India-SACU Free Trade Pact to Boost Economic Ties, Says South Africa Envoy

In an exclusive interview with IANS, the High Commissioner said that this would be the first free trade agreement between India and a regional bloc in Africa. The SACU consists of five member countries - Botswana, Eswatini, Lesotho, Namibia, and South Africa - and South Africa participates as part of that customs union in trade negotiations. Both sides have agreed to expedite discussions, he added.

He further stated that trade and investment flows between India and South Africa have been very significant. "South Africa is India's largest trading partner on the African continent, and India is our fourth-largest trading partner globally. Our two-way trade stands at approximately $20 billion, which accounts for nearly 20 per cent of India's total trade with Africa," he observed.

Sooklal also pointed out that South Africa's Minister of Trade, Industry and Competition, Parks Tau, attended the CII India-Africa Conclave recently, where South Africa was the guest country. On that occasion, Minister Tau held a bilateral meeting with Commerce and Industry Minister Piyush Goyal to discuss key initiatives to deepen trade and investment ties between the two countries.

The High Commissioner also said that India has been a leading voice of the Global South. During India's G20 Presidency in 2023, Prime Minister Narendra Modi played a decisive role in ensuring the African Union became a full member of the G20. This was widely appreciated across Africa.

India also initiated the Voice of the Global South Summit, which brought focus to the concerns of developing nations. India continues to be not only a leading voice but also a leading initiator in shaping a more inclusive global system, he observed.

Sooklal further stated that the India-Brazil-South Africa (IBSA) cooperation has contributed significantly to addressing issues of global governance. Recently, on the margins of the G20 Summit in South Africa, there was an IBSA Summit where Brazilian President Luiz Inacio Lula da Silva, Prime Minister Modi, and South African President Cyril Ramaphosa met to discuss key areas of cooperation.

Interestingly, one of the newer areas of collaboration is cooperation in the field of Artificial Intelligence.

IBSA has played a key role in advocating reform of global institutions, including the WTO, the Bretton Woods institutions, and the UN system, while addressing developmental challenges faced by the Global South.

Talking about the US boycott of the G20 meet in South Africa, the envoy said, although it was unfortunate that the United States was absent, the summit in Johannesburg was very successful. "All other member states attended, and we adopted a comprehensive declaration addressing major global challenges."

"This demonstrated that the G20 is a collective platform. No single country can paralyse it. By staying away, one does not achieve constructive outcomes. On the contrary, cooperation is the only effective way to address global challenges," he added.

On New Delhi's stand against US tariff pressures, he said that India has taken a principled stand regarding the weaponisation of tariffs and the imposition of unfair unilateral measures.

India, now the world's fourth-largest economy, has demonstrated that no external pressure can force a country to compromise its sovereignty. India's approach has given strength and confidence to many developing nations facing similar pressures, he pointed out.

Sooklal also said that the upcoming AI Summit in India is an extremely significant event. India, along with France, played a key role in initiating global AI discussions. AI is evolving rapidly and presents immense opportunities, especially for developing countries. At the same time, it brings challenges that require global cooperation.

Hosting the AI summit in India demonstrates that the Global South can lead in emerging technologies. This summit will likely produce important outcomes and strengthen international cooperation in AI governance, he added.

- IANS