NEWS: India and the five-member SACU signed Terms of Reference (ToR) on 12 August 2026 to formally launch negotiations for a Preferential Trade Agreement (PTA), aiming to boost trade and reduce tariffs on key Indian exports.

Highlights

• India and SACU agreed to begin talks for a Preferential Trade Agreement (PTA).
• SACU members: South Africa, Namibia, Botswana, Lesotho and Eswatini.
• India seeks lower tariffs for automobiles, pharmaceuticals and industrial machinery.
• Earlier India–SACU negotiations held 5 rounds (2002–2010) but ended without an agreement.
• SACU provides access to a market of around 65 million people.

About SACU

• Full form: Southern African Customs Union.
• Established: 1910 — world's oldest customs union.
• Headquarters: Windhoek, Namibia.
• Customs Union: Free/low internal trade barriers + common external tariff.
• Customs revenue is pooled and shared among members through a revenue-sharing formula.

Significance for India

• Expands Indian export markets in Southern Africa.
• Boosts exports of cars, medicines and machinery.
• Helps diversify India’s trade and strengthen economic ties with Africa.
• Could become an important India–Africa trade arrangement.