Tru-Cape says China’s new tariff deal for Africa is already benefitting South African exporters
The South African fruit business has said that while it has been able to grow exports to China under the country’s zero tariff deal for African countries, there is a short window of opportunity for it to negotiate a permanent trade deal.
The country’s apple exporters revealed this week that they have seen a significant increase in shipments to China.
“The removal of Chinese import tariffs on South African fruit is already delivering results for Tru-Cape Fruit Marketing, with the company’s apple exports to China increasing by almost 50 per cent year-to-date,” stated Tru-Cape Marketing.
”The development has created new opportunities to grow South African apples’ presence in one of the world’s largest consumer markets, while highlighting the need for more competitive market access in India.”
Previously, South African fruit entering China was subject to a 10 per cent import tariff.
The reduction to 0 per cent has levelled the playing field for Southern Hemisphere suppliers, giving South African exporters a more competitive position in the market.
This is likely to also provide further impetus for South African pear, table grape, stonefruit and citrus exporters.
“It is important that we secure a longer-term free trade agreements deal,” the Citrus Growers Association recently commented.
“The playing field is now definitely level, with all Southern Hemisphere countries enjoying a zero tariff,” noted Conrad Fick, marketing director at Tru-Cape.
Tru-Cape currently accounts for more than 20 per cent of South African apple exports to the market.
”South African Royal Gala Red and Royal Beaut apples are performing particularly well, and we are also seeing growing acceptance of the Flash Gala brand, which is helping to increase both volumes and prices,” said Fick.
The country’s stonefruit exporters are also looking forward to their first season in the Chinese market.
“We are particularly excited about building with Sugar Prunes which is already well accepted amongst Chinese consumers,” added Luhan Marais of Icon Fruit.
