India-SACU trade pact talks to begin by September, conclude within a year

Synopsis

India and Southern African Customs Union will sign terms of reference for trade pact negotiations soon. These talks are expected to conclude within one year of their formal commencement. India and Namibia have identified critical minerals for bilateral economic cooperation. Various sectors like renewable energy and health will see increased collaboration. Future joint committees will review progress on these agreements and initiatives.

India and Southern African Customs Union will sign terms of reference for trade pact negotiations soon

New Delhi: Negotiations for the India-Southern African Customs Union (SACU) trade pact will commence within one month of the signing of the terms of reference (ToR) and conclude within a year, the government said on Tuesday.

India and SACU will sign the ToR on August 12 to formally start negotiations for a preferential trade agreement (PTA).

Namibia, Botswana, Eswatini, Lesotho and South Africa are members of SACU. India and SACU began talks for a PTA in 2008, but negotiations were stalled over issues related to sensitivities and market access.

The government also said India and Namibia have identified critical minerals, including lithium, graphite, copper, cobalt and rare earth elements, as key areas of bilateral economic cooperation during the fourth session of the India-Namibia Joint Trade Committee (JTC) held in New Delhi.

The JTC is the principal bilateral institutional mechanism for reviewing trade, investment and economic cooperation between the two countries.

Under the JTC, a dedicated Services Working Group will be constituted and will meet no later than February 2027. It will submit its work plan to the JTC.

The first Joint Working Group under the Memorandum of Understanding on Cooperation in the Field of Health and Medicine will be convened by December 2026.

“Cooperation was identified in railways and rolling stock, solar and wind power, battery storage, transmission, green hydrogen, biofuels and desalination,” the Commerce and Industry Ministry said in a statement.

Cooperation was also taken forward in agriculture and food security, MSMEs, textiles, tourism and sports.

The fifth session of the JTC will be held in Namibia in 2028, with dates to be mutually agreed upon through diplomatic channels.