India and Southern African Customs Union sign Terms of Reference for Preferential Trade Agreement talks
India and the Southern African Customs Union (SACU) signed the Terms of Reference for negotiations towards a Preferential Trade Agreement at Vanijya Bhawan, New Delhi, on 12 August 2026, India's first such ToR with the African region.
Summary
India and the Southern African Customs Union (SACU) signed the Terms of Reference (ToR) for negotiations towards a Preferential Trade Agreement (PTA) at Vanijya Bhawan, New Delhi, on 12 August 2026. Commerce Secretary Rajesh Agrawal said this is India's first ToR signing with the African region and noted that SACU is the oldest customs union in the world. The PTA is envisaged to cover eight chapters, including trade in goods and market access, rules of origin, customs procedures and trade facilitation, and trade remedies. Commerce Minister Piyush Goyal said India can support the SACU region with affordable medicines, IT talent and integration into global supply chains.
Key facts
- Partners
- India and Southern African Customs Union (SACU)
- Signed
- ToR for PTA negotiations, 12 Aug 2026, Vanijya Bhawan
- Significance
- India's first ToR signing with the African region
- SACU
- Oldest customs union in the world
- Scope
- 8 chapters incl. goods, rules of origin, customs, trade remedies
Practice MCQs 3 questions
With which regional grouping did India sign Terms of Reference for Preferential Trade Agreement negotiations on 12 August 2026?
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Correct answer: A — SACU
India and the Southern African Customs Union (SACU) signed the ToR for PTA negotiations at Vanijya Bhawan, New Delhi.
Consider the following statements about the India–SACU Terms of Reference signed in August 2026: 1. It is India's first ToR signing with the African region. 2. SACU was described as the oldest customs union in the world. Which of the above is/are correct?
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Correct answer: C — Both 1 and 2
Both statements are correct, according to Commerce Secretary Rajesh Agrawal; the PTA is envisaged to cover eight chapters.
How many chapters is the proposed India–SACU Preferential Trade Agreement envisaged to cover?
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Correct answer: D — Eight
The PTA is envisaged to cover eight chapters, including trade in goods and market access, rules of origin, customs procedures and trade remedies.