The announcement by the United States (US) that it will conduct a Section 301 investigation into South Africa (and 59 other countries) to probe possible unacceptable labour practices in the manufacture of trade goods is a clear sign that Washington’s patience with the ANC is finally running out.
Section 301 allows the US to impose tariffs and other measures on countries whose policies are deemed discriminatory or unfair towards American interests.
In this context, South Africa’s domestic policies – including Black Economic Empowerment (BEE) – may be viewed as problematic by the Americans. Uncertainty regarding property rights arising from the Expropriation Act will likely also come under scrutiny.
The investigation comes amid growing frustration with South Africa’s attitude towards the US, its second-largest trading partner.
Recently lashing out at the US Ambassador Brent Bozell for making so-called “undiplomatic statements”, rejecting the US’s five conditions for improving trade relations, and maintaining close ties with countries such as Iran and Russia are all adding to the tension.
Public hearings for the Section 301 investigation are set to begin in April and could lead to new tariffs and a review of AGOA benefits.
This threatens thousands of jobs in export-dependent sectors such as automotive manufacturing, agriculture and mining – something that South Africa, with its unemployment rate exceeding 40%, simply cannot afford.
The Freedom Front Plus (VF Plus) wants to reiterate that the ANC has to stop placing ideology above economic reality and national interest. South Africa cannot continue down this path of economic suicide for the sake of maintaining a failed foreign policy.
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