South Africa, the world\u2019s second-biggest citrus exporter, has asked the World Trade Organization (WTO) to set up two panels to adjudicate disputes over its citrus fruit exports to the European Union.<\/p>\n\n\n\n
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.\u00a0<\/p>\n\n\n\n
South Africa maintains that citrus black spots cause blemishes on the fruit skin, but they don\u2019t affect the quality.<\/p>\n\n\n\n
In response, the European Union said it regretted South Africa\u2019s decision to pursue panel proceedings in the two cases but maintained that its pest control measures are entirely justified,\u201d the WTO said in a statement on Monday. <\/p>\n\n\n\n
\u201cThe EU added that it was not ready at this meeting to agree to the requests for panels from South Africa.\u201d<\/p>\n\n\n\n
The request is South Africa’s first under the WTO\u2019s dispute settlement system.<\/strong><\/p>\n\n\n\n The 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\u2019t access enough specialised refrigerated containers in time to get the fruit to the European market.<\/p>\n\n\n\n \u201cThe industry cannot afford the almost R2 billion that is needed to comply with the EU\u2019s trade-restrictive regulations,\u201d Thoko Didiza, South Africa\u2019s agriculture minister, said in the statement.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n However, he added that it wouldn\u2019t happen if the EU restrictions were maintained. South Africa exports about $1.8 billion of citrus a year. Its biggest competitor is Spain.\u00a0<\/p>\n\n\n\n Overall, South Africa exported about $2.5 billion of agricultural products to the EU last year and $13.2 billion to all destinations.<\/p>\n\n\n\n
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