South Africa’s automotive component manufacturers have highlighted the importance of the African Growth and Opportunity Act (Agoa) and warned of the negative consequences to the sector and the domestic economy if the trade agreement is not extended.
The current agreement in terms of the Agoa Act expires in 2025.
Agoa was approved by the US Congress in May 2000 with the aim of assisting eligible sub-Saharan African economies to improve economic relations between the US and the region by providing duty-free access to the US market for thousands of products.
National Association of Automotive Component and Allied Manufacturers (NAACAM) executive director Renai Moothilal said Agoa is extremely important to auto component manufacturers, both in terms of supply to original equipment manufacturers (OEMs) that assemble vehicles and export them into the US and as independent exporters.
Moothilal said total South African automotive industry exports to the US totalled R24.1 billion in 2022, of which R8.78 billion comprised independent component exports to the US. Read the full article via Moneyweb