Lesotho’s trade minister, Mokhethi Shelile, announced on Wednesday that the United States plans to extend the African Growth and Opportunity Act (AGOA) by one year, a temporary reprieve for the textile-dependent economy. The news followed his return from a high-level visit to Washington.
AGOA, which has given African countries preferential access to US markets for nearly 25 years, was on the brink of expiry. A barrage of tariffs imposed by former US President Donald Trump on April 4 had already rattled African exporters, with many describing the move as the death knell for AGOA.
Lesotho took the hardest hit when it was slapped with a 50% tariff on Trump’s so-called “Liberation Day.” The shock nearly crippled the mountain kingdom’s fragile export-led development model, which relies heavily on selling jeans and T-shirts to the American market. Though the tariff was later reduced to 15% in August, the damage underscored the vulnerability of the sector.
Shelile, who led a trade delegation to Washington from September 15 to 19, said they met officials from the House Ways and Means Committee and the Senate Finance Committee. “They all agreed that AGOA has to be extended and they promised us that by November or December at the latest, it will be extended by a year,” he told reporters.
AGOA is due to expire on September 30. Local companies benefiting from it have warned that any delay could result in immediate job losses and factory closures. Lesotho currently qualifies for textile and apparel benefits under AGOA, according to the US Trade Representative’s office.
Trade between the two countries remains significant. US goods and services trade with Lesotho reached $276 million in 2024, an increase of 4.6% from the previous year.
Still, questions linger. A White House spokesperson declined to comment when approached. Meanwhile, Shelile warned that his ministry will be watching closely. “We will be monitoring that the extension comes into force as promised, because if it does not, we are risking losing more jobs.”
Not everyone in Washington is aligned. A ranking Democrat on the Senate Finance Committee told Reuters: “The Trump administration has not informed finance committee Democrats of its position on renewing AGOA. Ranking member Wyden continues to support renewing the programme.”
