South Africa citrus trade faces US tariff risk despite AGOA extension
The South African citrus industry exports to 120 countries worldwide, and CGA believes no product should depend on a single market.
SOUTH AFRICA – South Africa’s citrus industry faces continued trade uncertainty despite the extension of the African Growth and Opportunity Act (AGOA) to 2028, with a new 12.5% US tariff on a wide range of South African imports adding pressure, according to industry stakeholders.
In a September 10 FairPlay webinar, experts warned that South Africa’s citrus industry faces continued trade uncertainty despite AGOA’s extension to 2028, with a new 12.5% US tariff adding pressure.
The US implemented the tariff on July 24 owing to “slave labour” concerns, which Advancing American Freedom trade expert Andrew Hale described as one of US President Donald Trump’s suite of illegal tariffs.
“Countries are developing supply chains away from the US, including the EU, as they want more reliable trading partners and not to be at the mercy of these situations,” Hale said.
US lawmakers have introduced the US-South Africa Bilateral Relations Review Act, a proposed law requiring a full review of ties between the two countries over concerns that South Africa works too closely with Russia and China. The law may allow the US government to consider sanctions against certain leaders.
Citrus Growers’ Association of Southern Africa (CGA) market access liaison Jana Janse van Rensburg said citrus is the third-largest export by value under AGOA, making it a valuable regime to retain, though extreme uncertainty surrounds South Africa’s continued bilateral trade relations with the US.
“Our citrus production is growing, and exports will continue servicing US buyers because those relationships took years to build and are difficult to regain once lost,” Janse van Rensburg said.
Janse van Rensburg noted the US accounts for only 5% of South Africa’s citrus exports but remains a mainstay market for many producers in the Western and Northern Cape. Only fruit grown in these provinces is permitted for export to the US because of strict biosecurity regulations and citrus black spot restrictions elsewhere.
The South African citrus industry exports to 120 countries worldwide, and CGA believes no product should depend on a single market.
“Our success depends on both protecting access to established markets such as the EU and US, as well as securing growth in new ones,” Janse van Rensburg said, adding that predictable market access is imperative since farmers make long-term investments and exporters negotiate multi-year supply relationships.
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