Johannesburg – Owing to the phenomenon of climate change South Africa’s agricultural exports to the European Union (EU) will have to abide by new stringent regulations to continue to access the lucrative market, reveals the National Agricultural Marketing Council.
Explaining the anticipated changes on New Year’s Day, (Wednesday, 1 January 2025), the Marketing Council said the phenomenon of climate change was increasingly threatening food systems and their resilience.
“The increasing temperatures, variable rainfall patterns, and other extreme weather events such as droughts, floods, heatwaves, and cyclones, are contributing to the reduction in agricultural yields, disrupting food supply chains, and displacing communities,” the Marketing Council said.
“The severity of climate change is expected to worsen and expose millions of people at risk of extreme levels of hunger, poverty, and malnutrition by 2050.”
In response to climate change and environmental degradation, as well as to mitigate its effects and promote environmental sustainability, the 27 Member States of the EU enacted the “EU Green Deal” in December 2019.
The EU Green Deal is an ambitious plan aimed at achieving climate neutrality and sustainable economic growth in Europe by 2050.
“As a result of these interventions, South Africa’s agricultural export dynamics to the EU are poised to undergo significant shifts due to the stringent environmental and sustainability requirements under the EU Green Deal,” the Council explained.
“While the EU remains a vital trading partner, accounting for substantial export growth, compliance with the Green Deal’s mirror clauses is imperative for maintaining access to this market.
“Adapting to these policies offers both challenges and opportunities for South Africa’s agricultural sector.”
The Marketing Council said exporters must innovate and align with sustainability standards to ensure long-term competitiveness.
“Strategic responses to these regulations will determine the future resilience and growth of South Africa’s agricultural trade with the EU,” the Marketing Council said.
“South Africa’s agricultural exports to the EU have been exhibiting an increasing trend over the past decade.
“This has also resulted in a rather increasing trade balance, although South Africa has also been increasing its agricultural imports from this region.”
In 2023, South Africa exported about US$2.5 billion worth of agricultural products to the EU while imports were valued at US$2.19 billion.
Exports recorded a 51% growth rate while imports grew by 34% during this period under consideration.
“Notably, since the enactment of the Southern African Development Community – European Union Economic – Partnership Agreement (SADC-EU-EPA) in 2016, both South Africa’s exports and imports of agricultural products grew by 57% and 48%, respectively,” the Marketing Council said.
“This is due to the fact that as part of the SADC-EU-EPA, the EU eliminates custom duties on approximately 98.7% of imports from South Africa, while members of the Southern African Customs Union (including South Africa) also remove custom duties on about 86% of imports from the EU (European Commission, 2024).”
Due to the mirror clauses associated with the EU Green Deal climate policies, several countries willing to trade with the EU need to align with the set of policies applicable to the EU producers.
“This essentially means that countries like South Africa are compelled to adhere to new regulations to continue to access its lucrative market,” the Marketing Council explained.
“Consequently, given that the EU is one of South Africa’s biggest trading partners in terms of agricultural trade, South African exporters to the EU will need to adapt to this change, to ensure their long-term competitiveness in this changing market.”
