By Thapelo Molefe
South African has asked the United States (US) to exempt the country from a proposed 12.5% tariff targeting economies considered to have failed to prohibit and effectively enforce bans on imports produced using forced labour, saying that its laws already prohibit forced labour and provide mechanisms to block the importation of goods made under such conditions.
The request was made during a public hearing hosted by the Office of the US Trade Representative (USTR) in Washington DC on Thursday as part of the Section 301 investigations into whether 60 economies adequately prohibit and enforce bans on goods produced using forced labour.
The South African delegation was led by the Department of Trade, Industry and Competition (dtic), with support from the Department of Employment and Labour, the International Trade Administration Commission and the South African Embassy in Washington.
In its oral submission, South Africa told the USTR that it has ratified the relevant International Labour Organisation (ILO) conventions and has legislation that can be used to prohibit imports made with forced labour.
Government said the International Trade Administration Act allows the National Executive to prohibit or control the importation of certain goods, while the Customs and Excise Act empowers the revenue authority to stop, detain and seize prohibited goods at the country’s borders. It also noted that Section 113 of the Customs and Excise Act already prohibits products produced through prison labour.
As part of its submission, South Africa requested a full exemption from the proposed tariff. Alternatively, it asked that key exports to the US be excluded from any trade measures because there is no evidence that their inputs are produced using forced labour.
The products identified include platinum group and precious metals, motor vehicles, catamarans, citrus, seafood, wine and nuts.
The USTR has invited stakeholders to submit post-hearing submissions by 16 July.
According to dtic minister Parks Tau, the United States remains an important trade partner and destination for South African exports, and the government will continue bilateral engagements with the United States on matters including the Section 301 investigations, the renewal of the Africa Growth and Opportunity Act (AGOA), and Section 232 tariffs affecting South African exports of steel and aluminium, automobiles and auto components.
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