South African agricultural producers will have to comply with the European Union’s strict new environmental regulations if they want to continue to export to the region.
This warning comes from the National Agricultural Marketing Council in a report by Food for Mzansi.
The South African government has been critical of the EU’s Carbon Border Adjustment Mechanism (CBAM), which from 2026 will tax targeted carbon-intensive imports based on the emissions embedded in their production. Former trade minister Ebrahim Patel last year labelled the tax “protectionist” and said South Africa might lodge a complaint with the World Trade Organisation.
The targeted imports include cement, iron and steel and aluminium. Because the EU’s environmental regulations raise costs for EU companies, the tax is intended to ensure that EU producers are not undercut by cheaper imports from countries without a similar level of carbon tax.
However, The NAMC believes that it is not only manufactured products that are affected. NAMC spokesperson Mashao Mohale said “mirror clauses” in the EU’s Green Deal meant that agricultural producers exporting to the EU would have to comply with the same environmental and sustainability requirements as EU producers.
“This essentially means that countries like South Africa are compelled to adhere to new regulations to continue accessing this lucrative market”.
Mohale did not say when the EU agricultural requirements would come into effect, or which South African agricultural exports might be most affected.
He said in 2023, South Africa exported about $2.5 billion worth of agricultural products to the EU, while imports were valued at $2.19 billion. Exports to the EU had grown by 51%, while imports rose by 34%.
