President Cyril Ramaphosa will join the leaders of the world’s most industrialised nations later this week when the two-day G7 leaders summit kicks off in Quebec City Canada on Friday.
However, the leader of Africa’s most advanced economy will be stepping into a high-stakes debate over trade and diplomacy that has pitted the United States against some its strongest allies after moves by President Donald Trump over Iran’s nuclear programme and Palestinian-Israeli relations, while imposing tariffs on steel and aluminium imports from a host of countries including Canada and the European Union.
A statement at the conclusion of a summit of G7 Finance Ministers in Canada at the weekend expressed concerns at the tariffs imposed by the United States on its friends and allies, warning it would undermine open trade and confidence in the global economy.
“We find ourselves the target of punitive tariffs on Canadian aluminium and steel under pretext of a two-three-two national security provision. Let me be clear: these tariffs are totally unacceptable. The American administration has made a decision today that we deplore, and obviously is going to lead to retaliatory measures, as it must, but we regret that. We would much rather move together in partnership, understanding that no two countries have economies as interwoven and mutually beneficial as Canada and the United States,” said Canada’s Prime Minister Justin Trudeau when the tariffs went into effect last Thursday.
Trump’s America first policy has seen him call for “fair and reciprocal trade” even with Washington’s staunchest allies, a view he’s likely to defend in Canada later this week. His Treasury Secretary Steven Mnuchin insists they are not abandoning their leadership of the global economy.
“President Trump has been very clear in wanting to address trade issues. I had the opportunity both as in bilats as well as in the group, to discuss some of these issues. I know that this issue will obviously come up at the leaders’ session next week, and the leaders will talk about it. And again, our objective is to make sure we have fair and balanced trade, and that’s really what we’re focused on. So, I look forward to following up on these discussions. “
Japan has called the US move deplorable while Canada and the European Union have filed challenges to the tariffs with the World Trade Organisation in Geneva.
“We were not at the negotiating table. Our offer was that ‘you take this gun away from us, we sit together as friends and equals and we discuss’ and eventually this would lead to negotiations. This would of course require a mandate from the member states. So we never got this and now that door for the moment is closed,” says EU Trade Commissioner Cecilia Malmstrom.
The tariffs imposed also affected South Africa imports of steel and aluminium to the United States that has cited national security. However South Africa’s Department of Trade and Industry disputes how a country accounting for just 1.6% of total aluminium and 0.98% of steel imports to the United States can threaten their national security.
While this rift plays itself out on the economic front there are also geo political concerns where Washington is increasingly isolated – these include Climate Change, the Iran nuclear agreement and its perceived bias in relations between Palestine and Israel.
