By Kwanele Dhladhla
Africa-Press – Eswatini. Minister of Commerce, Industry and Trade Manqoba Khumalo has disclosed that Eswatini intends to table a new proposal to the United States (US) government with the hope of slashing tariffs on exports to the first world country to zero per cent.
This will also include a proposal of an extension of the Africa Growth Opportunity Act (AGOA) beyond September 2025, and an increase of the sugar quota exported to that country.
This was disclosed by the Minister in Parliament during a debate of the ministerial statement addressing the tariffs recently imposed by the US on imports from Eswatini.
Hhukwini Member of Parliament (MP) Alec Lushaba submitted that the 10 per cent tariff imposed on Eswatini seemed not to have major negative effects on Eswatini’s trade with the US government.
“What does the minister mean when he said we must engage as a region (SACU), what might happen if other countries negotiate for terms that might have an adverse impact to Eswatini especially as a member of SACU?” Lushaba inquired.
Mbabane East MP Welcome Dlamini applauded Eswatini for deciding to engage on the tariffs as a region of the Southern African Customs Union (SACU) regional impact. He went on to inquire how SACU Member States intend to improve trading among themselves.
“How does SACU and SADC intend to reduce dependence on the US markets. When negotiating for AGOA, has Eswatini taken into consideration to negotiate for a longer term of about 10-15 years to remain protected when the US makes changes such as the imposition of tariffs,” Dlamini said.
The Mbabane East MP also asked what the likely outcome of negotiations between US and South Africa as the Kingdom’s major trading partner would be.
He also called upon the minister to explain whether there had been any consideration to invest in infrastructure such as rail to aid trade among the Southern African Development Community (SADC) member states.
Minister of Commerce, Industry and Trade Manqoba Khumalo said as SACU they negotiate common external tariffs as a group in accordance with the agreement.
Minister of Commerce, Industry and Trade Manqoba Khumalo
He mentioned that the country benefits more than what it puts into the SACU pool.
Therefore, he said, it could not risk defying any of the agreements’ statues since Eswatini finances 40 per cent of its budget through SACU receipts.
“The country will respond to the tariff and explain what it will do towards improving trade with the US.
By the end of May, we will table a proposal to the US after thorough engagements particularly with the private sector. We will negotiate that Eswatini gets the lowest possible tariff.
It is in our prayers that the tariffs are reduced to zero per cent,” Khumalo said.
He mentioned that the ongoing negotiations by the other SACU and SADC Member States with the US government were non-tariff related.
The minister concurred with Dlamini on the need to improve African intra-continental trade, which he said currently stands between 15 to 18 per cent.
“The Africa Growth Opportunity Act (AGOA) comes to an end in September 2025. As ministers of trade in the region, we have engaged the US requesting an extension.
Our fate is now with members of congress whether AGOA will be extended or not. In the proposal to improve trade between Eswatini and the US, we will strongly emphasise that AGOA be retained,” the minister explained.
Lobamba Lomdzala MP Marwick Khumalo said the US purchases Eswatini sugar at a favourable rate, which was good for the local economy.
He asked the minister to explain whether the country has an intent to request an increase in the quota of sugar imported by the US.
Manqoba said they will incorporate a request for a proposal to increase the quota of sugar which gets absorbed by the US market in the proposal to be submitted later this month.
Source: Eswatini Daily News
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