South Africa reiterates call for extension of 90-day reciprocal tariff pause while US finalises trade matters ‘template’ for Africa
The South African government has confirmed that it has reiterated its request for an extension of a prevailing 90-day pause on the imposition of reciprocal tariffs of 31% on South African exports to the US, which is due to expire on July 9.
The request was made again during a meeting between Trade, Industry and Competition Deputy Minister Zuko Godlimpi and Assistant US Trade Representative responsible for Africa, Connie Hamilton, on the sidelines of the United States of America-Africa Summit in Luanda, Angola, on June 24.
At the meeting it emerged that the US was developing a “trade-matters template” as the basis for its engagements with countries in sub-Saharan Africa and that the template would be shared as soon as it had been approved by the US administration.
In view of this development, South Africa again advocated for the extension of the 90-day deadline to enable countries to prepare their proposed deals in accordance with the new template.
It argued that the template could affect the content of a proposed ‘Framework Deal’ with the US, submitted by South Africa at a meeting ahead of the well-document Oval Office meeting between President Cyril Ramaphosa and President Donald Trump on May 21.
The Framework Deal sought to address US concerns relating to non-tariff barriers, its trade deficit with South Africa, commercial relations through two-way procurement or import of strategic goods, and also proposes ways to resolve long-standing market access issues, especially for agricultural products.
South Africa is also seeking to have some key export products exempted from Section 232 duties, including autos and auto parts, and steel and aluminium through tariff rate quotas.
South Africa has also proposed a maximum tariff application of 10%, as a worst-case situation, while seeking exemptions for small and medium-sized enterprises, as well as counter-seasonal products and/or products that the US does not produce.
“In this regard, we are of the view that South Africa may need to re-submit its Framework Deal in accordance with the new template.
“It is thus expected that the deadline may be shifted,” Trade, Industry and Competition Minister Parks Tau said in a statement.
He also urged South African firms not to take decisions in haste, while offering an assurance that government was using “every avenue to engage the US government to find an amicable solution”.
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