South Africa is asking the World Trade Organization (WTO) to set up dispute panels to review European Union measures affecting the import of South African citrus fruit.
Pretoria and Brussels have been at loggerheads for months over the EU’s decision to impose phytosanitary trade regulations on South African citrus fruit because of fears over the spread of citrus black spot (CBS), a fungal infection that affects the produce.
South Africa is unhappy that the EU, a major market for its citrus fruit,
is enforcing measures on its citrus growers, including a detailed spray programme and inspections at orchards and packhouses. The South African government says the precautions are unnecessary and impose significant financial burdens for its citrus industry.
However, an attempt to resolve the issue at the WTO’s Dispute Settlement Body (DSB), “did not resolve in a mutually agreed solution”, according to the Switzerland-based trade disagreement resolution organisation.
Now South Africa has called on the WTO to establish two dispute panels to review the EU measures.
This is the first time that South Africa has requested the establishment of a panel under the WTO’s dispute settlement system.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAt the meeting at the WTO on Monday (24 June), South Africa argued that the EU measures are not based on scientific principles, are maintained without sufficient scientific evidence and are more trade-restrictive than necessary to achieve the EU’s appropriate level of protection.
It also said the EU failed to account for regional differences with regards to pest risk in the application of the measures.
It added that the measures are having a severe impact on South Africa’s citrus exports, which provide jobs to more than 140,000 people in the country.
It did say, however, that it is open to continued talks with the EU in order to secure a mutually agreed solution.
In its turn, the EU said it regretted South Africa’s decision to pursue panel proceedings in the two cases but maintained that its pest control measures are entirely justified and that it would succeed in any dispute proceedings.
It said that it was not ready in Monday’s meeting to agree to the requests for panels from South Africa.
Just Food asked the EU for further comment relating to South Africa’s request for the establishment of review panels.
Olof Gill, a spokesperson for trade and agriculture at the Europeaan Commission, said: “The EU is convinced that its measures are compatible with international rules and are necessary to prevent the significant damage that these pests could do to plant health and our farming economy in the EU.
“The EU regrets that South Africa has reverted to dispute settlement.
“The EU will enter into consultations with South Africa in good faith and stands ready to discuss these issues with South Africa.”
In April, Spain’s Citrus Management Committee accused South Africa of using “threats and blackmail” towards the EU.
The organisation representing Spanish citrus fruit growers said the idea that the citrus black spot cannot be transmitted through fruit is “either a half-truth or an outright falsehood”.
It added: “This is blackmail, a threatening and dissuasive action to stop the [European] Commission from requiring the effective fungicides they should already be using.”