India and SACU sign Terms of Reference (ToR)

• Kashish Kumar
• 13 Aug 2026
• 32 Views

On 12 August 2026, India and the Southern African Customs Union (SACU) signed the Terms of Reference (ToR) for negotiations towards a Preferential Trade Agreement (PTA) between India and SACU. The ToR was signed at Vanijya Bhawan in New Delhi. The signing is an important step towards closer trade and economic ties between India and the SACU member countries.

India-SACU Partnership and Trade Opportunities 

Speaking at the event, Union Minister of Commerce and Industry Shri Piyush Goyal said that the partnership between India and the Southern African Customs Union (SACU) can help diversify markets and create opportunities for both sides to prosper.

Shri Goyal said that India can play an important role in providing affordable medicines and in nurturing new talent in IT sector in the SACU region. Shri Goyal said India can also assist SACU countries in linking themselves to global supply chains where their business are competitive and the skills and talent can be developed or are already available. 

SACU’s Perspective on ToR

Executive Director, Ministry of International Relations and Trade, Government of the Republic of Namibia, Ms. Ndiitah Nghipondoka-Robiati, welcomed the signing of the ToR as an important step towards formalising SACU-India engagement and providing a clear, transparent and predictable framework for the upcoming negotiations. 

She highlighted India’s importance as a strategic partner and a key pillar of South-South cooperation, noting the long-standing ties between India and Africa in trade, investment, capacity building and development cooperation. 

She stressed that SACU seeks a balanced outcome that recognises the different levels of development among the Parties and addresses the interests and development needs of SACU Member States, particularly its Least Developed Countries and Small and Vulnerable Economies.

Eight Key Chapters of the Proposed PTA 

While addressing the gathering, the Secretary, Department of Commerce, Ministry of Commerce and Industry, Shri Rajesh Agrawal, mentioned that this is India’s first ToR signing with African region. He noted SACU’s significance as the world's oldest customs union. 

According to him, the PTA is expected to cover eight key chapters, i.e., (1) trade in goods and market access; (2) rules of origin and origin procedures; (3) customs procedures and trade facilitation; (4) trade remedies, including a bilateral safeguard mechanism; (5) sanitary and phytosanitary measures; (6) technical barriers to trade; (7) dispute settlement; and (8) legal and horizontal provisions.

Foundation for Future Trade Relations 

The signing of the ToR reflects India and SACU’s shared commitment when it comes to strengthening mutually beneficial trade relations. It sets the foundation for negotiations towards a balanced, mutually beneficial and development-oriented PTA.

Source: Press Information Bureau (PIB)