India and the five-member Southern African Customs Union signed terms of reference on Wednesday (August 12, 2026) to start talks on a preferential trade agreement, as New Delhi seeks lower tariffs on exports including cars, pharmaceuticals and industrial machinery.
The decisive details
The move revives talks between India and SACU, comprising South Africa, Botswana, Namibia, Lesotho and Eswatini, after five rounds of negotiations between 2002 and 2010 ended without a deal. The terms of reference set 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.
