The South African government has requested consultations with the European Union (EU) and the World Trade Organisation (WTO) regarding phytosanitary trade regulations affecting South African citrus. This action follows an announcement from the department of agriculture, land reform and rural development, and the department of trade, industry and competition.
For years, South African citrus growers had faced stringent phytosanitary regulations imposed by the EU, all in the name of combatting citrus black spot (CBS), a fungal infection. Despite scientific evidence proving that CBS couldn’t be transmitted through the fruit itself, the EU remained unmoved.
Saving the citrus industry
Minister Thoko Didiza highlighted the importance of jobs in rural communities, “Rural economies throughout the country depend on the export of citrus for their income. Currently, the industry cannot afford the almost R2 billion that is needed to comply with the EU’s trade restrictive regulations,” she said.
Meanwhile, minister of trade, industry and competition Ebrahim Patel emphasised the critical role the EU market plays in South African agriculture and the economy as a whole.
“The EU market makes up one-third of all citrus exports from South Africa and is central to the profitability of the citrus industry. The EU’s volumes cannot be absorbed by other markets. The consultations are a critical step in the WTO towards effective resolution of South Africa’s concerns,” he said.
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Justin Chadwick, the chief executive officer of the Citrus Growers Association, expressed cautious optimism. “The industry welcomes government’s actions and the industry is hoping for efficient resolution of the matter in view that the consultations are initiated as this year’s citrus export season commences,” he said.
According to Chadwick, projections show that if all industry stakeholders come together, the industry will be able to produce an additional 100 million 15kg cartons over the next eight years.
“This can create 100 000 more jobs and generate an additional R20 billion in annual revenue, but this potential will surely be lost if the EU market narrows,” he said.
The action by the South African government seeks to safeguard an agricultural sector that contributes significantly to the economy. The South African government looks forward to constructive consultations with the EU to find an amicable solution.
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