Photo: ALAFA. AGOA has helped provide job opportunities in Southern Africa
Source: IRIN
MBABANE, 17 June 2014 (IRIN) - The threat of Swaziland being suspended
from a US preferential trade agreement for poor progress in meeting
democratic norms is threatening the livelihoods of tens of thousands of
worker in a country where unemployment is already above 40 percent.
The 2000 African Growth and Opportunities Act (AGOA) offers developing
countries duty-free access to some US markets, with the strict proviso
that their governments show progress on enhancing democracy and human
rights and upholding fair labour practices.
AGOA and the absolutists
Often referred to as sub-Saharan Africa’s last absolutist monarch, the
powers and prerogatives enjoyed by King Mswati III and the conduct of
his government are jeopardising Swaziland’s membership of AGOA.
In recent months, the authorities in Mbabane have faced increasing
criticism from human rights organisations, with security forces accused
of breaking up political marches and journalists and pro-democracy
activists being arrested and put on trial.
A recent open letter to King Mswati signed by Nobel Prize laureate
Archbishop Desmond Tutu, universities and NGOs, noted “a disregard for
legal procedures and basic human rights” and warned of “lasting damage
to your country’s standing with potential international investors and
....economic and political isolation,” if there was not change and
dialogue.
Warnings from Washington
The US has issued a series of warnings, setting a deadline of 15 May, by
which time Swaziland was meant to have met several key conditions.
These included amendment of the Industrial Relations Act, allowing for
the registration of trade union and employer federations and the removal
of bans on worker protests.
The US also proposes amendment of the Suppression of Terrorism Act,
described by critics as a weapon to harass and detain pro-democracy
activists, and amendment of the colonial-era 1963 Public Order Act, used
to suppress anti-government dissent. The US recommends the
dissemination and implementation of the Code of Good Practice on Protest
and Industrial Action.
Heading a US delegation to Swaziland in April, Deputy Assistant Trade
Representative for Africa, Constance Hamilton, said it was up to the
Swazi government “to decide whether they want to be part of the AGOA
family”, stressing: “it is all about political will.”
US Ambassador to Swaziland Makila James was blunter, hinting at past
frustrations and stressing that non-compliance with US recommendations
would mean “on January 1, 2015, goods coming into the United States from
Swaziland will be assessed duty because there will no longer be a trade
preference to allow them duty-free entry."
IRIN has reliable information that the review process has now ended and an announcement is expected in the coming weeks.
Swaziland’s wilting economy
An AGOA suspension will hit hard. Swaziland has one of the worst
performing economies in southern Africa and according to the United
Nations Development Project (UNDP) about two thirds of its 1.2 million
population live below the poverty line.
Swaziland's membership of the Southern African Customs Union (SACU)
has provided the state with an economic lifeline. But South Africa’s
weakening economic performance has had severe repercussions for its
neighbours, severely reducing Swaziland's share from the world's oldest
customs union.
If AGOA close the door...
Swazi business leaders understand the pressure for change from
Washington and its implications. "Swaziland was put on notice that
certain laws must be changed,” an official with the Federation of
Swaziland Employers, who declined to be identified, told IRIN. “King
Mswati depends on these laws to suppress dissent and remain in power.”
The official pointed out that suspension from AGOA would mean serious
contractions in the garment industry and the loss of about 17,000 jobs.
In anticipation of Swaziland being struck from AGOA, one major garment
manufacturer in Matsapha has announced its closure as all its products
are shipped to the US to take advantage of AGOA.
Workers at risk
"Government is playing politics with our lives," Angela Dlamini, a
garment worker at the Matsapha Industrial Estate near the commercial
city of Manzini, told IRIN.
"I have two children, aged two and five. We live in a one room flat with
a toilet and a water tap in the yard. My family helps me feed and
clothe my children, because I earn so little. But we will starve without
my job," she said. Dlamini earns R800 (about US$75) a month from her
factory job.
None of the factory workers interviewed by IRIN knew that Swaziland’s
membership of AGOA was under threat and instead complained about low
wages.
"If we are to continue working we must be paid more,” Thab'sile Magongo, a seamstress at a Matsapha factory, told IRIN.
“We are starving. The factory owners say they will have to move to Asia
where the wages are lower, but we don't believe them. What human being
can survive on wages lower than what we get?”
When warned that Swaziland’s suspension from AGOA could result in the
closure of many of Swaziland's textile factories, Magongo replied: "we
must then turn to prostitution; what choice do we have?"