Latest news with #economicdevelopment
Yahoo
a day ago
- Business
- Yahoo
Trump's Trade War Could Kill Lesotho's Garment Industry
The tiny southern African nation of Lesotho is watching the days pass with a growing sense of despair—and desperation. As the White House's 'Liberation Day' tariff deadline of Aug. 1 creeps closer with no sign of a deal for the country President Donald Trump once said 'nobody has ever heard of,' nor the renewal of a critical trade program that has boosted economic development on the Sub-Saharan continent for a quarter of a century, the outlook for Lesotho is nothing short of bleak. More from Sourcing Journal Canada, Losing Confidence in US Trade Deal, Cozies Up to Mexico Trump Touts Trade Truce With Indonesia, Indicates India Might Not Be Far Behind Is Amazon's Third-Party Marketplace Stoking Worker Exploitation? A follow-through of the so-called 'reciprocal' rate of 50 percent—the highest faced by any country outside of China—could also be the undoing of its garment industry, which contributed more than half of Lesotho's nearly $1 billion in annual exports in 2024 and underpins roughly 20 percent of its gross domestic product. Some 75 percent of the clothing it makes for brands such as JCPenney, Levi Strauss & Co., Reebok, The Children's Place and Wrangler owner Kontoor Brands are earmarked for the United States. Denim and activewear are big categories. Some Trump-branded Greg Norman golf shirts are made in Lesotho, too. The rumblings of a potential exodus by American buyers are already being keenly felt. Orders started evaporating in April, when the initial tariffs were announced, and a significant fraction of Lesotho's 30,000 mostly female garment workers were furloughed or laid off beginning in June. With unemployment standing at 30 percent—or nearly 50 percent for young people—Nthomeng Majara, the country's deputy prime minister, said a 'state of disaster' would be in force until June 2027, allowing it to 'take all necessary steps' to unlock funds to spur job creation in other sectors. If the African Growth and Opportunity Act, or AGOA, isn't renewed in September, the entire garment industry could cease to exist, the government has said. It doesn't help that U.S. foreign aid cuts have 'crippled industries that previously sustained thousands of jobs,' as Prime Minister Samuel Matekane said on TV last month. Nor does it that until March, Lesotho was under an eight-month state of disaster because of acute food insecurity. 'There's a lot of uncertainty,' said Scott Nova, executive director of the Worker Rights Consortium, a labor rights watchdog in Washington, D.C. 'Lesotho and other garment exporters are facing the prospect of tariff rates that were unthinkable six months ago and in many cases look unsurvivable.' What made Lesotho attractive for brands was its low production costs, coupled with tariff-free trade under AGOA. The concern, he added, is that the Trump administration has been unwilling to pay attention to the matter, at least to the 'degree that action will happen,' despite AGOA previously enjoying bipartisan support in Congress. While economists have questioned its formula, the White House claims that Lesotho imposes 99 percent in tariffs and other trade barriers on the United States, creating a $234.5 million trade deficit in 2025. As far as Nova is concerned, that's a rounding error. 'Is there anything Lesotho could particularly do to fix the trade deficit?' he asked. 'They're selling two things: diamonds and clothing, and they're not going to buy an equivalent amount of diamonds from the U.S, right? That's not an option. And blue jeans—basic blue jeans, even higher-end blue jeans—are not coming back to the U.S. for production. And since they're not, there really isn't any beneficiary of high tariffs. Nobody wins.' Of the brands that were contacted about changes in their sourcing strategy, only Levi's responded to say that its plans have remained 'unchanged.' The denim giant is a prominent client of Nien Hsing Textile Group, a major employer that shuttered several of its subsidiaries, including Glory International, Nien Hsing International and C&Y Garments, in 2023 due to what it said was a lack of demand for its products on the international market, especially in the United States. Two years before that, the Covid-19 fallout and 'other market forces' led to mass retrenchments. A spokesman from Nien Hsing Textile Group said that Nien Hsing Lesotho has orders until the first quarter of 2026, though he would not say if there have been or will be further layoffs. Other factories are less lucky. Facilities employing thousands of people, such as Precious Garments, Tzicc Clothing Manufactures and Maseru-E Textiles, haven't fielded orders since the tariff was originally announced, said Solong Senohe, secretary-general at the United Textile Employees Union, or UNITE, which has been negotiating worker settlements with various owners. Precious Garments, he said, has started rotating employees on shifts that have them working just two weeks out of each month. Many of UNITE's members, however, have been placed on 'short-term layoff' without pay until September, with a rapidly dwindling hope that they might be recalled in October if the tariff rate eases or if, by some miracle, AGOA is put back in play, returning it to equal footing with competitors like Ethiopia, Ghana and Kenya that are facing an additional 10 percent tax post-Aug. 1—no different than what every nation is grappling with now. Even South Africa's 30 percent figure looks like a bargain by comparison. Most of the workers whose livelihoods are now hanging by a thread don't know what they will do if they remain unemployed, Senohe said. They worry that when schools reopen later this month, they're not going to be able to afford the fees. Or worse, that they will lose the literal roof over their head because they can no longer afford rent. They will also have to contend with extreme deprivation in a country where half of its 2 million-strong population already lives below the poverty line. Even breaking into the far less-regulated informal sector would be difficult because 'it is already flooded,' he said. The garment industry's travails will extend into other sectors that rely on workers' patronage: transportation operators, say, or lunchtime vendors. When their savings run out, workers could find themselves resorting to the most dangerous jobs. Parents could be forced to traffic their children. 'The government's response is to opt to diversify export markets to the European Union or other African countries like South Africa,' Senohe said. 'But unfortunately, the process is not that easy; negotiations have to start now. And meanwhile, people are suffering.' Nova thinks that September will be a decision inflection point. No AGOA and a 50 percent duty on garments from Lesotho would also mean no garment industry in Lesotho, he said. Many of the support programs workers relied on, such as HIV and tuberculosis prevention, have already been pulled because of the gutting of the U.S. Agency for International Development. If conditions further deteriorate, 'every social ill that already exists in Lesotho will be massively magnified for this worker population,' he said, before adding, 'it'll be one of the worst things we've ever seen in the garment industry. There will be no place for people to go.' It was only in 2021 that Lesotho was the site of the first binding agreement to tackle gender-based violence and harassment in the fashion industry. The Worker Rights Consortium, the Solidarity Center, the Federation of Women Lawyers in Lesotho and UNITE were among a slew of organizations that helped broker a hard-won deal between Nien Hsing Textile Group, Levi's, The Children's Place and Kontoor Brands to create a worker-led program to eliminate sexual harassment and abuse across the then-four shop floors. The Lesotho Agreement to End Gender-Based Violence and Harassment would prove to be one of the templates for the Dindigul Agreement to Eliminate Gender-Based Violence and Harassment in India and the Central Java Agreement for Gender Justice in Indonesia. The fate of the program is now in the air because it's tied to that of the industry. Senohe said that factory owners were told by brands that their companies had 'no say in this' because the state of affairs was directed by the U.S. government and they cannot increase the prices of the products they buy. But these are people's lives that are at stake, he said. Surely brands should feel some kind of responsibility? He's unsure why this isn't the case. 'The buyers are not willing to pay the tariffs,' Senohe said. 'Even the 10 percent tariffs now they are not paying. The factories are doing it. The reason they are exporting from Lesotho is the cheap labor that gives them more profit. It is, unfortunately, how capitalism works. It sucks your blood and whatever to make profit and then, at the end of the day, it dumps you.' And come September, if nothing changes, mass firings will begin in earnest. Factories that depend on U.S. orders, too, will have no choice but to close. The implications of this are deep and sweeping. Even if part of the sector survives, it'll no longer be beholden to American brands' generally higher-road requirements, such as freedom of association, freedom from forced labor and freedom from gender-based violence and harassment. Instead, Lesotho may have to court markets—perhaps China—'where people don't care.' 'I think the worst scenario is going to be that people are going to cross the border into South Africa as illegal migrants,' Senohe said. 'There is a textile hub in the city of Newcastle in KwaZulu-Natal, where most of the people are illegal and you're harassed every day by the police. Some of them are going to go to the illegal mines in South Africa. If somebody comes up and says, 'I have work for you in South Africa,' they will go there. And then we don't know if we'll ever see them again.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
ABC News
2 days ago
- Politics
- ABC News
Trailblazing Aboriginal leader Galarrwuy Yunupiŋu posthumously awarded Companion of the Order of Australia
One of Australia's most influential Aboriginal leaders has posthumously received the nation's highest civilian honour, two years after his death in the remote Northern Territory. Aboriginal and Torres Strait Islander readers are advised that this article contains the name and image of an Indigenous person who has died, used in accordance with the wishes of his family. Late Gumatj clan leader Galarrwuy Yunupiŋu was appointed Companion of the Order of Australia on Thursday by Governor-General Sam Mostyn, who acknowledged he may never have wanted the recognition. "This may be an award that Dr Yunupiŋu would not have really seen as necessary, or seen as adding to the way in which he lived his life," Ms Mostyn said. "In a way, it's an important thing that we are doing, in acknowledging his life through a [Western] system that must sit alongside something else, [his Yolŋu law and land]." Dr Yunupiŋu was a lifelong fighter for Aboriginal land rightss and economic development, who had the ear of successive prime ministers, from Billy McMahon to Anthony Albanese. In 1978 he was named Australian of the Year for his role in negotiations between the Commonwealth and the Mirarr people over mining on the edge of Kakadu National Park. Ms Mostyn travelled to Dr Yunupiŋu's home community of Gunyaŋara in north-east Arnhem Land to present the honour, surrounded by clan leaders of the Gove peninsula. "[For many decades] he was involved in all of the very big debates about Indigenous rights, about land, about respect," Ms Mostyn said. "He also, I think, brought to the rest of us the learning of how we can work together in two worlds. "We remember him and we celebrate him for that work, but [also] as a great Australian who never gave up on the idea that Australia could still do better, if we could find a way to live with each other with respect and harmony." As the medal was handed over, Dr Yunupiŋu's daughter Binmila Yunupiŋu shed tears, as a photo of her late father looked down from above. One of Dr Yunupiŋu's lasting achievements is the annual Garma Festival, which he founded alongside his brother, late Yothu Yindi frontman Mandawuy Yunupiŋu, 25 years ago.
Zawya
2 days ago
- Business
- Zawya
President Mahama unveils major road infrastructure boost for Western North Region under ‘Big Push'
President John Dramani Mahama has reaffirmed his government's commitment to developing vital infrastructure, announcing the launch of extensive road construction and rehabilitation projects across the Western North Region. This will be carried out under his flagship 'Big Push Infrastructure Programme', a $10 billion initiative aimed at significantly improving national connectivity and economic development. Addressing a durbar of enthusiastic chiefs and people in Juaboso, as part of his ongoing nationwide 'Thank You Tour', President Mahama directly responded to a heartfelt appeal from the Western North Regional House of Chiefs. The Chiefs had passionately articulated the pressing need for improved road networks, emphasising that their overwhelming support for him and the NDC in the 2024 elections was a clear demonstration of their profound trust in his leadership. 'I have heard your concerns about the roads connecting our farming communities and our markets,' President Mahama stated, acknowledging the region's vital role in the national economy. 'These roads are crucial arteries for moving cocoa, timber, food products, and people across our country. They are not a luxury; they are a fundamental necessity.' The President assured the gathering that many of these crucial arteries, including vital cocoa roads that had previously experienced delays, will now undergo accelerated completion and new development as part of the ambitious 'Big Push' Programme. 'I assure you that these critical projects have been fully captured under our transformative $10 billion Big Push Infrastructure Programme,' he reiterated. Detailing the scope of this unprecedented commitment, President Mahama explained, 'The 'Big Push' is a strategic commitment to inject at least $2 billion annually into infrastructure development, with its rollout commencing robustly in the 2025 national budget.' He further added, 'We are dedicating substantial resources and deploying expert technical teams to ensure these roads are completed on schedule, transforming the landscape for our farmers, traders, and communities across the Western North Region.' Distributed by APO Group on behalf of The Presidency, Republic of Ghana.
Khaleej Times
2 days ago
- Business
- Khaleej Times
Ras Al Khaimah sees 17.6% rise in new business licences in first half of 2025
Ras Al Khaimah has recorded a significant increase in new business activity this year. According to a recent report from the Department of Economic Development (DED) in Ras Al Khaimah, the emirate witnessed a 17.6 per cent growth in the number of new business licences issued during the first half of 2025. In total, 1,219 new licences were issued between January and June, compared to 1,037 licences during the same period in 2024. Industrial licences lead the growth The report highlighted that industrial licences saw the highest growth, jumping by approximately 111 per cent. This was followed by professional licences, which increased by 20 per cent, and commercial licences, which rose by 12.6 per cent. Wholesale and retail dominate In terms of sectors, the wholesale and retail trade sector accounted for the largest share of new licences, making up 44.4 per cent of the total. The construction sector came second with 18 per cent, followed by the accommodation and food services sector at 13.2 per cent, and the manufacturing sector at 11.1 per cent. Other service activities accounted for 8.6 per cent of the new licences. Capital investment sees steady growth The total registered capital of new businesses in the emirate also rose by 7.5 per cent in the first half of the year. The capital invested in industrial licences saw a major increase, growing by 7.6 times compared to the same period in 2024. The professional licenses' capital rose by 24.7 per cent. Among Ras Al Khaimah's areas, Al Dhait recorded the highest share of new licences, accounting for 8.7 per cent of the total, followed by Al Nakheel at 8.4 per cent, and both Al Qusaidat and Julphar, each at 7.7 per cent. When measuring the number of new licences compared to existing active licences, Khalifa bin Zayed City ranked first, with 18.9 per cent new licences. Dahan followed with 13.4 per cent, and Al Ghail came in third at 9.1 per cent. In terms of attracting new investments, Al Jazirah Al Hamra led the way, capturing nearly one-third of the total registered capital of new licences. Al Dhait followed with 13 per cent, while Al Ghail attracted 8.5 per cent of the new capital. Commenting on the report, Amina Qahtan, Director of the Commercial Affairs Department at Ras Al Khaimah DED, said the figures reflect a dynamic and growing economy in the emirate. 'This growth is the result of strategic directives from our leadership, aimed at creating a flexible and investor-friendly environment,' she said. 'We have introduced a wide range of incentives and streamlined procedures to attract more businesses to Ras Al Khaimah.'
Irish Times
3 days ago
- Business
- Irish Times
New Ukrainian PM seen as potential bridge between Washington and Kyiv
Ukraine 's appointment of Yulia Svyrydenko as prime minister highlights the country's need to balance defence with economic development and modernisation, and the crucial role that relations with the United States will play in the coming years. Ms Svyrydenko (39) was approved by parliament in Kyiv on Thursday to replace Denys Shmyhal as premier, in a cabinet reshuffle that Ukrainian president Volodymyr Zelenskiy said should energise innovation and production in the defence sector and other fields while streamlining the state and slashing bureaucracy. In her previous post as economy minister and deputy prime minister, Ms Svyrydenko shot to prominence by leading the delegation that signed a controversial agreement with the US on joint exploitation of Ukraine's natural resources in April. The deal – which gives the US preferential access to Ukraine's rare earth minerals and other commodities, and foresees the creation of an investment fund for postwar reconstruction – helped rebuild ties between Washington and Kyiv after a meeting between Mr Zelenskiy and US president Donald Trump had ended in acrimony two months earlier. READ MORE Ms Svyrydenko, an experienced economist, drew praise for clinching the difficult deal, and Kyiv hopes the connections she made with Mr Trump's administration will strengthen Ukraine's vital – but often strained – relationship with the White House.
