MZANSI will lose R157 billion in vehicle exports if the ANC continues to support Russia.
That's the claim of DA leader John Steenhuisen after he visited the BMW vehicle manufacturing plant in Rosslyn, Tshwane, on Tuesday, 11 June.
Steenhuisen said South Africa’s vehicle manufacturing sector, which accounted for R157 billion in exports in 2022, faces collapse should SA be excluded from the United States's African Growth and Opportunity Act (AGOA) because of its support for “Russia’s invasion of Ukraine”.
“Given that the ANC is hosting an exclusive BRICS Political Parties Dialogue this week - and that the South African government under the ANC apparently plans to host Russian President Vladimir Putin at the 2023 BRICS Summit later this year - South Africa faces the very real threat of economic sanctions, with AGOA hanging in the balance,” said Steenhuisen.
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He said the DA has already engaged US lawmakers on the importance of AGOA’s renewal for regional economies, making the point that the ANC does not speak for South Africa as a supporter of the Russian Federation.
Steenhuisen said the DA made a formal submission to the United States Trade Representative last week in which it motivated for SA’s inclusion in AGOA’s annual renewal, which gives SA economy preferential access to the US market and the privilege of duty-free exports.
He said Mzansi was no longer the "favourite" from the southern African region when it comes to trade, and the country’s economy was quickly being outflanked by the neighbouring countries.
“Should South Africa’s access to AGOA be revoked as a consequence of its allegiance to Russia, 112 000 jobs in the automotive sector and R435 billion in automotive trade could be wiped out,” he said.
The largest export market is Germany which imports motor vehicles manufactured in South Africa through dedicated European Union-bilateral trade agreements to the value of R72 billion.
South Africa is also a key manufacturer of right-hand driving vehicles for markets such as the United Kingdom.
