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During its tour of the USA, Solidarity unveiled a proposed trade framework between South Africa and the USA. The trade framework addresses the political and trade conditions for a possible agreement between the two countries.
This is the beginning of a comprehensive Solidarity campaign to help facilitate a positive trade agreement between these two countries.

According to Solidarity Chief Executive Dr Dirk Hermann, the proposals were developed from various discussions with representatives of the US government, as well as from President Trump’s executive order. “We believe the framework contains all the elements necessary for a positive trade agreement.”

The trade framework was sent to Presidents Donald Trump and Cyril Ramaphosa on 1 August. President Ramaphosa merely acknowledged receipt but otherwise ignored it. The Trump administration responded amicably and agreed to talks at various levels of the US government.

Solidarity also wrote to President Ramaphosa on 5 September regarding the retrenchment crisis in the country but again received no response. Due to the government’s unwillingness to talk to Solidarity, the trade union  has declared a dispute against the government at NEDLAC.
Solidarity says the paradox is that the organisation is in dispute with its own government, but in dialogue with the US government.

“We are aware that the South African government is currently also involved in discussions with the US government. We would be very grateful if an agreement were to emerge from this, but we are sceptical. In the meantime, we are receiving retrenchment notices daily and we cannot rely solely on the government.
“We are concerned that the South African government is still not addressing the political conditions for a trade agreement.
“We have tried our best to persuade the South African government to engage in talks with us with the aim of working together, but without success. We also wrote to Minister Parks Tau on 12 July and asked for a joint task team, but we have not received any response,” Hermann said.

According to Jaco Kleynhans, head of International Liaison at Solidarity, the government’s diplomatic access to the American government is very limited. “We would like to recommend to the South African government to enter into talks with Solidarity. We probably have better access, and we understand very well what the Americans want. We are not the enemy; we want to find solutions for the country. The dispute with the government is costing our members their jobs,” Kleynhans said.

The Solidarity trade framework will also form the basis for discussions with senior government officials in Washington D.C. where Solidarity will meet with the White House, the Department of State and several members of the US Congress. Solidarity also has meetings with members of the House of Representatives Committee on Foreign Affairs. More details on further discussions will be announced soon.

The Solidarity trade framework addresses four political focal points and focuses in particular on the protection of property rights and the exemption of black economic empowerment for American companies. Property rights are a prerequisite for American investment in South Africa, and the Americans consider black economic empowerment to be a non-tariff trade barrier. There is sufficient constitutional space in South Africa to resolve both these issues.

According to Solidarity, South Africa will also have to adopt a foreign policy of true political neutrality. “It is reckless to be practically an enemy of your largest trading partner, especially one that has established a favourable tariff dispensation in the form of AGOA over many years,” Hermann said.

Regarding AGOA, the trade framework proposes that the AGOA structure be used to facilitate tariff relief for South Africa. The proposal is that the already existing AGOA codes be used for tariff exemptions. This will bring relief especially in the automotive, textile, metal, engineering and mining industries.

The Americans do not emphasise American exports to South Africa as a condition for a trade agreement. However, they do want American companies to be able to trade here without restrictions. South Africa’s proposals for a trade agreement emphasise imports from the USA. Kleynhans says that in Solidarity’s opinion this is not the resolution of the dispute. “The government has done good work in that area, and we are not going to make any further proposals on that.”

Solidarity also calls for pressure to be exerted on the government and on those responsible for the diplomatic crisis, but for ordinary South Africans not to be punished.

Solidarity further emphasises the importance of a bilateral agreement between the two countries. “This is not only in the interest of South Africa; it is also in the interest of the USA. If there is no agreement, it will lead to major job losses. In addition, South Africa will be pushed further into China’s sphere of influence, while the USA will lose South Africa as a gateway to Africa,” Hermann concluded.

Issued by Solidarity