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India and SACU sign Terms of Reference for a Preferential Trade Agreement

The negotiations with the Southern African Customs Union will cover eight chapters including market access for goods and rules of origin. No tariff changes yet — only a final agreement will do that.

Key facts

Published
12 August 2026
Who it affects
Exporters to Southern Africa
Editor12 August 2026 · 1 min read

In 30 seconds

  • Terms of Reference signed on 12 August 2026 at Vanijya Bhawan, New Delhi.
  • India’s first ToR signing with the African region.
  • Eight chapters: goods and market access, rules of origin, customs procedures, trade remedies, SPS, TBT, dispute settlement, legal provisions.
  • The signing by itself does not lower any tariff.

What was signed

India and the Southern African Customs Union (SACU) signed the Terms of Reference for negotiations towards a Preferential Trade Agreement. The Commerce Secretary said this is India’s first ToR signing with the African region.

What the agreement is to cover

  • Trade in goods and market access for goods
  • Rules of origin and origin procedures
  • Customs procedures and trade facilitation
  • Trade remedies, including a bilateral safeguard mechanism
  • Sanitary and phytosanitary measures
  • Technical barriers to trade
  • Dispute settlement
  • Legal and horizontal provisions

What it means today

Nothing changes at the border yet. In the Commerce Minister’s words: “What we sign today does not by itself lower a single tariff or clear a single container. Only a final agreement will do that.” He named engineering goods and machinery, automobiles, pharmaceuticals, textiles, agriculture and agri-processing as areas of complementarity.

TopicsSACUpreferential trade agreementrules of origin

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Editor

TaxClue News reports changes in tax, GST, trade and company law from the source document, and links that document in every story.

Published 12 August 2026. Updated 2 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.

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