India & Mauritius signs Limited Trade Pact agreement
India and Mauritius have signed a Comprehensive Economic Cooperation and Partnership Agreement (CECPA). This was first ever trade agreement with any African country. It was signed in the presence of Prime Minister of Mauritius, Pravind Jugnauth and the external affairs minister of India, S Jaishankar. CECPA was approved by the Indian Cabinet on February 17, 2021. It will come into effect from March, 2021.
Comprehensive Economic Cooperation and Partnership Agreement (CECPA)
- As per this limited agreement, India will be given preferential access to the markets in Mauritius and vice versa.
- India will get access to 310 products on the other hand, Mauritius will get access to 615 products.
- India will also get access to 115 sub-sectors in the 11 broad services sectors.
- India will get access to goods like food & beverages, farm products, textiles & garments etc while Mauritius will get access to frozen fish, biscuits, speciality sugar, fresh fruits, juices
- These sectors include financial services, software, and telecommunications.
- The agreement also allows unrestricted movement of skilled professionals.
Significance of the agreement
This is the first trade agreement that India signed after it launched “Atma-Nirbhar Bharat Initiative”. Also, this was the first ever agreement that India signed with any African Nation where China has its economic dominance. Thus, this pact becomes significant as a counter to China. Further, the pact will set stage for more such pacts with other African Nations.
India-Mauritius Trade relation
The Bilateral trade between India and Mauritius have increased from $207 million in 2005-06 to $690 million in the Financial Year 2020. This accounts for 233% increase in the trade. Also, India’s exports to Mauritius have increased from $199 million to $662 million in the same period. It accounts for 232% increase. On the other hand, India’s imports from Mauritius have just increased from $7 million to almost $28 million.
Topics: Atma Nirbhar Bharat Abhiyan • Comprehensive Economic Cooperation and Partnership Agreement (CECPA) • India-Mauritius • India-Mauritius CECPA • India-Mauritius Trade relation • International Trade