Farmers on edge amid pending 30% tariff on exports

With just days before the United States is expected to impose a 30% tariff on SA exports, farmers are pleading with government to act now and save hundreds of thousands of fresh produce ready to be shipped to the American market.

The Citrus Growers’ Association of Southern Africa (CGA) says it has written to President Cyril Ramaphosa, prompting him to request an extension of the current 10% US tariff beyond the 1 August deadline.

“The implementation of a 30% tariff on 1 August will mean most of this fruit will be left unsold,” said CEO of CGA Dr Boitshoko Ntshabele.

The association says South African citrus growers do not pose a threat to US growers or jobs, as the produce sustains demand when local US citrus is out of season, which benefits US consumers.

“Citrus as a source of nutrition also helps to keep America healthy,” said Ntshabele, adding that if the deadline can’t be extended, ‘an urgent request for a specific extension for seasonal fresh produce should be secured’.

“Should we not be able to secure a favourable trade deal, or the concession for fresh produce, local job losses before the next season will be a certainty,” Ntshabele said.

Chairman of the CGA Gerrit van der Merwe added that local growers are concerned that a 30% tariff ‘could lead to the eventual destruction of between 500 and 1000 ha that would simply become unprofitable’.

Sugar cane growers raise concerns

Following the announcement of the pending 30% tariff, the SA Canegrowers association said the move could render the country’s sugar uncompetitive in the US.

“It is important to stress that the South African sugar industry poses no threat to the US market, which relies on sugar from outside the US to meet local demand,” said Chairman SA Canegrowers Higgins Mdluli.

“The US has, up until recently, had a quota system in place to ensure that the US retains full control over both the volume and price of imported sugar.

“The 30% tariff will make South African sugar less competitive in the US market when compared to heavily subsidised competitors like Brazil, India and Mexico.”

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