India signed terms of reference (ToRs) with five-member Southern African Customs Union (SACU) on Wednesday, launching negotiations for a preferential trade agreement, as New Delhi seeks tariff relief for exports including automobiles, pharmaceuticals and industrial machinery.The move revives trade talks between India and SACU group - comprising South Africa, Botswana, Namibia, Lesotho and Eswatini - after negotiations stalled following five rounds of talks held between 2002 and 2010.Also read: Indonesia-India discuss proposal to create Preferential Trade AgreementET had earlier reported that the ToRs are set to be signed on Wednesday as the initial step sets the framework and scope of the negotiations for the proposed trade pact."We discussed the signing of ToRs for India-SACU PTA and early conclusion of negotiations, strengthening the India-South Africa trade engagement and explored opportunities for cooperation in the critical minerals, pharmaceuticals and manufacturing sectors," Commerce Minister Piyush Goyal said in an August 6 post on X after meeting Parks Tau, Minister of Trade, Industry and Competition of South Africa.Under a preferential trade agreement (PTA), two trading partners provide duty concessions to each other on goods to boost two-way commerce.
India sets sail to add more trade muscle as it signs PTA terms with SACU
India and the Southern African Customs Union signed terms to start trade negotiations. This move revives talks after previous rounds stalled between 2002 and 2010. New Delhi seeks tariff relief for key export sectors like automobiles and pharmaceuticals. The union comprises South Africa, Botswana, Namibia, Lesotho, and Eswatini. These renewed discussions aim to boost bilateral trade and economic ties.
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