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On China and South Africa's agricultural export possibilities, again.
The conversation about South Africa's important step of signing the China-Africa Framework Agreement, which seeks to lower duties on our products in China, continues.
The primary sector of our economy, farmers and miners, stands to gain from deeper and continuous access to China.
Certainly, the agricultural sector has struggled for some time due to higher tariffs in China compared with competitors such as Peru, Chile, and Australia, among others, which have free trade agreements.
The dilemma, however, lies with other sectors of our economy, such as the auto industry and manufacturing, among others, where deeper, reciprocal tariff reductions with China would pose significant competition.
Admittedly, what we have signed so far appears to be an "opener" to this detailed and important conversation about the tariff lines. More will follow in the coming months as various industries assess the tariff lines offered and explore reciprocity and its implications for their industries.
Such reciprocity by other African countries also creates competition for South Africa in some countries on our continent. All these are issues worth reflecting on as we continue with this work.
Clearly, while the farming sector is eager to enter China, the world's second-largest agricultural importer, there are other considerations for other sectors of our economy.
Still, speaking for the farming sector, we see greater opportunities for export expansion of our fruits, wine, meats, and grains into China. They are an agricultural market of over US$200 billion.
Our participation remains small, at 0.4% in this sizable market. For this reason, for years we have been advocating for lower tariffs and the easing of phytosanitary barriers to entering the Chinese market, all for the benefit of the South African farming sector.
I make these remarks not to pour water on this important work. I support it, but these are top of mind for the people I talk to.
• Sihlobo is the chief economist of the Agricultural Business Chamber of South Africa. He is also a senior research fellow at the Department of Agricultural Economics at Stellenbosch University.
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