In the midst of U.S. indecision, the citrus sector eyes the G20 summit
The Citrus Growers' Association (CGA) of South Africa is taking a proactive approach to counter the potential impacts of US tariffs on the country's citrus industry. With the hosting of the G20 summit, the CGA sees an opportunity to deepen access in existing markets and resolve the current challenge.
The US tariffs, proposed at 30%, could make South African citrus exports uncompetitive in the US market, while other citrus-exporting countries face only a 10% tariff. This could impose significant financial hardship on South African citrus growers, potentially leading to supply chain disruptions and job losses in the industry.
To mitigate these effects, the CGA is engaging in diplomatic and trade efforts. They are highlighting the complementary nature of South African citrus exports, as they arrive during the US off-season, benefiting year-round consumer supply and supporting US citrus demand. The CGA is urging both the South African and US governments to engage in dialogue, seeking a full agreement or exemption for South African citrus and other seasonal crops.
The CGA is also using the G20 summit as a platform to bring international attention to these tariff impacts and advocate for trade discussions that preserve mutual benefits between the US and South Africa. Dr. Boitshoko Ntshabele, CEO of the CGA, believes that these efforts would benefit all G20 nations and support the G20's shared goal of fostering a thriving global economy.
The citrus industry is currently on a growth trajectory, with projections of exporting about 180 million 15kg cartons this year, and potentially 260 million by 2032. If successful, this growth could play a crucial role in tackling South Africa's rising unemployment, potentially creating 100,000 jobs by 2032.
In light of the US tariffs, the CGA is looking at newer markets such as South East Asian countries, India, South Korea, and Japan to recoup lost market share in China. The industry is also collaborating with South African government departments, embassies, and international citrus forums to fast-track negotiations.
Dr. Ntshabele states that sidebar meetings with ministers from 19 countries can lead to negotiations for bilateral market access improvements. He explains that rural communities in the Western and Northern Cape heavily depend on citrus exports to the US, and approximately 35,000 jobs are connected to US-SA citrus exports. Towns like Citrusdal have a significant portion of their economy based on citrus exports to the US.
The CGA is calling for public-private partnerships and strategic diplomacy during the G20 summit. They are hopeful that South Africa's hosting of the G20 summit can counter this threat and maintain the vital export market for the South African citrus industry, protecting the livelihoods of their growers.
[1] Citrus Growers' Association (CGA) of South Africa [2] US Tariffs on South African Citrus [3] CGA Engages in Diplomatic Efforts to Counter US Tariffs [4] CGA Advocates for Trade Discussions at G20 Summit [5] Impacts of US Tariffs on South African Citrus Industry
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