South Africa doubles down on dispute with its biggest trade partner
South Africa asked the World Trade Organization (WTO) to set up two panels to examine what the nation says are “unscientific and discriminatory measures” placed on citrus it exports to the European Union.
South Africa emailed a statement saying the country renewed its request to the Geneva-based trade authority’s dispute-settlement body after the EU didn’t accept the call for the panels in June.
The WTO automatically approved Friday’s appeal.
South Africa disagrees with EU measures taken against its exports to combat the incidence of Citrus Black Spot, a fungal disease, and the spread of the false codling moth, which damages the fruit.
South Africa maintains that citrus black spots cause blemishes on the fruit skin but don’t affect its quality.
The first dispute dates back to July 2022, with the Citrus Growers Association of Southern Africa last year saying that it would cost the industry over R500 million in lost exports as it couldn’t access enough specialised refrigerated containers in time to get the fruit to the European market.
“The industry cannot afford the almost R2 billion that is needed to comply with the EU’s trade-restrictive regulations,” Thoko Didiza, South Africa’s agriculture minister, said in the statement.
Justin Chadwick, the CEO of the Citrus Growers Association, said in the statement that the industry has the potential to expand to earn an additional R20 billion in exports a year and create 100,000 more jobs.
However, he added that it wouldn’t happen if the EU restrictions were maintained. South Africa exports about $1.8 billion of citrus a year. Its biggest competitor is Spain.
Overall, South Africa exported about $2.5 billion of agricultural products to the EU last year and $13.2 billion to all destinations.
Additionally, Citrus growers in South Africa, the world’s biggest exporter of fruit after Spain, spend about R3.7 billion ($203 million) annually to comply with the EU’s measures.
“South Africa already has an effective world-class risk management system that ensures safe citrus exports,” the nation said.
“Emerging citrus growers are especially hit hard with significant implications for livelihoods and jobs.”
Loading ...
