Target Market

Mauritius-China Free Trade Agreement (FTA)

The Free Trade Agreement between the government of the Republic of Mauritius and the government of the People's Republic of China was signed in October 2019 in Beijing. Following the completion of ratification procedures by both sides, the Mauritius-China FTA entered into force on 01 January 2021, marking the first and only FTA between China and an African nation. The Mauritius-China FTA is a symbol of the excellent bilateral relations between Mauritius and China which have endured and thrived for several decades.

While China represents a market of 1.4 billion people, it has held the position of Mauritius' primary trade partner for an extended period. Since its enactment, there has been a significant surge in the trade volume between the two countries. In the inaugural year of the FTA in 2021, trade volume reached $914 million, reflecting a substantial 20.5% increase. By the second year in 2022, the volume further escalated to $1.8 billion, indicating a notable 15.8% increase, as reported by Mr. Zhu Liying, the Ambassador of the People's Republic of China to Mauritius.

The FTA encompasses four key components, focusing on Trade in Goods, Trade in Services, Investment, and Economic Cooperation. A foreign national with a registered company in Mauritius can immediately benefit from duty-free access to the Chinese market on 7,504 tariff lines. Additionally, tariffs on an extra 723 tariff lines are gradually being phased out over a 5 to 7-year period, commencing on January 1, 2021. Furthermore, a Tariff Rate Quota for 50,000 tonnes of sugar will be implemented progressively over an 8-year span, starting with an initial quantity of 15,000 tonnes. To avail of tariff preferences, exporters must ensure that their products comply with the Rules of Origin. The Mauritius-China FTA Certificate of Origin is issued and approved by the Customs Department of the Mauritius Revenue Authority, ensuring that imports entering Mauritius from China with a valid certificate benefit from preferential tariff treatment.

In terms of Trade in Services, both nations have mutually agreed to eliminate restrictions in over 100 service sectors, encompassing financial services, telecommunications, Information and Communications Technology, professional services, construction, and health services. Given China's colossal population of 1.4 billion people, gaining access to this market is undeniably significant.

Mauritius -India Comprehensive Economic Cooperation and Partnership Agreement (CECPA)

The Comprehensive Economic Cooperation and Partnership Agreement (CECPA) signed between Mauritius and India on 22 February 2021, entered into force on 1 April 2021. As one of the fastest growing economies, India presents a significant opportunity to Mauritian and African businesses, providing access to a market of more than 1.4 billion inhabitants (India). India and Mauritius share a very special relationship. The India-Mauritius CECPA is the first trade agreement signed between India and an African country. It provides a platform for the two trading partners to reduce custom duties on a host of products as well as relaxing existing standards to promote service trade.

The CECPA covers Trade in Goods, Rules of Origin, Trade in Services, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, Movement of Natural Persons, Telecom, Financial Services, Customs Procedures and cooperation in other areas. The CECPA contains 8 chapters and 16 annexes. Mauritius will benefit preferential market access into India on a list of 615 products while Mauritius will provide preferential access to India on 310 products, with Tariff Rate Quotas on 88 products such as spices, tea, plastic articles, wooden furniture, parts of motor vehicles, amongst others. With a population of 1.4billion people in India alone, gaining access to this market cannot be overlooked.

It provides a platform for the two trading partners to reduce custom duties on a host of products as well as relaxing existing standards to promote service trade.

Mauritius - UAE Comprehensive Economic Partnership Agreement (CEPA)

The United Arab Emirates (UAE) and Mauritius have successfully concluded negotiations for a Comprehensive Economic Partnership Agreement (Cepa). This agreement marks the first of its kind between the UAE and an African nation, signifying a significant milestone in economic collaboration. Cepa covers various aspects, including trade in goods and services, investment facilitation, and collaboration in different sectors. The primary goal is to boost economic ties, increase trade and investment flows, and foster collaboration between the private sectors of the involved nations. It is expected to accelerate growth in non-oil trade between the two nations. In the first half of 2023, non-oil trade stood at $63.1 million, with significant opportunities identified in the chemicals, metals, and petroleum products sectors. The agreement is not only expected to boost trade flows but also create new pathways for strategic investment, private-sector collaboration, academic cooperation, and support for small and medium-sized enterprises (SMEs).

United Kingdom - Eastern Southern Africa Economic Partnership Agreement (UK-ESA EPA)

The Eastern and Southern Africa (ESA) – UK Economic Partnership Agreement (EPA) came into operation on 1st January 2021 after the United Kingdom officially left the European Union (Brexit) on 31st December 2020. The ESA – UK EPA contains three components namely the Chapter on Trade in Goods, the Chapter on Fisheries and the Chapter on Development Cooperation. Mauritius, Seychelles, Zimbabwe, Comoros and Madagascar are part of the ESA-UK EPA.

The ESA-UK EPA is mostly based on the EPA with the European Union and offers duty-free and quota-free market access to the UK market. The Agreement provides an automatic derogation of 6,200 tons of non originating tuna that can be used in the production of canned tuna and 341 tonnes of tuna loins. This quota will be shared among Mauritius, Seychelles, and Madagascar. This EPA is a continuity agreement modelled on the EU-ESA interim Economic Partnership Agreement (iEPA).

In April 2023, Mauritius officially entered into the UK-Mauritius Strategic Trade Partnership (STP), aiming to elevate their existing MRU 40 billion (approximately $1 billion) trade collaborations to new levels. As part of this initiative, a UK-Mauritius Joint Business Council (JBC) is being established under the umbrella of the UK-Mauritius Strategic Trade Partnership to reinforce trade and investment relations between the UK and Mauritius. The STP is anticipated to establish a comprehensive framework, fostering cohesive policy efforts and enhanced coordination between the two nations.

The primary objectives of the JBC include creating a platform for regular business exchanges and promotional activities in key sectors outlined in the STP, such as Pharmaceuticals, Green Economy/Waste Management, Agri-Tech, Education, ICT, and Financial and Professional Services. Thanks to the STP, the UK and Mauritius now possess a formal structure dedicated to promoting bilateral trade. Notably, Mauritius ranks as the UK's 6th largest market in Africa, while the UK stands as Mauritius' 2nd most significant export market. The UK's re-evaluation of its global role post-Brexit has led to a recalibrated approach to partnerships with African countries.

European Union-Eastern Southern Africa Interim Economic Partnership Agreement (EU-ESA – iEPA)

The Eastern and Southern African States (ESA), comprising Mauritius, Madagascar, Seychelles, and Zimbabwe signed an interim Economic Partnership Agreement (EPA) with the European Union (EU) in August 2009. The Union of Comoros joined the ESA states in January 2019 by ratifying the interim EPA. The Agreement aims to provide full duty free and quota free market access into the EU for goods originating in the ESA States on a secure, long term and predictable basis. It also aims to promote trade between the parties and export led growth to enable the integration of the ESA economies into the global economy; to progressively and gradually liberalize the ESA goods market as established by the Agreement; and to preserve and improve market access conditions to ensure that all ESA States are better and not worse off.

African Growth and Opportunity Act (AGOA)

The African Growth and Opportunity Act (AGOA) builds on the existing Generalised System of Preferences (GSP) scheme and offers duty-free and quota-free market access to the United States for approximately 7000 products including the roughly 1,800 product tariff lines that were added to the GSP by the AGOA legislation.

Since its enactment, AGOA has had a very positive impact on US Africa trade flows and has contributed to the economic development in Africa. AGOA has also created thousands of direct and indirect jobs on the African continent especially, including for SMEs and women. Overall AGOA has increased two-way trade and has benefitted both the US and SSA countries.

SADC FREE TRADE AREA (SADC FTA)

The SADC Protocol on Trade, signed in August 1996, began implementation in 2000, gradually eliminating customs duties on 85% of tariff lines by 2008 to establish the SADC Free Trade Area (FTA). Most Member States completed the elimination of duties on remaining 'sensitive products' by 2012. Trade within SADC Member States under the FTA is conducted on a duty-free basis. This grants exporters duty-free access to other SADC Member States, with the exception of Angola, DRC, and Comoros, which are not yet FTA members.

SADC Member States

The SADC Members States are: Comoros, Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Madagascar, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. It is to be noted that Malawi, Tanzania and Zimbabwe do not offer full duty access and still maintain duties on a few products while Angola and Democratic Republic of Congo are not participating in the FTA and therefore do not confer any tariff reductions under the SADC Trade Protocol.

Common Market for Eastern and Southern Africa (COMESA)

The Common Market for Eastern and Southern Africa (COMESA) was established in December 1994 as a replacement to the Preferential Trade Area (PTA) which had been in existence since 1981. COMESA (as defined by its Treaty) was established as an organisation of free independent sovereign states which have agreed to co-operate in developing their natural and human resources for the good of all their people'.

The organisation has a wide range of objectives which prioritises economic integration and the promotion of peace and security in the region. COMESA's current strategy can be summed up in the phrase 'economic prosperity through regional integration'. With its 21 member states, population of over 389 million and an annual import bill of around US$32 billion with an export bill of US$82 billion COMESA forms a major market place for both internal and external trading. Its area is impressive on the map of the African Continent covering a geographical area of 12 Million (sq km). Its achievements to date have been significant.

TRADE LIBERALISATION, TRADE FACILITATION AND MARKET INTEGRATION

The COMESA FTA was achieved on 31st October, 2000 when nine of the member States namely Djibouti, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia and Zimbabwe eliminated their tariffs on COMESA originating products, in accordance with the tariff reduction schedule adopted in 1992. This followed a trade liberalisation programme that commenced in 1984 on reduction and eventual elimination of tariff and non-tariff barriers to intra- regional trade.

Key Benefits:

• A wider, harmonised and more competitive market
• Greater industrial productivity and competitiveness
• Increased agricultural production and food security
• A more rational exploitation of natural resources
• More harmonised monetary, banking and financial policies
• More reliable transport and communications infrastructure

The trade related objectives of the COMESA include:

• Trade liberalisation and Customs co-operation, including the introduction of a unified computerised Customs network across the region.
• Improving the administration of transport and communications to ease the movement of goods services and people between the countries.
• Creating an enabling environment and legal framework which will encourage the growth of the private sector, the establishment of a secure investment environment, and the adoption of common sets of standards.
• The harmonisation of macro-economic and monetary policies throughout the region.

African Continental Free Trade Area (AfCFTA)

The AfCFTA is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight (8) Regional Economic Communities (RECs). The overall mandate of the AfCFTA is to create a single continental market with a population of about 1.3 billion people and a combined GDP of approximately US$ 3.4 trillion. The AfCFTA is one of the flagship projects of Agenda 2063: The Africa We Want, the African Union’s long-term development strategy for transforming the continent into a global powerhouse.

As part of its mandate, the AfCFTA is to eliminate trade barriers and boost intra-Africa trade. In particular, it is to advance trade in value-added production across all service sectors of the African Economy. The AfCFTA will contribute to establishing regional value chains in Africa, enabling investment and job creation. The practical implementation of the AfCFTA has the potential to foster industrialisation, job creation, and investment, thus enhancing the competitiveness of Africa in the medium to long term.

The AfCFTA entered into force on May 30, 2019, after 24 Member States deposited their Instruments of Ratification following a series of continuous continental engagements spanning since 2012. It was launched at the 12th Extraordinary Session of the AU Assembly of Heads of State and Government in Niamey – Niger, in July 2019. The commencement of trading under the AfCFTA was in January 1, 2021. The AfCFTA Secretariat is hosted in Accra, Ghana. His Excellency Wamkele Mene is the first elected Secretary-General coordinating the implementation of the Agreement.

Mauritius Double Taxation Avoidance Agreements (DTAAs)

Mauritius has finalized 54 Double Taxation Avoidance Agreements (DTAAs) globally of which 21 are with African states and is actively involved in negotiating additional treaties. Currently, 44 Investment Promotion and Protection Agreements (IPPAs) have been ratified, of 24 are with African states and are in force. Additionally, Mauritius has signed Tax Information Exchange Agreements (TIEAs) with various countries, including Australia, Austria, Denmark, the Faroe Islands, Finland, Greenland, the States of Guernsey, Iceland, South Korea, and Norway. TIEAs with Argentina, Greece, and the Isle of Man await signature. The implementation of these DTAAs allows entrepreneurs to benefit from significant tax reductions on dividends and corporate taxes when operating in different countries.

Indian Ocean Commission (IOC)

The Indian Ocean Commission (IOC) is an intergovernmental organisation comprising Indian Ocean islands and aiming at promoting cooperation, through strengthening diplomatic, economic and commercial ties among its members. Member States of the IOC include Comoros, Madagascar, Mauritius, France (for Réunion), and the Seychelles.

PREFERENTIAL TRADE IN THE IOC

Presently, only Mauritius and Madagascar are granting trade preferences under the IOC trade regime and there are no customs duties for products meeting the IOC rules of origin between the two countries.