Year-on-year (y-o-y) wine export figures, totalling 306 million litres in 2024 and showing strong continued growth projections, are at stake if South Africa doesn’t “reach a deal with the United States”, to quote US President Donald Trump.
If the 30% “reciprocal tariffs” are implemented on 1 August – and by all accounts, it seems like a strong likelihood – wine exports worth $562 million (measured in 2024) could be compromised.
With the deadline less than a week away, neither the Government of National Unity (GNU) nor the Department of Trade, Industry and Competition has said anything about the status of its negotiations with Washington.
While requests for information from the office of President Cyril Ramaphosa by Freight News remain unanswered, Exporters Western Cape chairperson Terry Gale has added his voice to growing concern about “the lack of urgency from government”.
He’s on record as saying: “We note there has been no further action or intervention from the Presidency.”
His comments that the GNU seems “unable to appreciate the severity of the situation” have since found equal expression elsewhere.
Christo Conradie, who is responsible for stakeholder engagement and market access at SA Wine, said the tariffs would have a devastating impact on the country’s annual projected wine exports, initially projected to be more than R660m this year.
But the strong upward curve among US importers bringing in more wine from South Africa faces crushing competition from countries like Chile and Peru, unless the August tariffs are avoided.
Conradie said the tariffs would have consequences for the entire viticultural value chain and affect prices across the board, rendering local wine exports to the US uncompetitive.
The South African Table Grape Industry (Sati) has said that although only 3% of local product is shipped to the States, strong export growth of 20% has been recorded over the last five years.
The counter-seasonal advantage that Sati has developed for the US market since the turn of the century could be lost to Chile and Peru if Trump’s tariffs aren’t prevented, the organisation has said.
Government trade figures show that the wine industry in South Africa generates roughly 105 000 employment opportunities valued at more than R3.80 billion.
Regarding the GNU’s seemingly laissez-faire stance, Gale said: “This is extremely concerning as it appears that you actually want a jobs bloodbath in our country.”
Earlier this week, Agriculture Minister John Steenhuisen confirmed that trade negotiations with the US had stalled.
He said part of the reason for this was that South Africa doesn’t have official ambassadorial representation in Washington.
- Additional information: LBW
