India, Southern African Customs Union Sign Preferential Trade Agreement Negotiations

India and the Southern African Customs Union (SACU) have taken a significant step towards strengthening economic ties by signing the Terms of Reference (ToR) for negotiations on a Preferential Trade Agreement (PTA). The agreement was signed in New Delhi on Wednesday.

Commerce and Industry Minister Piyush Goyal emphasized that the PTA can help both India and SACU member states leverage their respective strengths, diversify markets, and contribute to shared prosperity. He called for a balanced, fair, and equitable agreement that creates mutual benefits and opportunities for growth.

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A trade agreement can help us leverage each other's strengths and contribute to shared prosperity, delivering mutual benefits.

Goyal highlighted India's potential contributions to the SACU region, including supplying affordable medicines and supporting the development of IT talent. He also suggested that India could assist in integrating SACU countries into global supply chains, particularly in sectors where they possess competitive advantages or can develop skills.

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What we sign today does not by itself lower a single tariff or clear a single container. Only a final agreement will do that.

Recalling historical ties, Goyal noted that India's engagement with Southern Africa is rooted in a long-standing partnership that began with solidarity and support, referencing Mahatma Gandhi's legacy and India's anti-apartheid stance. He stated that the current negotiations aim to formalize preferential market access within an existing commercial relationship, noting complementarities in sectors like engineering, automobiles, pharmaceuticals, textiles, and agriculture.

While the signing of the ToR marks a crucial step, Goyal cautioned that it does not immediately lower tariffs or facilitate trade. He urged the negotiating teams to proceed with urgency to translate the agreed terms into a concrete process for the early finalization of the India-SACU PTA. In a subsequent post on X, Goyal reiterated that the signing elevates economic engagement between India and SACU, which comprises South Africa, Botswana, Lesotho, Namibia, and Eswatini.

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Delighted to speak at the signing of the Terms of Reference (ToR) for the India-Southern African Customs Union (SACU) Preferential Trade Agreement. Highlighted how the signing of the ToR marks an important step towards elevating economic engagement between India and SACU, which brings together South Africa, Botswana, Lesotho, Namibia & Eswatini. Emphasised how a trade agreement can help us leverage each other's strengths and contribute to shared prosperity, delivering mutual benefits for both India and the SACU nations.