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South Africa redirects farm exports to Asia after U.S. tariffs

Shoppers in Singapore have started to see more South African produce as the country strengthens trade relations with Asia to offset the impact of new U.S. tariffs on its agricultural exports. Asia currently accounts for about 16% of South Africa's farm exports, a share expected to rise as Pretoria secures new market access in the region.

Earlier this month, South Africa reached an agreement granting its apricots, peaches, nectarines, plums, and prunes access to the Chinese market for the first time. The deal is projected to generate about US$21 million in exports over the next five years. China's imports of these fruits have expanded rapidly, with more than 21 million cartons of peaches and nectarines and 20 million cartons of plums purchased last year, volumes exceeding South Africa's entire seasonal output.

South Africa has also invited Chinese customs officials to inspect cherry orchards and packhouses during the current harvest. If the inspection proceeds smoothly, the country could gain market access for cherries by the next harvest cycle.

In late October, President Cyril Ramaphosa completed a three-nation visit to Indonesia, Vietnam, and Malaysia aimed at strengthening trade and investment ties, with agriculture among the priorities. Separately, in September, South Africa and Japan signed an agreement to enhance cooperation in agriculture, including the promotion of trade in farming products.

The expansion toward Asian markets follows the introduction of a 30% tariff on South African agricultural exports to the United States in August. The expiration of the African Growth and Opportunity Act (AGOA) at the end of September further limited duty-free access for sub-Saharan exports. Although Washington is considering a one-year extension, no confirmation has yet been made.

While the U.S. absorbs only around 4% of South Africa's total agricultural exports, the exposure is higher for certain products such as citrus, nuts, grapes, and fruit juice. In 2023, the U.S. accounted for about 8% of South Africa's orange exports, 68% of its apple juice, 27% of macadamia nuts, 16% of peaches, 18% of dried grapes, and 11% of mandarins.

Earlier this year, South Africa also secured approval to export fresh table grapes to the Philippines after negotiations lasting nearly a decade. It has also regained access to the Thai market for fresh apples after a 16-year suspension. Over the past decade, South Africa's apple exports have grown by about 40%, largely due to rising demand from Asia.

For more information:
NTU-SBF Centre for African Studies
Tel: +65 6513 8089
Email: [email protected]
www.ntu.edu.sg

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