Parly's trade committee says SA exports will be less competitive in US
The committee has also warned that the 30% tariff on certain South African exports will have a devastating impact on industries like agriculture and the automotive sector.
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CAPE TOWN - The Portfolio Committee on Trade, Industry and Competition said South African exports will become less competitive in the United States (US) once the new tariffs take effect from Thursday.
The committee has also warned that the 30% tariff on certain South African exports will have a devastating impact on industries like agriculture and the automotive sector.
The portfolio committee said decreased local production will lead to job losses in the affected sectors.
It added that given the current levels of exports to the US and the significant value chains between the two countries, the additional tariffs would make many South African products more expensive in the US market.
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It said this could potentially disrupt the existing value chains.
The committee said the demand for South African products may decline as a result, leading to a drop in exports to the world’s biggest economy.
The committee warns that this could result in decreased local production and job losses, particularly if companies can’t find alternative export markets.
Committee chairperson, Mzwandile Masina, said the two countries are still engaging in discussions and those involved should refrain from making “reckless public statements” that could derail the negotiations.