South Africa’s citrus exports are experiencing significant headwinds due to rising global protectionism and the proliferating use of non-tariff measures (NTMs). This shift from conventional tariffs, significantly reduced by the surge in preferential or free trade agreements, underscores a transformation in international trade practices. As per reports from the mid-2024 World Trade Organization, regional trade agreements skyrocketed to 369, up from a mere 55 in 1995, illustrating the fast-evolving global trading ecosystem.
The final process to resolve the dispute between South Africa and the European Union (EU) regarding citrus black spot (CBS) and false codling moth (FCM) seems to be gathering momentum.
At the end of July 2024, South Africa requested the establishment of two panels at a meeting of the dispute settlement body (DSB) of the World Trade Organization (WTO) to examine what, in South Africa’s view, are unscientific and discriminatory measures placed on citrus imported from South Africa by the EU.
For South Africa, the impact of NTMs is acutely felt within its citrus industry, which is a vital sector of the nation’s economy and a key player in the European market. Despite enjoying duty-free European access through the SADC-EU economic partnership agreement and constituting 36% of its citrus exports to this prime market, South African producers face an uphill battle with sanitary and phytosanitary (SPS) measures. While instituted under the guise of protecting public health and the environment, these regulations significantly obstruct trade flow.
Particularly troublesome for South African exporters are the stringent regulations aimed at combating citrus black spot and the false coddling moth. These SPS measures, ostensibly addressing concerns over diseases and pests, have been critiqued for lacking concrete evidence regarding their threat to human health or potential for contagion in the importing countries’ orchards.
The new European Union regulations in July 2022, mandating cold treatment processes and precooling for citrus exports to prevent FCM, exemplify the growing barriers. These obligatory steps impose substantial costs, adding to the already significant R4 billion compliance burden shouldered by the local citrus industry to conform to existing SPS regulations.
Despite these formidable challenges, the resilience of South Africa’s citrus sector is noteworthy. The industry continues to navigate the complex landscape of international trade through rigorous pre-export inspections, stringent spraying protocols, and comprehensive risk management systems. This perseverance highlights the delicate balance between upholding health and ecological standards and facilitating equitable, unhindered trade flows.
The story of South Africa’s citrus export saga transcends mere commerce. It encapsulates the intricate interplay between economics, health considerations, and international diplomacy. South Africa’s taking its concerns to the WTO dispute settlement unit underscores the broader implications of NTMs on international trade relations. The outcome of this dispute will not only influence the future of South Africa’s citrus exports but also set a precedent for global trade dynamics in an era characterised by rising protectionism.
In understanding this evolving narrative, it is clear that the saga of South Africa’s citrus exports is more than just a matter of trade. It is a testament to an industry’s resilience in navigating an increasingly complex and protectionist global market. As the situation unfolds, the international trading community will keenly watch how South Africa manages its citrus export challenges, which could offer valuable lessons for other nations grappling with similar issues. The ongoing evolution of this saga promises to contribute richly to the discourse on global economic, health, and diplomatic interactions.
Sources
Bhekani Zondo and Lesedi Mokoena, National Agricultural Marketing Council, Rising protectionism through NTMs: A case of SPS measures against South Africa’s citrus exports