Johannesburg – The National Agricultural Marketing Council has indicated that, due to climate change, South Africa’s agricultural exports to the European Union (EU) must adhere to new stringent regulations to maintain entry into this valuable market.

Forthcoming changes will take effect on New Year’s Day (Wednesday, 1 January 2025), as detailed by the Marketing Council, which stressed that climate change is increasingly threatening food systems and their overall resilience.

“Rising temperatures, varying rainfall patterns, and other extreme weather phenomena—like droughts, floods, heatwaves, and cyclones—are all factors leading to reduced agricultural yields, disrupted food supply chains, and displaced communities,” the Marketing Council pointed out.

“The severity of climate change is expected to increase, placing millions at risk of severe hunger, poverty, and malnutrition by 2050.”

In response to climate change and environmental degradation, and to mitigate its impacts and enhance sustainability, the 27 EU Member States launched the “EU Green Deal” in December 2019.

The EU Green Deal is an ambitious plan aimed at achieving climate neutrality and promoting sustainable economic growth throughout Europe by 2050.

“As a result, South Africa’s agricultural export dynamics to the EU will likely see significant changes due to the strict environmental and sustainability requirements set forth in the EU Green Deal,” the Council stated.

“Although the EU remains a vital trading partner, contributing significantly to export growth, complying with the Green Deal’s parallel clauses is crucial for maintaining market access.”

“Adapting to these policies presents both challenges and opportunities for South Africa’s agricultural sector.”

The Marketing Council advised that exporters should embrace innovation and align with sustainability standards to ensure enduring competitiveness.

“Strategic actions in response to these regulations will dictate the future resilience and growth of South Africa’s agricultural trade with the EU,” the Marketing Council articulated.

“In the past decade, South Africa’s agricultural exports to the EU have displayed a consistent upward trend.

“This growth has led to an increasing trade surplus, even as South Africa simultaneously ramps up its agricultural imports from the EU.”

In 2023, South Africa exported approximately US$2.5 billion worth of agricultural products to the EU, while imports reached US$2.19 billion.

Exports recorded a growth rate of 51%, while imports rose by 34% during the assessed timeframe.

“Significantly, following the establishment of the Southern African Development Community – European Union Economic Partnership Agreement (SADC-EU-EPA) in 2016, South Africa’s agricultural exports and imports have increased by 57% and 48%, respectively,” the Marketing Council observed.

“This growth is predominantly due to the SADC-EU-EPA, which allows the EU to eliminate customs duties on around 98.7% of imports from South Africa, while members of the Southern African Customs Union (including South Africa) also remove customs duties on approximately 86% of imports from the EU (European Commission, 2024).”

Owing to the mirror clauses related to the EU Green Deal climate policies, several countries seeking to trade with the EU will need to conform to the regulations applicable to EU producers.

“In essence, nations like South Africa are required to comply with these new regulations to maintain access to this lucrative market,” the Marketing Council elaborated.

“Therefore, as the EU stands as one of South Africa’s leading agricultural trading partners, South African exporters to the EU must adapt to these shifting conditions to secure their long-term competitiveness in this evolving market.”