The DA has blamed ANC ministers for failing to negotiate a trade deal with the US to avert the unilateral 30% tariff it will impose on South African imports with effect from August 7.
DA spokesperson on International Relations and Cooperation, Ryan Smith MP, said the interventions announced by Department of Trade, Industry and Competition Minister Parks Tau and International Relations and Cooperation Minister Ronald Lamola yesterday demonstrated 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 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,” said Smith.
“This diplomatic negligence and trade paralysis on South Africa’s part demands an urgent shift in attitude and approach on both accounts.”
He said it was interesting that the interventions announced demonstrated that it was possible for the ANC to “rapidly cut the red tape” that was 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.”
Smith said the country needed to implement two sets of urgent reforms to create jobs, including building a sustainable and supportive environment for business to grow and export its goods. The second was to pursue 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 DC to better represent South African interests and begin the work of repairing diplomatic channels and protecting vital trade relationships,” he said.
“This role is far too important to be left to political loyalty over professional expertise. Previous appointments have put on full display the threat posed to South Africa’s prosperity by incompetent cadres and party hacks in key government positions.”
Smith added that if Lamola had 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,” said Smith.
