India and the Southern African Customs Union (SACU) have taken a significant step towards deepening their economic partnership by signing the Terms of Reference (ToR) for negotiations on a proposed Preferential Trade Agreement (PTA). The agreement was signed at Vanijya Bhawan in New Delhi, laying the groundwork for formal negotiations aimed at expanding trade and creating new economic opportunities for both sides.
Piyush Goyal Calls for Fair and Balanced Agreement
Union Minister for Commerce and Industry Shri Piyush Goyal described the development as an important milestone in India’s engagement with the SACU region. He called for a balanced, fair and equitable agreement that benefits all participating countries while helping businesses diversify markets and strengthen economic ties.
Goyal said India could contribute significantly to the development of the SACU region by providing affordable medicines and supporting the growth of skilled talent in the information technology sector. He also highlighted India’s potential role in connecting SACU economies with global supply chains in areas where they possess competitive advantages, skills and emerging capabilities.
The Minister stressed that India’s relationship with Southern Africa extends beyond commercial interests. Recalling the historical association between India and the region, he said the partnership was rooted in solidarity and shared values, including India’s support for the people of Southern Africa during their struggle against apartheid.
Focus on Expanding Existing Trade Ties
The proposed PTA is intended to provide preferential market access to an already established commercial relationship between India and SACU. According to the Commerce Minister, there are considerable complementarities between the two sides in sectors such as engineering goods and machinery, automobiles, pharmaceuticals, textiles, agriculture and agri-processing.
Goyal urged negotiating teams to work with urgency and convert the agreed ToR into a concrete negotiating process. He also underlined that signing the ToR itself would not immediately reduce tariffs or facilitate the movement of goods.
He emphasised that only the conclusion and implementation of a final PTA would deliver tangible trade benefits, calling for the negotiations to be completed at the earliest possible opportunity.
SACU Highlights Development Priorities
Ms. Ndiitah Nghipondoka-Robiati, Executive Director, Ministry of International Relations and Trade, Government of Namibia, welcomed the signing, describing it as an important step towards formalising India-SACU economic engagement.
She said the ToR would provide greater structure, transparency and predictability to the negotiations. India, she noted, remains an important strategic partner for SACU and an important pillar of South-South cooperation.
She also stressed that the eventual agreement should be balanced and recognise the differing levels of development among the participating economies. Particular attention, she said, should be given to the development requirements of SACU’s Least Developed Countries and Small and Vulnerable Economies.
Eight Key Areas Identified for Negotiations
Secretary, Department of Commerce, Shri Rajesh Agrawal, said the ToR signing was significant as it marked India’s first such agreement with the African region. He also highlighted SACU’s importance as the world’s oldest customs union.
The proposed PTA is expected to cover eight major areas. These include trade in goods and market access, rules of origin and origin procedures, customs procedures and trade facilitation, and trade remedies, including a bilateral safeguard mechanism.
Other proposed chapters will address sanitary and phytosanitary measures, technical barriers to trade, dispute settlement, and legal and horizontal provisions.
Foundation for Stronger India-Africa Economic Cooperation
The signing ceremony was attended by Minister of State for Commerce and Industry Shri Jitin Prasada, senior Indian government officials and representatives of the SACU delegation.
The ToR represents a shared commitment to developing stronger and mutually beneficial trade relations between India and SACU. The forthcoming negotiations are expected to focus on creating a development-oriented framework that expands market access while taking into account the economic interests and capabilities of all participating countries.
The proposed PTA could further strengthen India’s commercial engagement with Southern Africa and open new avenues for cooperation in manufacturing, pharmaceuticals, agriculture, technology, services and global supply chains.
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Author: Shivam
Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]
