Government says it has successfully lobbied for the extension of a trade agreement which provides duty-free access to the United States market for thousands of products from eligible sub-Saharan African countries, including Lesotho.
The African Growth and Opportunity Act (AGOA) is due to expire on Tuesday next week. Enacted in 2000 and renewed by the U.S. Congress in 2015, the law has been a lifeline for Lesotho’s textile sector, creating tens of thousands of jobs and drawing foreign investment.
Prime Minister Sam Matekane dispatched a high-powered delegation to the U.S. last week, led by the Minister of Trade, Industry and Business Development, Mokhethi Shelile, and the Minister of Labour and Employment, Tšeliso Mokhosi. Private sector representatives also formed part of the mission.
At a press briefing upon their return, Minister Shelile said the response from United States officials was overwhelmingly supportive as they had greed on the importance of extending AGOA.
Shelile disclosed that efforts were already underway in Washington to attach AGOA’s renewal to a larger funding bill, known as a Continuing Resolution (CR), which is used to avoid government shutdowns. However, the attempt was blocked after then-President Donald Trump insisted the budget law be passed without other legislative measures attached.
“Despite this setback, American lawmakers assured us that AGOA would be renewed by November or December at the latest,” he explained.
He added that the likely outcome would be a one-year extension to prevent disruption, while longer-term negotiations continue.
The minister also warned that the U.S. government is recalibrating AGOA within the framework of its ‘America First’ trade policy.
“One of the conditions is that our factories must give priority to American orders. This is understandable from their side, but it means we must redouble efforts to diversify our markets,” he indicated.
But local trade unions remain skeptical.
They argue that government has a poor track record of transparency and that promises made in diplomatic circles rarely translate into real benefits for workers.
With the official expiry of AGOA four days away, the lack of certainty is fuelling anxiety among thousands of factory workers whose jobs depend on the preferential access to the U.S. market. The arrangement that has been central to the country’s textile and manufacturing industries for more than two decades.
The Secretary General of the Economic Freedom Trade Union (EFTU), Tšepang Makakole, says workers remain in the dark about the progress of the high-level delegation that travelled to Washington last week to lobby for the extension of AGOA.
“We have not received any official communication or report from the delegation. There is no written or signed document that gives us assurances AGOA will be renewed. Without something concrete, we remain hopeless,” Makakole said.
Makakole compared the situation to government promises on tariffs, which, he said, were never implemented.
“We were told tariffs would be lowered to 10 percent, but that did not happen. Unless it is written down, there is no guarantee,” he added.
For Makakole and other union leaders, the delegation’s reassurances mean little without a signed agreement.
“Workers cannot survive on promises. They need guarantees. Otherwise, we face another wave of job losses and factory closures,” he stressed.
