In December 2000, the countries of MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) signed a framework agreement towards the creation of a free trade area between MERCOSUR and South Africa. This framework agreement established a negotiating committee to work towards the establishment of a free trade agreement.

In December 2004, MERCOSUR and the Southern African Customs Union (SACU) - composed of Botswana, Lesotho, Namibia, South Africa and Swaziland - signed a preferential trade agreement. In conjunction with the agreement, they issued an understanding on the conclusion of their preferential trade agreement, in which they expressed satisfaction at completing this agreement and reaffirmed their commitment to pursue further negotiations and enhance bilateral cooperation aimed at facilitating the implementation of the agreement. Ministers instructed that these negotiations begin as soon as possible and envisaged additional protocols to the agreement in customs and the automotive sector.

Negotiations continued, with the next meeting taking place in May 2005. At the tenth meeting , held in South Africa in August 2006, Parties agreed on the importance of concluding the current phase of negotiations.

The Preferential Trade Agreement Between the Common Market of the South (MERCOSUR) and the Southern African Customs Union (SACU), was signed on 15 December 2008, in Salvador, Brazil; and, on 03 April 2009 in Maseru, Lesotho.

Documents relating to the negotiations
15 December 2008 and 03 April 2009	Salvador, Brazil (15 December 2008) and Maseru, Lesotho (03 April 2009). Signature of the Preferential Trade Agreement Between the Common Market of the South (MERCOSUR) and the Southern African Customs Union (SACU)
26-28 October 2005	Montevideo, Uruguay. Report of the ninth meeting of the negotiating committee established by the framework agreement for the creation of a MERCOSUR-SACU FTA Annexes to the report of the ninth meeting: Annex I | Annex II | Annex III | Annex IV | Annex V | Annex VI | Annex VII | Annex VIII
10-13 May 2005	Pretoria, South Africa. Report of the eighth meeting of the negotiating committee established by the framework agreement for the creation of a MERCOSUR-SACU FTA
16 December 2004	Belo Horizonte, Brazil. Understanding between SACU and MERCOSUR on conclusion of their preferential trade agreement
9-12 November 2004	Pretoria, South Africa. Report of the sixth meeting of the negotiating committee established by the framework agreement for the creation of a MERCOSUR-SACU FTA Annexes to the report of the sixth meeting: Annex IV | Annex V | Annex VI | Annex VII
29 September - 01 October 2004	Brasilia, Brazil. Report of the fifth meeting of the negotiating committee established by the framework agreement for the creation of a MERCOSUR-SACU FTA Annexes to the report of the fith meeting: Annex I | Annex II | Annex III | Annex IV | Annex V | Annex VI
15 December 2000	Florianopolis, Brazil. Framework Agreement for the creation of a MERCOSUR-South Africa free trade agreement
Source: Subsecretaria de Política y Gestión Comercial, Dirección Nacional de Política Comercial Externa de Argentina

After being ratified by all signatory parties, the Preferential Trade Agreement between MERCOSUR and SACU entered into force on 1 April 2016.

Documents relating to entry into force
01 April 2016	MERCOSUR-SACU Preferential Trade Agreement enters into force enters into force
Source: Ministerio de Relaciones Exteriores, Uruguay

• Ministério do Desenvolvimento, Indústria e Comércio Exterior, Brasil
• Ministerio de Relaciones Exteriores, Uruguay
• Subsecretaria de Política y Gestión Comercial, Dirección Nacional de Política Comercial Externa de Argentina