The South African president, Cyril Ramaphosa, deplored US customs taxes on “very punitive” customs, a few days before the application of these customs tasks by 30%, the highest rate in sub -Saharan Africa.
If the “discussions” with the United States continue “normalizing commercial relations”, the South African president requested a “diversification of export markets” of companies, after a meeting of their political party.
Employment threats
The United States is the second commercial partner in South Africa. The governor of the Central Bank warns that the increase in American customs tasks could cost 100,000 jobs, in a country already overwhelmed by unemployment of 33%. The Ministry of Commerce and Industry, on the other hand, spoke of 30,000 jobs threatened on Monday.
The impact on growth could be 0.2%, Foreign Minister Ronald Lamola said on a press conference, while GDP only increased by 0.1% in the first quarter.
According to the South African government, these new customs tasks will take effect on Friday.
Agriculture, automotive, textiles
To avoid high customs duties, South Africa has proposed to import liquefied natural gas and certain agricultural products in the United States, as well as invest in its mining and metal recycling industries, said the Ministry of Commerce last week.
The new customs tasks will particularly affect the South African, automotive and textile sectors, according to Pretoria. However, about 35% of South African exports escape the surcharge, including copper, semiconductors, pharmaceutical products or certain critical minerals.
South African exports represent only 0.25% of total US imports, according to Ronald Lamola. Pretoria argues that their exports do not compete with the American industry, but support it.
The Government has established an assistance office that will help exporters and producers explore other markets in the rest of Africa, Asia and the Middle East, said Cyril Ramaphosa. The free trade zone for the African continent will also advance, he added.
The United States announced last week of customs tasks of 15% in exports from several sub -Saharan Africa countries, including the small mountainous kingdom of Lesotho, which depends on exports, which was initially threatened with customs duties of 50%.
“Extreme provocation”
Pretoria still strives to seal an agreement despite the “extreme provocation” that represents the decision of the United States, said Ronald Lamola.
South Africa has been the issue for months of attacks by the administration of Donald Trump, who criticizes him for the alleged persecution of white farmers, as well as his complaint for the genocide addressed to the International Court of Justice (CIJ).
The US president had organized around fifty Afrikaners white farmers in May, such as refugees, stating without a basis that they were persecuted in South Africa.
During a meeting at the Oval office, Donald Trump broadcast, in front of a prohibited Cyril Ramaphosa, a video assembly scored by errors and is supposed to demonstrate his accusations.
Source: BFM TV
