South Africa has taken a decisive step in the ongoing dispute over the European Union's (EU) phytosanitary regulations on Citrus Black Spot (CBS). The country has requested consultations with the EU at the World Trade Organisation (WTO), aiming to address what it sees as unjustifiable trade restrictions that impact its citrus industry.
The regulations, which require a detailed spray program and inspections at orchard and packhouse levels, have been a significant financial burden for South African citrus growers. Despite scientific evidence showing that CBS cannot be transmitted through the fruit itself, the EU has maintained these measures, prompting South Africa's action.
Thoko Didiza, Minister of Agriculture, Land Reform and Rural Development, emphasized the importance of the citrus industry for rural economies, noting that compliance with EU regulations would cost nearly R2 billion. Ebrahim Patel, Minister of Trade, Industry and Competition, highlighted the EU's role as a crucial market for South African citrus, accounting for a third of all exports.
The move by South Africa has garnered support from the Citrus Growers' Association of Southern Africa, with CEO Justin Chadwick expressing hope for a swift resolution as the citrus export season begins. The country aims to protect jobs and unlock the industry's potential for growth, emphasizing the need for a fair and balanced solution in its WTO consultations with the EU.
Under the new concession, the company will invest R195m to upgrade and refurbish terminal infrastructure