South Africa has called for urgent reforms and strengthening of the World Trade Organization (WTO) following the imposition of significant tariffs by the United States, including a 31% tariff on imports from South Africa.
Trade Minister Parks Tau emphasized that these tariffs, which range from 10% to 50% for other US trading partners, could disrupt global trade and undermine economic stability.
Tau also highlighted the potential negative impact on the African Growth and Opportunity Act (AGOA), which offers duty-free access to products from sub-Saharan African countries, including South Africa. With AGOA up for renewal in September, the tariffs could complicate negotiations and undermine the benefits of this trade deal.
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In his remarks, Tau stressed the importance of reforming the WTO to adapt to the evolving global trade landscape and ensure that all nations, both developed and developing, can work within a fair and transparent system. He also pointed out that the new tariffs could harm various sectors in South Africa, such as automotive and agriculture, with potential job losses and reduced economic growth.
The South African government has requested clarification from the United States on how the 31% tariff was determined, as the country is not considered a threat to the US economy, representing just 0.4% of US imports in 2024.
South Africa, which currently holds the G20 presidency, called for collective action to strengthen the multilateral trading system and ensure fair trade rules for all nations.
