DailySun
Johannesburg – In light of climate change, South Africa’s agricultural exports to the European Union (EU) will be subject to new stringent regulations to retain access to this profitable market, as stated by the National Agricultural Marketing Council.
In outlining the forthcoming changes set to begin on New Year’s Day (Wednesday, 1 January 2025), the Marketing Council stressed that climate change is increasingly threatening food systems and their overall resilience.
“Rising temperatures, changing rainfall patterns, and other extreme weather events—such as droughts, floods, heatwaves, and cyclones—are leading to reduced agricultural yields, disrupted food supply chains, and displaced communities,” the Marketing Council remarked.
“The severity of climate change is projected to intensify, endangering millions with severe hunger, poverty, and malnutrition by 2050.”
In response to climate change and environmental degradation, and to aid in mitigating its impacts and promoting sustainability, the 27 Member States of the EU initiated the “EU Green Deal” in December 2019.
The EU Green Deal is an ambitious effort aimed at achieving climate neutrality and encouraging sustainable economic growth throughout Europe by 2050.
“As a result, South Africa’s agricultural export dynamics to the EU are expected to undergo significant changes due to the stringent environmental and sustainability mandates defined in the EU Green Deal,” explained the Council.
“While the EU remains a vital trading partner, contributing to remarkable export growth, compliance with the Green Deal’s mirror clauses is crucial for maintaining market access.”
“Adapting to these regulations presents both challenges and opportunities for South Africa’s agricultural sector.”
The Marketing Council advised exporters to innovate and align with sustainability standards to guarantee long-term competitiveness.
“Strategic responses to these regulations will dictate the future resilience and growth of South Africa’s agricultural trade with the EU,” the Marketing Council asserted.
“Over the past decade, South Africa’s agricultural exports to the EU have steadily increased.
“This trend has led to an expanding trade balance, although South Africa has concurrently been raising its agricultural imports from the EU.”
In 2023, South Africa exported around US$2.5 billion worth of agricultural products to the EU, while imports were valued at US$2.19 billion.
Exports saw a growth rate of 51%, while imports grew by 34% during the reviewed period.
“Notably, since the establishment of the Southern African Development Community – European Union Economic Partnership Agreement (SADC-EU-EPA) in 2016, South Africa’s agricultural exports and imports have surged by 57% and 48%, respectively,” highlighted the Marketing Council.
“This growth can largely be attributed to the SADC-EU-EPA, which allows the EU to eliminate customs duties on approximately 98.7% of imports from South Africa, while members of the Southern African Customs Union (including South Africa) also remove customs duties on around 86% of imports from the EU (European Commission, 2024).”
Due to the mirror clauses linked to the EU Green Deal climate policies, several countries wishing to trade with the EU will need to align with the regulations that affect EU producers.
“Ultimately, countries like South Africa are required to comply with these new regulations to maintain access to this lucrative market,” the Marketing Council explained.
“Consequently, given that the EU is one of South Africa’s largest agricultural trading partners, South African exporters to the EU must adjust to these changes to secure their long-term competitiveness in this evolving market.”
