MBABANE – In anticipation
of the loss of Swaziland’s
participation in the US trade
initiative, the Africa Growth
and Opportunity Act (Agoa),
government, industry and
the transport
sector are
assessing the
likely damage
to employment
and business.
“We may
have to lay
off workers in
January but
it will mostly
be over the
course of some
months in 2015,
depending on
how fast the
textile industry
shuts down.
We bring in
materials used by the garment
factories and we take out
the finished product, to and
from Durban. That may end
with Agoa,” said the manager
of a road freight firm at the
Matsapha Industrial Estate
who is reluctant to give his
name because of the politically
sensitive Agoa debate in
Swaziland.
Matsapha was transformed
a dozen years ago by Agoa
when Asian-owned garment
businesses opened in
Swaziland to take advantage
of the duty-free access to
US markets offered for
Swazi goods. New garment
production in the southern
Shiselweni
region
introduced
manufacturing
to that part of
the country and
prompted the
construction
of a major
highway to
service the
industry.
However,
countries
participating
in Agoa must adhere to
international labour and
human rights standards. The
US government has allowed
Swaziland to remain in Agoa
on the basis of promises that
labour and security legislation
would be amended.
May 15, 2014 is the final
deadline for compliance.
“Because we have had this
conversation (with the Swazi
government) not one, not two
but several years going back
and there is a great concern
and great frustration. We
are at a very critical point
where they must meet all the
conditions,” US ambassador to
Swaziland, Makila James, said
at a press conference.
No more extensions are
being considered, James said.
“We are at a point where on
May 15, 2014 the assessment
will be – has Swaziland
met these conditions? If
the determination is that
Swaziland has not complied,
on May 16 Swaziland will
become ineligible to remain
in the Agoa programme.
On January 1, 2015, goods
coming into the United States
from Swaziland will pay duty
because there will no longer
be a trade preference to allow
them duty-free entry,” the US
ambassador said.
In order to retain its Agoa
membership, government
must amend the Industrial
Relations Act, the Suppression
of Terrorism Act and the
Public Order Act and establish
a code of conduct for police
providing security at public
protests.
While 20 000 jobs have
been associated with Agoadependant
businesses,
government has reduced the
number of potential job losses
to 8000. The figure does not
include ancillary businesses
such as freight haulers and
courier services.
In addition to road freight,
the garment industry uses
Swazi Railway to bring
in inputs and export final
product.
INSERT
We have had this
conversation with the
Swazi government
not one, not two but
several years going
back and there is
great concern and
great frustration.
– Makila James
