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SA raised concerns with the US government over potential duties on imports of vehicles and vehicle components, noting that their imposition on South African exports would significantly erode the benefits that the country is expected to enjoy. As a result of its decision to impose import duties on steel (25%) and aluminum (10%), the United States has decided to consider the possibility to do the same for vehicles and automotive components.
The Minister of Trade and Industry, Rob Davies, said he is concerned about the tariffs threatened in Washington last week when he met with the ambassador of the states United States to trade, Ambassador Robert. Wilbur Ross, Secretary of Commerce and Lighthouse, as well as Senators Chris Coons and Johnny Isakson.
He pointed out that the export duties provided for in That would have the effect of significantly eroding the benefits of Agoa, since the tariffs in Section 232 effectively suspended the preferences of Agoa. 39; Agoa.
He stated that AS accounted for 0.4% of total US imports of automotive products. In addition, one of the automakers of SA, BMW, would no longer export to the United States, which would significantly reduce SA's exports to the United States.
The automotive industry of SA achieved total sales of vehicles and components worth R164. 9 billion in 2017 with 18.8 billion R in the United States. Exports to the United States are duty-free under Agoa, a non-reciprocal trade agreement, which allows duty-free access to certain products in the United States from eligible African countries.
However, Nico Vermeulen, director of the National Sunday Association, an increase in customs duties on vehicle imports would not have a significant effect on the local automobile industry since the largest exporter, BMW, had transferred its production from Series 3 to the United States to the X3 SUV Renai Moothilal, executive director of the National Association of Manufacturers of Automotive Components and Components, said that any tariff New or increased import would have a negative effect on the component sector and would likely result in job losses. [19659002] Second Largest Export Destination
"This could be important since the US market was the second most important destination for South African exports in the recent past as a result of contracts awarded under In 2017, the value of South African components in the United States was just over R 4.2 billion. "
Moothilal said components exported to the United States included catalytic converters , engine parts, transmission components, cooling systems »The sub-sectors of catalytic converters and engine components [are likely to see] are the most negative impact and the most job losses important because these two categories make the United States an important export destination. "
Davies He was accompanied to the United States by Lindiwe Zulu, Minister of Development. and small business, and participated in the Agoa Forum, which brings together trade ministers from countries eligible for Ago as well as representatives of the US government, the private sector and civil society. apply pressure for the SA exemption from steel and aluminum import duties: Canada, Mexico, Brazil, Australia, Argentina, South Korea and Member States. the EU have benefited from temporary exemptions, pending further discussions. SA's request for exemption was dismissed, having argued that being a small niche exporter to the United States, it did not threaten US national security.
Davies said that SA steel exports to the United States accounted for less than 1% Although this represents a small fraction of US imports, South African steel exports to the States United States accounts for 5% of its production, which equates to 7,500 jobs in the steel value chain. 19659002] SA's aluminum exports account for about 1.6% of US imports of aluminum.
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