chapter  7
30 Pages

The African Growth and Opportunity Act and the politics of preference erosion in the WTO Doha

By‘Development’ Round

WTO in 2001, reversed a substantial proportion of these trade gains as Lesotho witnessed the closure of 12 of its 47 garment factories with the loss of some 14,000 jobs within a year of the removal of quotas (Kaplinsky and Morris 2008). Although the situation stabilized somewhat after 2006, with China and other low-income countries like Cambodia and Vietnam continuing to make inroads into the US import market – and with further trade reforms likely and the renewal of AGOA beyond 2015 uncertain – the longer-term prospects for garment assembly in Lesotho and the rest of SSA appear, to say the least, uncertain.