On March 1st, 2018, the United States announced the implementation of new tariffs on steel and aluminum imports. This decision has sparked concerns and debates around the world, as it has the potential to disrupt global trade and affect economies. In light of this, the South African government has taken a strategic approach in addressing this new tariff regime through a media briefing held on March 5th, 2018.
The media briefing, presided over by the Minister of Trade and Industry, Dr. Rob Davies, aimed to inform the public and the media about South Africa’s response to the new US tariff regime. In his opening speech, Minister Davies emphasized that the South African government’s priority is to protect the interests of the country and its people, while also maintaining good trade relations with the United States.
One of the key points highlighted in the media briefing was the fact that South Africa is not a major exporter of steel and aluminum to the United States. In fact, only 2% of South Africa’s total steel exports and less than 1% of its aluminum exports go to the US. This means that the impact of the new tariffs on South Africa’s economy will be minimal. However, the government acknowledges the importance of the steel and aluminum industries in the country and is committed to protecting them.
To address the potential impact of the new tariffs on the local industries, the South African government has decided to engage in discussions with the United States through the appropriate channels. Minister Davies stated that South Africa will utilize the existing mechanisms under the World Trade Organization (WTO) to address the issue. This includes requesting consultations with the US and, if necessary, taking the matter to the WTO Dispute Settlement Body.
In addition, the South African government is also exploring other avenues to mitigate the impact of the new tariffs. This includes engaging with other countries that are also affected by the US tariffs, such as the European Union and China, to form a united front in addressing this issue. Furthermore, the government is looking into the possibility of diversifying the country’s export markets, as well as investing in downstream industries to create more value-added products.
The media briefing also addressed concerns about the potential job losses in the steel and aluminum industries due to the new tariffs. Minister Davies reassured the public that the government is committed to protecting jobs and will work closely with the affected industries to find solutions. He also highlighted the government’s efforts in implementing the Industrial Policy Action Plan (IPAP), which aims to promote industrialization and create jobs in various sectors, including steel and aluminum.
In conclusion, the media briefing highlighted South Africa’s strategic approach in addressing the new US tariff regime. The government’s priority is to protect the country’s interests and maintain good trade relations with the United States. While the impact of the new tariffs on South Africa’s economy is minimal, the government is taking proactive measures to address any potential challenges and protect the local industries. The government’s commitment to job creation and industrialization, as shown through the IPAP, further demonstrates its determination to mitigate the impact of the new tariffs and ensure the country’s economic stability.
In the face of global trade uncertainties, the South African government’s strategic approach is commendable and shows its commitment to protecting the country’s interests and promoting economic growth. The media briefing has provided transparency and reassurance to the public, as well as demonstrated the government’s proactive and responsible leadership in addressing this issue. As a nation, we can be confident that our government is taking the necessary steps to navigate through this challenging situation and emerge stronger.
