The South African automotive industry is faced with the challenge of how to expand through exports in a saturated global automotive market, characterized by overcapacity. The vision of the South African automotive industry is to double its vehicle production to one million units per annum by 2020. However, domestic market limitations impede the ability to achieve sufficient economies of scale. Trade arrangements contribute towards increasing market access. The impact of the AGOA on automotive trade between the United States of America and South Africa was analyzed. It was found that the AGOA resulted in a substantial increase in two-way trade. Further research is encouraged with regard to the potential of regional integration in Africa for automotive exports from South African and the USA.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.