Maseru, Sept. 26 --- The Minister of Trade, Industry and Business Development Mr. Mokhethi Shelile has warned that local textiles exported to the United States (US) would be charged under the Most Favoured Nation (MFN) rates and Reciprocal tariffs if Lesotho's African Growth and Opportunity Act (AGOA) is not extended.

This he said in his statement delivered in the National Assembly on Friday, following his visit to the US with a delegation made up of the Minister of Labour and Employment Mr. Ts'eliso Mokhosi and other government officials with the objective to lobby for AGOA extension.

Mr. Shelile said the MFN rate stands at 16.5 percent for cotton clothes and increases to 32 percent if its fibre clothes, saying it is usually merged with the reciprocal tariffs to make the effective rate used.

"This means local cotton goods will be charged about 31 percent while fibre will be 47 percent" reminding that AGOA tariffs stand at zero percent.

He indicated that during their visit to the US, they met with over 10 people from parties which administer the US Parliament and include the Speaker of Congress, the Ways and Means Committee Chairperson, the Finance Committee and AGOA interested groups amongst others and that they pledged to FastTrack AGOA renewal.

"They are aware that Lesotho's AGOA contract ends on September 30 and that Lesotho has been lobbying for two years for its renewal" he said, adding that they pledged to present this issue before Parliament between November and December.

He also indicated that the country will in the meantime ensure its alignment with the US motto of "America first", reminding that 12, 000 jobs from 11 factories are at risk.

Meanwhile the House adjourned until November 03 for Independence break and to facilitate the successful hosting of the Southern African Development Community of Public Accounts Committee (SADCOPAC) Conference and Annual General Meeting to be staged at Manthabiseng Convention Centre from October 27 to 31.