President Cyril Ramaphosa hopes diplomacy coupled with diversification efforts can counter the unilateral imposition of a 30% trade tariff against South Africa by US President Donald Trump.
South Africa is one of a number of countries to receive the communication on Monday. The negotiating deadline has been extended to August 1.
"The 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the USs," the presidency said in a statement.
"The contested interpretation forms part of the issues under consideration by the negotiating teams from SA and the US. Accordingly, South Africa maintains the 30% reciprocal tariff is not an accurate representation of available trade data.
"In our interpretation of the available trade data, the average tariff on imported goods entering South Africa stands at 7.6%. Importantly, 56% of goods enter South Africa at the 0% most favoured nation tariff, with 77% of US goods entering the South African market under the 0% duty.
"South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the US. We welcome the commitment by the US government that the 30% tariff is subject to modification at the back of the conclusion of our negotiations with the US."
Ramaphosa said his administration has continued to engage with the US, most recently at a meeting held on the sidelines of the US-Africa Summit on June 23 in Luanda.
"It was at this meeting where South Africa learned of a template with which the US wishes to engage sub-Saharan Africa on matters of trade. The South African negotiating team awaits the template. However, President Ramaphosa has instructed the team to urgently engage with the US on the basis of the framework deal South Africa submitted to the US on May 20. The framework deal addresses the issues initially raised by the US, including South Africa’s supposed trade surplus, unfair trade practices and lack of reciprocity from the US."
The presidency said Ramaphosa urged the government trade negotiations teams and local companies to accelerate their diversification efforts to promote better resilience in global supply chains and the South African economy.
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