EDITORIAL: A sense of urgency at last

Finally, it seems the penny has dropped in Pretoria — government has, at last, accepted that SA’s economy is facing one of its toughest external challenges.

This Thursday, SA’s exporters to the US will face tariffs of 30% with the threat of even higher duties if this country continues its association with the Brics bloc — a club that includes Brazil, Russia, India, China, SA and new members including Iran.

Talks to agree on a new, mutually beneficial bilateral trade deal between SA and the US have hit an impasse.

SA’s offer, shrouded in secrecy, has failed to pause the long-threatened tariffs. Of the scant appeasement details known is that Pretoria has offered to buy more of America’s natural gas and invest billions in the US.

With no established diplomatic and back channels, the SA government is sitting by the phone waiting for the call about the latest iteration of its trade offer.

The tariffs, part of a series of presidential executive orders, make the unilateral US trade law useless even before its formal expiry.

As matters stand, Donald Trump, America’s president, looks like he means what he says: he will put America First. He hasn’t deferred the tariffs on SA, its neighbours or any of the Brics countries, which he regards as an anti-American bloc.

ANC leaders are also facing personal sanctions.

This past weekend, the national executive committee of the ANC met to consider a range of issues. Unfortunately, its statement and posture appear to have underestimated the threat of US tariffs.

Glibly, its secretary-general, Fikile Mbalula, has said the party is ready for US sanctions. It isn’t.

Thankfully, government’s response has been decidedly measured, and inconsistent with the ANC’s line.

Cyril Ramaphosa, the president, his trade, industry & competition minister, Parks Tau, and international relations minister Ronald Lamolasound as if they know how high the stakes are.

Trump’s threats cannot be wished away as a nightmare.

Last Friday, they announced a two-pronged response: first, they would continue (waiting for) talks with the US regarding their offer; and second, they hastily cobbled together support measures to preserve jobs and livelihoods: an undertaking to aid in market diversification, and an export advisory desk was set up. The latter are not new, and their efficacy is not proven.

Some of these measures were employed, with disappointing outcomes, during the Covid-19 pandemic.

As panic set in, new measures were floated for consideration. These include a new interministerial task team and preferential market access offers from Brics countries.

The Brics market access offers ought to be welcomed. However, they are not without risks. This will most likely be seen as anti-American, and invite the hardening of attitudes in the Oval Office.

In the past few days, our government has grudgingly accepted that it doesn’t have all the answers. This is welcome. An intergovernmental dispute should not be allowed to develop into a spat between peoples and businesses of different countries. After all, governments come and go, but cultural, business and social relations outline a term of office.

It is vitally important that all interlocutors keep this in mind. Economic damage — including jobs bloodbaths — on both sides should be avoided.

SA’s private sector, which is in a long-standing partnership, has offered a helping hand during this crisis. It should be welcomed, as this newspaper has argued previously.

There might also be wisdom in ensuring that other stakeholders, such as business associations in both countries, are involved in these talks without jeopardising their confidentiality.

It’s time for the president to take the nation into his confidence. He should speak to South Africans about his understanding of the current crisis in relations with the US, and establish in the public’s mind a link between our domestic and foreign policies.

Importantly, he needs his government of national unity partners to be singing from the same hymn sheet with him.