Washington defers decision on sanctions

The United States has deferred a decision to sanction Swaziland over industrial relations concerns following an undertaking by the tiny kingdom to amend its controversial Industrial Relations Act. Prime minister Sibusiso Dlamini said on Monday that the US agreed to give the government “a few months” to amend the law and avert expulsion from the Generalised System of Preferences (GSP). “I am very pleased to announce the US government’s decision that Swaziland’s status under the GSP has been extended,” Dlamini said. “The extension has been provided in order to allow time for a review by the government of Swaziland of certain sections of the Industrial Relations Act 2000.” GSP status allows Swaziland to export sugar to US markets at reduced tariffs. Expulsion from the pact would also have seen losing new benefits under Washington’s Africa Growth and Opportunity Act. Last week, Dlamini presented a last-minute petition to the US government, urging it not to sanction the country. The petition undertook to meet International Labour Organisation (ILO) and US expectations on the country’s industrial relation laws. “The US government has clearly recognised the readiness of His Majesty’s government to commence immediate dialogue with the US government to resolve any areas of concern regarding the new Act,” Dlamini added. “Indeed, US technical assistance has been offered to assist in an analysis of these two sections and in making the Industrial Relations Act compliant with US domestic legislation governing the application of the GSP.” However, economists said it remained to be seen whether the US decision would end the flight of investors from the country. Local media reported last week that around 10 foreign companies had decided to shelve their investment plans in Swaziland until the industrial climate improved. The British High Commission in Mbabane, meanwhile, said concerns over the country’s industrial climate could discourage British investment to the country. High Commissioner Neil Hook said he would find it “difficult” to persuade British firms to invest in the country until its industrial climate improved.