Cabinet Approves Comprehensive Economic Cooperation and Partnership Agreement (CECPA) between India and Mauritius

The Union Cabinet, chaired by the Prime Minister, Narendra Modi has approved signing of the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) between India and Mauritius on 17 February 2021.

The salient features of India-Mauritius CECPA are as follows:

The India-Mauritius CECPA will be the first trade Agreement to be signed by India with a country in Africa. The Agreement is a limited agreement, which will cover 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

Impact or benefits:

CECPA provides for an institutional mechanism to encourage and improve trade between the two countries. The CECPA between India and Mauritius covers 310 export items for India, including food stuff and beverages (80 lines), agricultural products (25 lines), textile and textile articles (27 lines), base metals and articles thereof (32 lines), electricals and electronic item (13 lines), plastics and chemicals (20 lines), wood and articles thereof (15 lines), and others. Mauritius will benefit from preferential market access into India for its 615 products, including frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and apparel.

As regards trade in services, Indian service providers will have access to around 115 sub-sectors from the 11 broad service sectors such as professional services, computer related services, research & development, other business services, telecommunication, construction, distribution, education, environmental, financial, tourism & travel related, recreational, yoga, audio-visual services, and transport services.

India has offered around 95 sub-sectors from the 11 broad services sectors, including professional services, R&D, other business services, telecommunication, financial, distribution, higher education, environmental, health, tourism and travel related services, recreational services and transport services.

Both sides have also agreed to negotiate an Automatic Trigger Safeguard Mechanism (ATSM) for a limited number of highly sensitive products within two years of the Signing of the Agreement.

Timelines:

The Agreement will be signed by the concerned from both the countries on a mutually convenient date and will come into force from 1st date of the following month.

Background:

India and Mauritius enjoy excellent bilateral relations, sustained by historic cultural affinities, frequent high-level political interactions, development cooperation, defence and maritime partnership, and people to people linkages.

Mauritius is an important development partner of India. India had extended a ‘Special Economic Package’ of USD 353 million to Mauritius in 2016. The new Supreme Court building project is one of the five projects being implemented under this package and was jointly inaugurated by Prime Minister Narendra Modi and the Prime Minister of Mauritius PravindJugnauth in July 2020. In October 2019, Prime Minister Modi and the PM of Mauritius had jointly inaugurated the Phase -I of the Metro Express Project and the 100-bed state of the art ENT hospital project in Mauritius, also built under the special economic package.

Since 2005, India has been among the largest trading partners of Mauritius, and has been one of the largest exporters of goods and services to Mauritius. According to the International Trade Centre (ITC), in 2019, the main import partners of Mauritius were India (13.85%), China (16.69%), South Africa (8.07%), and UAE (7.28%). The bilateral trade between India and Mauritius has registered a growth of 233% from USD 206.76 million in Financial Year (FY) 2005-06 to USD 690.02 million in FY 2019-20. India’s exports to Mauritius surged 232% from USD 199.43 million in FY 2005-06 to USD 662.13 million in FY 2019-20, while India’s imports from Mauritius increased 280% from USD7.33 million in 2005-06 to USD 27.89 million in FY 2019-20.

The India-Mauritius CECPA will further cement the already deep and special relations between the two countries.