India and the Southern African Customs Union (SACU) have signed the Terms of Reference (ToR) for negotiations towards a Preferential Trade Agreement (PTA). The India-SACU PTA process aims to expand market access, diversify trade and create new opportunities for businesses across both regions.
The ToR were signed at Vanijya Bhawan in New Delhi. The agreement sets the framework for negotiations between India and SACU member states.
Commerce and Industry Minister Piyush Goyal called for a balanced and equitable trade agreement. He said the partnership can help both sides diversify markets and strengthen commercial ties.
India-SACU PTA to Target Wider Market Access
Goyal said India can support the SACU region through affordable medicines and skilled IT talent. He also highlighted opportunities to connect SACU businesses with global supply chains.
The Minister said India’s engagement with Southern Africa extends beyond trade and investment. He described the relationship as a longstanding partnership based on cooperation and shared interests.
Goyal also pointed to the historical ties between India and Southern Africa. He noted that the relationship was shaped by India’s support for the region’s struggle against apartheid.
The proposed PTA will build on existing commercial links. Key areas include engineering goods and machinery, automobiles, pharmaceuticals, textiles, agriculture and agri-processing.
India-SACU PTA to Cover Eight Key Chapters
Commerce Secretary Rajesh Agrawal said the negotiations will cover eight key chapters. These include trade in goods and market access, rules of origin and origin procedures.
The talks will also cover customs procedures and trade facilitation. Other areas include trade remedies, including a bilateral safeguard mechanism, sanitary and phytosanitary measures and technical barriers to trade.
Dispute settlement and legal and horizontal provisions will form part of the negotiations as well.
Agrawal described the ToR signing as India’s first such framework with the African region. He also highlighted SACU’s position as the world’s oldest customs union.
The framework is expected to provide greater structure and predictability to the negotiation process.
Supply Chains and Affordable Medicines Offer New Opportunities
Goyal highlighted the potential for deeper cooperation in sectors where India and SACU have complementary strengths.
India’s pharmaceutical industry can support access to affordable medicines in the SACU region. IT services and skilled talent can also create new avenues for business cooperation.
The partnership could also help SACU countries integrate further into global supply chains. This could benefit sectors where the region already has competitive businesses, skills and resources.
For Indian companies, the proposed PTA could create opportunities across manufacturing, pharmaceuticals, automobiles, engineering, textiles and agri-processing.
SACU Seeks Balanced and Development-Oriented Agreement
Ndiitah Nghipondoka-Robiati, Executive Director at Namibia’s Ministry of International Relations and Trade, welcomed the signing of the ToR.
She said the framework will bring structure, transparency and predictability to the upcoming negotiations. She also described India as an important strategic partner and a key pillar of South-South cooperation.
SACU wants the final outcome to reflect the different levels of development among the participating economies. This includes the interests of its Least Developed Countries and Small and Vulnerable Economies.
The negotiations will therefore focus on creating a balanced and mutually beneficial framework.
PTA Talks Set Stage for Deeper India-Africa Trade
The ToR signing marks the formal start of negotiations towards the India-SACU PTA. Both sides now need to translate the framework into detailed negotiations and work towards an early conclusion.
Goyal stressed that signing the ToR alone will not reduce tariffs or immediately facilitate trade. The final PTA will determine the actual market access benefits for businesses.
The proposed agreement could strengthen India’s commercial engagement with Southern Africa. It could also support greater integration of businesses from both regions into regional and global supply chains.
The India-SACU PTA negotiations are expected to remain focused on market access, trade facilitation and development priorities. A balanced agreement could provide a stronger foundation for long-term trade and investment between India and the SACU region.
