SA asks WTO to settle disputes with Europe over citrus exports

South Africa has asked the World Trade Organization (WTO) to set up two panels to adjudicate what the country called “unscientific and discriminatory measures” over its exports of citrus fruit to the European Union (EU).

South Africa, which is the world’s second-biggest citrus exporter, disagrees with EU measures taken against its exports to combat incidences of Citrus Black Spot (CBS)  a fungal disease and to combat the spread of the false codling moth (FCM), which damages the fruit.

Challenge

The Department of Agriculture, Land Reform and Rural Development said the regulations are being challenged by government to protect the livelihoods of tens of thousands of people in the local citrus industry.

“Currently, South African citrus growers are spending billions of rands per year to comply with CBS and FCM measures that the industry considers unscientific and unnecessarily restrictive as South Africa already has an effective world-class risk management system that ensures safe citrus exports. Emerging citrus growers are especially hit hard by the EU measures,” said the department.

The request to establish the two panels is a significant development. This is the first time that South Africa has progressed a dispute at the WTO beyond the panel state of the established dispute settlement body (DSB)  process.

Industry job losses

Director-General of the Department of Agriculture Land Reform and Rural Development Mooketsa Ramasodi said the citrus industry supports 140 000 jobs at the farm level alone.

“The Government is acting to safeguard these livelihoods and the central role the citrus industry plays in so many of our rural communities,” said Ramasodi.

“The European Union said it regretted South Africa’s decision to pursue panel proceedings in the two cases but maintained that its pest control measures are entirely justified,” the WTO said on Monday.

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EU has not accepted SA’s request

In April this year, South Africa requested consultations with the EU on the CBS matter, which initiated a process that has ended without any results.

On FCM, South Africa initiated consultations in July of 2022, with no satisfactory conclusion as well. A panel will now also be formed on the FCM matter.

The department said while the EU did not at this time accept South Africa’s request for the two panels, the set DSB procedure is that the requested adjudication panels will be established at its next meeting in July 2024.

“A DSB panel report can usually be expected after nine months.”

Support from the Citrus Growers Association

The department said it has the support of the Citrus Growers Association of Southern Africa (CGA).

“Last year we exported 36% of all our citrus to the EU. That shows what an important market it is for our growers. It is the very foundation of citrus profitability in SA. Should the EU continue with the implementation of these measures, or intensify them in any way, the profitability of hundreds of growers will be negatively affected and the industry will suffer severe revenue and job losses.

“But this is also potentially good news for the European consumer. Their orange prices last summer were at an all-time high. However, if their supply is unfettered, consumers will benefit,” said Justin Chadwick, CEO of the CGA.

SA citrus fruit sought-after internationally

The South African citrus industry is currently entering its peak export season with oranges heading to the ports.

It is estimated that South Africa will export a total of 170 million 15kg cartons this year. The exceptional quality of local citrus has made it sought-after internationally.

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