Department of Trade, Industry and Competition (dtic) deputy director-general of trade Ambassador Xolelwa Mlumbi-Peter on Tuesday welcomed the commitment between South Africa and Lesotho, to diversify production and leverage trade agreements.

Both countries are part of the world’s oldest customs union, the Southern Africa Customs Union, which both countries hope to use to leverage trade agreements.

Following a meeting in Pretoria, the dtic and Lesotho’s Ministry of Trade, Industry and Business Development have agreed to enhance trade and investment, to advance shared interests.

Mlumbi-Peter said the importance of sharing resilience-building strategies, amid the seismic shifts in global trade, was timely and could also enhance the buoyancy of the Southern African region.

The Lesotho Ministry of Trade, Industry and Business Development is currently on a week-long study mission on regulatory frameworks for indigenous plants and mechanisms to leverage trade agreements, including the Southern African Development Community – European Union Economic Partnership Agreement, as well as, to exchange experiences on how best to leverage trade agreements to promote growth and development.

Mlumbi-Peter said the two sides also agreed to enhance cooperation on standards and on cross-border value chains in identified sectors such as automotive; clothing and textiles; cosmetics and essential oils; cannabis, fruits and vegetables; and leather and meat products.

“Furthermore, the two sides agreed to prioritise the implementation of the African Continental Free Trade Area, and to work together towards the conclusion of outstanding negotiations, particularly in sectors such as clothing, textiles and automotives that provide potential benefits to grow the economies of both sides,” she said.

This mission followed the signing of the Mmemorandum 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 earlier this year.

The MoU offers a platform to facilitate greater cooperation between the two countries, promoting exchange of experiences to promote mutually beneficial trade and investment relations.