India and the Southern African Customs Union (SACU) have signed the Terms of Reference (ToR) to begin negotiations for a Preferential Trade Agreement (PTA), marking a significant step towards strengthening trade and economic ties between India and the SACU member states.
The ToR were signed at Vanijya Bhawan, New Delhi, in the presence of Union Minister of Commerce and Industry Piyush Goyal, Minister of State for Commerce and Industry Jitin Prasada, senior government officials and a SACU delegation.
Goyal called for a balanced, fair and equitable trade agreement, highlighting the potential for the partnership to diversify markets and create new opportunities for businesses on both sides.
He said India could play an important role in supplying affordable medicines to the SACU region and supporting the development of IT talent. India could also help integrate SACU countries into global supply chains in sectors where they have competitive strengths and opportunities to develop skills and capabilities.
The Minister emphasised that India’s relationship with Southern Africa extends beyond commerce and is rooted in a longstanding partnership. Recalling Mahatma Gandhi and India’s support for the anti-apartheid struggle, Goyal said, “India’s relationship with Southern Africa did not begin with commerce. It began with conscience.”
The proposed PTA will seek to provide preferential market access to an already established trading relationship, with significant complementarities across sectors including engineering goods and machinery, automobiles, pharmaceuticals, textiles, agriculture and agri-processing.
Goyal urged the negotiating teams to move with urgency towards an early conclusion of the agreement. He noted that the signing of the ToR itself would not immediately reduce tariffs or facilitate cargo movement, stressing that these benefits would come only after the final agreement is concluded.
Eight chapters proposed
Secretary, Department of Commerce, Rajesh Agrawal said the signing represents India’s first ToR agreement with the African region and highlighted SACU’s importance as the world’s oldest customs union.
The proposed PTA is envisaged to cover eight key areas:
Trade in goods and market access
Rules of origin and origin procedures
Customs procedures and trade facilitation
Trade remedies, including a bilateral safeguard mechanism
Sanitary and phytosanitary measures
Technical barriers to trade
Dispute settlement
Legal and horizontal provisions
Ndiitah Nghipondoka-Robiati, Executive Director, Ministry of International Relations and Trade, Government of Namibia, welcomed the signing as an important milestone that will bring greater structure, transparency and predictability to the negotiations.
She described India as a strategic partner and an important pillar of South-South cooperation, while stressing that the final outcome should take into account the different levels of development among the parties, including the interests of SACU’s Least Developed Countries and Small and Vulnerable Economies.
The signing of the ToR lays the foundation for formal negotiations and reflects the shared commitment of India and SACU to building mutually beneficial, balanced and development-oriented trade relations.
