International trade or organization

eCOMESA

The Common Market for Eastern and Southern Africa (COMESA) is a preferential trade zone created in December 1994 to replace a former Preferential Trade Area created in 1981. COMESA stands as a pillar of African economy as it takes under its wings countries of the southern and eastern African regions, namely:

· Angola (21 Dec 1981)
· Burundi (21 Dec 1981)
· Comoros (21 Dec 1981)
· Democratic Republic of the Congo (21 Dec 1981)
· Djibouti (21 Dec 1981)
· Egypt (6 Jan 1999)
· Eritrea (1994)
· Ethiopia (21 Dec 1981)
· Kenya (21 Dec 1981)
· Madagascar (21 Dec 1981)
· Malawi (21 Dec 1981)
· Mauritius (21 Dec 1981)
· Rwanda (21 Dec 1981)
· Seychelles (2001)
· Sudan (21 Dec 1981)
· Swaziland (21 Dec 1981)
· Uganda (21 Dec 1981)
· Zambia (21 Dec 1981)
· Zimbabwe (21 Dec 1981)

Mauritius joined the COMESA, through its membership under the Preferential Trade Area since 1981. With preferential trade agreements, the country has been successful in establishing commercial relationships with some of the most important nations of Africa. The COMESA has an impressive market representing more than 380 million people and as such it maintains its reason to-be by promoting the development of natural and human resources within this population. Mauritius has tariff-free trade agreements with 8 other African countries and enjoy a reduced tariff-trade agreement with 11 others.

SADC

The Southern African Development Community (SADC) with a population of 230 million has a combined GDP of US$200 billion. This preferential trade zone was created in September 2000 an aims at eliminating 85% of all tariffs by 2012. Goods having an established percentage of processing within SADC member countries are eligible to duty-free access benefits within this preferential trade zone.

ACP-EU Convention

Mauritius is part of the African Carribean Pacific European Union Convention. The European Union, in itself, constitute a market of about 500 million inhabitants. This convention is mainly targeted towards the preferential exchange of agricultural products at least up through year 2007.

AGOA

The United States-African Growth and Opportunity Act (AGOA) was introduced to enhance commercial and trade relations between the sub-Saharan African countries and the United States of America. AGOA facilitates the exportation of goods originating from sub-Saharan countries to United States through duty-free and quota-free concessions. For example, exports of apparel and more than 20,000 products including footwear and watches from Mauritius are subject to duty-free benefits. This agreement is extended up to 2015.

IOR – ARC

The Indian Ocean Rim Association for Regional Cooperation came into force in 1997 and allows for better commercial and trade exchanges within the Indian Ocean region. There are 19 members as follows:

Australia, Bangladesh, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, Seychelles, Singapore, South Africa, Sri Lanka, Tanzania, Thailand, United Arab Emirates and Yemen.

China, Egypt, France, Japan and the UK stand as Dialogue Partners and the Indian Ocean Tourism Organisation acts as Observer.

GSP

GSP stands for Generalised Systems of Preferences and offers preferential conditions to developing countries in their goods exports. It was created in 1971 by the United Nations Conference on Trade and Development (UNCTAD). To benefit from this preferential trade zone, the goods should be wholly manufactured in Mauritius, or have percentage-based production in the country and they should be directly exported to the destination country;

Bilateral Agreements

There exist bilateral agreements between Mauritius and Pakistan, Egypt, Madagascar, Zimbabwe, Hungary and the Central African Republic. Bilateral trade is facilitate as barriers are removed while provision is made for a phased reduction of non-tariff barriers.

Comprehensive Economic Cooperation and Partnership Agreement (CECPA)

Mauritius and India enjoy a historical bond as the Mauritian population originates mostly from the peninsula. Trade agreements between these two countries are a logical sequence in the strengthening of their relationship. This agreement enables Mauritius to export the following items on a through a duty payment of 50% instead of the usual 300% to India, viz:

3 million units of textiles and garments

150,000 litres of rum

Indian wine also benefit from this agreement with a preferential tariff of 50%. There are around 29 product lines subject of a tariff line phasing out exercise extended over a 4 year period.

Investment are also privileged between these two countries through the India-Mauritius Infrastructure Development Fund, while both of them have agreed to cooperate on the implementation of programmes for the development of information security, e-business, research and private joint-ventures.

Preferential Trade Agreement with Pakistan

The Trade Agreement Rule of Origin and Trade in Services was signed in November 2006, enabling Mauritius and Pakistan to develop their trade and commercial relationship. This agreement extends its reach to even include services, economic and technical cooperation initiatives.