20 August 2025
Blaai af vir Afrikaanse weergawe.
The Free Market Foundation (FMF) has urged the South African government to abolish all non-essential tariffs and embrace unilateral trade liberalisation in response to the United States’ 30% tariff on South African exports. This call to action is outlined in the FMF’s latest report, “Troubled Waters: Rescuing South Africa from a Tariff Disaster,” published as part of its Liberty First initiative on Wednesday, 20 August 2025.
The report, authored by Dr Morné Malan, Senior Associate at the FMF, argues that tariffs, whether domestic or foreign, are a betrayal of economic liberty, stifle innovation, inflate prices, and disproportionately harm the poor.
“South Africa stands at a crossroads,” said Dr Malan. “The US’s protectionist tariffs are a blow, but retaliatory measures would only deepen our economic woes. The solution lies in bold, unilateral liberalisation. It demands abolishing domestic tariffs, streamlining trade processes, and embracing global markets to drive prosperity.”
The report highlights the destructive impact of tariffs, which raise living costs, entrench inefficiency, and reward monopolists at the expense of consumers. It critiques the flawed logic of protectionism, noting that tariffs cannot simultaneously achieve revenue generation, industry protection, and geopolitical leverage, as these goals are mutually exclusive and inherently inefficient.
Drawing on well-established economic principles, the report champions free trade as the path to empowerment, productivity, and job creation. It points to Mauritius, where low tariffs drove GDP per capita from US$4,000 in 1995 to $10,000 in 2022, as a model for South Africa.
The FMF proposes immediate and structural reforms to counter US tariffs and revitalise South Africa’s economy:
- Repeal all tariffs imposed since 2019, except those tied to legitimate state security concerns.
- Introduce a five-year sunset clause on existing tariffs, requiring parliamentary approval for renewal.
- Abolish the International Trade Administration Commission (ITAC), replacing it with a body tasked with lowering trade barriers.
- Legislate a presumption of free trade, prohibiting discriminatory trade policies without parliamentary approval.
- Streamline customs with digital systems, as seen in Singapore, to reduce compliance costs.
- Eliminate discriminatory licensing and quotas for imports and exports.
- Liberalise capital controls to attract foreign direct investment.
- Enshrine trade openness as a constitutional principle, recognising the freedom to exchange as a fundamental right.
“Protectionism is a tax on the poor, masquerading as progress,” said Martin van Staden, FMF Head of Policy. “South Africa must reject retaliatory tariffs and embrace global trade to secure its economic future. Countries like Singapore and Mauritius show what’s possible when markets are open and free.”
The report also urges South Africa to diversify trade partnerships, leveraging the African Continental Free Trade Area (AfCFTA) and strengthening ties with Asia and Europe, while empowering the private sector to innovate and find new markets.
“Trade is not a zero-sum game,” added David Ansara, FMF Chief Executive. “It’s a bond of cooperation that enriches all parties. South Africa must lead with liberty, not retreat into isolation.”
Click here to read the full report.
Click here to view the press briefing of Wednesday, 20 August 2025.
Click here to visit the Liberty First website.
Ends.
***
FMF doen ‘n beroep op die afskaffing van tariewe om Amerikaanse handelsversperrings teen te werk en SA se ekonomie te versterk
20 Augustus 2025
Scroll up for English version.
Die Vryemarkstigting (FMF) het die Suid-Afrikaanse regering gemaan om alle nie-essensiële tariewe af te skaf en eensydige handelsliberalisering in te stel in reaksie op die Verenigde State se 30%-tarief op Suid-Afrikaanse uitvoere. Hierdie oproep tot aksie word uiteengesit in die FMF se jongste verslag, “Troubled Waters: Rescuing South Africa from a Tariff Disaster,” wat as deel van sy Liberty First-inisiatief op Woensdag, 20 Augustus 2025 vrygestel is.
Die verslag, geskryf deur dr. Morné Malan, Senior Medewerker by die FMF, voer aan dat tariewe, hetsy plaaslik of buitelands, ekonomiese vryheid inperk, innovasie onderdruk, pryse opblaas, en armes disproporsioneel benadeel.
“Suid-Afrika staan by ’n kruispad,” het dr. Malan gesê. “Die VSA se proteksionistiese tariewe is ’n slag, maar vergeldingsmaatreëls sal ons ekonomiese probleme net vererger. Die oplossing lê in grootskaalse eensydige liberalisering. Dit vereis die afskaffing van plaaslike tariewe, die vaartbelyning van handelsprosesse en die omarming van globale markte om voorspoed te bevorder.”
Die verslag benadruk die vernietigende impak van tariewe, wat lewenskostes verhoog, ondoeltreffendheid verskerp, en monopoliste beloon ten koste van verbruikers. Dit kritiseer die gebrekkige logika van proteksionisme en merk op dat tariewe nie gelyktydig inkomstegenerering, bedryfsbeskerming, en geopolitieke hefboomwerking kan bereik nie, aangesien hierdie doelwitte onderling uitsluitend en inherent ondoeltreffend is.
Deur voort te bou op gevestigde ekonomiese beginsels, bevorder die verslag vryhandel as die pad na bemagtiging, produktiwiteit, en werkskepping. Dit wys na Mauritius, waar lae tariewe die BBP per capita van VSA $4,000 in 1995 tot $10,000 in 2022 gedryf het, as ‘n model vir Suid-Afrika.
Die FMF stel onmiddellike en strukturele hervormings voor om Amerikaanse tariewe teen te werk en Suid-Afrika se ekonomie aan die gang te kry:
- Herroep alle tariewe wat sedert 2019 ingestel is, behalwe dié wat verband hou met wettige staatsveiligheid-kwessies.
- Stel ‘n vyfjaar-sonsondergangklousule op bestaande tariewe in, wat parlementêre goedkeuring vir hernuwing vereis.
- Skaf die Internasionale Handelsadministrasiekommissie (ITAC) af en vervang dit met ‘n liggaam wat met die verlaging van handelsbelemmerings getaak is.
- Promulgeer ʼn wettige aanname ten gunste van vrye handel, wat diskriminerende handelsbeleide sonder parlementêre goedkeuring verbied.
- Vaartbelyn die doeane met digitale stelsels, soos gesien in Singapoer, om nakomingskostes te verminder.
- Elimineer diskriminerende lisensiëring en kwotas vir invoere en uitvoere.
- Liberaliseer kapitaalbeheer om direkte buitelandse beleggings te lok.
- Verskans handelsopenheid as ‘n grondwetlike beginsel, en erken vryheid van ruilhandel as ‘n fundamentele reg.
“Proteksionisme is ‘n belasting op die armes onder die vaandel van vooruitgang,” het Martin van Staden, FMF Beleidshoof, gesê. “Suid-Afrika moet vergeldingstariewe verwerp en globale handel aangryp om sy ekonomiese toekoms te verseker. Lande soos Singapoer en Mauritius wys wat moontlik is wanneer markte oop en vry is.”
Die verslag dring ook daarop aan dat Suid-Afrika handelsvennootskappe diversifiseer, die Afrika-kontinentale vryhandelsgebied (AfCFTA) benut en bande met Asië en Europa versterk, terwyl die privaatsektor bemagtig word om te innoveer en nuwe markte te vind.
“Handel is nie ’n nulsomspel nie,” het David Ansara, Uitvoerende Hoof van FMF, bygevoeg. “Dis ’n band van samewerking wat alle partye verryk. Suid-Afrika moet met vryheid lei, nie in isolasie terugval nie.”
Klik hier om die volledige verslag (in Engels) te lees.
Klik hier om die perskonferensie van Woensdag 20 Augustus 2025 te sien.
Klik hier om die Liberty First-webwerf te besoek.
Einde.
