South Africa and China Forge New Agricultural Agreements at FOCAC 2024

The 2024 Forum on China-Africa Cooperation (FOCAC) Summit in Beijing held from 2 to 4 September marked a pivotal moment for South Africa's agricultural sector, as key agreements were signed to boost trade with China. Against the backdrop of a deepening political and economic partnership, South African President Cyril Ramaphosa and Chinese President Xi Jinping elevated their countries' relationship to a strategic cooperative partnership, emphasizing balanced trade and transformative growth. Central to the summit’s outcomes was the work of South Africa’s new Minister of Agriculture, John Steenhuisen MP , who secured crucial deals to expand agricultural exports to the vast Chinese market, offering fresh opportunities for South African farmers.

Breakthroughs for South African Agriculture

The agreements signed at FOCAC will potentially reshape South Africa's agricultural trade landscape. This has successfully unblocked the export of three critical products to China: dairy, greasy wool, and beef. These agreements include protocols for the export of dairy and greasy wool, as well as a Memorandum of Understanding (MoU) on foot-and-mouth disease (FMD). The FMD MoU is particularly important, as it introduces a new compartmentalization system that limits trade restrictions to specific affected provinces, rather than shutting down the entire country's beef exports, which had previously been the case. This development could dramatically reduce the risk of market disruptions for South African beef exporters.

China's position as the world's second-largest economy and South Africa's largest trading partner offers enormous potential for local farmers. Steenhuisen expressed optimism, stating that the protocols signed in Beijing represent only the beginning of broader market access for South African agricultural products. More announcements are expected later this year, signalling further openings in the Chinese market.

A Positive Shift in South Africa-China Relations

The FOCAC Summit solidified the political and economic alignment between South Africa and China, with both countries emphasizing the importance of balanced trade and mutual economic growth. South African President Cyril Ramaphosa and Chinese President Xi Jinping agreed to elevate the bilateral relationship to a strategic cooperative partnership. This partnership is built on shared goals of expanding cooperation in traditional sectors like agriculture, infrastructure, and health, while also seizing opportunities in the scientific and technological revolution.

Justin Chadwick, CEO of the Citrus Growers Association of Southern Africa (CGA), attended the summit and served on a panel at the Business Forum. He noted a noticeable shift in the tone of the discussions. "Seeing the Government of National Unity President and Ministers file into the Business meeting, there seemed to be a positive atmosphere—one of a group working together in the best interests of South Africa," Chadwick remarked. He also highlighted the significance of the agricultural agreements, particularly in dairy, wool, and meat exports, which he said would play a crucial role in balancing South Africa's trade with China, which remains skewed in China's favour.

The timing of this summit and closer alignment with South Africa is very well timed for South Africa's agricultural sector which is currently facing mounting pressure to diversify its export markets, with China offering a crucial alternative for growth. The gradual opening of the Chinese market to South African products like avocados, and progress on stone fruit access, further underscores the importance of this relationship.

Opportunities and Challenges Ahead

While the breakthroughs achieved at FOCAC are promising, challenges remain. China, despite its welcoming stance towards certain South African products, imposes import duties on citrus, placing South Africa at a disadvantage compared to countries with free or preferential trade agreements with China. This is a particularly sensitive issue for South African citrus exporters, who gained access to the Chinese market in 2004 but have struggled with these tariffs.

Additionally, South African exporters face strict sanitary and phytosanitary requirements, which, while scientifically justified, can be trade restrictive. Continuous engagement between South African and Chinese authorities will be critical to addressing these barriers. The agreements signed at FOCAC are a step in the right direction, but sustained dialogue and further market access negotiations will be essential for the long-term success of South African agriculture in China.

A Promising Future for SA Agriculture

The political significance of the 2024 FOCAC Summit for South Africa cannot be overstated. The elevation of bilateral relations to a strategic cooperative partnership opens up new horizons for South Africa's agriculture sector. As China continues to share its experiences in poverty alleviation and rural revitalization, South African farmers could benefit from this exchange of knowledge, further bolstering the sector's capacity for growth and innovation.

With the South African government’s successful negotiations at FOCAC and the growing alignment between the two nations, South African agricultural exporters are poised to enter a new era of opportunity. However, balancing trade, navigating regulatory requirements, and securing preferential treatment remain critical hurdles that will require ongoing attention and diplomacy. For now, the agreements signed at FOCAC are a significant step forward, offering the promise of expanded trade and economic growth for South Africa's agriculture sector.