New Delhi (NVI): The Union Cabinet approved signing of the comprehensive economic agreement between India and Mauritius, to encourage and improve trade between the two countries.
According to an official statement, “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”
The India-Mauritius CECPA will be the first trade Agreement to be signed by India with a country in Africa.
Union Minister Prakash Javadekar made the announcement of decision and said under the agreement, India will send 310 items to Mauritius and 615 items will be imported from the island nation.
“The agreement will provide an institutional mechanism to encourage and improve trade between the two countries,” he added.
The Cabinet in a statement informed that the agreement 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,
It will also cover 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.
The two nations 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, the statement said.
The pact will be signed by the concerned from both the sides on a mutually convenient date and it will come into force from 1st date of the following month.
Moreover, 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.
India had extended a ‘Special Economic Package’ of USD 353 million to Mauritius in 2016. The country has been among the largest trading partners of Mauritius since 2005, and has been one of the largest exporters of goods and services to Mauritius, the Cabinet statement said.
The bilateral trade between India and Mauritius has registered a growth of 233 per cent 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 per cent 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 per cent from USD7.33 million in 2005-06 to USD 27.89 million in FY 2019-20,” the statement added.
The agreement will further cement the already deep and special relations between the two countries.
-RJV
