The need for market diversification for South African exports, especially fruit, which used to have duty-free access to the US, is still very much on the table.
This is despite the 90-day reprieve that US President Donald Trump announced on April 9, a week after he unleashed trade tumult on the world through a raft of “reciprocal” tariffs announced for some 75 countries, including South Africa.
Speaking ahead of the reprieve announcement, Wandile Sihlobo, chief economist for the Agricultural Business Chamber (Agbiz), said the new US tariffs highlighted the need for urgent action to diversify agricultural exports – an issue he has championed for some time.
According to a statement by the FairPlay movement, he said: “South Africa cannot keep moving at a pedestrian pace on trade matters during heightened geoeconomic tension.
“There is a need for renewed energy and urgency from government officials’ side.”
He said of particular significance, given current trade developments, was South Africa’s membership of Brics, made up of Brazil, Russia, India and China as original members.
Last year, Brics’ membership was extended to include Egypt, Ethiopia, the UAE, Indonesia and Iran – the latter being frequently cited by the US as one of many reasons why relations with South Africa had become strained, because of strengthening ties between Pretoria and Tehran.
“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.
“Moreover, the continuous effort to retain access to markets South Africa already exports to is also vital.”
Sihlobo also called for a rethink on the marketing of agricultural exports.
“Presenting South African products as a pack under the ‘South Africa Inc’ approach may be key.”
