New protocols for stonefruit, blueberries and cherries are being fast-tracked with China and India, while African trade agreements gain importance as Washington policies reshape global trade relationships

South African grapes in China

Observers have for some time warned that unrealistic US Tariffs on South African fresh produce will drive the country closer to the markets of the East.

This is where South Africa cooperates with nations such as India and China, part of the BRICS partnership, which also includes Brazil and Russia.

There is now evidence that market access for South African products in the East has been accelerated – and that new agreements are in the process of being signed.

Entry for South African stonefruit to China will be confirmed by the signing of a protocol during the G-20 summit in South Africa later this year.

The blueberry industry has said it is confident that new access to the fast-growing economies of China and India will soon follow, while there are also signs that the potential for South African cherry exports to China will gain momentum.

The South African stonefruit agreement with China is different in the sense that Chinese authorities have agreed to deal with the entire category in one agreement.

Whereas previously China dealt with one product at a time, this protocol includes all apricots, peaches, nectarines, plums and prunes in one agreement.

This is enhancing the processes with other categories, like blueberries and cherries. 

Observers have said there is no doubt that events in Washington are also behind faster access processes between South Africa, China and India.

A sweeping reduction of import tariffs by China on many African countries is a good example.

China has for decades now increased its presence in Africa – and the latest Washington policies are seen as driving this forward.

Inside Africa, where some South African categories such as apples have been extremely successful, the need to advance the African Free Trade Agreement is also seen as very positive developments.

However, the picture differs from one industry to the other.

For South African citrus, table grape and stonefruit exporters, the US Tariffs are a mortal blow.

South African government sources have said they are still negotiating with the US on a reduction of the recently implemented 30 per cent tariffs.

Exporters of grapes and stonefruit noted that they have established a good reputation with the US trade, and they will do everything they can to maintain this.

A reduction in the tariffs would help and they are working with their receivers to see how best they can handle the situation.

It is clear though that this year’s events will change trading relationships between South Africa and the East.