A senior South African diplomat stated on Tuesday that U.S. requirements on domestic affirmative actions policies are complicating efforts to achieve a trade agreement, just days before a tariff of 30% on South African exports into the U.S. comes into effect.

South Africa has been trying to convince the U.S. administration of President Donald Trump to lower tariff rates or exempt certain industries in order to prevent tens and thousands of job losses. But it has not made any progress, even though others have.

The European Union

Deals have been made.

The diplomatic relations between South Africa and the United States have been affected by South Africa’s actions.

Black Economic Empowerment policies

Address the legacy of centuries-long racial inequalities and the genocide case brought against Israel by the World Court. Both Israel and the U.S. are vehemently opposed to this.

Zane Dangor (Director-General at the Department of International Relations and Cooperation) told a Johannesburg seminar that U.S. counterparts were clear during meetings about "certain things they expected from South Africa", and BEE was a priority.

He did not say what the U.S. demanded. Trump criticised the BEE laws of the country, which offer incentives for companies to hire, promote and retain Black people. In some cases, they require that a certain percentage Black shareholders obtain a licence.

"Clearly, I think that what concerns us is the demand from us to curtail our sovereignty on certain matters in order to get this (trade deal)", Dangor said. He added that he couldn't elaborate due a nondisclosure contract.

The Office of the U.S. Trade Representative didn't immediately respond to a comment request.

The South African trade ministry stated on Tuesday that they still hoped to reach an agreement with the U.S.

It said that it has not yet received a response to its offer to buy U.S. LNG, to simplify rules for U.S. chicken imports, and to invest $3.3 billion into U.S. industries such as mining.

The trade ministry also stated that South Africa wants to exempt some sectors from tariffs, such as shipbuilding and anti-seasonal agricultural trading.

South Africa's largest bilateral trading partner is the United States, followed by China. South Africa's Central Bank Governor has stated that the proposed tariff could result in around

Loss of 100,000 jobs

The agriculture and automotive industries are the hardest hit.

(source: Reuters)