Industries Rally As Global Trade Wars Create Uncertainty

As a major fruit exporter, South Africa relies on favourable trade agreements and market access to keep the industry profitable and sustainable. Stephanie van der Walt, general manager of Agbiz’s Fruit Desk, spoke to Lindi Botha about the challenges in the global trade environment.

WHY DID AGBIZ DECIDE TO INSTITUTE A FRUIT DESK? Agbiz Fruit is a joint initiative of Agbiz and Fruit South Africa (Fruit SA). The fruit desk is funded jointly by the South African Table Grape Industry, Citrus Growers’ Association, Fresh Produce Exporters’ Forum, Hortgro, and Fruit SA. The fruit industry is a major export revenue earner, with tremendous potential for growth and jobs.

The purpose of the desk is to create awareness of the unique challenges experienced by the South African fruit sector; ensure representation at a high level of policy and trade engagement; stay on top of national and global developments; and ensure that opportunities are maximised.

The need for the desk has become all the more necessary in recent times. What was always a complicated trade environment has now become significantly more so with escalating trade wars and Brexit.

WHAT EFFECTS ARE THE TRADE WARS HAVING ON SOUTH AFRICA’S FRUIT EXPORTS? ARE THERE OPPORTUNITIES?

A number of US agricultural exports to China, including apples and citrus, have incurred tariffs in retaliation for US duties imposed on steel and aluminium. Whether this is truly an opportunity for South Africa and how other factors will affect trade flows are still being investigated.

The trade movements of the US, the world’s largest economy, affect the entire world. China is the second largest economy globally. In the absence of a Brexit deal between the UK and the EU, the current international trade landscape is quite unpredictable.