B-BBEE Off the Table: Lamola Clears the Air on US Trade Negotiations

B-BBEE and Politics Left Out of US Trade Talks, Says Lamola

Trade First, Politics Later? Minister Says Yes

If you’ve been following the noise around South Africa’s ongoing trade negotiations with the United States, you’d be forgiven for thinking that our domestic policies, like Broad-Based Black Economic Empowerment (B-BBEE) were central to the discussion.

But according to International Relations and Cooperation Minister Ronald Lamola, that simply isn’t the case.

Speaking at a media briefing this week, Lamola clarified in no uncertain terms: B-BBEE and other political issues have not been raised in the current trade talks. The message was clear “We’re sticking to the trade script.”

Who’s Saying What? And Why It Matters

The backdrop to Lamola’s comments is important. Over the past few months, several South African political and civil society groups, including the DA, AfriForum, Solidarity, and the Freedom Front Plus, travelled to Washington, reportedly to raise red flags about B-BBEE, land reform, and South Africa’s recent international court case involving Israel.

Their narrative? That South Africa’s empowerment and equity policies may be harming global trade ties.

The South African government, for its part, sees these interventions as undermining efforts to rebuild relations with the US. Lamola even suggested that these groups may have contributed to the tensions that led to Washington imposing a 30% tariff on South African exports, the highest in Sub-Saharan Africa.

What’s Actually Being Negotiated

So what is on the table?

Trade logistics. Tariff relief. Market access.

Lamola laid out the government’s position: 35% of South African exports will remain exempt from the tariff hikes. These include critical sectors like:

• Pharmaceuticals

• Semiconductors

• Copper and critical minerals

• Stainless steel scrap

• Energy-related products

He also noted that South Africa has already adjusted to similar tariffs on steel and aluminium imposed by the US back in 2018.

South Africa’s exports, Lamola explained, don’t pose a threat to American industry. In fact, they often support the US supply chain, especially in agriculture, where our counter-seasonal exports fill US market gaps.

Economic Impact: A Sliver of Slowdown, But Support Is Coming

Economists warn that the 30% tariffs could shave 0.2% off South Africa’s GDP growth, a real concern for an already fragile economy. But Lamola insists government is not sitting idle.

In response, the Department of Trade and Industry is rolling out a dedicated export support desk, which will:

• Help companies navigate the changing trade landscape

• Assist in finding new international markets

• Act as a link between exporters and SA embassies abroad

Additionally, an economic relief package is in the works, aimed at helping affected companies manage short-term pressures and safeguard jobs.

Social Media Buzz and Public Reaction

Public reaction has been divided. On X (formerly Twitter), the hashtag #TradeNotPolitics trended for hours after Lamola’s comments, with users voicing both support and criticism.

Some applauded the minister’s pragmatism, saying that economic diplomacy should take precedence over political grandstanding, especially given the country’s high unemployment and low growth. Others questioned whether sidestepping discussions on empowerment might send the wrong message about the government’s policy commitments.

One prominent user posted:

“Lamola keeping it focused. Good. But let’s not pretend B-BBEE isn’t a trade issue long-term. Perception matters.”

The Bigger Picture: Treading Carefully in a Tightrope Relationship

South Africa’s relationship with the US has been on shaky ground in recent years, exacerbated by global politics, ideological divergence, and domestic pressure. Add to that Trump-era policies and new geopolitical tensions, and it’s easy to see why Lamola and his team are walking a diplomatic tightrope.

Still, he remains confident that this trade relationship can be salvaged and even strengthened, but only if the focus stays on mutual economic benefit, not political posturing.

A Balancing Act with High Stakes

In a world where politics often bleeds into economics, Lamola is drawing a line in the sand, at least for now. Whether this clear division will hold as negotiations progress is another story.

But one thing is certain: South Africa’s trade future with the US matters, and the stakes, from jobs to GDP  are far too high for mixed messaging.

{Source: The Citizen}

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