India and SACU Sign Roadmap for Preferential Trade Agreement

The Government of India and the Southern African Customs Union (SACU) signed Terms of Reference on August 12, 2026, establishing a formal roadmap for a Preferential Trade Agreement (PTA). The agreement, signed in New Delhi by India's Additional Secretary Yashvir Singh and Namibia's Executive Director Ndiitah Nghipondoka-Robiati, revives trade discussions that had previously stalled between 2002 and 2010.

Negotiations are expected to begin within a month and conclude within a year. The proposed pact will cover eight chapters, including market access, rules of origin, and dispute settlement. India aims to lower tariffs on exports such as pharmaceuticals, industrial machinery, chemicals, textiles, and automobiles. The automotive sector is particularly critical as South Africa considers raising duties on Indian and Chinese vehicles to 50%. In exchange, India seeks more reliable access to critical minerals, including copper, manganese, and platinum-group metals.

Commerce and Industry Minister Piyush Goyal stated that the partnership intends to integrate SACU countries—South Africa, Botswana, Namibia, Lesotho, and Eswatini—into global supply chains. This marks India's first major trade agreement with an African regional bloc, providing access to a market of approximately 65 million people. Bilateral trade between the parties totaled $16.81 billion in FY26.