Good news for South African farmers before Trump’s tariffs bite

Exports to the US climbed 26% to $161 million in the three months through June, compared with a year earlier, Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa said in a quarterly review on Monday.

The bulk of exports to the US comprised citrus, wine, fruit juices, and nuts.

“The fact that South Africa generally has a large fruit harvest also contributed to this huge increase, which far surpassed the average typical quarterly growth in exports to the US, which is about 9%,” Sihlobo said. “Also worth highlighting is that the rise underscores, in a way, the importance of the US market for some producers.”

South Africa’s total agricultural exports climbed 10% to $3.71 billion in the quarter from a year earlier, according to data from Trade Map.

Still, the rise in exports to the US may prove short-lived, after Washington imposed a 30% tariff on Africa’s largest economy on Aug. 7, one of the highest in the world, after it failed to secure a trade deal with the Trump administration.

To cushion South Africa’s export-driven agricultural sector from the tariffs, Agbiz recommends policymakers and businesses prioritise opening new markets and preserving existing ones. 

“South Africa should expand market access to some key BRICS countries, such as China, India, Saudi Arabia, and Egypt,” Sihlobo said.

“The emphasis on the BRICS grouping should be on the need to lower import tariffs and address artificial phytosanitary barriers that hinder deeper trade within this grouping.”

South Africa should also maintain its focus on reducing logistical constraints by investing in port and rail infrastructure and improving roads in farming towns, Sihlobo said.

Issued on Daily Investor by Shaun Jacobs | https://dailyinvestor.com/south-africa/98338/good-news-for-south-african-farmers-before-trumps-tariffs-bite/