News in Brief:
– South Africa is challenging the EU’s citrus black spot regulations at the WTO, arguing they are unnecessary and harm their citrus industry.
– Both sides are willing to hold consultations to find a solution as South Africa laments the costs of meeting the regulations.
A trade disagreement between South Africa and the European Union (EU) over citrus fruit exports is headed for the World Trade Organization (WTO). The issue revolves around citrus black spot (CBS), a fungal disease that affects the cosmetic appearance of the fruit but poses no threat to consumers.
South Africa’s argument
A news report says that the South African government has requested consultations with the EU at the WTO to challenge the bloc’s phytosanitary regulations on their citrus exports. The African nation alleges that these regulations are excessive and impose a significant financial burden on their citrus industry.
Effectively, it argues that the EU’s current measures are unnecessary. Some of these measures include mandatory spraying programs and inspections at farms and packing houses. Meanwhile, it mentions a scientific finding that CBS cannot be transmitted through the fruit itself.
South Africa’s Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, highlighted the financial strain these regulations place on the citrus industry. Meeting the compliance costs, estimated at nearly R2 billion (US$105.4 million), is deemed unaffordable for the industry.
The Citrus Growers’ Association of Southern Africa (CGA) supports the government’s actions and hopes for a swift resolution, particularly as the current citrus export season is underway.
Justin Chadwick, CEO of the CGA, emphasised the industry’s potential for significant growth. He projects the creation of 100,000 new jobs and an additional R20 billion in annual revenue over the next eight years. This, however, being contingent upon unfettered access to the EU market.
EU’s response
The European Union confirmed receiving South Africa’s consultation request regarding its citrus black spot import regulations. While expressing regret over South Africa’s decision to involve the WTO, the EU has indicated its willingness to engage in good faith consultations.
It maintains confidence that its regulations comply with the international trade body’s obligations. The WTO consultation process allows both parties to discuss the issue and potentially reach a mutually agreeable solution. If no agreement is reached during consultations, South Africa could formally request the establishment of a WTO dispute settlement panel to adjudicate the case.
