India, Southern African bloc revive trade deal talks after 16-year pause
India and the Southern African Customs Union (SACU) signed terms of reference on Wednesday to begin negotiations on a preferential trade agreement, as New Delhi seeks to lower tariffs on exports including automobiles, pharmaceuticals and industrial machinery.
The move revives talks between India and SACU, a five-member bloc comprising South Africa, Botswana, Namibia, Lesotho and Eswatini. Five rounds of negotiations held between 2002 and 2010 ended without a deal.
If concluded, the pact would become India’s first major trade agreement with an African regional bloc. It would give Indian companies preferential access to a market of about 65 million people, while helping SACU members expand exports to India, the world’s fastest-growing major economy.
The terms of reference set out the scope, objectives and procedures for the negotiations. Unlike a comprehensive free trade agreement, a preferential trade pact typically cuts duties on an agreed list of products and is less likely to cover services, investment or intellectual property.
The talks come as South Africa considers raising customs duties on automobiles imported from India and China to 50 per cent from 25 per cent, a move that could threaten a key Indian export.
Ndiitah Nghipondoka Robiati, executive director at Namibia’s Ministry of International Relations and Trade, said the terms would guide negotiators towards a “balanced, mutually beneficial and development-oriented agreement.” She signed the agreement with Yashvir Singh, an additional secretary at India’s trade ministry.
India’s Trade Minister, Piyush Goyal, expressed confidence that SACU countries and India would “benefit immensely” from a fair, equitable and balanced agreement. He said he hoped to finalise the deal in the coming months.
According to trade officials and industry representatives, India is expected to seek duty concessions for automobiles and auto parts, pharmaceuticals, machinery, electrical equipment, chemicals and textiles.
Automobiles and auto parts were India’s second-largest export category to SACU after petroleum products, with shipments valued at $1.7 billion in the fiscal year ending March 2026. India’s total exports to SACU stood at $7.5 billion in 2025-26, while imports were $9.2 billion. South Africa accounted for most of the trade, with Indian exports of $7 billion and imports of $8.5 billion.
New Delhi is also seeking more reliable access to SACU supplies of critical minerals, including platinum-group metals, manganese and copper, which are important for manufacturing, batteries and clean energy technologies.
