More Stories

Informist, Wednesday, Aug. 12, 2026

MUMBAI – India and the Southern African Customs Union Wednesday signed the terms of reference to formally launch negotiations for a preferential trade agreement. Commerce Minister Piyush Goyal said the pact should be finalised in the next few months, while calling for faster negotiations.

"I am sure the SACU countries will benefit immensely and as will India with a fair, equitable and balanced preferential trade agreement, that we are hoping to finalise in the next few months," Goyal said. He called for faster negotiation, adding that prolonged talks could cause negotiators to lose sight of their original objectives.

The Southern African Customs Union is a customs union in southern Africa consisting of five member nations – South Africa, Botswana, Namibia, Lesotho, and Eswatini. The signing of the terms of reference in New Delhi formally sets the framework for negotiations nearly 20 years after discussions on a trade pact between India and Southern African Customs Union first started.

The pact should be practical, capture low-hanging fruits, and look at areas where the two sides complement each other, Goyal said. "India will not touch sensitive issues on your side as we would expect reciprocity and your consideration on sensitive issues on the Indian side," he said.

Goyal said India could play a big role in supplying affordable medicines to Southern African Customs Union nations. "We can help create new talents in IT (information technology) in SACU nations," he added. He urged the negotiating teams to listen carefully to the concerns and aspirations of businesses on both sides.

Commerce Secretary Rajesh Agrawal, also present at the signing, said this was India's first terms of reference with any part of the African region, adding that India needs to now work with more African countries. These terms of reference for a preferential trade agreement would negotiate eight chapters, including trade in goods, rules of origin, customs procedures, and sanitary and phytosanitary measures, Agrawal said. 

More chapters could be added as negotiations progress if both sides agree to expand the scope of the agreement, he said. He described India and South African Customs Union as "complementary regions" and expressed optimism that negotiations would start soon and proceed on a fast-track basis.  End

Reported by Pratiksha

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.