Cape Town: Member of the Mayoral Committee for Economic Growth and Tourism – Alderman James Vos has written to Minister of Trade, Industry and Competition Parks Tau to express serious concerns over the potential imposition of a significant tariff by the United States on boat imports from South Africa.
The letter by Vos followed formal engagement between Alderman James Vos and representatives from Cape Town’s boatbuilding industry, including BlueCape and the South African Boat Builders Export Council (SABBEX). The City of Cape Town has urged National Government to intervene in US tariff threat to boatbuilding sector.
Boatbuilding Industry of Cape Town has emerged as one of the fastest-growing manufacturing sectors of the city, with an average annual growth rate of over 22% and exports valued at nearly R5 billion in 2023 alone. The city has now recognised globally as a leading exporter of catamarans, with the United States serving as the primary market for many local manufacturers.
Vos stated that the proposed tariffs pose an existential threat to a proudly South African industry that supports more than 3500 direct jobs and contributes significantly to the local economy. Many companies rely on the US market for the majority of their sales and the impact of these tariffs would be devastating.
In his letter to the Minister, Alderman Vos emphasised the need for national trade negotiations to consider strategic insights provided by the sector. These include evidence that South African-built vessels contribute to the US economy by supporting jobs in areas such as charter operations, distribution and marina management.
Cape Town Boatbuilders offer highly specialised skills that align with US interests in marine manufacturing and skills development. This should be a platform for partnership, not punitive trade measures.
The City of Cape Town has pledged its full support to the sector and is working closely with stakeholders to safeguard jobs and sustain the momentum of a high-performing industry that generates global demand for South African artisanship.
Considering this, Founding Director for BlueCape – Vanessa Davidson said that the BlueCape extends its sincere thanks to the City and Alderman Vos for their support on highlighting the potential impact of tariffs on the boat building sector.
As a specialised manufacturing industry, boat building involves complex global supply chains and interdependencies that demand a coordinated response to safeguard the continued international competitiveness of the manufacturers.
Alderman James Vos further explained, they trust that the National Government will treat this matter with the urgency it requires. A resolution in favour of the exporters will not only protect the livelihoods but will reinforce the long-standing economic ties between South Africa and the United States.