New Delhi: India and the Southern African Customs Union (SACU) on Wednesday signed the Terms of Reference (ToR) for negotiations towards a Preferential Trade Agreement (PTA), marking a major step in strengthening trade and economic ties between the two sides.
Union Commerce and Industry Minister Piyush Goyal called for a balanced and equitable agreement that can help diversify markets and create new opportunities for businesses in India and SACU member states.
Goyal said India could support the SACU region through affordable medicines, IT talent and greater integration into global supply chains. He highlighted complementarities in sectors such as engineering goods and machinery, automobiles, pharmaceuticals, textiles, agriculture and agri-processing.
The minister urged negotiating teams to move quickly towards concluding the agreement, while stressing that the signing of the ToR itself would not reduce tariffs and that only a final trade agreement could provide preferential market access.
The negotiations will cover eight key areas, including trade in goods and market access, rules of origin, customs procedures and trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, dispute settlement, and legal and horizontal provisions, Commerce Secretary Rajesh Agrawal said.
SACU representatives welcomed the move, describing the ToR as an important milestone that would provide structure, transparency and predictability to the upcoming negotiations.
The SACU delegation also emphasised the need for an agreement that takes into account the differing levels of development among member states, including least developed countries and small and vulnerable economies.
The signing marks India’s first ToR with the African region and is expected to provide a framework for deeper South-South trade and economic cooperation.
