Sanctioning Apartheid - KORA

Sanctioning Apartheid
of Commerce in South Africa has estimated that the measure
increases the tax bill for US companies h m 5?.5% to 72% of
profits in South Africa. Mobil Corporation dted the Rangel
Amendment as a major factor in its decision to withdraw from
South Africa.
Table 1
Trade With Sonth Africa, 1985-1988 ($ million)
US Exports us Imports
In August 1988 the House of Representatives passed a new
sandions bill mandating the withdrawal of all US companies
from South Africa, the sale by US residents of all investments in
South African companies and the end of most trade, except for
the import of certain strategic minerals. The bill did not reach
the Senate floor but the fact that such a sweeping bill got as far
as it did alerted both the South African government and US
business that significant further sanctions were likely to be
forthcoming.
The impact of the anti-apartheid movement has clearly been
felt by US companies. It has si&cantly raised the cost of doing
busin- in South Africa, adversely affecting corporate image,
threatening the ability to raise capital and maintain domestic
markets. Gone are the days when, as in 1980, David Pack& of
Hewlett Packard stated, "I'd rather lose business in Nebraska
than with South AEria"