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Those involved in the country’s rooibos industry have received a new years boost as the world’s largest tea market has decided to substantially reduce tariff rates on imports of South African rooibos tea.
The Department of Trade, Industry, and Competition announced that the Chinese government has decided to slash tariffs on rooibos tea to 6%, down from its previous range of between 15% and 30%.
Rooibos tea is a uniquely South African herbal tea that comes from the fermented leaves of the Aspalathus linearis shrub, a plant native to the country. According to the South African Rooibos Council, approximately 20,000 tons of rooibos (which is enough for around 6 million cups of tea) is produced in the country every year as a result of the work of a sector that employs more than 5,000 people.
The South African tea market has increased its foothold in the global tea markets, with hundreds of millions of rands of annual exports. Over the years, annual exports have gone from from barely 500 tons in 1996 to nearly 9,000 tons in 2023.
In 2023, China was the 7th largest recipient market for South African rooibos tea out of 45 importers – with 2024’s tariff relief expected to greatly boost trade.
“Our rooibos tea is refreshing, delicious and healthy,” said Trade, Industry, and Competition minister Ebrahim Patel .
“This decision will enable more South African rooibos tea to be available to Chinese tea drinkers, creating more jobs in South Africa. Rooibos exporters can now ramp up their exports of tea to China,” he added.
Patel explained that China is currently South Africa’s largest global trading partner, with Chinese customs reporting two-way trade of more than R900 billion.
The attempts to reduce the tariffs have been a long-fought battle to address the barriers to trade faced by the industry.
Marthane Swart of the South African Rooibos Council said that “the drop in tariffs for rooibos in the Chinese market is the result of a long process implemented by the SA Rooibos Council (SARC) and well supported by the Department of Trade, Industry and Competition, the Department of Agriculture, Land Reform and Rural Development and the SA Revenue Service.”
“SARC is satisfied that the process was successfully completed and looks forward to seeing how this will further unlock potential in the Chinese market,” added Swart.
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