The European Union's regulations on South African citrus exports, aimed at preventing Citrus Black Spot and False Codling Moth, are costing the South African citrus industry approximately R2 billion annually. This was highlighted during the first cabinet meeting of South Africa's seventh administration, which addressed concerns following South Africa's initiation of a formal dispute with the World Trade Organization against these EU regulations.
The EU's actions, although not constituting a ban, impose a heavy financial burden on South Africa, the world's second-largest citrus exporter, with a third of its exports destined for the EU market. The industry, a significant employer in rural South Africa, supports over 1.5 million people. South Africa contests the EU's stringent measures, noting they are not applied to other nations with similar agricultural challenges.
The Citrus Growers Association of Southern Africa has voiced concerns over the substantial costs and potential loss of R500 million in exports due to logistical challenges. Agriculture Minister Thoko Didiza and Citrus Growers Association CEO Justin Chadwick have emphasized the detrimental effects of the EU's regulations on the industry's growth and employment potential. South Africa asserts its existing risk management systems ensure safe citrus exports, highlighting the disproportionate impact on emerging citrus growers.
[ R1 = €0.05 ]
Source: businesstech.co.za