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EU Citrus Dispute Results In Significant Costs For Local Industry

14 October 2024  – South Africa has launched a formal dispute against the European Union at the World Trade Organization (WTO) over strict regulations imposed on South African citrus exports. The EU’s rules, aimed at preventing the spread of plant diseases, are deemed unnecessary and costly by South Africa. These measures have a significant impact on the citrus industry, a major employer in the country, with an estimated annual cost of $110 million.

South Africa argues that the EU’s regulations are discriminatory as similar restrictions are not imposed on other countries with comparable plant health conditions. The country contends that these measures are harming its citrus exports, which constitute 33% of the total, and negatively affecting the livelihoods of over 140,000 people directly employed in the industry.

The South African government is seeking to resolve the dispute through the WTO, claiming that the EU’s actions are hindering fair trade and causing undue economic hardship to its citrus industry. The outcome of this case will have significant implications for both countries’ agricultural trade relations. Source: Exporters Western Cape