US-South Africa Trade Standoff: Affirmative Action Policies in the Spotlight
Negotiations between South Africa and the U.S. on a trade deal have hit a snag over affirmative action policies. With a hefty tariff looming over South African exports, discussions on Black Economic Empowerment laws are tense. Both nations have yet to finalize a trade agreement.
Efforts to finalize a trade agreement between South Africa and the U.S. face new hurdles as diplomatic tensions rise over affirmative action policies. Days before a 30% tariff on South African exports is set to be imposed, diplomats are struggling to reach a consensus.
South Africa's policies on Black Economic Empowerment, intended to address historical racial inequalities, are a focal point of contention. U.S. demands for policy changes have complicated talks, according to Zane Dangor, director-general at South Africa's Department of International Relations and Cooperation. Dangor noted at a Johannesburg seminar that these demands challenge the nation's sovereignty.
Despite South Africa's offer to invest in U.S. industries and import U.S. goods, a firm deal remains elusive. The looming tariff could threaten up to 100,000 jobs, with significant impacts on agriculture and automotive sectors, as concerns escalate about the future of bilateral trade relations.
(With inputs from agencies.)
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