South African citrus sector pushes for quick trade talks with U.S.

SOUTH AFRICA – South Africa’s citrus industry is urging the government to speed up talks with the United States after new tariffs threatened to shrink market access and hurt rural livelihoods.

In a recent letter, Boitshoko Ntshabele, CEO of the Citrus Growers’ Association of Southern Africa (CGA), said the U.S. decision to impose a 30% tariff on South African citrus exports could have serious consequences.

“The tariffs imposed by the U.S. President will hurt South African citrus farms and the rural communities that depend on them,” Ntshabele warned. He added that while the 90-day reprieve from the tariff hike is welcome, it is only a temporary relief.

“The 90-day reprieve is an incentive for SA to expedite negotiations with the U.S. to conclude a lasting solution,” he stated.

Ntshabele emphasized that South African citrus growers are not a threat to their American counterparts. He argued that the seasonal nature of the trade benefits both sides. “Our high-quality citrus sustains consumer interest when U.S. local citrus is out of season, eventually benefitting U.S. growers when we hand over at the end of our season,” he explained.

Demand from the U.S. has been growing steadily. “The amount of citrus exported to the U.S. has almost doubled to 6.5 million cartons since 2017,” Ntshabele said.

According to the CGA, this trade supports an estimated 20,000 jobs in the United States across the supply chain.

However, Ntshabele cautioned that a 30% tariff would make South African citrus too costly compared to other exporters. “The baseline U.S. tariff would only cost 10% to South Africa’s citrus competitors, Peru and Chile,” he said.

He added that the higher cost would mean an extra US$4.25 per carton for the U.S. market, severely affecting South Africa’s competitiveness.

Calls for broader export strategy

Wandile Sihlobo, chief economist at the Agricultural Business Chamber (Agbiz), also weighed in, highlighting the importance of expanding trade options. He said South Africa cannot continue to move slowly on trade matters during a time of rising global tensions.

“South Africa cannot keep moving at a pedestrian pace on trade matters during heightened geoeconomic tension,” Sihlobo said in a statement published by the FairPlay movement. “There is a need for renewed energy and urgency from government officials’ side.”

He also urged a shift in trade focus. “The South African government must have a sharper focus on lowering import tariffs and phytosanitary barriers in countries such as China, India and Saudi Arabia, with the latter mainly for fruits,” Sihlobo noted.

He stressed that maintaining current export markets is equally important. “Moreover, the continuous effort to retain access to markets South Africa already exports to is also vital.”

Sihlobo suggested a new approach to promoting South African goods. “Presenting South African products as a pack under the ‘South Africa Inc’ approach may be key,” he said.

As the clock ticks on the 90-day grace period, the citrus industry and economists alike are calling for swift and clear action from the South African government.

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