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AGOA loss would deal big blow to South Africa's vehicle and component manufacturing industries

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Industry body warns of potential domino effect of South Africa losing its duty-free access to the US market through AGOA.
The article from MSN discusses the potential economic impact on South Africa if it were to lose its eligibility under the African Growth and Opportunity Act (AGOA). AGOA provides duty-free access to the U.S. market for eligible Sub-Saharan African countries, significantly benefiting South Africa's vehicle and component manufacturing sectors. Losing AGOA status could severely affect these industries, which are crucial for employment and economic growth in South Africa. The article highlights that the U.S. has expressed concerns over South Africa's foreign policy, particularly its stance on the Russia-Ukraine conflict, which might lead to the revocation of AGOA benefits. This could result in a substantial blow to South Africa's economy, as the automotive sector not only contributes significantly to GDP but also supports numerous jobs. The article also mentions the broader implications, including potential shifts in trade relations and the need for South Africa to diversify its export markets to mitigate the risk of such a loss.

Read the Full MSN Article at:
[ https://www.msn.com/en-za/politics/government/agoa-loss-would-deal-big-blow-to-south-africa-s-vehicle-and-component-manufacturing-industries/ar-AA1ySlLD ]