Agoa uncertainty threatens 28 000 Swazi jobs

Transport industry fears backlash James Hall MBABANE - Prime Minister Themba Dlamini this week echoed the worry of road and rail freight haulage companies that lack of US Congressional action on new AGOA rules may mean the end of the local garment industry, the backbone of the manufacturing sector, with a loss of 28 000 jobs. Already 1000 jobs have been lost because US buyers are placing orders in Asia because of AGOA uncertainty. Under present rules, Swaziland cannot import raw materials after September. The country wants an extension to allow for development of local suppliers. No garment factory has received an order deliverable after August, according to the Swaziland Garment Manufacturers Association. “We have lost the season, and will lay off workers. If AGOA rules aren’t amended by next season, our closure may be permanent,” the manager of an Asian-owned garment factory at the Matsapha Industrial Estate told FTW. At least two local road freight haulers depend on business from garment factories that have set up in Swaziland to take advantage of Swazi-made products that enter the US market duty and quota free under AGOA. All freight companies and Swaziland railways do some degree of business with these factories, which have led to a manufacturing renaissance in the country because of US trade benefits. One diplomatic source told FTW that election year politics in the US might be responsible for Congressional foot dragging. With domestic job loss due to outsourcing jobs to foreign countries an issue in the presidential campaign, AGOA may be seen as helping Africans at the expense of American garment workers, the source said.