South Africa has escalated its dispute with the European Union over citrus imports by requesting the establishment of two panels at a recent meeting of the World Trade Organization’s (WTO) Dispute Settlement Body (DSB). Pretoria's move marks a significant step in its ongoing challenge against what it deems unscientific and discriminatory regulations imposed by the EU on South African citrus, particularly concerning Citrus Black Spot (CBS) and False Codling Moth (FCM).

The South African government contends that these EU measures are not only unscientific but also threaten the livelihoods of tens of thousands in the local citrus industry. Citrus growers in South Africa are currently incurring substantial costs—running into billions of rands annually—to comply with the EU's CBS and FCM regulations. These costs are seen as burdensome and unnecessary, given South Africa's robust risk management system, which it claims ensures the safe export of citrus.

Emerging citrus growers are particularly affected by the EU's stringent measures. The request to establish the two panels represents a notable development, as it is the first time South Africa has advanced a dispute to this stage within the WTO's DSB process. South Africa initiated consultations with the EU on the CBS issue in April 2024 and on the FCM matter in July 2022, but both efforts failed to yield satisfactory results.

Although the EU did not immediately accept South Africa’s request for the two panels, the procedural norms of the DSB mean that the panels will be established at its next meeting in July 2024. A DSB panel report is typically expected within nine months.

This week in Geneva, South Africa reiterated its legal arguments against the EU measures, emphasizing several points:

• The measures lack a scientific basis and are maintained without sufficient scientific evidence.
• They do not conform to the Agreement on the Application of Sanitary and Phytosanitary Measures, to which the EU is a signatory.
• The EU applies these measures in a non-uniform, partial, and unreasonable manner.
• The measures are more restrictive than necessary and do not consider less trade-restrictive alternatives that are technically and economically feasible.

The Citrus Growers’ Association of Southern Africa (CGA) strongly supports the government's actions. Justin Chadwick, CEO of the CGA, highlighted the critical importance of the EU market for South African citrus growers, noting that 36% of the country’s citrus exports went to the EU last year. He warned that continued or intensified EU measures would severely impact the profitability of hundreds of growers, leading to significant revenue and job losses within the industry.

Chadwick also pointed out potential benefits for European consumers, who faced record-high orange prices last summer. He argued that removing these restrictive measures could lower prices by increasing supply.

Mooketsa Ramasodi, Director-General of the Department of Agriculture, Land Reform, and Rural Development (DALRRD), underscored the economic significance of the citrus industry, which supports 140,000 jobs at the farm level alone. The government's actions aim to protect these jobs and the vital role the citrus industry plays in rural communities.

Malebo Mabitje-Thompson, Acting Director-General of the Department of Trade, Industry, and Competition, further explained that the WTO process is intended to be non-confrontational. "The goal is scientific truth and fairness," she said. "We are utilizing WTO mechanisms to seek an amicable resolution."

South Africa’s citrus industry is currently entering its peak export season, with an estimated 170 million 15kg cartons set for export this year. The country's citrus is highly prized internationally, making South Africa the world's second-largest citrus exporter.

In a joint statement, the Department of Agriculture, Land Reform and Rural Development, the Department of Trade, Industry and Competition, and the CGA outlined the challenges posed by the EU’s CBS and FCM regulations. They argued that South African growers have invested billions to comply with these regulations, which they deem unscientific and overly restrictive. The EU’s continued imposition of these measures, they asserted, is unjustified and detrimental to South Africa’s citrus exports.

‍