By Lehlohonolo Lehana.
The African National Congress NEC member Dr Kgosientsho Ramokgopa says South Africa is still waiting for a response from Washington on its proposed framework deal, which includes substantial trade and investment incentives.
The ANC’s Economic Transformation Committee (ETC) held a media briefing on Saturday to update the public on discussions thus far.
ANC NEC is holding its meeting in Ekurhuleni, after a series of postponements and the meeting is expected to conclude on Monday.
The meeting was moved again this weekend after it was held in Lakewood Hotel, Ormonde on Friday, Fullview understands the party is going through financial challenges and have been simmering for quite sometime.
The US imposed 30% tariffs on South Africa from 7 August, the Trump administration announced on Thursday night.
South Africa is the only country from sub-Saharan Africa singled out in the announcement, reflecting US strained relationship with Pretoria.
Other African nations, including Lesotho and Zimbabwe, have been hit with a 15% tariff, which will also come into effect in seven days.
The decision is a huge blow to South Africa, as the US is its second-biggest trading partner.
South Africa’s automobile, farming and textile sectors had enjoyed duty-free access to the US market under the African Growth and Opportunity Act (Agoa).
South Africa had been trying to agree a trade deal with the US, which included buying US liquefied natural gas, simplifying rules for US poultry imports and investing in US industries like mining.
Ramokgopa said there had been a focused discussion on the US tariffs, describing it as “spirited and robust”.
Given that the US remains South Africa’s second-largest trading partner, Ramokgopa stressed the importance of maintaining the relationship.
“It has got huge economic implications to South Africa and the most direct is in relation the number of jobs that potentially could be lost as a result of these tariffs,” He said.
He says the tariffs aren’t targeted at just South Africa. “Over 90 countries are experiencing US tariff imposition, so South Africa is not isolated as a result, said Ramokgopa.
He said negotiations between South Africa and the US were ongoing, expressing hope that both countries would be able to “find each other”.
“We presented before them; Minister Parks Tau, in his official capacity, continues to engage. We are still to receive a response, so the rate at which we are able to resolve this is also a function of the response we are getting from the counterparty,” he added.
Ramokgopa highlighted the tariffs had accelerated South Africa’s efforts to diversify its trade markets.
He rejected suggestions that the US tariffs were a reaction to domestic policies such as B-BBEE or the Expropriation Act.
The minister also emphasized that B-BBEE remains a core government policy, though he acknowledged it might require “some degree of tweaking”.
“As is the case with any other policy, there are moments of reflecting on the efficacy of that policy and how we are discharging that policy.
The US Administration has set the exemption of US entities in South Africa from all BEE requirements and race-based legislation as one of its necessary preconditions for the normalisation of bilateral relations between the United States and South Africa.
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