Sanctioning Apartheid - KORA

South Afnam Sanctions Braaking in Southem Africa 329
sanctions in late 1986, as if con6rming the wisdom of the
investors/ touched off a new wave. As the details of sanctions
against South Africa became understood, the soundness of
SwaziIand
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as a locus for investment became more widely
Most important WEIS the quick assurance by the Reap
administration that the United States would regard goods
produced in Swazilana and exprted through South Afxica as
exempt from the United States sanctions against Preboria The
exemption encompassed such products of SwePiland as were
"-, graded, packaged, repackaged, marked, containerized/
or otherwise serviced" in South Africa; and it included
goods produced in Swaziland by private South African capital.
Those guarantees simply added to the allure which Swaziland
had traditionally offered during the 1970s and 1980s to the
Sollth African investor. Those included kee srchange of pds
and movement of ftmds between the two munhk Moreover/
independent of South Africa (to which it was linked by a
monetary and Customs Union), Swaziland/ as a signatory to the
Lome Conventions, had tariff and quo& preferences for ag'iculhual
produce and manufactured gods to the 12-member
European Community @C). It was also a member of the 15nation
Prehmtial Trade Area for easkm and southern Africa,
which bed for a graded reduction of between 1096 and 70%
on a common list of trade items. FNy, under the General
System of References of the UN Conference on Trade and
Devdopment, S-d was a beneficiary of the non-reciprocal
tari€f preferences offer& by the US, EC, Austria, Sweden,
Switzerland, and Australia.
Moreover, Swaziland offered a liberal intmpretation of what
qualified goods to be regarded as the "prcrduct" or "manufacture
cd Swaziland" "Rules of 0rigL-f of preferential trade areas or
countries required that about 35% of the dfrect production mfs
of such goods as rrpresenkd by "materials urchased or labour
performed'' be athibutable to Swabland! Other counttier
required even less: a "&cate of origin," which stipulated only
that the product be "Whed in Swaziland and cxrmtain at least
25% I d value added."