Now, India eyes Southern African bloc trade deal

Piyush Goyal said India and SACU countries would “benefit immensely” from a fair, equitable and balanced agreement.

NEW DELHI: After a series of successful bilateral trade agreements with developed countries, India Wednesday moved towards forging a major trade deal in Africa as it signed the terms of reference to start talks on a preferential trade agreement with the five-member Southern African Customs Union (SACU).The bloc consisting of South Africa, Botswana, Namibia, Lesotho and Eswatini, is the world’s oldest customs union. The move seeks to provide Indian exporters, especially in sectors such as cars, pharmaceuticals and industrial machinery, with lower tariffs in a block comprising nearly 70 million people and with an output of $500 billion.At an event to mark the signing of the terms of reference, commerce and industry minister Piyush Goyal said India and SACU countries would “benefit immensely” from a fair, equitable and balanced agreement. “This will be the beginning of a beautiful relationship not only with these five countries, but also with the African union, the larger 55-nation bloc of countries,” he said.The trade basket remains relatively small, with 500 items accounting for the bulk of bilateral trade. India’s trade with SACU was pegged at close to $17 billion in the last financial year, with exports of $7.5 billion. Within the bl-oc, South Africa accounts for 90% of the trade with India.“We are the second-largest supplier to the SACU group of countries,” Goyal said.