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    Home»Commodities»South Africa’s agricultural industries express big hope from China-Africa Zero Trade Tariff Policy
    Commodities

    South Africa’s agricultural industries express big hope from China-Africa Zero Trade Tariff Policy

    February 10, 20263 Mins Read


    • South Africa pursues a China trade deal as Western markets tighten, seeking duty-free access for key exports like wine, fruit, and macadamia nuts.
    • China’s agricultural imports fell 3.6% overall in 2025, but fruit purchases rose 6.7%, aligning well with South Africa’s export strengths.
    • CAEPA represents targeted diversification rather than a wholesale shift, with success depending on implementation details and meeting Chinese standards.

    South Africa’s agricultural industry is increasingly looking east as trade relations with traditional Western markets become more uncertain. The recent signing of the China-Africa Economic Partnership Agreement (CAEPA) by South African Trade Minister Parks Tau and his Chinese counterpart, Wang Wentao, has opened the door to preferential—potentially duty-free—access for select South African agricultural products to the vast Chinese market.

    Yet the devil remains in the details, with the agricultural sector acknowledging in early February that “we are not yet clear on the levels of tariff reduction nor on which products are covered.” Several key South African export sectors continue to face steep Chinese import duties, ranging from 14 to 20 per cent for wine, 12 per cent for macadamia nuts, and even higher rates for certain processed goods.

    This pivot toward Asia comes as traditional export destinations present mounting challenges. The European Union is considering tighter non-tariff barriers on imported agricultural products, while the American market remains volatile despite the extension of the African Growth and Opportunity Act.

    South African exporters view access conditions to the United States as constrained and politically fragile, prompting a search for more stable alternatives. Historically, the rest of Africa has absorbed the lion’s share of South African agricultural exports, accounting for over half the value according to recent industry data, with maize, sugar, fruits, wine, and soy-based products dominating continental trade flows.

    China presents itself as a potential growth channel, though not an automatic replacement for existing markets. Official data compiled by SunSirs from Chinese customs statistics show that China’s agricultural imports reached 207.4 billion dollars in 2025, down 3.6 per cent year-on-year, and that the agricultural trade deficit exceeded 100 billion dollars.

    Behind this overall slowdown lies a more nuanced picture of shifting demand patterns. Chinese imports of fruits rose 6.7 per cent in value, livestock products increased by 2 per cent, and sugar purchases jumped over 13 per cent by volume. Conversely, grain purchases plummeted by nearly 50 per cent, reflecting deliberate substitution strategies and inventory management decisions.

    This demand structure aligns reasonably well with South Africa’s export profile. Citrus fruits, grapes, apples, pears, wine, beef, and lamb already feature prominently among products shipped to Asia and the Middle East. This region accounted for 17 per cent of South African agricultural exports in the fourth quarter of 2025.

    For industry stakeholders, the agreement with China is more likely to strengthen existing trade flows than trigger a wholesale reorientation. Preferential access alone cannot overcome obstacles related to sanitary standards, logistics, and international competition, particularly from well-established Latin American suppliers who already command significant market share in China.

    The Asian pivot of South African agriculture thus represents targeted diversification rather than a complete alternative to African or Western markets. The success of CAEPA will depend largely on forthcoming implementation agreements, the selection of covered products, and South African exporters’ ability to meet the specific requirements of Chinese buyers. As negotiations progress, the agricultural sector finds itself navigating a delicate balance between cautious optimism about new opportunities and pragmatic recognition that access alone does not guarantee competitiveness in one of the world’s most demanding markets.

    Idriss Linge





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