Eswatini to submit trade proposal to US

The Kingdom of Eswatini is preparing to submit a proposal to the United States aimed at strengthening trade relations between the two nations.

This was revealed by Minister of Commerce, Industry and Trade Manqoba Khumalo, who said consultations with relevant stakeholders were still ongoing. He said the final report was expected to be submitted before the end of May. He noted that neighbouring South Africa has already engaged in direct negotiations with the US administration.

Khumalo further stated that the Southern African Customs Union (SACU) Council of Ministers has requested an extension of the African Growth and Opportunity Act (AGOA), which is set to expire in September. He, however, clarified that this request was made under the previous US administration.

The minister expressed hope that Eswatini would continue to benefit from low tariffs under AGOA, noting that the country did not plan to negotiate separate tariff agreements with the US.
Speaking during a debate on his ministerial statement at the House of Assembly, Khumalo explained that unilateral negotiations on tariffs would contravene SACU regulations.

He emphasised that Eswatini currently benefits more from SACU than it contributes and any independent negotiations could jeopardise those receipts.

“Part of the reason we consulted Parliament through the ministerial statement was to ensure that the country’s input is included in the negotiations. We plan to submit our proposal to the US before the end of the month,” Khumalo said.

Hhukwini MP Alec Lushaba noted that Eswatini was not as heavily affected by US tariffs compared to other countries. He expressed concern over the regional approach to engaging with the US, suggesting that a blanket strategy might not be in Eswatini’s best interest.

“I haven’t heard of any team from Eswatini formally approaching the US with specific requests,” he added.
Mbabane East MP Welcome Dlamini voiced concerns over the country’s continued dependency on the US trade market. He questioned the lack of a strategy to reduce this reliance and asked whether the minister had considered negotiating a longer term AGOA agreement to ensure more stable trade access.

“How do we protect AGOA going forward? Our neighbours have already engaged the US, and how will the outcomes of those negotiations affect us as a country?” he asked.