The proposed new BEE regulations would impact the export of wine, fruit, dairy, nuts, sugar, jam, and other agricultural products to the European Union and United Kingdom.
GOVERNMENT DENIES RACE-BASED QUOTAS
These allegations, dismissed by industry organizations, a prominent agricultural economist, and the Department of Agriculture, Land Reform and Rural Development, were reported in two Johannesburg-based newspapers.
An article in Daily Maverick stated that the agriculture department denied these claims and said: “The BBBEE status of the applicant is but one factor that must be considered in conjunction with all other factors.”
The department urged political parties to refrain from “making incorrect comments as these may harm the sector’s prospects as these agreements are reviewed”.
Agricultural economist Wandile Sihlobo stated that claims of race-based criteria being applied to exports are false: “The reality is that these requirements are not new and mirror the previous years’ requirements. There is no new BEE threshold or level that an applicant must reach to be awarded an export permit.”
SA Wine expressed that “factually incorrect or sensationalist media articles may harm the sector’s prospects as these agreements are reviewed. We therefore urge all parties to refrain from such reporting, devoid of the correct facts and context.”
DA LODGES COMPLAINT
In an official statement, the DA Shadow Minister of Agriculture, Land Reform and Rural Development, Noko Masipa MP, said: “These latest quotas target agricultural export businesses by making it illegal for farmers and businesses that do not meet strict racial BEE quotas to export their products to the European Union (EU) and the United Kingdom (UK). The ANC government is now imposing trade barriers on the very export businesses we desperately need to create more jobs. The government is wilfully and deliberately destroying jobs and livelihoods, and depriving business owners and workers of economic export opportunities.”
The DA has filed a complaint with the EU Trade Commissioner, Valdis Dombrovskis, and the UK Secretary of State for the Department for Business and Trade, Kemi Badenoch.
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