Staff Reporter
The United States has said that South Africa failed to impose and effectively enforce a ban on imports made with forced labour, raising the risk of new duties on exports.
In a Section 301 investigation report published by the Office of the United States Trade Representative (USTR), Washington found that South Africa was among 54 economies that had failed to impose and enforce a forced-labour import prohibition.
The report said the failure to impose and enforce such a prohibition was “unreasonable” and that it “burdens or restricts U.S. commerce”.
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The finding are part of a US investigation into 60 economies over whether their trade rules adequately prevent goods made wholly or partly with forced labour from entering their markets.
The USTR has proposed additional 12.5% tariff on products from those economies, with the proposal subject to a public comment and hearing process in July.
South African exports to the US previously faced a 30% country-specific reciprocal tariff under Trump’s so-called “Liberation Day” tariff regime, before those IEEPA-based duties were terminated after a US Supreme Court ruling. The Trump administration has since imposed a separate 10% temporary import surcharge, due to expire on 24 July, unless extended by the US Congress.
The USTR report dealt directly with South Africa’s argument that existing legislation already provides tools to deal with forced labour.
“Some comments suggest that South Africa’s existing labour laws, anti-trafficking laws, and customs laws provide a legal framework for South Africa to prohibit the importation of goods produced with forced labour,” the report said.
But the USTR rejected that as sufficient, saying: “A legal framework that could provide a basis for a forced labour import prohibition, however, is distinct from a measure that forbids legally the importation of goods produced with forced labour.”
Trade, Industry and Competition Minister Parks Tau said on Thursday he noted the findings of the report, and they were still subject to the July hearings.
“The government of South Africa maintains that it remains compliant with all domestic and international obligations with respect to forced labour practices, with South Africa being a signatory to key International Labour Organisation (ILO) Conventions,” Tau said in a statement.
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“Furthermore, South Africa has enabling legislation to deal with forced labour. South Africa stands ready to continue to engage the US in this regard.”
The USTR said interested parties must submit requests to appear at the hearings by 22 June and written comments by 6 July. The hearings will start on 7 July.
US forced-labour finding put SA at risk of extra tariffs
