Caught in the cross-fire!

South African fruit exporters are often caught in the cross-fire of countries implementing regulations not necessarily aimed at local exporters. One such example is that of Indonesia which this year introduced new regulations that closed their biggest port to fruit and vegetable imports in an effort to exercise more control over what was entering the country. While South Africa was never intended as a target for the new measures, they have affected our exports to Indonesia. According to Justin Chadwick, CEO of the Citrus Growers’ Association of Southern Africa, the decision by Indonesian authorities to introduce quarantine amendments that no longer allow for fruit and vegetable imports to enter the Port of Jakarta has impacted dramatically on South African fruit exporters. “The transport leg has increased and therefore the costs involved are much higher,” he told FTW. “It also adds complexity to the export chain as fruit has to be held in warehouses for longer. More red tape means more costs.” While several countries have challenged the Indonesian authorities, Chadwick said South Africa had applied for some leeway in the new regulations, which required a country to show its levels of competency and food safety before being declared exempt from the new measures. Fruit exporters have called on the South African government to drive the process of exemption forward from a political point of view. “We are seeing a much higher introduction of NTBs from emerging economies such as Indonesia and Thailand,” he told FTW. “It is essential that we engage with these countries at a political level to find solutions to these trade barriers – especially if we want to grow exports to these new markets.” The US, for example, engaged earnestly with Indonesia after it announced its decision to close the Port of Jakarta, saying it would only allow the Tanjung sea port in Surabaya, the Belawan sea port in Medan, the Soekarno-Hatta Airport in Jakarta and the Makassar sea port as entry ways. Arguing, much like South Africa, that the Indonesian decision would impact heavily on costs as well as timing, and that Indonesia accepted its fruit and vegetable safety standards, the US was finally – along with Australia and New Zealand – given preferential treatment and allowed to still use the Port of Jakarta. INSERT & CAPTION We are seeing a much higher introduction of NTBs from emerging economies such as Indonesia and Thailand. – Justin Chadwick