US/MALAWI
Malawi is confronting child and forced labor practices after the US restricted tobacco imports from the African nation over allegations workers, including children, were being exploited. The US decision piles even more pressure on the tobacco sector, already confronted with global anti-tobacco campaigns.
Although exports to the US make up only a small part of Malawi’s total, the US move could make it harder to sell its tobacco elsewhere and has sparked anxiety among farmers who fear they will be forced to accept lower prices.
US authorities said firms wishing to import Malawi tobacco into the country will need to demonstrate it was not produced with forced labor. But what will be needed to convince US authorities and how much effort firms will be willing to take is unclear.
Tobacco is known locally as “green gold” as it is Malawi’s top crop in terms of employment, foreign exchange earnings (60%) and tax revenue (25%), so any trouble the sector runs into could quickly reverberate throughout the economy. Agriculture Minister Kondwani Nankhumwa, acknowledged pockets of child and forced labor in Malawi but downplayed the US action saying it “is not a ban, they are just pushing for compliance”.
Nankhumwa pledged Malawi would conduct the necessary policy reviews to protect the tobacco industry and bring the country into compliance with global standards and stated that 80% of Malawi’s tobacco was grown under a special scheme which is free from child or forced labor.
Farmers – who are starting to prepare their fields for the next planting season – are distraught at the prospect of being squeezed further by falling prices. They fear there will be no future for tobacco farming in Malawi if prices fall.