South Africa has filed a proposal with Brussels which would see automotive products, including completely built up vehicles, added to the list of duty free goods it exports to the EU, writes Dave Cumming.

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The aim of the proposal is to encourage more motor manufacturers to join Volkswagen, BMW, DaimlerChrysler and Toyota in setting up manufacturing plants for export production.

BMW has already taken substantial advantage of a similar arrangement with the US under the Africa Growth and Opportunity Act.

Trade officials point out, however, that any such concession would probably be accompanied by a European ‘quid pro quo’ in the form of preferential access to South Africa’s market for other products.

It is understood talks on the proposal between the parties will take place soon.

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