South African-built vehicles could gain duty free access into the European Union (EU) under new proposals tabled in Brussels.

Any deal would deliver preferential export opportunities for SA cars – similar to those BMW has been exploiting under America's Africa Growth and Opportunity Act.

Any European access would also increase the likelihood of global carmakers investing in South African vehicle assembly facilities.

After tabling the proposals in Brussels, South African Trade and industry Department's senior manager Gustav Meyer pointed out that automotive sector had been excluded from the free trade area between SA and the EU – largely because of South African fears that any concessions to Europe might have jeopardised the country's motor industry development programme.