Agriculture, Economic Development and Tourism
(a) What plans of the Western Cape Government and Wesgro are in place to support farmers affected by the imposition of a 30% tariff on exports to the United States and (b) how will these plans assist in diversifying export markets and in safeguarding agricultural jobs in the province?
- The Department supports the response measures by the Department of Trade, Industry and Competition (DTIC). The Western Cape government, along with other stakeholders, continues to supply timely data and analytical support to strengthen South Africa’s position in the trade negotiations. Diversification of markets to mitigate the risk associated with high tariffs in the US market is also among the strategies. This will be accelerated through the export promotion support provided by Wesgro, the Western Cape Department of Agriculture (WCDoA) and in collaboration with the industry. In addition, the Department will continue its support to the industry to be able to comply with various market requirements of importing countries. Furthermore, we are engaging on soft diplomacy with the various countries and partners to identify and unlocking opportunities.
The WCDoA has also commissioned a study to develop a diversification strategy for exports as a counter against the 30% tariffs imposed by the US. The results and strategy will be released soonest.
- The market dynamic and seasonal dependencies are such that the Northern Hemisphere countries (e.g. US) are reliant on Southern Hemisphere countries (e.g. South Africa) for supplies to maintain the availability of fresh produce during the Northern Hemisphere off-season. This should contribute to negotiating favourable terms for South Africa, and in particular Western Cape fresh produce exports to the US.
The extent of Western Cape agricultural commodities' exposure to the US market varies by commodity. In the case of the citrus, in consultation with the industry, it was observed that local growers have managed to accelerate shipment to the United States (US) ahead of the deadline, which has lessened some of the effects of the tariffs on the current season’s export to the US. The current plans aim to ensure, where possible, existing markets are maintained, then grow market share and diversify to alternative markets. While it is early to determine how effective the current plans are, the department is closely monitoring the situation to ensure an appropriate response and intervention when market conditions change.
