India and SA must aim for meaningful trade agreement

The author assesses the ongoing negotiations for a preferential trade agreement (PTA) between South Africa and India, warning that the deal risks becoming 'commercially barren' if it only focuses on a limited list of goods. The paper highlights the complexity of South Africa negotiating as part of the Southern African Customs Union (Sacu) and the presence of strong domestic lobbies in both nations that resist liberalisation in sensitive sectors like automobiles, textiles, and agriculture. To achieve the bilateral trade target of $15 billion by 2014, the author suggests that liberalising trade in services could provide necessary trade-offs and balance the agreement, despite opposition from South African organised labour.

• South Africa and India have established a bilateral trade target of $15 billion (R121bn) per year to be achieved by 2014.
• The current trade balance favors South Africa, primarily driven by the export of commodities such as coal, diamonds, and gold.
• South Africa's negotiations are complicated by its membership in the five-member Southern African Customs Union (Sacu), as other member states may have different interests regarding Indian imports and domestic industry protection.
• There is a risk that the India-South Africa PTA will lack commercial value, similar to the 'commercially barren' agreements both nations concluded with the Mercosur trade bloc.
• The author contends that including trade in services in the negotiations could resolve discrepancies in product request lists, although this faces opposition from South African organised labour.

APA

South African Institute of International Affairs (2012). India and SA must aim for meaningful trade agreement. https://saiia.org.za/research/india-and-sa-must-aim-for-meaningful-trade-agreement/

Chicago

South African Institute of International Affairs. India and SA must aim for meaningful trade agreement. 2012. https://saiia.org.za/research/india-and-sa-must-aim-for-meaningful-trade-agreement/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=India and SA must aim for meaningful trade agreement |date=17 May 2012 |url=https://saiia.org.za/research/india-and-sa-must-aim-for-meaningful-trade-agreement/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2012india, author = {{South African Institute of International Affairs}}, title = {{India and SA must aim for meaningful trade agreement}}, institution = {South African Institute of International Affairs}, year = {2012}, month = may, url = {https://saiia.org.za/research/india-and-sa-must-aim-for-meaningful-trade-agreement/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }