In the most recent communication from the CEO of the Citrus Growers’ Association, Boitshoko Ntshabele addressed the issue of U.S.-imposed tariffs on South Africa. Ntshabele highlighted that the 90-day reprieve granted by the U.S. serves as an opportunity for South Africa to engage in expedited negotiations with the U.S. in order to reach a lasting solution.
In a meeting with the South African government, the CGA emphasized the urgency of the situation, pointing out that South African citrus growers do not pose a direct competition to U.S. citrus growers. Ntshabele emphasized the symbiotic relationship between the two countries, stating that South African citrus fills the gap in the market when U.S. citrus is out of season, ultimately benefiting U.S. growers when South Africa’s season ends. The increase in exports to the U.S. since 2017, with almost double the amount of citrus exported to the U.S. at 6.5 million cartons, is a testament to the demand for South Africa’s high-quality citrus in the U.S. market. Furthermore, it is estimated that approximately 20,000 jobs in the U.S. are linked to the U.S.-South Africa citrus trade, highlighting the economic significance of this trade relationship.
The CEO expressed concern about the potential impact of the tariffs imposed by the U.S. President on South African citrus farms and the rural communities that rely on them for their livelihoods. Ntshabele urged the South African government to prioritize immediate negotiations with the U.S. to seek tariff reductions or exemptions on citrus exports. He pointed out that a 30% tariff on South African citrus would make it uncompetitive in the U.S. market, especially in comparison to South Africa’s citrus competitors, Peru and Chile, who face a baseline tariff of only 10%. Additionally, the tariff hike would add $4.25 per carton to the cost of South African citrus in the U.S. market, further exacerbating the challenges faced by South African citrus growers.
The CEO’s message underscores the importance of finding a swift and sustainable solution to the tariff issue to protect the interests of South African citrus growers and preserve the economic benefits derived from the U.S.-South Africa citrus trade. The CGA is committed to advocating for the interests of its members and ensuring that the South African citrus industry remains competitive in the global market.
In conclusion, the CEO’s communication serves as a call to action for the South African government to prioritize negotiations with the U.S. to address the tariff issue and secure a favorable outcome for South African citrus growers. By working collaboratively and proactively, both countries can ensure the continued success of the U.S.-South Africa citrus trade relationship and uphold the economic benefits it brings to both nations. Subscribe to our newsletter to stay updated on the latest developments in the citrus industry and to support efforts to resolve the tariff issue.
