New Delhi

Theproposed preferential trade agreement (PTA) between India and SACU group would help boost two-way commerce and investments between New Delhi and South Africa, South African High Commissioner to India Anil Sooklal said.

Sooklal said the country's engagement with India has evolved into a broad-based partnership covering trade, investment, technology, skills and development cooperation.He said the proposed PTA has "tremendous scope" to significantly expand trade and investment between the two countries, creating new opportunities for businesses and helping both economies flourish.On August 12, India and SACU group signed terms of references (ToRs) for launching negotiations for a PTA. ToRs sets out broad parameters for trade pact talks.

The five members of SACU (South African Customs Union) are Botswana, Eswatini (formerly Swaziland), Lesotho, Namibia and South Africa.

Unlike a free trade agreement, which typically covers the widest possible range of goods, a PTA grants duty concessions on a specified list of products. PTAs also generally exclude trade in services.

According to India-South Africa Business Forum, the proposed agreement is expected to provide greater market access and create new opportunities in sectors such as minerals, manufacturing, agriculture, fertilisers, food security, services and skilled and development cooperation.

Bilateral trade between India and South Africa currently stands at $ 18.01 billion, with the two countries looking to deepen economic engagement and move beyond a largely buyer-seller relationship, they said.