Textile companies in Swaziland say they will close down if the government does not pay the duties levied by the United States on exports that do not benefit from the African Growth and Opportunity Act (AGOA). Swaziland will be out of AGOA from January 2015. Swaziland began benefiting from the program in 2001.

Companies say the only way they can continue operating in Swaziland is if government commits to taking over the payment of export duties they would be compelled to pay as of the beginning of next year. They say they are not even willing to bear half the cost as they can’t afford to bear losses.

After an extensive review, the United States concluded that Swaziland had not demonstrated progress on the protection of internationally recognised worker rights. In particular, Swaziland was said to have failed to make progress in protecting freedom of association and the right to organise. Of particular concern was the country’s use of security forces and arbitrary arrests to stifle peaceful demonstrations as well as the lack of legal recognition for labor and employer federations.

AGOA is a United States preferential trade program established in 2000 that provides duty-free access to the American market for thousands of products from eligible sub-Saharan African countries. 

trade.gov/agoa/