South Africa has formally requested an exemption from a proposed 12.5% tariff by the United States of America, which targets goods produced using forced labor. A South African Government delegation, led by the Department of Trade, Industry and Competition (dtic), participated in a public hearing on the US Section 301 Investigations on Forced Labour. The Office of the US Trade Representative (USTR) hosted the session in Washington DC on Thursday, focusing on the failure to enforce prohibitions on forced labor goods in 60 economies.
The department stated, "In the Oral Testimony, South Africa emphasised that the country has laws that prohibit forced labour and that the country has ratified the relevant ILO fundamental Conventions." The department added that South Africa possesses the legal framework to enforce such prohibitions. "As a result, South Africa requested that the United States consider exempting the country from the 12.5% tariff," the department said.
Legal Framework Prohibits Forced Labour
South Africa emphasized that the country has laws prohibiting forced labor and has ratified the relevant International Labour Organization (ILO) fundamental Conventions. The nation also stated it possesses the legal framework to enforce the prohibition of importing goods produced using forced labor. The International Trade Administration Act specifically empowers the National Executive to prohibit or control the importation of any class of goods. Additionally, the Customs and Excise Act grants the revenue authority the power to stop, detain, and seize prohibited goods at the border. South Africa already prohibits products made through prison labor, as stipulated by Section 113 of the Customs and Excise Act.
Tariff Proposal and Alternative Solutions
South Africa proposed an alternative measure, suggesting that its exports to the United States, including platinum-group and precious metals, vehicles, catamarans, citrus, seafood, wine, and nuts, be exempted from any proposed tariff action. This alternative was presented as part of South Africa's engagement with the US Section 301 Investigations on Forced Labour. Following the public hearing, the Office of the USTR requested that all stakeholders submit post-hearing submissions. The deadline for these submissions is set for July 16, 2026.
Bilateral Relations and Trade Importance
Minister Parks Tau stated that the United States remains an important trade partner and a key destination for South African exports. Mr. Tau affirmed the South African government's commitment to ongoing discussions. "Government will continue bilateral engagements with the United States on all matters of interest, including on Section 301 investigations, renewal of the Africa Growth and Opportunity Act (AGOA) and the Section232 tariffs that affect South African exports of steel and aluminium, and automobiles and auto components," Mr. Tau said.
Government's Diplomatic Efforts
The Department of Trade, Industry and Competition (dtic) received support from the Department of Employment and Labour, the International Trade Administration Commission, and the Embassy of South Africa in Washington DC during the discussions. South Africa emphasized its legal framework in its oral testimony. "In the Oral Testimony, South Africa emphasised that the country has laws that prohibit forced labour and that the country has ratified the relevant ILO [International Labour Organization] fundamental Conventions," the department stated. It added, "Further, that South Africa has the legal framework to enforce the prohibition of the importation of goods produced using forced labour." The department also noted that South Africa maintained it has "enabling legislation that contains provisions that can be invoked to deal with forced labour and administer and enforce a prohibition on the import of goods made (in whole or part) by forced labour." Consequently, the department said, "South Africa requested that the United States consider exempting the country from the 12.5% tariff proposed for countries that failed to impose and effectively enforce prohibition of importation of goods produced using forced labour."
