Minister of Trade, Industry and Competition, Parks Tau, said South Africa is a signatory to key International Labour Organisation conventions and has legislation in place that prohibits forced labour and provides mechanisms for enforcement.
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South Africa is preparing to defend its labour and trade record after the United States identified the country among 60 economies accused of failing to adequately prohibit and enforce restrictions on imports produced through forced labour, a move that could pave the way for new tariffs on South African exports.
The findings, announced by the Office of the United States Trade Representative (USTR) under Section 301 of the US Trade Act of 1974, have triggered concern among trading partners as Washington considers imposing additional duties on imports from the affected economies.
The proposed measures form part of a sweeping US effort to combat forced labour in global supply chains, which American officials argue places US producers at a competitive disadvantage.
Minister of Trade, Industry and Competition, Parks Tau, on Thursday responded by noting that the USTR findings remain preliminary and are still subject to a public consultation and hearing process scheduled for July.
"The government of South Africa maintains that it remains compliant with all domestic and international obligations with respect to forced labour practices," Tau said in a statement.
He noted that South Africa is a signatory to key International Labour Organisation conventions and has legislation in place that prohibits forced labour and provides mechanisms for enforcement.
"South Africa stands ready to continue to engage the US in this regard," Tau added.
The USTR investigation, launched in March this year, examined whether countries have adopted and effectively enforced prohibitions on the importation of goods produced through forced labour.
After reviewing public submissions and hearing testimony from nearly 60 witnesses, the agency concluded that all 60 investigated economies had failed, to varying degrees, to meet the required standards.
South Africa was listed among 54 economies that the USTR said have failed both to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.
Other countries included in the group are Australia, Brazil, China, India, Japan, the United Kingdom, South Korea, Saudi Arabia and Vietnam.
The USTR argues that the absence of strong import restrictions on forced labour goods distorts global markets by allowing producers that benefit from exploitative labour practices to operate at lower costs than competitors that comply with international labour standards.
According to the agency, this creates unfair competition for American manufacturers and contributes to the movement of goods linked to forced labour through international supply chains.
"The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable," said US Trade Representative Ambassador, Jamieson Greer.
"This creates a dynamic where American workers are forced to compete globally on an unlevel playing field."
As a result, the USTR has proposed additional tariffs on imports from all affected economies.
Countries that already have some form of forced labour import prohibition or have committed to introducing such measures through trade agreements could face additional duties of 10%. Economies that do not have such frameworks in place could face tariffs of 12.5%.
The proposal also includes a special textile mechanism that would allow a limited volume of apparel and textile imports from certain countries to enter the United States at a reduced tariff rate.
The announcement adds a new layer of uncertainty to global trade relations at a time when businesses are already navigating geopolitical tensions, slowing economic growth and increasing protectionist measures.
For South Africa, the stakes are particularly significant given the importance of the US market for sectors such as automotive manufacturing, agriculture, mining and industrial exports.
While the proposed tariffs are not yet final, businesses and governments now have an opportunity to make submissions before the July hearings.
Interested parties have until June 22 to request participation in the hearings, while written comments on the proposed actions must be submitted by July 6. The USTR will hold public hearings on July 7 before making a final determination on whether to proceed with the proposed duties.
South African trade officials are expected to use the consultation process to challenge the findings and demonstrate that the country's legislative and regulatory framework already complies with international standards aimed at eliminating forced labour from supply chains.
BUSINESS REPORT