South Africa and Lesotho have recently enhanced their trade relations, focusing on investment growth amidst a shift in global trade that may impact the economies of the two countries.
The department of trade, industry and competition and the Lesotho ministry of trade, industry and business development recently met in Pretoria to discuss how to improve relations in the agriculture, clothing and automobile sectors.
The engagement used the opportunity to see what each country can leverage from one another and utilise opportunities that can create jobs and feed their nations.
The engagements followed the Lesotho government’s week-long study mission on a regulatory framework for indigenous plants and a mechanism to leverage trade agreements, including the Southern African Development Community (SADC)-European Union (EU) Economic Partnership Agreement.
Different stakeholders exchanged experiences on how best to leverage trade agreements to promote growth and development.
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Commitment to improving trade relations
According to the deputy director-general of trade at the department of trade, industry and competition, ambassador Xolelwa Mlumbi-Peter, the importance of sharing resilience-building strategies amid the seismic shifts in global trade is timely and can also enhance the buoyancy of the region.
“The two sides also agreed to enhance cooperation on standards and on cross-border value chains in identified sectors such as automotive, clothing and cannabis, fruits and vegetables, and meat products.
“We welcome the commitment between our two countries to work together to diversify production and to leverage trade agreements that the Southern Africa Customs Union (Sacu) is party to, that provide a good platform to access global markets,” she said.
According to the department, the mission by the Lesotho counterparts follows the signing of the memorandum of understanding (MoU) on economic cooperation that has been negotiated and signed by the trade and industry ministers of both sides during the Bi-National Commission (BNC) earlier this year.
“The MoU offers a good platform to facilitate greater cooperation between the two countries, promote exchange of experiences in a manner that promotes mutually beneficial trade and investment relations,” the department said.
The meeting agreed to prioritise the implementation of the African Continental Free Trade Area (AfCFTA) and to work together towards the conclusion of outstanding negotiations.
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