Marking a significant step towards strengthening trade and economic engagement between India and the Southern African states, India and the Southern African Customs Union (SACU) have signed the Terms of Reference (ToR) for negotiations towards a Preferential Trade Agreement (PTA). The signing of the ToR reflects the shared commitment of India and SACU to advancing mutually beneficial trade relations and lays the foundation for negotiations towards a balanced, mutually beneficial and development-oriented PTA. The five SACU member states are Botswana, Eswatini, Lesotho, Namibia and South Africa.
Union Minister of Commerce and Industry Piyush Goyal has called for a balanced, fair and equitable trade agreement between India and SACU, emphasising that the partnership can help diversify markets and create opportunities for both sides to prosper. He said India can play an important role in supplying affordable medicines and supporting the development of new talent in the IT sector in the SACU region. He added that India can also help integrate SACU countries into global supply chains in areas where their businesses are competitive and where skills and talent can be developed or are already available.
Executive Director, Ministry of International Relations and Trade, Government of the Republic of Namibia, Ndiitah Nghipondoka-Robiati, welcomed the signing of the ToR as an important step towards formalising SACU-India engagement and providing structure, transparency and predictability to the forthcoming negotiations. Highlighting India’s importance as a strategic partner and a pillar of South-South cooperation, she noted the longstanding relationship between India and Africa through trade, investment, capacity building and development cooperation.
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