South Africa Challenges EU Citrus Black Spot Regulations at WTO

South Africa has filed a complaint against the European Union's citrus black spot (CBS) regulations at the World Trade Organisation (WTO), the global trade body announced on Wednesday. South Africa requested WTO dispute consultations with the European Union concerning certain aspects of the regime imposed by the EU on the importation of South African citrus fruit.

The complaint contests the EU's regulations on the importation of South African citrus fruit affected by the fungus 'citrus black spot' (Phyllotactic citricarpa). South Africa claims the EU measure appears to be inconsistent with various provisions of the WTO's Agreement on Sanitary and Phytosanitary Measures. "South Africa claims the EU's import prohibition on affected citrus fruit is inconsistent with the WTO's Agreement on Sanitary and Phytosanitary Measures," the WTO stated.

This is the second dispute case initiated by South Africa regarding the EU's import measures on citrus products. In July 2022, South Africa initiated a case challenging EU phytosanitary requirements for the importation of oranges and other citrus products related to the pest Thaumatotibia leucotreta, known as false codling moth (DS613).

The request for consultations formally initiates the dispute in the WTO, giving the parties an opportunity to discuss the matter and find a solution before proceeding with litigation. If consultations fail to resolve the dispute within 60 days, the complainant (South Africa) may request adjudication by a WTO panel.

Why this matters: The EU is a major market for South African citrus exports, accounting for a third of the country's citrus exports. South African farmers say the EU's increased risk management requirements for citrus imports add about $100 million annually in costs, as they are already facing challenges with power supply, logistics, and higher input costs. The South African government and industry are defending citrus jobs at the WTO, as they see it as a way to ensure the sustainability of the country's citrus industry, which is a significant contributor to the economy and supports over 140,000 jobs at the farm level alone.

Citrus Export Dispute: The South African citrus industry has been facing increasingly restrictive and unscientific phytosanitary measures imposed by the EU on exports of South African citrus fruit. The South African government, in cooperation with the citrus industry, decided to take this issue to the WTO dispute settlement process, as they claim the measures are not based on scientific evidence and are not aligned with the WTO's Sanitary and Phytosanitary Agreement. South Africa asserts that the EU's enforcement of these measures has had harmful environmental impacts and disproportionately affects smaller-scale and emerging black citrus growers in the country.

Key Takeaways

• South Africa filed a WTO complaint against EU's citrus black spot regulations.
• South Africa claims EU's import ban on affected citrus is inconsistent with WTO rules.
• This is South Africa's second WTO dispute case against EU's citrus import measures.
• EU is a major market for South African citrus exports, accounting for a third.
• South Africa defends citrus jobs at WTO, claims EU measures are unscientific.