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SA's WTO Case Against EU Citrus Measures Advances

Writer's picture: New Horizon Freight SolutionsNew Horizon Freight Solutions

Discover the latest on SA's WTO case against EU citrus measures. Learn how this dispute could impact South Africa's citrus industry and international trade.


In a significant move for the South African citrus industry, the government has requested the establishment of two panels at the World Trade Organization (WTO) to examine what it views as unscientific and discriminatory measures imposed by the European Union (EU) on citrus imports. The measures in question pertain to regulations addressing Citrus Black Spot (CBS) and False Codling Moth (FCM), which have been a contentious issue between South Africa and the EU.


The South African government argues that these regulations are unscientific and unnecessarily restrictive, costing the local citrus industry billions of rands annually. These costs are particularly burdensome for emerging growers, who are struggling to comply with the EU's stringent requirements despite South Africa's world-class risk management system ensuring the safety of its citrus exports.


The request to establish the two panels marks the first time South Africa has progressed a dispute at the WTO beyond the panel stage of the Dispute Settlement Body (DSB) process. Consultations initiated by South Africa on the CBS matter in April 2024 and on the FCM issue in July 2022 have not yielded satisfactory results, leading to the current escalation to panel formation.


The WTO's DSB procedure stipulates that the requested adjudication panels will be established at its next meeting in July 2024, with a panel report typically expected within nine months. South African representatives reiterated their legal arguments at the WTO headquarters in Geneva, emphasizing that the EU's measures lack a scientific basis and do not conform to the provisions of the Agreement on the Application of Sanitary and Phytosanitary Measures.


The Citrus Growers’ Association of Southern Africa (CGA) has expressed strong support for the government's actions. Justin Chadwick, CEO of the CGA, highlighted the importance of the EU market, which accounted for 36% of South Africa's citrus exports last year. He warned that continued or intensified EU measures could severely impact the profitability of hundreds of growers and lead to significant revenue and job losses in the industry. Chadwick also noted that European consumers could benefit from more affordable orange prices if the supply is less restricted.


Mooketsa Ramasodi, Director-General of the Department of Agriculture, Land Reform and Rural Development (DALRRD), emphasized the critical role of the citrus industry in supporting 140,000 jobs at the farm level and its importance to rural communities. Malebo Mabitje-Thompson, Acting Director-General of the Department of Trade, Industry and Competition (dtic), clarified that the government's actions at the WTO are aimed at achieving scientific truth and fairness, not confrontation.


As South Africa enters its peak citrus export season, with an estimated 170 million 15kg cartons expected to be shipped this year, the outcome of these WTO panels will be crucial for the future of the industry. Known for its exceptional quality, South African citrus remains highly sought-after internationally, making the resolution of this dispute vital for maintaining and expanding market access.


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