Swaziland counts the cost of anticipated Agoa ban

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