U.S. receives revised South African trade proposal.

 

South Africa is working quickly to submit an "enhanced" trade proposal in a final attempt to avoid a 30% tariff scheduled to take effect on Friday, as announced by Trade Minister Parks Tau on Thursday. 

This proposal is being prepared at the request of U.S. officials, following a prolonged silence from Washington after South Africa's initial submission in May and a revised version in June. 

“We are in the process of navigating a last-minute, strengthened version of our original proposal,” Tau stated. “Honestly, we are now just waiting to see the outcome.''

 As the August 1 deadline approaches, anxiety is growing in South Africa. The governor of the country’s central bank has warned that these tariffs could jeopardize up to 100,000 jobs, especially in the agriculture and automotive sectors. 

The United States ranks as South Africa’s second-largest trading partner, after China. Significant South African exports to the U.S. include vehicles, manufactured goods, citrus fruits, and wine. 

Tau confirmed that discussions occurred on Wednesday night with U.S. officials, both at the embassy in Pretoria and with representatives at the U.S. Trade Representative level. Nonetheless, the situation remains uncertain. 

“They suggested that we should consider resubmitting, potentially with an enhanced proposal,” Tau remarked. 

Efforts to finalize a new agreement have reportedly been complicated by U.S. concerns regarding South Africa's national affirmative action policies. A senior South African diplomat indicated on Tuesday that Washington's position on Black Economic Empowerment (BEE) initiatives has significantly hindered negotiations. 

Tensions have also been exacerbated by South Africa's legal actions against Israel in the International Court of Justice, a move that has faced strong opposition from both Israel and the United States.