BNP backs govt efforts in US tariff talks

The Basotho National Party (BNP) says it supports the government’s efforts to engage with the United States on the issue of the recently imposed 50 percent US reciprocal tariffs on Lesotho goods.

In a letter sent to the secretary of the US government Harry Truman, on Tuesday this week, BNP leader Machesetsa Mofomobe emphasised the importance of a united stance to protect the interests of Basotho and the country’s economy during these negotiations.

Mofomobe said his party supports all measures taken by the Lesotho government to prevent the potentially devastating effects of the US tariffs hike, especially on the textile and apparel sector, Lesotho’s largest industry.

“This tariff, if not successfully challenged, could jeopardise one of Lesotho’s key economic sectors, which employs tens of thousands of women, largely from vulnerable and impoverished backgrounds, who have benefited from the country’s preferential access to the US market under the African Growth and Opportunity Act (AGOA) since its implementation 20 years ago,” Mofomobe wrote.

He expressed gratitude for President Donald Trump’s decision to delay the tariffs for 90 days, providing a period of grace for continued negotiations.

“This gesture of goodwill gives us hope that the United States understands the importance of maintaining stability in our economy and protecting our citizens,” he said,

Mofomobe further praised the US government for what he deemed a ‘noble and statesmanlike gesture’ that would not only safeguard the interests of Lesotho’s corporate citizens, but also ensure the welfare of US citizens who could suffer from the ripple effects of the tariffs.

This act of consideration shows the United States recognises the potential fallout of these tariffs on both sides, and we are optimistic that we can find a solution that benefits all parties involved, Machesetsa noted.

He indicated that his intervention on the matter was prompted by a ‘misinterpretation’ of some facts that were contained in the recent letter written by the Minister of Foreign Affairs and International Relations, Lejone Mpotjoane, addressed to the US government.

If not corrected, the letter could potentially damage the good faith efforts and compromise the welfare of the most vulnerable citizens of Lesotho.

The letter reportedly claimed that negotiations were underway for US companies to invest in Lesotho’s renewable energy sector, conveying a message of optimism.

However, Mofomobe asserts that the statement does not reflect the actual situation as an American company called 1Power has been experiencing significant delays in receiving permission to operate within Lesotho, despite meeting necessary requirements.

“Your Excellency, the primary objective of this letter is to request your office to rigorously evaluate the accuracy of the minister’s assertions regarding American investments in Lesotho.

“The existing policies and legislative frameworks seem to be unfavourable to America, thus contradicting the AGOA principles of a level playing field and ease of doing business. These circumstances ultimately short- change the Lesotho consumer and limit the poverty reduction benefits of preferential access to the American market,” Mofomobe wrote.

Trump recently announced an executive order imposing a 50 percent tariff hike on Lesotho’s exports to the US.

Titled: ‘Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits,’ the moveaims to reduce the large trade deficit the US has with countries like Lesotho.

The move also seeks to address what the US termed ‘a national emergency’ posed by the large and persistent trade deficit driven by the absence of reciprocity in trade relations and other harmful policies.

Speaking at a press conference last week, Mpotjoane indicated that the government was yet to go into deliberations with the US government and plead with it on how best the tariffs issue can be addressed.

Mpotjoane further denied international media reports that the Lesotho government made some promises in an effort to mitigate the impact of the 50 percent tariffs imposed on its products.

The reports indicated that there was a Lesotho government leaked memo from the US State Department alleging that the government pledged to grant Elon Musk’s Starklink a license to operate in the country.

The promises were allegedly made in a bid to demonstrate Lesotho’s commitment to the bilateral relationship with the US.

The claims made also suggested that government officials discussed the possibility of importing wheat from the US instead of South Africa, as well as purchasing medical equipment and military supplies.

Mpotjoane noted that they made it clear to the US that Lesotho had not imposed a 79.4 percent on its imports, but had only applied a common 7.5 percent tariff as part of its membership in the Southern African Customs Union (SACU).