Under attack by Trump, South Africa's Ramaphosa responds with trade deal offer
What you need to know:
- Ramaphosa will offer Trump a broad trade deal, said a spokesperson for the trade ministry, declining to give details.
Johannesburg. South African President Cyril Ramaphosa heads to the White House on Wednesday on a delicate mission to persuade U.S. President Donald Trump to make deals with his country rather than scold and punish it as he has done since the start of his second term.
Attacking South Africa's land reform law aimed at redressing the injustices of apartheid and its genocide court case against Israel, Trump has cancelled aid to the country, expelled its ambassador and offered refuge to white minority Afrikaners based on racial discrimination claims Pretoria says are unfounded.
"Whether we like it or not, we are joined at the hip and we need to be talking to them," Ramaphosa said on South African state television before flying to Washington to meet Trump.
The stakes are high for South Africa. The United States is its second-biggest trading partner after China, and the aid cut has already resulted in a drop in testing for HIV patients.
Ramaphosa will offer Trump a broad trade deal, said a spokesperson for the trade ministry, declining to give details.
For his part, Trump is likely to demand that U.S. companies are exempted from "racial requirements", a White House official said.
South Africa has laws to compel businesses to hire and promote Black South Africans, including a requirement for large companies in some sectors, such as mining and telecommunications, to have a 30 percent equity stake held by disadvantaged groups.
Policies aim to restore racial justice
Ramaphosa is unlikely to agree to weaken such rules, which are core to his government's aspiration to restore racial justice after centuries of colonialism and apartheid.
"There's political problems here that lie at the heart of the breakdown in the relationship," said Joshua Meservey, senior fellow at conservative U.S. think tank the Hudson Institute, cautioning that deal-making may not be enough to overcome them.
Nevertheless, Ramaphosa plans to discuss opportunities for Tesla and Starlink, companies owned by Trump's ally Elon Musk, who was born and raised in South Africa and has accused Ramaphosa of pursuing anti-white policies, which he rejects.
Ramaphosa will look to reset strained relations with Trump, who has taken aim at South Africa over the country's land reform policy and its genocide case against U.S.
Discussions could include favourable tariffs for Tesla's imports into South Africa in return for building electric vehicle charging stations, and licensing for Starlink, Ramaphosa's spokesperson said.
Golf connections
Agriculture Minister John Steenhuisen, who is travelling with Ramaphosa, said he would work to secure South African farmers' duty-free access to the U.S. market under the African Growth and Opportunity Act (AGOA) and to expand access.
AGOA is at risk from Trump's tariff regime, which is currently suspended but would hit South Africa with a 30 percent duty if enacted.
"I believe that with enough drive and determination we can expand access and improve relations and this means greater opportunities for South African farmers and farmworkers," Steenhuisen told Reuters by text message from Washington.
Trump has accused South Africa of seizing land from white farmers and of fuelling disproportionate violence against white landowners with "hateful rhetoric and government actions".
Pretoria says these claims are inaccurate and "fail to recognise South Africa's profound and painful history of colonialism and apartheid".
Crime statistics show no evidence that white people are disproportionately targeted. A land reform law allows judicial challenges to any expropriation orders, which can only be issued in the public interest. No expropriation has taken place.
White people, who make up about 7 percent of South Africa's population, are still richer than the Black majority by every economic measure and still own three quarters of the country's freehold farmland.
Ramaphosa is an experienced negotiator, having headed the African National Congress's team during the 1990s talks that led to apartheid's peaceful end. He also built a successful investment vehicle before becoming president in 2018, and may be helped in his wooing of Trump by rich and powerful allies.
South African media reported that billionaire luxury goods tycoon Johann Rupert, the richest person in South Africa, and golfer Ernie Els have helped to bring about the meeting between Trump and Ramaphosa. Both have played golf with Trump.
Neither man responded to requests for comment.
Rupert, founder of the Richemont group which owns brands such as Cartier and Chloe, was quoted by News24 as saying he was very concerned about the potential loss of AGOA and its impact on jobs in his homeland.
