Concern over impact of global trade tensions on country’s export economy

CAPE TOWN - Parliament’s select committee on economic development and trade has expressed concern about the impact global trade tensions could have on the country’s export economy.

Committee chairperson Sonja Boshoff said it would be “catastrophic” - particularly for the agriculture sector, if preferential market access currently enjoyed under the United States’ Africa growth and opportunity act – AGOA - is discontinued.

 
Briefing the media at parliament on Monday, Boshoff said South Africa’s G20 presidency provides a platform to reshape global trade to counter the pressures currently being felt.

 As the United States imposes new import tariffs on its global trade partners and given heightened tensions between South Africa and America - there are real fears South Africa’s tariff exemption to US markets will be stopped when the act comes under review in September. 

Chairperson of the select committee on economic development and trade, Sonia Boshoff said the committee is extremely concerned about the country’s agriculture sector.

READ: SA govt says it will continue to lobby the US to renew AGOA

“Any revocation would be catastrophic for these communities. We must urgently engage with the US administration to preserve this preferential access, while asserting our sovereign right to an independent foreign policy.” 

 Boshoff said the impact of the European Union’s citrus import ban and carbon taxes could also be detrimental to South Africa’s exports. 

“We must maintain market access through evidence-based negotiation and not surrender.” 

 Boshoff said the committee was keeping a close watch on diplomatic talks to ensure existing trade agreements with the US and EU are extended.