Trade minister states Lesotho shifts away from US market
(MENAFN) Lesotho is actively moving away from relying on the US as a major export destination due to high tariffs and changing buyer preferences, according to Mokhethi Shelile, the country’s Minister of Trade, Industry, and Small Business. Speaking to RT, Shelile explained that the landlocked southern African nation is pursuing new trade partnerships across Africa and Europe, citing issues like lengthy turnaround times and increased near-shoring by American purchasers. “We’re already moving away from the US market,” he noted.
About 20% of Lesotho’s garment exports currently go to the US. Although recent talks reduced tariffs from 50% to 15%, the minister said this still makes Lesotho’s garments uncompetitive. “There’s effectively no difference between 50% and 15% for the garment industry,” he said, emphasizing the very narrow profit margins.
Lesotho is focusing on expanding trade within the Southern African Customs Union (SACU), which includes South Africa, Namibia, Botswana, and Eswatini, while also exploring new agreements with Europe and through the African Continental Free Trade Area (AfCFTA). Shelile stressed the need to diversify not only markets but also sectors, with the government shifting toward labor-intensive industries like automotive components rather than textiles.
While acknowledging that the tariff reduction was a diplomatic win, Shelile said it still falls short of what is needed. He believes a 10% tariff would be a game-changer and would put Lesotho on equal footing with competitors.
In April, the US imposed reciprocal tariffs on imports from nearly 90 countries, affecting 20 African nations. Lesotho initially faced the highest tariff of 50%, while South Africa and the Democratic Republic of the Congo faced 30% and 11%, respectively. Later, US President Donald Trump signed an executive order lowering Lesotho’s tariff to 15% and Zimbabwe’s to 15%, down from the initially announced 18%.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
