South Africa intends to publish a notice in the Government Gazette calling for public comment on proposed regulations targeting goods produced through forced labour or child labour.
The planned regulations form part of government’s response to new tariffs imposed by the United States on certain South African exports.
Trade, Industry and Competition Minister Parks Tau confirmed that the government intends to introduce regulations prohibiting the importation of goods produced wholly or partly through forced labour or child labour.
The Government Gazette notice will invite members of the public and affected industries to comment before the regulations are finalised.
South African exports face 12.5% tariff
The United States Trade Representative has imposed a 12.5% Section 301 tariff on South African products that are not specifically exempted or already subject to other US trade measures.
The tariffs follow investigations into whether various economies have imposed and effectively enforced prohibitions on importing goods produced through forced labour.
Section 301 of the United States Trade Act of 1974 allows the US government to respond to foreign policies or practices that it considers unreasonable, discriminatory or restrictive to American commerce.
South Africa participated in the investigation and submitted information setting out its existing labour laws and international obligations.
The South African government argued that the country already prohibits forced labour, has ratified relevant International Labour Organisation conventions and has legislation that could be used to restrict prohibited imports.
Despite these submissions, South Africa was included among the economies subjected to the 12.5% tariff.
Government Gazette process will allow public comment
Publishing the proposed regulations in the Government Gazette will begin a formal public consultation process.
Businesses, labour organisations, importers and other interested parties will be able to study the proposed measures and submit comments before a final decision is taken.
The regulations are expected to focus on goods produced wholly or partly through forced labour or child labour. Further details, including the closing date for public submissions, should appear in the Gazette notice once it is published.
Tau said South Africa would continue engaging with the United States Trade Representative in an effort to reduce or remove the tariffs imposed on the country.
Several major exports are exempt
Certain South African exports will not be affected by the new Section 301 tariff.
Products already subject to Section 232 tariffs, including automobiles, automotive components, steel and aluminium, are excluded from the additional Section 301 duties.
Other exempted products of interest to South African exporters include:
- Macadamia nuts, oranges and limes
- Tea, spices, seeds and cane sugar
- Fruit juices and syrups
- Chemicals and critical minerals
- Platinum-group metals and precious metals
- Civil aircraft and aircraft components
- Pharmaceutical products
The final impact on South African exporters will therefore depend on the products they sell and whether those goods are covered by one of the exemptions.
The date on which the South African Government Gazette notice will be published has not yet been announced.
Sources: SAnews, the Department of Trade, Industry and Competition and the Office of the United States Trade Representative.
