India urges early finalisation of Preferential Trade Agreement with Southern Africa

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Finalising SACU TPA negotiations will help India conclude negotiations on India-SACU-MERCOSUR trilateral agreement on trade

  Radha Mohan Singh, India’s Minister for Agriculture, has urged for an early finalisation of the India and Southern African Customs Union (SACU) Preferential Trade Agreement (PTA) which will help protect Indian exports against fluctuations in the western markets.  In a meeting with Senzeni Zokwana, Minister of Agriculture, Forestry and Fisheries, South Africa, Radha Mohan Singh said that bilateral trade between India and South Africa stood at $11.15 billion in FY2013-14, which is commendable considering the economic turmoil and global recession witnessed in EU and USA. He also urged his South African counterpart to increase imports of grapes, wheat, sugar and cotton from India.  After growing steadily during 2010-12, India – South Africa bilateral trade declined sharply by around 20% from $13.93 billion in FY2012-13 to $11.15 billion in FY2013-14. However, India’s exports to South Africa remained largely unaffected at $5.07 billion in FY2013-14, compared to around $5.1 billion in the previous year. India mainly exports oil, pharma, automobiles, gems and jewellery, electronic equipment, machinery and agro products to South Africa, while it imports mostly oil and jewellery items from South Africa. India agreed to sign an agreement with Southern African Customs Union (SACU) for exchange of tariff concessions on a select list of products in January 2008. SACU is considered the oldest Custom Union of the world and comprises South Africa, Namibia, Botswana, Swaziland and Lesotho. Completing SACU TPA negotiations is also important for India because it will pave way for the conclusion of the India-SACU-MERCOSUR trilateral agreement on trade.

This article was published on September 15, 2014.