Stricter EU environmental rules to affect SA agri exports

Source: Freepik

In response to this challenge, the 27 EU member states enacted the EU Green Deal in December 2019, aiming to address climate change and promote sustainability. This ambitious plan seeks to achieve climate neutrality and sustainable economic growth in Europe by 2050.

Impact on South Africa’s exports

As a result of these interventions, South Africa’s agricultural export dynamics to the European Union (EU) are set to shift significantly due to the EU Green Deal’s stringent environmental and sustainability requirements. While the EU remains a vital trading partner, compliance with the Green Deal’s mirror clauses is crucial to maintaining access to this market.

Adapting to these policies presents both challenges and opportunities for South Africa’s agricultural sector. Exporters must innovate and align with sustainability standards to stay competitive in the long term. How the sector responds to these regulations will shape the future resilience and growth of South Africa's agricultural trade with the EU.

South Africa’s agricultural exports to the EU have shown consistent growth over the past decade, resulting in a widening trade balance. However, the country has also been increasing its agricultural imports from the region. In 2023, South Africa exported approximately $2.5bn worth of agricultural products to the EU, while imports were valued at $2.19bn. Exports saw a 51% growth rate, while imports grew by 34%.

SADC-EU-EPA and trade

Since the enactment of the Southern African Development Community-European Union Economic Partnership Agreement (SADC-EU-EPA) in 2016, South Africa's agricultural exports and imports have grown by 57% and 48%, respectively.

Under the SADC-EU-EPA, the EU eliminates customs duties on about 98.7% of imports from South Africa, while members of the Southern African Customs Union, including South Africa, remove customs duties on roughly 86% of imports from the EU (European Commission, 2024).

With the mirror clauses linked to the EU Green Deal climate policies, countries wishing to trade with the EU must align with the regulations applied to EU producers.

This means South Africa, as one of the EU’s key agricultural trade partners, must comply with these new regulations to maintain access to the EU market. To remain competitive, South African exporters will need to adapt to these changes, ensuring their long-term success in this evolving market.