Lesotho's Agoa fate hangs in the balance

SA is in a distinct business slowdown, with confidence only just measuring a mere 0.1 off the deep freeze level, but our interior neighbour Lesotho is teetering on the brink of losing its right to import duty-free exports into the US. Lesotho has taken advantage of the African Growth and Opportunity Act (Agoa) to become the largest exporter of garments to the US from sub-Saharan Africa Africa’s textile and apparel exports to the United States could quadruple to about R50 billion over the next decade through an extended duty-free trade treaty, according to a US official. Last year, US clothing imports from sub-Saharan countries reached R12.25 billion, up nearly 6% from 2013 – and at that stage, Lesotho was up there with fellow big boys in the Agoa programme. But Lesotho is at risk of losing an estimated R37bn a year in apparel and textile exports to the US and 35 000 jobs in the industry. That’s if the US strips it of its Agoa membership. Something which the US labour group, the Alliance of Progressive Trade Unions, is calling for – citing the worsening political tension in the country as the reason. This challenge is backed by the then-incumbent prime minister “alleging” and “claiming” an attempted coup last August. Things have worsened since then and there have been reports of assassination attempts against opposition lawmakers. This would of course see the mountain state follow Swaziland, which lost its membership regalia in June last year because of a lack of protection for workers’ rights. But the Lesotho government, which was formed from a coalition of three formerly opposition parties after the February election, is determined to stave off a similar fate. Organised by Lesotho’s ministry of trade and industry (MTI), a mission is busy lobbying the US Senate and House of Representatives to have its continued membership of the African Growth and Opportunity Act (Agoa) extended beyond expiration on September 30 this year. Currently, the mission has contracted a consultant, and he’s now busy trying to schedule appointments and meetings with appropriate persons in the two houses. It’s all part of the latest tactic of “fast-tracking” the course to the hoped-for renewal. INSERT Lesotho is at risk of losing an estimated R37 billion a year in apparel and textile exports to the US. – Mike Fitzmaurice CAPTION Factory workers in Lesotho... around 35 000 jobs could be lost if Agoa is not renewed.