SA's car deal with US in danger

AGOA: Trump may 'punish' sector by excluding it

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South Africa exports vehicles worth about R35 billion every year, many to the United States under a trade deal now in jeopardy as President Donald Trump piles pressure on the country.

"I don't think South Africa has got a chance of the renewal" of the African Growth and Opportunity Act, said Neil Diamond, president of the South African Chamber of Commerce in the United States.

Known as Agoa, the trade deal offers preferential access to the US market for many African countries. The arrangement means Washington charges no tariffs on cars imported from South Africa.

That deal has bolstered the South African car industry. Motor vehicles account for 22% of the country's exports to the US - behind only precious metals, according to government statistics.

Seven big carmakers operate in SA: BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen.

"It's half-a-million people that are employed in the industry, so, right across the value chain," said Billy Tom, head of The Automotive Business Council known as Naamsa.