India-SACU Preferential Trade Agreement Talks

On 12th August 2026, India and SACU signed terms of reference to begin negotiations for a preferential trade agreement.

  • SACU comprises South Africa, Botswana, Namibia, Lesotho and Eswatini.
  • The proposed pact would provide preferential market access for selected goods between India and SACU.
  • India is expected to seek lower tariffs on automobiles, pharmaceuticals, machinery, chemicals and textiles.
  • India and SACU had earlier held five negotiation rounds between 2002 and 2010 without reaching an agreement.
  • The agreement could become India’s first major trade pact with an African regional bloc.
  • India’s exports to SACU reached $7.5 billion, while imports stood at $9.2 billion in ....
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