In the latest development between the South African government, the Citrus Growers Association (CGA), and the European Union (EU) over citrus black spot (CBS) and false codling moth (FCM) regulations, South Africa has requested the establishment of two panels at a meeting of the Dispute Settlement Body (DSB) of the World Trade Organization (WTO).
The regulations as set out by the EU are being challenged by the South African government to protect the livelihoods of tens of thousands of people in the local citrus industry.
Fighting back against ‘unscientific’ regulations
Currently, South African citrus growers are spending billions of rands per year to comply with CBS and FCM measures which the industry considers unscientific and unnecessarily restrictive. New-era citrus growers are especially hit hard by the EU measures.
According to the South African government, the request to establish the two panels is a significant development. This is the first time that South Africa has progressed a dispute at the WTO beyond the panel state of the established DSB process.
While the EU did not at this time accept South Africa’s request for the two panels, the set DSB procedure is that the requested adjudication panels will be established at its next meeting in July 2024. A DSB panel report can usually be expected after nine months.
Justin Chadwick, chief executive officer of the CGA, said they are fully behind the government’s pursuit of the matter as the custodian of the citrus industry.
“Last year we exported 36% of all our citrus to the EU. That shows what an important market it is for our growers. It is the very foundation of citrus profitability in SA.”
“Should the EU continue with the implementation of these measures, or intensify them in any way, the profitability of hundreds of growers will be negatively affected and the industry will suffer severe revenue and job losses.
“But this is also potentially good news for the European consumer. Their orange prices last summer were at an all-time high. However, if their supply is unfettered, consumers will benefit,” he said.
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Govt. supporting citrus growers
Meanwhile, the director general of the department of agriculture, land reform and rural development, Mooketsa Ramasodi, said the citrus commodity in South Africa is critically important as it supports 140 000 jobs at a farm level.
“The government is acting to safeguard these livelihoods and the central role the citrus industry plays in so many of our rural communities,” he said.
The acting director-general of the trade, industry and competition department, Malebo Mabitje-Thompson, further clarified the government’s actions at the WTO.
“The EU’s measures on CBS and FCM are not justified, proportionate or appropriate. It must be understood, however, that the WTO process is not confrontational or aggressive.
“The goal is scientific truth and fairness. We are making use of the WTO mechanisms available to us to find an amicable solution,” she said.
The government’s representatives reiterated the legal basis of their complaints at the WTO headquarters in Geneva this week. These included the following arguments:
- The measures are not based on scientific principles and are maintained without sufficient scientific evidence.
- The measures are applied in a manner that is not in accordance with the provisions of the Agreement on the Application of Sanitary and Phytosanitary Measures, of which the EU is a signatory.
- The EU fails to apply the measures in a uniform, impartial and reasonable manner.
- The measures are more trade-restrictive than required to achieve protection, and there are reasonably available alternatives which are technically and economically feasible, that would achieve protection in a significantly less trade-restrictive manner.
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