Botswana is keen to hold talks with the US about ways around the 37 % tariffs slapped on its beef, diamonds and other exports that have been making inroads into the US market
BONGANI MALUNGA
The government is set to hold talks with the United States of America following President Donald Trump’s decision to impose 37 percent tariffs on the country’s exports to the US.
According to a statement released by the Minister of Trade and Entrepreneurship, Tiroeaone Ntsima, Botswana is eager to find common ground with the US on tariffs.
Botswana has followed in the footsteps of South Africa that officially requested trade talks with the US to manoeuvre around the Trumponomic tariffs.
Trade surplus
Trump’s position is that since Botswana charges 74 percent on US exports, America should respond with half of that rate and impose a 37 percent tariff charge on Botswana’s exports to the US.
“According to the US government, the tariffs include a 10 percent universal tariff for all goods imported into the US,” said Minister Ntsima.
“It was also announced that approximately 60 countries with high trade surplus against the US will be subject to a reciprocal tariff structure.
“For Botswana, the reciprocal tariff has been set at 37 percent, using a formula determined by the US government.
Amicable resolution
“The government wishes to reassure members of the public and the business community that it is engaging with the US government to find an amicable resolution to this matter.”
Meanwhile, a financial expert says the tariffs are an opportunity for Botswana to rethink its reliance on conventional revenue sources by building a diversified economy.
Speaking at the Research Briefing and Investment Dialogue in Gaborone recently, the Senior Policy Advisor at the Ministry of Finance, Naledi Madala, said this is the best time for Botswana to diversify its economy through establishment of a Sovereign Wealth Fund.
Sovereign Wealth Fund
“In the long term, we are putting together a lot of work behind establishing a Sovereign Wealth Fund because we have realised that our Pula Fund is not, technically speaking, a sovereign wealth fund and the Minister (Ndaba Gaolathe) has returned from Europe where he saw how they have done this very well.”