Washington: The Southern African Customs Union (SACU) has expressed concerns that the United States of America’s decision to impose reciprocal tariffs could undermine the progress made in their partnership. The union highlighted the potential shift from value-added manufactured goods to a more extractive trade relationship as a significant risk.

According to Namibia Press Agency, Ericah Shafudah, Chairperson of the SACU Council of Ministers, emphasized the importance of differential treatment by the USA. She urged the exemption of least developed countries and those eligible under the African Growth and Opportunity Act (AGOA) from these tariff measures. While the tariffs have been temporarily paused for 90 days with a universal interim rate of 10 percent, Shafudah stressed the ongoing uncertainty for SACU exports to the USA.

Shafudah criticized the USA’s unilateral decision to raise tariffs without prior consultation, describing it as a departure from established global trade norms. She warned of significant implications for the multilateral trading system’s foundational principles. She reaffirmed SACU’s commitment to a rules-based multilateral trading system, with the World Trade Organization (WTO) playing a central role.

The Chairperson called for urgent reform of the WTO to address existing imbalances and provide policy space for Africa’s industrialization. She also emphasized the need for SACU to maintain the integrity of its internal market while engaging with the USA to ensure that any partnerships do not undermine regional industrial capabilities.

Shafudah concluded by stating SACU’s readiness to engage with the USA to find a cooperative solution that promotes mutually beneficial trade and investment relations, while preserving existing supply chains.