The vital tons of citrus currently stalled in European ports are at risk of being destroyed. A trade conflict between the European Union and South Africa is possible.
3.2 million crates of citrus fruits are stuck in containers in European ports. At issue is a trade dispute between South Africa and the European Union over requirements for imported citrus.
In July 2022, new crop protection standards adopted by the EU came into force. These aim to prevent the potential spread of an African parasite, the downy codling moth, found particularly in oranges and grapefruit. In order to rule out any risk, the European Union therefore requires oranges to be treated extremely cold and stored at temperatures below or equal to two degrees Celsius for 25 days. South Africa, the world’s second largest exporter of fresh citrus fruit after Spain, has lodged a complaint with the World Trade Organization (WTO).
A shipment worth 35 million euros
The problem ? The measures came into effect in July, when ships carrying millions of invalid citrus fruits were already underway. The containers have therefore been stuck in the ports since then, the fruits are rotting, while the market value of the cargo is around 35 million euros.
“This is a complete disaster,” CGA CEO Justin Chadwick told AFP. “They vegetate there food of excellent quality that poses no risk… It really is a disaster”.
“The Year of Survival”
Europe is the largest market for South Africa’s citrus fruits, which according to the CGA are worth almost two billion euros and account for 37% of exports. The sector employs more than 120,000 people, while one in three Africans is unemployed.
The dispute is now in the hands of the WTO. The parties have 60 days to negotiate a solution. Otherwise, the Complainant may request panel arbitration. The EU was confident about the “compatibility of its measures with WTO rules”. As for the South African Citrus Growers Association, Justin Chadwick hopes a solution will be found quickly and “common sense” will prevail. “For us, this is the year of survival.”