With Donald Trump calling Africa a sh*thole, Solidarity is already warning South Africans that major job losses could result if the country is not included in the USA’s Generalised System of Preference (GSP)
In a statement, Solidarity informed South Africans that The Unites States federal government had already announced plans last Friday to review South Africa’s eligibility to benefit from the scheme.
According to Marius Croucamp, Deputy General Secretary at the Solidarity Institute for Strategic Labour Affairs (SISLA), about 900 US companies operate directly or indirectly in South Africa, employing some 125 000 workers. A suspension of duty-free trade would make South African products less competitive and vulnerable to cheaper offerings from competitors.
South Africa, with its middle-income market economy, is hugely dependent on bi-lateral trade, especially with the current slump in local demand. The trade balance between South Africa and the USA leans significantly in South Africa’s favour. Another dip in investor confidence or trade suspension would further discourage American companies from investing in and doing business with local companies, according to Croucamp.
Edited for length and style