Exporting to Japan is within reach
To investigate the constraints of trade barriers and requirements of exporting to Japan, Agri SA recently hosted a virtual webinar featuring presentations by the Department of Trade, Industry, and Competition (DTIC) DTIC team, Mr. Riaan le Roux, Ms. Tomoko Yamaguchi, and Mr. Isohoto San.
As South Africa’s fourth biggest global trading partner, Japan’s trade with our country is an estimated R159 billion. Thanks to Japan’s mountainous terrain, the country offers a high-growth market for the import of commodities. Yet, some challenges relating to trading with the “land of the rising sun” exist.
Distance
As South Africa and Japan are more than 14,000 km apart, transporting goods between the two countries is expensive. Few direct shipping lines exist, and most shipments stop in Singapore with trans-shipment into China. Exporters should consider freight and logistics cautiously; infrequent shipping and trading of perishable goods require expensive insurance. Since no long-haul flights to Japan are available, transporting goods may take 24-36 hours. To further complicate transport options, South African Airways (SAA) no longer flies to Japan or Hong Kong, resulting in exporters to rely on Middle Eastern Airlines. In addition, Japan is still in a pandemic, though experts believe the Japanese Government will downgrade COVID-19 to a treatable disease in May 2023. Furthermore, due to the restrictions regarding COVID-19, exporters are advised to check with air freighters since some of them have stricter regulations than the actual destination.
Japanese consumers
Japanese consumers want to know as much as possible about their purchases, from quality to labeling, product descriptions, background stories, displays, and pricing this should be available to the consumer in Japanese. Consumers in the Japanese market will not pay more for a product when they do not believe its quality justifies the higher price.
Export requirements
- Phytosanitary controls (regulated by the Ministry of Agriculture, Forestry and Fisheries – MAFF).
It is crucial to work closely with the Department of Agriculture, Land Reform and Rural Development (DALRRD) in South Africa, as they conduct all agricultural negotiations. Since the department will negotiate on behalf of Agri SA and its members, Agri SA should make a concerted effort to engage with the department.
- Animal quarantine controls (regulated by MAFF)
Due to foot-and-mouth disease, exporting meat and alfalfa (lucerne) can be challenging. Agri SA will critically engage with the members of the commodity chamber regarding this issue.
- Animal health controls (regulated by the Ministry of Health, Labour and Welfare – MHLW)
Animal health control regarding exporting live animals is problematic.
- Food safety controls (regulated by the MHLW).
Technical regulations vary from product to product.
Products not complying with requirements set out by Japanese authorities will not be allowed into the country. Thus, it is of the utmost importance to build trust between South African companies and Japanese companies.
Prohibited items
According to the rule of thumb, fresh products such as meat, fruit, and some processed products (depending on their ingredients) may not enter Japanese borders. Exporting these products require individual applications and processing, but implementing heat treatment may allow commodities entrance into the country.
Market access
Authorities allow negotiations of only one product at a time. In other words, only after completing the entire circuit of protocols and work plans will Japanese authorities continue to the following product. Even if a product was previously approved, any new variation (for instance, different cultivars) requires a new application.
Japan is in the process of amending the protocol regarding this “one-at-a-time” consideration of commodities. When considering these applications, authorities investigate the technical side as well as the procedural element. While one solution is to use heat treatment on prohibited items, the other (and more permanent) solution is for DALRRAD to submit a letter to the Japanese authorities. The same goes for areas free from foot-and-mouth disease.
Japan’s Department of Agriculture in South Africa is currently considering the next priority for exporting. Engaging with the directorate on their recommendations is crucial, which could speed up the process.
To discuss the challenges between South Africa and Japan on an economic level, stakeholders established the Japan South Africa Business Forum. This forum already identified nine different issues, one of which was market access. While the industry faces a long list of prohibitions, Agri SA should attend the next meeting and make a presentation onmarket access. As both ministers in Japan and South Africa monitor the forum and its progress, Agri SA will aim to position itself as one of the champions for market access.
. Agri SA should work with DALRRD, enabling a joint agenda. Agri SA should point out to the Japanese Government the direct impact of the prohibitions on job creation, innovation, and rural development.
DALRRD is discussing conditions for heat treatment, and DTIC advised contacting the department for a more concrete idea regarding this approach.
Throughout the presentation, it was clear that Japan is inviting South Africa to take advantage of the opportunity to do business with them. In addition to meeting all regulatory requirements, fostering trust between the two countries is essential for successful, recurring business transactions. Furthermore, the forum urged us to collaborate with Japan to build trust and strengthen commercial relations. We will engage with DTIC regarding future steps to make an application for exporting.
Kindly send your questions and comments or request further information by contacting Franlie van den Berg at [email protected].
By Franlie van den Berg
