‘Shippers not capitlising on EU export quotas’

Minister of Trade and Industry,
Dr Rob Davies, has vowed
to tackle the challenges
preventing local agricultural
producers from utilising the
full export quotas set out by the
Southern African Development
Community (SADC)/European
Union (EU) Economic
Partnership Agreement (EPA),
which became effective in
October last year.
EU trade commissioner,
Cecilia Malnström, pointed
out that while the trade bloc
had seen a rise in agricultural
exports over the past year,
“there was much more to be
done to reap the benefits”. She
said all parties would work
together to ensure that the EPA
enhanced trade and “promotes
mutually beneficial outcomes”.
She believes the failure of
most shippers
to take up the
EU export
quotas is based
on a lack of
understanding
of the
opportunities.
She suggested
that South
Africa and the
EU launch an
awareness and
educational
campaign to
inform traders
of these opportunities.
It emerged last week at an
EU-SADC seminar held in
Johannesburg that just over
44% of the increased duty-free
wine quota had been exported
this past year along with only
7.8% of the new sugar quota
and 11.4% of the ethanol quota.
None of the duty-free
butter, skimmed milk
powder or strawberry quotas
were utilised.
However, a fruit producer
who wished to remain
anonymous said while
ignorance among producers
about the respective tariff
and other benefits under the
new EPA could play a role, a
lot of the sanitary and phytosanitary
(SPS)
standards
issues still
needed to be
ironed out.
“The
Department of
Agriculture,
Forestry and
Fisheries
(Daff) has yet
to complete its
negotiations
to get around
the EU’s
health and safety concerns,”
he told FTW, pointing out
that in his opinion, SPS
issues were often thinly
disguised excuses for trade
protectionism.
A Daff official confirmed
that certain SPS negotiations
were still on the cards, also
noting that the drought had
affected producers who were
unable to meet the high
standard of exports required
from the EU.
Malnström commented
that all parties, not just
South Africa, had to be
vigilant to ensure SPS issues
were not used to protect
domestic producers from
competition.
She said it was important
that all sectors of society
– trading companies,
environmental campaigners,
trade unions, human
rights activists and
more – monitored the
implementation of the trade
agreement.
“We need everyone’s input
on how to make our bilateral
agreements stronger and
more sustainable,” said
Malnström.
Davies, who has expressed
concern on rising trade
protectionism across the
globe, has promised to
“extensively evaluate” what is
prohibiting local producers
from taking advantage of the
new trade and tariff benefits
under the EPA, and look at
what producers need to see
from government to help
them meet EU standards.
INSERT & CAPTION
We need everyone’s
input on how to
make our bilateral
agreements stronger
and more sustainable.
– Cecilia Malnström
CAPTION
Just 44% of the increased duty-free wine quota has been
exported this past year.