The Congress of South African Trade Unions (COSATU) is deeply concerned about the impact of the new tariffs announced by the United States (US)’ government on imports from across the world, including South Africa. The 30% import duties to be levied upon South African exports will have a devastating impact on local companies and threaten the salaries and jobs of thousands of South African workers.
We are deeply worried in particular about jobs in motor manufacturing, mining, agricultural, clothing, chemical and jewellery sectors and the impact the new tariffs will have on an economy already battling with 41.6% unemployment and economic growth rate averaging 1%.
We fear these new tariffs will spell the end of the African Growth and Opportunities Act (AGOA) that has helped to create and sustain millions of jobs across South Africa, Africa and America and nurture the economic integration of the African continent.
As these new tariffs will affect most nations, it is important that the South African government urgently engage the US government directly, but also through the World Trade Organisation, to seek mutually beneficial alternatives that will be less damaging for local jobs and businesses in both countries. This matter requires global engagements and solutions as developing nations cannot afford a trade war.
It also requires expedited discussions between the South African and US governments and a mutually beneficial reset of relations between South Africa and the US underpinned by healthy and expanding two-way trade and investment opportunities between both countries.
Whilst it is critical that government address these challenges, it is equally important that we also seek to expand similar trade and investment opportunities across the world and in particular other large trading partners in the European Union, China, Brazil and India amongst many others and most strategically in the continent through the African Continental Free Trade Area.
COSATU will continue to work closely with government and business on these pressing and sensitive matters, at Nedlac, in the various sectoral master plans and bargaining councils, and also in engagements with our counterparts in the US. These efforts must be guided at all times by the interests of workers.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Cell: 082 785 0687
Email: matthew@cosatu.org.za