South Africa: BRICS Must Dismantle Agricultural Trade Barriers

• South African agribusinesses are urging BRICS nations to reduce import tariffs and non-tariff barriers, including complex sanitary and phytosanitary requirements, to boost intra-bloc agricultural trade.
• The Agribusiness Working Group, comprising Agbiz and Agri SA, made this call ahead of the 18th BRICS Leaders' Summit in New Delhi, highlighting the urgency as BRICS expands.
• BRICS countries collectively import over $300 billion in agricultural products annually, with China and India being major buyers of grains, oilseeds, fruits, and meats.
• While a full BRICS agricultural free trade agreement may not be immediate, South African farming communities advocate for practical steps to improve market access and regulatory predictability.
• Recommendations for BRICS leaders include bridging productivity gaps, promoting sustainable farming, sharing scientific knowledge, and deepening trade for enhanced food security.

Stronger agricultural trade relationships are seen as vital for fostering more resilient value chains, diversifying markets, and ultimately enhancing food security across BRICS economies.

South African agribusinesses and farming communities are actively advocating for BRICS nations to dismantle existing trade obstacles. Their primary demand centers on the reduction of import tariffs and the removal of non-tariff barriers, particularly complex and often unnecessarily restrictive sanitary and phytosanitary (SPS) requirements, which currently impede agricultural trade within the bloc. This urgent call for reform originates from the Agribusiness Working Group, a collaborative body comprising Agbiz and Agri SA.

This plea for action was articulated following the Working Group's participation in a BRICS Business Council meeting held in New Delhi, India. The meeting served as a precursor to both the BRICS Business Forum and the 18th BRICS Leaders' Summit. The group underscored the increasing urgency of addressing these trade impediments, especially as the BRICS alliance expands and intensifies its efforts to strengthen trade and investment ties among its member countries.

The current landscape reveals that these persistent barriers significantly constrain the potential for deeper agricultural trade among BRICS members. Notably, some BRICS countries currently benefit from more favorable trading conditions with markets outside the grouping than they do with their fellow member states, contributing to relatively limited intra-BRICS agricultural trade. Wandile Sihlobo, Chairperson of the Agribusiness Working Group, emphasized the critical need for BRICS countries to deepen agricultural trade on fair and commercially meaningful terms, a necessity amplified by the prevailing environment of intensifying geopolitical tensions, global conflicts, and rising import tariffs.

The economic potential within the BRICS agricultural market is substantial, with member countries collectively importing agricultural products valued at over US$300 billion annually. China and India account for the lion's share of these significant imports, while the Middle East also represents a considerable portion of global agricultural imports. Key agricultural products frequently imported by the BRICS grouping include a diverse range of grains and oilseeds, various fruits, wine, and different meat products such as beef, pork, and poultry.

From a strategic perspective, fostering stronger agricultural trade relationships is viewed as vital for cultivating more resilient value chains, diversifying markets, and ultimately enhancing food security across BRICS economies. While a comprehensive BRICS agricultural free trade agreement may not be immediately feasible for all member states, the potential for such an arrangement should remain under active consideration for future implementation. In the interim, the focus is on implementing practical steps to reduce existing barriers and facilitate greater agricultural trade among member countries.

Agbiz and Agri SA have reaffirmed their unwavering commitment to deepening agricultural trade, expanding market opportunities, and strengthening meaningful commercial relationships across BRICS markets. From a business standpoint, the paramount priority is to establish practical conditions that empower farmers and agribusinesses to trade more effectively. This involves improving market access, reducing unnecessary trade barriers, ensuring greater regulatory predictability, and implementing more efficient trade facilitation processes.

The Agribusiness Working Group has developed a comprehensive set of recommendations for BRICS leaders, aimed at addressing various facets of agricultural development and trade. These recommendations include bridging agricultural productivity gaps among member countries, promoting sustainable and climate-smart agricultural practices, and fostering the sharing of knowledge on scientific advances and seed development. A central theme of these recommendations is the deepening of agricultural trade as a crucial means of strengthening food security across the bloc.

These pivotal recommendations are slated for presentation to the BRICS Business Forum. This forum serves as a key platform, bringing together business leaders, government ministers, and heads of state to engage in discussions on critical issues such as trade, investment, finance, technology, and development challenges that collectively shape the BRICS economic agenda.

Lawyers advising South African agribusinesses and exporters should monitor these ongoing discussions within BRICS regarding the reduction of import tariffs and non-tariff barriers. Potential future changes could significantly impact market access, trade compliance strategies, and contractual terms for clients operating or seeking to expand within BRICS member states.

Source: Original reporting on BRICS agricultural trade discussions