South African citrus growers to take EU to world panel as trade scrap sours

South Africa’s citrus growers and the government are escalating their challenge to the EU’s measures against locally grown citrus imports, seeking two panels before the dispute settlement body (DSB) of the World Trade Organisation (WTO).

This is according to a joint statement by the department of agriculture, land reform and rural development, the department of trade, industry and competition, and the Citrus Growers Association of Southern Africa (CGA).

The joint statement argues that growers have spent billions trying to comply with the EU’s citrus black spot (CBS) and false codling moth (FCM) regulations, which elicit restrictions to South African citrus exports sent to the region.

They said the EU continues to stonewall the products and keep them from entering the market.

The departments and the CGA said they have requested two panels at the WTO dispute settlement body to hear their complaints.

CGA CEO Justin Chadwick said the EU was an important market for South African citrus growers. Last year the country exported 36% of its citrus to the EU.

“It is the very foundation of citrus profitability in South Africa. Should the EU continue with the implementation of the 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.

“However, this is also potentially good news for the European consumer. Their orange prices last summer were at an all-time high. If their supply is unfettered, consumers will benefit,” he said.

Agriculture, land reform and rural development director-general Mooketsa Ramasodi said: “The citrus industry supports 140,000 jobs at farm level alone. The government is acting to safeguard the livelihoods and the central role the citrus industry plays in so many rural communities.”

Trade, industry and competition acting director-general Malebo Mabitje-Thompson said the EU's measures on CBS and FCM are not justified, proportionate or appropriate.

“It must be understood, however, that the WTO process is not confrontational or aggressive. The goal is scientific truth and fairness. We are making use of the WTO mechanisms available to us to find an amicable solution,” she said.

The joint statement said: “The request to establish the two panels is a significant development. This is the first time South Africa progressed a dispute at the WTO beyond the panel state of the established DSB process.”

The statement said on the FCM matter South Africa initiated consultations in 2022, with no satisfactory conclusion. In April this year, South Africa requested consultations with the EU on the CBS matter, also without results.

“A panel will be formed on the FCM matter. 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.”

The statement said South Africa reiterated its position at the WTO headquarters in Geneva this week that the measures imposed by the EU were not scientific and lacked evidence.

“The measures are applied in a manner that is not in accordance with the provisions of the agreement on the application of sanitary and phytosanitary measures, of which the EU is a signatory. The EU fails to apply the measures in a uniform, impartial and reasonable manner.”

According to the joint statement, the South African citrus industry is entering its peak export season, with an estimated 170-million 15kg cartons set for export this year.

Business Times