In some good news for the agricultural sector, Minister John Steenhuisen has announced five new trade agreements for stone fruit exports to China.
This marks the first time South Africa has negotiated more than one production agreement with the Far East trade giant.
The five stone fruit products are apricots, peaches, nectarines, plums, and prunes. The trade agreements will be formalised during the upcoming G20 summit.
China to the rescue
During the announcement, the Agriculture Minister emphasised how the new protocols are set to open fresh avenues for local farmers, providing alternative markets to counter the impact of ongoing US trade tariffs.
SA government continues in its mission to protect South Africa’s US market share while opening new opportunities in Asia and the Middle East.
“In terms of diversification, China is a huge opportunity for South Africa,” Steenhuisen said. “With a population of 1.6 billion, that’s a lot of mouths to feed.”
“We hope to conclude this protocol on the sidelines of the G20 next month.”
Once these stone fruit trade agreements with China are established, cherries and mangoes are next on the list of exports.
Harsh taxes for stone fruit
A 30% tariff on key exports to the US, including citrus, wine, sugar cane, and beef, took effect on 1 August.
This all but ended the duty-free access South Africa enjoyed under the Africa Growth and Opportunities Act (AGOA).
While citrus exports managed to avoid major disruption this season, the stonefruit sector was facing a more immediate challenge.
A revised trade offer
Steenhuisen is also working with the Minister of Trade, Industry and Competition to safeguard South Africa’s position in the US market.
A revised proposal addressing Washington’s concerns has been submitted, and key barriers for poultry, blueberries, and pork have already been resolved.
Shipments of these products from the US are expected to arrive soon.
Do you think SA Government can soften the blow of US Tariffs?
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