Chapter four: Economic governance and management the government, through the MTICM, holds a number of forums where all government ministries (the Ministerial Task Force) are represented. It includes the National WTO Network Forum, which brings together all ministries and departments as well as the private sector and academics. The purpose of such an exercise is to broaden discussions, obtain diverse views on WTO-related matters and build a concrete position for the country. 474. However, it should be said that Lesotho does not have a documented trade policy. It does, however, have an implied and fragmented policy which is guided by various statutes on trade and trade policy. Lesotho’s export policies are determined by external conditions, including market access to South Africa, the SADC, the USA and the EU. To comply with AGOA, Lesotho has introduced new licensing and visa mechanisms for textiles and clothing. 475. The trade and cooperation agreement between South Africa and the EU has also affected, and will continue to affect, Lesotho’s import structure by effectively granting preferences in SACU to goods of EU origin. It will also reduce the tariff revenue available from the SACU revenue pool. Imports and exports are governed by the Export and Import Control Act of 1984, the Customs and Excise Act of 1982 and the Customs and Excise Regulation Act of 1984. These legal provisions are currently under review in order to update them in line with the 2002 SACU agreement. ii. Findings of the CRM 476. Lesotho’s participation in regional integration is dominated by its membership of SACU and the SADC. Together with Namibia, Swaziland and South Africa, Lesotho is a member of the CMA, which recognises the South African rand as legal tender. Although Lesotho introduced its own currency, the loti, in 1980, it continues to be pegged at par to the rand. While these institutional arrangements limit the scope for an independent monetary policy, they confer significant benefits on Lesotho. The arrangements facilitate trade, investment and cross-border activities (like tourism). Lesotho also derives more than 50 per cent of its revenue from the SACU pool. It also receives between R40 million and R60 million annually in compensation for the rand circulating in the country (as Rent Monetary Compensation). 477. Most observers think the arrangement is perhaps the most beneficial for Lesotho in the light of its geographical location inside South Africa and because of its size. While the arrangement offers opportunities, it also poses challenges. The challenges include pursuing appropriate policy to enable it to compete with South Africa for FDI and to be able to penetrate the markets of South Africa and other neighbouring countries. 478. Available evidence suggests that Lesotho has been working diligently towards harmonising SACU regulatory policies, including policies in respect of intra-African trade and investment promotion, and ensuring that they are consistent with, and supportive of, the regional economic integration objectives as set out in the SACU agreement of 2002. The aim of harmonisation is to make it easier for the inflow and outflow of capital, investment, the promotion of free trade in goods and services, and the maintenance of international trade standards. In order to improve the investment climate and attract foreign investment, Lesotho has introduced the following measures or incentives: 131