India and the Southern African Customs Union have formalised their intentions to negotiate a preferential trade agreement, aiming to boost bilateral trade across various sectors and foster greater economic cooperation.
India and the Southern African Customs Union have moved a step closer to a preferential trade pact after signing terms of reference that set out how formal negotiations will proceed. The agreement, signed at Vanijya Bhawan in New Delhi, is intended to give structure to talks on a deal that officials say could deepen trade and broaden commercial links between the two sides.
Commerce and Industry Minister Piyush Goyal urged both sides to pursue a balanced agreement that expands market access and supports growth on each side. According to the Indian side, the proposed arrangement could open opportunities in engineering goods, machinery, automobiles, pharmaceuticals, textiles, agriculture and agri-processing, while also allowing India to contribute affordable medicines, technology skills and links to global supply chains.
Namibia’s Executive Director in the Ministry of International Relations and Trade, Ndiitah Nghipondoka-Robiati, called the terms of reference a significant milestone and said the framework should bring transparency and predictability to the negotiations. She also stressed that any outcome must reflect differences in development levels and take account of SACU’s least developed, small and vulnerable economies.
Rajesh Agrawal, India’s commerce secretary, said the planned pact would cover eight chapters, including trade in goods, rules of origin, customs procedures, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, dispute settlement and broader legal provisions. SACU, which brings together Botswana, Lesotho, Namibia, South Africa and Eswatini, already operates under a common negotiation mechanism for outside trade talks and has previously concluded agreements with partners including the European Free Trade Association and the European Union.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
