Anti-Apartheid Action Act of 1985

Anti-Apartheid Action Act of 1985 - Amends the Foreign Assistance Act of 1961 to earmark specified amounts of the education development assistance funds to finance scholarships for black South Africans who are attending universities, colleges, and secondary schools in South Africa and who are selected by a national or regional panel of educators appointed by the chief of the U.S. diplomatic mission to South Africa.

Earmarks a specified amount of the funds available for human rights assistance for grants to nongovernmental organizations in South Africa. Requires such grants to be made by the Assistant Secretary of State for Human Rights and Humanitarian Affairs.

Directs the Secretary of the State (the Secretary) and other heads of Federal agencies carrying out activities in South Africa to make affirmative efforts in procuring goods and services to assist business enterprises having more than 50 percent beneficial ownership by South African blacks or other nonwhite South Africans.

Permits the Overseas Private Investment Corporation to issue insurance, reinsurance, and loan guaranties in connection with a project in South Africa, notwithstanding the absence of an agreement with South Africa, if such investment is otherwise eligible except that: (1) the issuance of such insurance, reinsurance, or guaranty shall only be made to promote joint ventures between businesses controlled by South African blacks or other nonwhite South Africans and businesses controlled or owned by U.S. nationals; and (2) the U.S. national holds a minority interest or agrees to relinquish its majority interest during the course of the joint venture.

Amends the Export-Import Bank Act of 1945 to direct the Export-Import Bank to take active steps to encourage the use of its facilities to guarantee, insure, extend credit, or participate in the extension of credit to businesses in South Africa that are majority owned by South African blacks or other nonwhite South Africans.

Expresses the sense of the Congress that the labor practices used by the United States Government for hiring South Africans, for paying South Africans for employment services, and for the employment of South Africans arranged by contract should represent the best American labor practices and should serve as a model for the labor practices of U.S. nationals in South Africa. Requires such Government labor practices to be governed by specified principles of labor practices.

Expresses the sense of the Congress that any U.S. national that employs more than 25 persons in South Africa should take the necessary steps to insure that certain principles relating to employment practices are implemented. Prohibits any Federal agency from interceding with a foreign government regarding the export marketing activities in any country of a U.S. national employing more than 25 persons in South Africa that is not implementing those employment principles. Prohibits any such national from making any new investment in South Africa. Sets forth such principles.

Authorizes the Secretary to issue guidelines and, upon request, advisory opinions on compliance with such principles.

Provides for implementing and enforcing this Act. Sets forth penalties for violations of this Act.

Declares that it shall be U.S. policy to impose economic sanctions against South Africa if within two years significant progress has not been made toward ending apartheid.

Urges the President to raise the issue of reform in South Africa during the May 1985 economic summit and to establish with the other industrialized democracies in Inter-Allied Working Group on South Africa to monitor reforms and, if necessary, develop multilateral economic sanctions against South Africa.

Directs the President to submit to the Congress on March 1, 1987 and every six months thereafter a report on the extent to which significant progress has been made toward ending apartheid, including: (1) a detailed assessment of the extent of progress made in South Africa in housing black workers with their families, abolishing the pass laws, ending the migrant labor system, allowing unrestricted labor union rights for all, and increasing local investment in black education and training; (2) a statement of any conclusions drawn by the Inter-Allied Working Group on South Africa; (3) a determination by the President on whether significant progress has been made in achieving the purposes decribed in clause 1; and (4) if the President determines that significant progress has not been made, a recommendation on which of specified sanctions should be imposed. Provides for expedited consideration of a joint resolution calling for such sanctions.