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
- Section
- Foreign Trade
- Who it affects
- Exporters to Southern Africa
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.
हिंदी में सार
भारत और Southern African Customs Union (SACU) ने 12 अगस्त 2026 को Preferential Trade Agreement की बातचीत के लिए Terms of Reference पर हस्ताक्षर किए। अभी कोई शुल्क नहीं बदला है — वह अंतिम समझौते के बाद ही होगा।
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.
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.