Mauritius and India Close to International Trade Pact

Mauritius and India are keen to strengthen their existing diplomatic and international trade ties. In fact, the two countries are expected to sign a PTA (preferential trading agreement) soon. But the proposed PTA is expected to eventually lead to the signing of a Comprehensive Economic Cooperation and Partnership Agreement between the two parties. The CECPA would be covering investments, services, and products in line with India's international trade pact with Singapore.

Sources said that the Indian government would offer a number of concessions to Mauritius, thus allowing it to export duty-free products such as rum, refined sugar, and million of garments to India. India's Cabinet Committee on Economic Affairs is expected to review the proposed preferential trading agreement. Under the proposal, India would allow Mauiritius to export one million pieces of garments to India. While the one million garments would be exported without any sourcing condition for yarn, the next set of two million garments would be covered by a sourcing condition on yarn. The proposed PTA seeks to improve international trade between India and Mauritius.

Besides garments, Mauritius would also be allowed to export around 15,000 metric tons of duty-free sugar and rum. Under the proposed PTA, India is also expected to cut or remove its duties on some products. The move seeks to improve Mauritius' exports to India. It must be noted that the Trade and Economic Relations Committee under the leadership of the Prime Minister has already given its go signal to the proposed PTA. Meanwhile, economic cooperation and investment would be the focus of the CECPA between India and Mauritius. The proposed international trade pact is being modeled after India's Comprehensive Economic Cooperation Agreement with Singapore.

The proposed international trade deal with Mauritius would cover trade in services and goods, general economic cooperation, investment, and customs cooperation. Sources said that India and Mauritius have already been able to reach a consensus on goods. For its part, Mauritius has offered to ease its policies regarding the issuance of work visas to Indian professionals, particularly those who are specializing in finances. In fact, Mauritius has already reformed its policies in order to allow Indian chartered accounts to audit the accounts of international business companies. Mauritius has also proposed to grant a permanent resident status to Indian professionals working in financial sectors. Recently, Mauritius has allowed India's Financial Technologies, which is the promoter of multi-commodity futures, to establish a pan-African commodities exchange. The proposed PTA is expected to further deepen the international trade ties between the two countries.