DA’s push for Agoa not about international politics, but SA’s ‘bread and butter’

The Democratic Alliance (DA) yesterday kicked off its Gauteng registration campaign for the 2024 general election by taking on the ANC’s alleged involvement with Russia, which the party believes could pose a risk to South Africa’s African Growth and Opportunity Act (Agoa) agreement.

DA federal leader John Steenhuisen visited the BMW car manufacturing plant in Rosslyn in Tshwane, where he highlighted the importance of Agoa to the country’s economy and exports.

ALSO READ: United States needs Agoa more than South Africa – analysts

From there, Steenhuisen went on to launch the registration campaign in Soweto, and he plans to meet the Civil Society Partnerships and Pothole Repairs later this week and host a series of public meetings.

Agoa ‘our bread and butter’

Tshwane mayor Cilliers Brink said for every person employed at BMW, five extra people were employed by secondary industries.

ALSO READ: It is not a disaster if SA is kicked out of Agoa

“[Up to] 14 000 people have jobs in our city because of the investment BMW has made and the vast majority of those people live here in Tshwane. BMW’s competitiveness in the world relies on Agoa. The US is the second-largest export market for the cars manufactured here,” he said.

Brink said this was not about international politics.

“This is bread and butter. Our jobs and opportunities for the country,” he said.

Steenhuisen said SA’s vehicle manufacturing sector – which accounted for R157 billion in exports in 2022, according to the National Association of Automobile Manufacturers of SA – now faces the real threat of collapse should South Africa be excluded from Agoa due to its ongoing support of Russia’s invasion of Ukraine.

ALSO READ:  US lawmakers want SA punished for its stance over Russia

“We were here to visit the plant. This is a huge economic contributor to South Africa, and regionally. If we would be cut from Agoa, or lose Agoa because of the bizarre stand on the Russia/Ukraine crisis, it puts our Agoa at risk,” he said.

Annual renewal

Steenhuisen said the DA made a formal submission to the US trade representative last week, when they strongly motivated for SA’s inclusion in Agoa’s annual renewal.

ALSO READ: Kicking SA out of Agoa will hit hard

“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. In 2022 alone, automotive trade accounted for 16.5% of South Africa’s total trade GDP,” he said.