July 31, 2013,
Under the MFA, major Asian textile companies, limited in exporting directly to the EU and the US, set up subsidiaries in less developed countries, including Lesotho. In particular, they took advantage of Lesotho’s easy access to the US market under the African Growth and Opportunity Act (AGOA) of 2000, which offered duty free entry to some products from African countries that adopted market based economic policies, introduced political pluralism and eliminated barriers to US trade and investment. As a result, textiles and clothing became Lesotho’s economic mainstay, which at one point employed 56,000 workers thus accounting for virtually every manufacturing job in the country..
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