South Africa is aiming to enhance economic relations with India as it faces challenges in its ties with the US. The Minister of Agriculture, John Steenhuisen, is scheduled to visit India this month to boost trade and agricultural connections. This move comes amidst uncertainties over the extension of the African Growth and Opportunity Act (AGOA) by the US beyond December 2026, a scheme that provides trade benefits to eligible sub-Saharan African nations.
India emerges as an appealing market for South Africa’s agricultural exports, especially with the potential loss of AGOA benefits from the US. Minister Steenhuisen’s visit focuses on diversifying export markets, particularly in the citrus sector, which is South Africa’s major agricultural export category. The aim is to expand South Africa’s presence in India for citrus, avocados, maize, and other agricultural products, which currently enjoy duty-free access under AGOA.
To mitigate risks associated with a potential loss of US market access, South Africa is keen on securing alternative export destinations like India. Recent trade agreements have already paved the way for South African avocados and maize to enter the Indian market. The visit underscores the deepening trade ties between Pretoria and New Delhi, driven by seasonal demand variations and strategic cooperation efforts.
Bilateral agricultural trade between South Africa and India has been flourishing, with a significant increase in South African citrus exports to India. The trade relationship also involves India exporting rice and spices to South Africa. Both countries have made progress in addressing regulatory obstacles that previously hindered South African exports, such as India’s approval of in-transit cold treatment for South African citrus.
