The Congress of South African Trade Unions (COSATU) statement on US tariff announcement on South African exports.

COSATU is extremely concerned by the impact of the 30% tariff announced by the United States (US) on all South African exports bar minerals, to the world’s largest economy.  We fear the devastation this will wreck upon farmworkers in the citrus industry from the Western Cape to Limpopo, to motor manufacturing workers from the Eastern Cape to Gauteng.  No company can compete with 30% tariffs.  Many may close.

This calamity has been made worse as South Africa has been unfairly made a global skunk with comparatively far better tariffs of 15% announced for neighbouring states, economic sector competitors and most of the world, ironically including many regimes with dubious understandings of the rule of law and real human rights abuses and genocides, who will now have a real advantage over South African exports.

Our economy, struggling with 1% annual growth since 2008, 43.1% overall and a 72% youth unemployment plus entrenched levels of poverty and inequality, simply cannot afford such a painful blow. 

The Department for Trade, Industry and Competition has done well to offer the US administration a bold and mutually beneficial trade package.  More must be done to resolve outstanding trade and investment matters benefitting both countries’ economic needs and workers.  These will only lead to a substantially reduced and more manageable tariff regime for South African goods once the bilateral strains in the relations between the US and South Africa are addressed.  This requires common sense and less chest thumping.  Countries negotiate with those who have something they need.  Feelings and friends are best left for weekend braais where one can lament about life. 

The bilateral strains between South Africa and the US can be addressed in a manner respectful of both nations’ sovereignty, including South Africa’s unique and painful history and our necessary transformation journey.  These bilateral strains can be transformed to bilateral partnerships to tackle our high levels of crime, ease red tape on investments and elevate the worker empowerment and equity equivalents options provided under Broad-Based Black Economic Empowerment, and enhance the comprehensive checks and balances provided for by the extensively consulted Expropriation Act through Regulations.

It is long overdue that the race baiters and spewers of the most vulgar forms of hate speech and fake news are held accountable by society.  The shamelessly unpatriotic gallivanting across the US by AfriForum, NEASA, Freedom Front Plus, Sakeliga amongst other far right racial nationalists have done real damage to Brand South Africa in the US, elevating domestic politics to bilateral tensions.  Similarly, the populist theatrics by the Economic Freedom Fighters have added fuel to a fire risking the jobs of thousands of South African farm, automotive, clothing, textiles, chemical, jewelry, hospitality and public sector jobs. 

Democracy is by its nature noisy and robust but there are limits to what society can be expected to tolerate.  Businesses and employees whose livelihoods are now in serious jeopardy should pursue civil claims for any job and company losses against these spreaders of fake news and racial incitement.

Whilst it is natural to want to spend time licking one’s wounds and engage in the usual blame game, now is the time for all sober persons and parties to place the national interests ahead of partisan point scoring.  This necessitates government speaking with one voice and its member parties spending less time sniping at each other.  The Democratic Alliance should tone down some of the less than helpful statements.

COSATU will continue to work closely with the Presidency and Departments for Trade, Industry and Competition as well as International Relations and Cooperation and Organised Business to expedite engagements with the US administration and find paths to ensure South Africa is placed on a similar tariff regime as our neighbours and economic competitors across the world.  We remain confident that South Africa will manage these challenges under the leadership of President Cyril Ramaphosa and government led by the African National Congress.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687Email: matthew@cosatu.org.za