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Economy
Imports and Exports

EU citrus dispute results in significant costs for local industry

12 Aug 2024 - by Staff reporter
 Source: SRCC
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Cabinet says the measures imposed by the European Union (EU) on the export of South Africa’s citrus products to the European Union result in significant costs for the South African citrus industry, estimated at R2 billion or $110 million per year.

The first regular Cabinet meeting of the seventh administration, held at the Union Buildings in Pretoria last week, raised the concern following a briefing about a formal dispute initiated by South Africa with the World Trade Organization over the EU’s stringent and unnecessary plant health requirements for South African citrus products exported to the EU. The regulations relate to Citrus Black Spot and False Codling Moth.

Briefing the media on the outcomes of the Cabinet meeting on Thursday, Minister in The Presidency, Khumbudzo Ntshavheni, said South Africa was the world’s second-largest exporter of citrus, and 33% of the country’s citrus exports were destined for the EU market.

While not a ban, Ntshavheni said the measures imposed by the EU resulted in significant costs for the SA citrus industry.

“South Africa’s industry provides direct employment for over 140 000 people in rural South Africa, supporting over 1.5 million people. The EU has decided to impose the stringent measures against South Africa while not requiring the same from countries with similar situations such as Israel,” Ntshavheni said. – SAnews.gov.za

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