India and the Southern African Customs Union Sign Terms of Reference for Trade Agreement

India and the Southern African Customs Union (SACU) have signed the Terms of Reference for negotiations towards a Preferential Trade Agreement (PTA) on 12th August, 2026. The proposed pact aims to widen market access and boost trade across sectors like engineering, automobiles, pharmaceuticals, textiles, and agriculture, while strengthening India's broader economic ties with Southern Africa. This agreement builds on trade relations that already exist between the two sides.

India's First ToR Signing With the African Region: Key Highlights

This marks India's first-ever ToR signing with any country in the African region, making it a notable moment in India-Africa trade relations. SACU itself holds a special place too, being recognised as the world's oldest customs union. 

1. Commerce Minister Piyush Goyal noted that a fair and balanced agreement could help both sides diversify their markets and open up new opportunities for businesses. 
2. He also pointed to specific areas where India could add value by supplying affordable medicines, supporting IT talent development, and helping SACU countries plug into global supply chains. 
3. Beyond trade, the relationship traces back to historical ties, including India's support for Southern Africa during its struggle against apartheid.

Negotiations to Cover Eight Important Chapters, Including Trade in Goods, Market Access for Goods and Rules of Origin

The proposed PTA negotiations will span eight key areas: trade in goods and market access, rules of origin and origin procedures, customs procedures and trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, and dispute settlement. 

Together, these chapters will decide how goods move between India and SACU nations, how tariffs and origin rules are applied, and how disputes get resolved once a final agreement is reached.