South Africa: Why Deepening Intra-Brics Agricultural Trade Is Essential for SA

analysis

By Wandile Sihlobo

High tariffs and phytosanitary barriers restrict South Africa's agricultural exports to BRICS partners, driving urgent calls for preferential trade agreements ahead of the upcoming New Delhi summit.

On August 4, the business community in the BRICS Grouping (BRICS Business Council) met to deliberate on agricultural matters ahead of the BRICS Summit in New Delhi, India, in September.

The agribusinesses have reflected on several aspects throughout the year, including climate change challenges in agriculture, regenerative agriculture initiatives, food security, agricultural innovation and research cooperation, and international trade.

As South African agribusinesses, we have continued to champion the need to deepen intra-BRICS trade. There is no disagreement among South African agribusinesses, commodity associations and organised farming associations that the BRICS grouping has the potential for export expansion. Thus, we have consistently pushed for a deeper conversation on this issue.

We view the BRICS grouping as a crucial market for agriculture and food products. The expanded grouping accounts for roughly half of the world's agricultural imports.

Now, these BRICS partners, while major agricultural importers, do not source agricultural products from South Africa. The original BRICS countries, which are among the key importers, mainly India and China, account for less than 10% of South Africa's agricultural exports. By comparison, the Southern African Customs Union countries account for roughly 20% of South Africa's agricultural exports.

Clearly, the higher tariffs and...

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