Auto exports reap Agoa rewards

SOUTH AFRICA'S booming motor export industry is now able to enjoy benefits under the US Africa Growth and Opportunity Act (Agoa), and this will not be limited entirely to companies headquartered in Africa.
BMW SA has announced that the R3.8billion worth of vehicles it is exporting to the US this year has fallen under the duty-free provisions of the act. Initially it was expected that only totally owned African firms would benefit from Agoa, but the act now makes it clear that all companies operating fully in an African country are eligible. The act, in fact, offers exporters from many African countries tariff-free access to the US market for thousands of products.
BMW exports from this country to the US are expected to reach 22 000 units this year, which is double last year's figure. The 2002 figure of R3.8billion will then account for three-quarters of South Africa's total of R4.5billion goods exported to the US during 2002 under Agoa.
Other motor manufacturers are now expected to join the flow to the US, which is likely to swell the national export figure in that direction tremendously during 2003. No positive announcements have been made from any as yet, but it is expected that the Eastern Cape manufacturing sector, involving Volkswagen and Delta in Port Elizabeth and Mercedes-Benz in East London, are likely to become involved, while Toyota's additional manufacturing for export operations in Durban involving trucks is certain to come under consideration.