South Africa to Allow Exporter Collaboration as Tariffs Kick In

South Africa’s trade department has drafted proposed regulations that will allow exporters to collaborate to ease the impact of 30% tariffs the U.S. levied on imports from the nation.

The regulations, which the Department of Trade, Industry and Competition published for public comment on August 12, will stay in place for five years, it said.

Under the proposed regulations, exporters will be permitted to coordinate and share shipping and marketing costs, collaborate on the building of export infrastructure, and will be allowed to jointly negotiate export protocols. The planned rules will help companies avoid breaching antitrust laws.

The measures are being put in place “to mitigate the economic impact of the increased tariffs and to contribute to the resilience and growth of South African exports,” the department said in a government notice.

The tariffs on South Africa, among the highest levied on any nation, threaten to cut thousands of jobs in the country’s agricultural and automotive industries. The U.S. is South Africa’s biggest trade partner after China.

Any collaboration will need to be approved by the country’s competition authorities.

Source: Bloomberg

Image Source: Monday, May 13, 2024. Photo: Dwayne Senior/Bloomberg