S-African deputy leader cautions of prolonging US trade row
(MENAFN) South Africa’s Deputy President Paul Mashatile has cautioned that failing to reach a trade agreement with the United States could have severe consequences for the country’s automotive industry. Speaking at the opening of the P20 Women’s Parliament in Cape Town on Thursday, Mashatile highlighted that a proposed 30% tariff on South African auto exports to the US threatens established trade flows, competitiveness, and thousands of jobs.
Mashatile explained that suppliers supporting domestic original equipment manufacturers (OEMs) exporting to the US could face production cuts, jeopardizing employment, investment, and planning. Without preferential or zero-duty access like that offered to USMCA nations, these suppliers may struggle to compete internationally.
The deputy president emphasized the importance of the automotive sector, which accounts for 22.6% of manufacturing output, 5.2% of GDP, and employs over 115,000 people, including 80,000 in component manufacturing. He also stressed the sector’s potential to promote shared prosperity through industrial development, localisation, and transformation.
Mashatile acknowledged challenges facing the industry, such as infrastructure gaps, rising import dependence, slow EV adoption, and the closure of twelve companies over the past two years, which affected more than 4,000 workers amid 33.2% national unemployment.
He reaffirmed government support through programs like the Automotive Investment Scheme (AIS), the Automotive Production and Development Programme (APDP Phase 2), and the South African Automotive Masterplan 2035, which aims to grow production to 1.4 million vehicles, increase local content to 60%, double employment, and foster at least 130 new Black industrialists.
Highlighting regional opportunities, Mashatile pointed to the African Continental Free Trade Area (AfCFTA) as a means to reduce import reliance and strengthen regional value chains. He called for collaboration between government, industry, and international partners to create inclusive economic growth and long-term prosperity.
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