Lesotho Delegation Pushes for Tariff Reductions in US

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AI Summary

Lesotho is dispatching a high-level delegation of cabinet ministers, along with leaders from various industries and labor unions, to the United States this weekend. Their objective is to advocate for theย reduction of tariffs on Lesotho textiles, which are severely impacting the country’s vital textile sector.

Lihaelo Nkaota, a spokesperson for Lesothoโ€™s trade ministry, stated to Bloomberg on Saturday, โ€œWe want the negotiations to start at zero as a starting point because it is where we were before the new U.S. policy. We want the tariffs to be below the 15% for the benefit of the employers and workers.โ€

In August, the U.S. implemented a 15% tariff on imports from the South African kingdom, a figure that, while less than the 50% tariff previously threatened by President Donald Trump in April, has nonetheless sent shockwaves through the nation’s economy.

Prior to this tariff increase, the majority of Lesothoโ€™s exports to the U.S.โ€”its second-largest trade partnerโ€”entered duty-free under the now-defunct African Growth and Opportunity Act.

In response to the adverse effects of this policy, labor unions and street vendors plan to protest at the offices of Lesothoโ€™s prime minister on September 17, expressing their frustration over the detrimental impact on their businesses and livelihoods.

The textile industry, which serves as the largest private employer in Lesotho, supports approximately 12,000 jobs directly and an additional 40,000 indirectly. It provides products for major U.S. retailers, including Walmart Inc., JC Penney, and Levi Strauss & Co. However, some factories have been compelled to reduce their workforce due to declining orders.

The delegation, headed by Trade and Industry Minister Mokhethi Shelile, will also include Labour and Employment Minister Tsโ€™eliso Mokhosi, along with representatives from the Lesotho Textile Exporters Association and leaders of labor unions. They aim to stress the importance of theย reduction of tariffs on Lesotho textilesย to protect jobs and ensure the industry’s sustainability.

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