Lesotho Secures AGOA Extension to Boost Textile Industry

Lesotho's trade minister announced that the U.S. plans to extend the African Growth and Opportunity Act by a year, vital for the country's textile-driven economy. Formerly threatened by tariffs, this extension aims to safeguard jobs reliant on preferential U.S. market access. Discussions in Washington were pivotal to this decision.

Lesotho's trade minister revealed on Wednesday that the United States is preparing to extend the African Growth and Opportunity Act (AGOA) for an additional year, a crucial measure for the continent's access to U.S. markets. This announcement follows his recent visit to Washington, D.C.

The aggressive tariffs imposed globally by U.S. President Donald Trump in April severely affected African economies, particularly Lesotho, where a 50% tariff hindered its export-driven model. The reduction to 15% in August provided some relief, but the potential expiration of AGOA remained a significant concern.

During Lesotho's trade delegation visit in September, Minister Mokhethi Shelile engaged with U.S. officials committed to extending AGOA. The decision is awaited by November or December, critical to maintaining current employment levels in Lesotho's textile industry, which heavily relies on U.S. markets.

(With inputs from agencies.)