Minister Parks Tau and his team are in the US discussing a possible trade deal to reduce tariffs that threaten the competitiveness of stonefruit and table grape exports to American markets
South African fresh produce exporters to the US are still hoping that adjustments will be made to the trade tariffs imposed on their fruit before the new season starts.
The country’s minister of trade and industry, Parks Tau, confirmed that negotiations with the US over 30 per cent tariffs on local exports have entered a critical new phase.
Tau and his team are in the US to discuss a possible trade deal that could reduce the tariffs, which experts and economists have warned will have a devastating effect on key sectors of the economy, including automotive, agriculture, and manufacturing.
South African fresh produces exporters have pointed out that in recent years they have been able to advance their exports to the US and they have now established a growing footprint in the market.
Stonefruit exporters said their produce has been well received by US consumers and that they are keen to continue their presence in the market.
Table grape growers have expressed the same sentiment, but warned that the new tariffs will make their products uncompetitive, particularly because competing countries have lower tariffs.
Minister Tau said that the US will provide a revised text early next week based on recent discussions, which will help move negotiations forward.
“The US will give us a revised text on the basis of the comments and questions over the past week,” he said.
”It would give us about two weeks to consider consulting stakeholders, sister departments, going to cabinet, getting a mandate and being able to respond.
”From there we would be able to then get into the details of the negotiations,” he added.
While this is going on, it has been revealed that a bill has been introduced in the US Senate to sanction members of South Africa’s governing party, The African National Congress (ANC). How this affects the situation remains to be seen.