India’s effort to secure better access to five Southern African markets is likely to face an early test over automobiles, one of its most valuable exports to the region and an increasingly sensitive industry for South Africa.
India and the Southern African Customs Union, or SACU, signed terms of reference on Wednesday to begin negotiations for a preferential trade agreement, nearly two decades after the process was first proposed.
SACU comprises South Africa, Botswana, Namibia, Lesotho and Eswatini.
The proposed agreement will cover eight negotiating areas, including trade in goods, rules of origin, customs procedures, dispute settlement and sanitary and phytosanitary measures, according to the Economic Times.
Formal negotiations are expected to begin within one month. Both sides have set a one-year deadline, although Indian officials hope to complete the process earlier.
