NEW DELHI - South African agribusinesses and farming communities are urging BRICS countries to take practical steps to lower import tariffs and remove non-tariff barriers that continue to limit agricultural trade within the bloc.
“Higher tariffs and complex or unnecessarily restrictive sanitary and phytosanitary (SPS) requirements continue to constrain deeper agricultural trade within BRICS. Some BRICS countries currently enjoy more favourable trading terms with markets outside the grouping than with fellow BRICS members, contributing to relatively limited intra-BRICS agricultural trade,” Chairperson of the Agribusiness Working Group Wandile Sihlobo said.
The Agribusiness Working Group, comprising Agbiz and Agri SA, said the issue had become more urgent as BRICS expands and seeks to strengthen trade and investment ties among member countries.
The call followed the group’s participation in the BRICS Business Council meeting on Thursday, held ahead of the BRICS Business Forum and the 18th BRICS Leaders’ Summit in New Delhi, India.
South Africa’s agribusiness sector plays a pivotal role in promoting trade and investment ties among the business communities of BRICS member countries through the BRICS Business Council.
Sihlobo said that from a South African agribusiness perspective, there is a strong case for BRICS countries to deepen agricultural trade on fair and commercially meaningful terms, particularly in the current environment of intensifying geopolitical tensions, conflict and rising import tariffs.
BRICS countries import agricultural products worth more than US$300 billion annually.
“China and India account for the lion’s share of these imports. The Middle East also has a sizeable share of agricultural imports from the world market. Key agricultural products imported by the BRICS grouping include, among others, various grains and oilseeds, fruits, wine, beef, pork and poultry products,” Sihlobo said.
While not all BRICS members may currently be ready for a comprehensive agricultural free trade agreement, Sihlobo said the potential for such an arrangement should remain under consideration.
“In the interim, practical steps can be taken to reduce existing barriers and facilitate greater agricultural trade among member countries,” Sihlobo said.
South African agribusinesses and farming communities are advocating a coordinated trade facilitation approach focused on:
- Tariffs and market access: improving transparency and coordination across priority commodities and trade corridors, while exploring opportunities to progressively lower tariff barriers.
- SPS alignment and trade facilitation: improving regulatory cooperation and exploring pilot mutual recognition arrangements to reduce unnecessary duplication and delays.
“In an increasingly complex global trading environment, stronger agricultural trade relationships can contribute to more resilient value chains, diversified markets and greater food security across BRICS economies,” Sihlobo said.
Agri SA and Agbiz reaffirmed their commitment to deepening agricultural trade, expanding market opportunities and strengthening meaningful commercial relationships across BRICS markets.
“From a business perspective, the priority is to create the practical conditions that enable farmers and agribusinesses to trade more effectively through improved market access, fewer unnecessary trade barriers, greater regulatory predictability and more efficient trade facilitation,” Sihlobo said.
The Working Group considered a range of priorities and recommendations for BRICS leaders, including bridging agricultural productivity gaps among member countries, promoting sustainable and climate-smart agricultural practices, sharing knowledge on scientific advances and seed development, and deepening agricultural trade as a means of strengthening food security.
The Working Group will share its recommendations with the BRICS Business Forum on Friday. The forum brings together business leaders, ministers and heads of state to discuss trade, investment, finance, technology and development challenges that shape the BRICS economic agenda.
The forum serves as a platform to present and discuss key ideas and suggestions from the Council, and it plays a strong agenda-setting role.
Its conclusions and the Business Council’s recommendations are regularly reflected in BRICS Summit declarations and in follow-up work plans, particularly on intra-BRICS trade, investment, the digital economy, micro, small and medium enterprises (MSMEs), standards cooperation and value chain integration.
BRICS brings together 11 major emerging markets and developing countries: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the United Arab Emirates.
It also includes 10 partner countries - Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam - further expanding the platform’s reach across economies and regions.
The grouping provides a platform for consultation and cooperation on contemporary issues of global and regional significance, including questions of political and economic governance. -SAnews.gov.za
