Agriculture, Economic Development and Tourism

Apart from the United States of America (USA), the Western Cape Department of Agriculture has been working in markets like China. Through collaboration with Wines of South Africa (WOSA), various market development initiatives are implemented across China. The Department also coordinates Food and Hospitality China and support various agri-processing companies to participate in this platform. In addition, the department implement various programmes to support producers to

          comply with the European market requirements e.g. Food Safety Compliance Programme, SIZA (Sustainability Initiative of SA) and WIETA (Wine and Agricultural Ethical Trade Association) certification, and Market Access Study Tour to the Netherlands including attendance of Fruit Logistica in Germany. As a result of the challenges in the USA, the department started identifying additional markets like Canada where it supports the Table Grape industry with a campaign in various cities in Canada. An additional event, Grocery Innovation Canada has been identified where 10 companies in the agri-processing subsector will be supported to explore the Canadian market. Furthermore, the department is facilitating Fresh Produce India, Fruit Attraction in Spain, and Asia Fruit Logistica in Hongkong targeting markets like Vietnam, Thailand, and Indonesia for fresh produce. This is done in collaboration with the Fresh Produce Exporters Forum (FPEF).

Response (DEDAT):

The Department recognises the potential implications of the 30% tariff imposed by the U.S. on Western Cape exports – particularly in critical employment sectors like agriculture and manufacturing, which have historically benefitted from preferential trade arrangements with the U.S. While the tariff’s effects are still unfolding amid broader global trade dynamics, the Department is proactively monitoring fluctuations in trade volumes for key exports to the U.S. market and engaging with our partners at Wesgro to identify appropriate responses - including identifying alternative markets in Europe, South-East Asia, India and the Middle East.

The Department is exploring opportunities to diversify export markets and strengthen resilience against such external pressures. The ongoing market diversification efforts are specific to the relevant commodities, and this is done with the relevant industry bodies, export councils, DTIC, DoA, as well as Wesgro. Entering alternative markets will likely require collaboration with national government to address restrictive trade barriers particularly within BRICS, where tariffs have constrained Western Cape exports. China imposes tariffs of 14% on nuts, 11.5% on citrus, and 11% on pome fruit, while India’s tariffs reach 35% for nuts and 42% for table grapes and raisins. While China has expressed intent to reduce tariffs to zero for African countries, presenting significant opportunities for Western Cape exporters, further engagements are necessarily to reduce and prevent restrictive trade barriers within other markets – including the SADC where there is a growing risk of depressed agri-export flows due to the implementation of import restrictions by member states. Greater attention is also being placed on navigating through developing regulatory requirements in the EU as the Agri-Food Vision framework, with stringent regulations on the use of plant protection products, may pose new challenges for Western Cape agri-exporters. 

The Western Cape export strategy, which will be tabled at cabinet, includes research done on market diversification for existing and new export commodities from the Western Cape over the next 10 years. This forms part of the broader Growth for Jobs (G4J) Strategy, which emphasises export promotion and market access as critical enablers of economic growth. Further to this, we will capitalise on opportunities presented by platforms such as the Regional Leaders Summit and the G20 and B20 summit to strengthen Western Cape export resilience and secure new trade partners.

Response (Wesgro):

Wesgro continues to navigate an increasingly complex global landscape, adapting and responding to new challenges as they arise. Our strategic direction over the next five years is underpinned by several priorities. For the purposes of this response, we draw particular attention to two of these:

1. Prioritise new investment into identified export priority areas: Green Economy; Life Sciences & Health; Logistics; Food & Beverages; Green Manufacturing; and Services
2. Unlock access to new markets and new buyers - China, ASEAN, India, Brazil & Middle East, while maintaining a continued focus on established markets: EU, UK, USA, Africa.

Key efforts undertaken by Wesgro during the FY26 relating to unlocking emerging markets include:

1. Planned outward trade missions to new markets, including ASEAN (5), Middle East (4), China (4), India (2). In addition to this, the first trade mission to Canada is planned for Q3.
2. Development of a dedicated Asean trade portfolio to support Western Cape businesses with engagement/B2Bs/trade shows with international buyers in Asean region (Thailand, Singapore, Vietnam and Malaysia planned for FY26).
3. The Made in the Cape 2026 hosted buyers programme, scheduled for 2-4 March 2026, will for the first time, have a strengthened focus on new markets, as 60% of the hosted buyers will come from Asean, India, China and the Middle East. They will each engage 20 Western Cape exporters in a B2B platform, representing the priority sectors, from across the districts. In addition, over 40 WC exporters will exhibit their products and services to these international buyers.
4. First ASEAN business breakfast convening CGs and other political stakeholders as well as business, planned for February 2026.
5. Partnering with key private sector institutions such as Standard Bank to assist with market entry and network support/buyer engagement for Western Cape exporters into China.
6. Partnering with large retail outlets in the Middle East and India for fast tracking distribution of WC products in stores such as Lulu and Reliance Retail.
7. Exploring opportunities to partner with digital trade e-commerce platforms in the Middle East and Asean to gain direct access to new buyers.
8. Hosting webinars to unpack tariff benefits that exporters can already utilise under the African Continental Free Trade Area (AfCFTA) and new opportunities arising from the AfCFTA. The webinar was co-hosted with the SADC Secretariat, SADC Business Council, the Department of Trade, Industry, and Competition (DTIC), and featured speakers from the AfCFTA Secretariat, South Africa Revenue Service (SARS), Wesgro, and DTIC.
9. Supporting exporters on a one-on-one basis to understand the tariffs on their products in alternative markets.