What do you know about the number 301? Well, it is said to be an ‘angel number’. According to https://sacredscribesangelnumbers.blogspot.com/, it indicates that your angels are helping you gain and maintain a positive, optimistic outlook and empower you to walk your chosen path with confidence and grace.

Considering the state of the world, one needs all the help one can get to ‘gain and maintain a positive and optimistic outlook’ – which brings us to Section 301.

Oh, before I get to that, mathematicians might take issue with that interpretation and point out that 301 is a ‘lazy caterer number’, meaning it is the maximum number of pieces made by cutting a circle with 24 cuts.

So, Section 301 – have you heard of it? To be precise, this is Section 301 of the US Trade Act of 1974, which was enacted on January 3, 1975, to give the President more power over trade agreements and tariffs. Still nothing? Could it be a trump card, as it were, that is now being played?

Section 301 authorises the US President, currently Donald J Trump, to, according to Wikipedia, “take all appropriate action, including tariff-based and non-tariff-based retaliation, to obtain the removal of any act, policy or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable or discriminatory, and that burdens or restricts US commerce. Section 301 cases can be self-initiated by the US Trade Representative (USTR) or as a result of a petition filed by a firm or industry group.

“If the USTR initiates a Section 301 investigation, it must seek to negotiate a settlement with the foreign country in the form of compensation or elimination of the trade barrier. For cases involving trade agreements, the USTR is required to request formal dispute proceedings under the relevant trade agreement.

“The law does not require the US government to wait for authorisation from the World Trade Organisation (WTO) before taking enforcement actions. The US President is increasingly focused on enforcing intellectual property rights (under agreements that may be outside of the WTO) in terms of the ‘special’ 301 amendments. Still, the US has committed itself to pursuing the resolution of disputes under WTO agreements through the WTO dispute settlement mechanism, which has its own timetable.”

On March 16, www.businesstech.co.za reported in a story headlined ‘United States launches investigation into South Africa’ that the USTR had launched a Section 301 investigation into South Africa and 59 other countries to determine whether they are engaging in ‘unfair trade’. Among the other countries on the list of 60 countries are Canada, Mexico, Taiwan (according to the WTO, the official full name of Taiwan is the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, while its official short name is Chinese Taipei), the People’s Republic of China, the United Arab Emirates and the UK.

It is understood that the investigation forms part of a broader US push to “level the playing field” between its domestic production and more affordable imports, with a key focus on forced labour. However, it may also include other unfair trade practices. Most importantly, the investigation will not only consider whether countries produce goods through forced labour, but whether they allow these goods to enter their markets.

The question is whether South Africa has taken sufficient steps to prohibit the importation of goods produced using forced labour. The obvious question is: How would South Africa determine or regulate this?

So, what’s next? The USTR will seek consultations with the South African government. It is understood that the USTR will hold a hearing on April 28. And what if a resolution cannot be found? Then, unsurprisingly, expect the imposition of a tariff or a fee.

In addition to investigating unfair labour practices, why does the USTR not look more closely at the trade remedies South Africa imposes on US exports of frozen Gallus domesticus (chicken) pieces and disodium carbonate, and in turn, the duration of the imposition of these trade remedy duties? 301, here they come.