India and the Southern African Customs Union have signed negotiation terms for a preferential trade agreement, strengthening bilateral trade prospects.

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• India and SACU signed the Terms of Reference on 12 August 2026 in New Delhi to begin negotiations for a preferential trade agreement.
• SACU comprises South Africa, Namibia, Botswana, Lesotho and Eswatini, making it a significant regional customs union in southern Africa.
• The proposed agreement will initially cover eight areas, including goods trade, market access, customs procedures, standards, rules of origin and dispute settlement.
• India and SACU previously conducted five rounds of trade negotiations between 2002 and 2010 before restarting discussions under the new framework.
• India is expected to seek tariff concessions for automobiles, auto parts, pharmaceuticals, machinery, chemicals and textiles through the proposed agreement.
• Bilateral trade between India and SACU reached approximately US$17 billion during the financial year ending March 2026.
• SACU, established in 1910, is the world’s oldest customs union and maintains a common external tariff among its members.