positions.
We urge both Ministers Tau and Lamola to follow the example set by agriculture minister, John Steenhuisen, who has worked proactively and tirelessly to diversify our agricultural export markets in Asia, where South Africa has now secured meaningful, impactful deals in China, Japan, Vietnam, the Philippines and Thailand.
Had Minister Lamola pursued economic diplomacy in any meaningful and non-aligned manner, we would not find ourselves in a situation where the fate of one of our key export markets now hangs perilously in the balance.
Ministers Tau and Lamola should not dismiss constructive criticism and alternative proposals as political point-scoring. The DA will not stop championing the cause of South African workers, businesses, and exporters through sound diplomacy and competitive international trade.
Regards
Ryan Smith MP
DA Spokesperson on International Relations and Cooperation