Mohale FM LESOTHO, heavily dependent on textile exports to the American market duty-free since 2000, is upbeat after the United States tabled a Bill to extend the African Growth and Opportunity Act (AGOA) for three more years.
The US House Committee on Ways and Means this week approved the AGOA Extension Act by a vote of 37-3, describing the initiative as “the cornerstone of economic relations between the US and Sub-Saharan African nations.”
Meanwhile, the Minister of Trade, Industry and Business Development, Mokhethi Shelile, welcomed the news, reiterating that only three out of 40 members of the committee had voted against AGOA’s extension. The development provides a last-minute reprieve to Lesotho’s textile operators and thousands of workers as the year draws to a close, after a lot of uncertainty in the sector following the expiry of AGOA on September 30th.
The Agoa Extension Act, seeks to renew the programme until 31 December 2028, which would give Lesotho textile exporters and those from other African countries much-needed certainty.
Enacted in 2000, AGOA allows eligible sub-Saharan African countries duty-free access to the US market for more than 1,800 products, plus over 5,000 items covered under the Generalized System of Preferences.
