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Trade agreements crucial for continued manufacturing in South Africa – BMW SA

Image of BMW X3s leaving the Rosslyn plant for the export market

BMW X3s leaving the Rosslyn plant for the export market

31st March 2025

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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BMW Group South Africa (SA) says it cannot over-emphasise the importance of policies such as the African Growth and Opportunity Act (Agoa) for the continued success of the German car maker’s business in the country.

“These policies enable us, as a relatively small global industrial player – this relationship is crucial for our ability to continue manufacturing vehicles and providing jobs in South Africa,” warns a BMW SA spokesperson.

South Africa benefits from duty-free access to the US under Agoa.

However, this preferential market access may be under threat following an announcement by President Donald Trump last week that the US will impose a 25% tariff on vehicles and certain vehicle parts imported into the US.

It is not yet clear whether this tariff will be applicable to Agoa beneficiaries.

naamsa | The Automotive Business Council said last week that it was “actively assessing” the potential impact of the 25% tariff on the domestic automotive industry.

“We are currently engaging with our members and other key stakeholders, including government authorities and trade partners, to determine whether Agoa preferences remain unaffected by the latest proclamation.”

“We are evaluating the announcements in detail,” adds the BMW SA spokesperson.

BMW SA exports the X3 sports-activity vehicle to the US, among other markets, from its Rosslyn assembly plant in Tshwane.

“Free trade and international cooperation are of immense importance worldwide and are essential drivers of growth and progress,” notes the BMW SA spokesperson.

“They have always been a guiding principle of the BMW Group.

“Tariffs, on the other hand, hinder free trade, slow down innovation and set a negative spiral in motion. In the end, they are detrimental to customers, making products more expensive and less innovative.

“That is why we should generally always be talking about fewer trade barriers rather than more.”

 

Edited by Creamer Media Reporter

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