Mauritius

Location : Southern Africa, island in the Indian Ocean, east of Madagascar

Capital : Port Louis

Languages : Creole 80.5%, Bhojpuri 12.1%, French 3.4% (official), other 3.7%, unspecified 0.3% (2000 census)

Area : 2,040 sq km

Land Use : arable land: 5.07%; permanent crops: 1.03%; other: 93.91% (2001)

Natural Resources : arable land, fish

Population : 1,230,602 (July 2005 est.).

Labour force : 560,000 (2004 est.)

Labour force participation rate : 45.51% of population (2004 est)

Population below poverty line : 10% (2001 est.)

International Organisation participation : ACCT, ACP, AFDB, AU, C, FAO, G-77, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IOC, Interpol, IOC, ISO, ITU, MIGA, NAM, OPCW, PCA, SADC, UN, UNCTAD, UNESCO, UNIDO, UNMIK, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO

GDP per capita : U$12,800 (2004 est.)

GDP Real Growth Rate : 4.7% (2004 est.)

GDP sectoral composition : agriculture: 7.6%; industry: 30%; services: 62.4% (2004 est.)

Investment (gross fixed): 22.5% of GDP (2004 est.)

Industries: food processing (largely sugar milling), textiles, clothing; chemicals, metal products, transport equipment, nonelectrical machinery; tourism 

Industrial production growth rate : 8% (2000 est.)

Agriculture - products : sugarcane, tea, corn, potatoes, bananas, pulses; cattle, goats; fish

Exports : U$2.012 billion f.o.b. (2004 est.)

Exports - commodities : clothing and textiles, sugar, cut flowers, molasses

Exports - partners : UK 30.6%, France 22.7%, US 13.7%, Madagascar 7.7% (2004)

Imports : U $2.245 billion f.o.b. (2004 est.)

Imports - commodities : manufactured goods, capital equipment, foodstuffs, petroleum products, chemicals

Imports - partners : France 13.1%, South Africa 10.8%, India 7.6%, China 5.9%, Germany 4.5%, Singapore 4% (2004)

QUALITATIVE TRADE PROFILE

Trade policies in Mauritius , as an integral part of economic policies, are aimed at improving the standard of living of the population through the establishment of a thriving, competitive, and modern economy growing at high rates. This objective is expected to be achieved, to a large extent, by the practice of a liberal economic policy, including liberalization of foreign trade. Continued implementation of sound macroeconomic policies is expected to create an environment conducive to economic growth, full-employment, and price stability, with trade and investment promotion playing an important role.

The Joint Economic Council (JEC) Task Force has identified three main challenges to Mauritius' economic transition: uncompetitive national business environment; international competitive pressures; and weak corporate international competitiveness. The Task Force recommended that Mauritius diversify away from its narrow product base by converting its traditional niche production of sugar, textiles, and tourism into dynamic clusters, and by fully exploiting its comparative advantages in four emerging clusters, i.e. the knowledge cluster, the logistics and services cluster, the environment cluster, and the pharmacology cluster. Some of these clusters are among the activities the Government intends to promote with a view to creating employment opportunities; these activities include printing and pre-press, software development, pharmaceuticals, light engineering, electronics, agro-industry, and jewellery.

A reduction in maximum tariff rates, and an increase in the number of duty‑free lines, have contributed to lowering the simple average MFN tariff to some 20%; this is fairly high, particularly given that over 50% of lines bear a zero rate. Nearly all rates are ad valorem; these rates range to 80%, with high dispersion. Specific duties are collected on two tariff lines, with the highest ad valorem equivalent being around 360%. Since 1995, the number of tariff bands has remained unchanged at eleven, including the zero rate and the ad valorem equivalents of the two specific duties. Using the WTO definition, the simple average tariff is 20.5% on agricultural imports, and 19.8% on imports of non-agricultural products.

Mauritius has bound nearly 15% of all its tariff lines. It bound tariffs at a ceiling rate of 65% on some 1.6% of its total tariff lines for non-agricultural products; all agricultural tariff lines (WTO definition) are bound at ceiling rates ranging from 37% to 122%. Other duties and charges on all these products are bound at zero or 17%. An increase in the coverage of bindings and the narrowing of the gap between bound and applied rates would enhance predictability of Mauritius' tariff regime.

Mauritius has taken steps to harmonize differing customs duties based on source ("scheduled", i.e. Commonwealth and certain major trading partners, and "non-scheduled" territories, i.e. other countries). As from the 2000/01 Budget, the tariff differential has been reduced from 20 to 10 percentage points and applies to only one band: products liable to the MFN tariff rate of 65% carry a lower rate of 55% when they are imported from scheduled territories. Differing excise duties also apply to imports and locally produced goods. In September 1998, a value-added tax of 10% replaced the sales tax; it applies to imports and locally produced goods. Customs duties and taxes account for some 50% of total tax revenue. Since 1 January 2000, Mauritius has applied the provisions of the WTO Customs Valuation Agreement.  

INSTITUTIONAL FRAMEWORK

Primary responsibility for the formulation, review, and assessment of trade policies lies with the Ministry of Industry, Commerce and International Trade. Consultations are held with other Ministries (including those responsible for Finance, Economic Planning and Development, Agriculture, Health, and Foreign Affairs and Regional Cooperation) co-opted on committees that deal with specific sectors. Consultations are also held with the private sector in a structured manner, as well as on an ad hoc basis. The Government holds regular meetings (usually twice a year) on broad economic policies with the Joint Economic Council (JEC). Structured consultations are held every year on the national budget between the private sector and the Finance Minister. Meetings on sectoral issues are held periodically between the private sector and the relevant ministries. In the process of consultation, the Mauritius Chamber of Commerce and Industry is the main institution representing the interest of the private sector with regard to trade and industrial issues.

The private sector participates in promotional activities conducted by the Government abroad. The private sector is also involved in tripartite wage negotiations and is represented in, inter alia: the National Negotiating Committee on Post-Lomé discussions; the WTO Standing Co-ordination Committee; and the Regional Cooperation Council. The WTO Standing Co-ordination Committee was set up to deal with the implementation, follow-up and coordination of trade policy issues that fall under the WTO Agreements. It is chaired by the Minister responsible for international trade, and comprises representatives from both public and private sectors. Various sub‑committees have been set up under the aegis of the Committee to address issues of specific interests. The private sector has participated in all the WTO Ministerial conferences. The Regional Cooperation Council has been set up under the chairmanship of the Minister responsible for Foreign Affairs with a view to forging a coherent regional strategy for Mauritius given its membership of various groupings.  

TRADE AGREEMENTS

Bilateral

Mauritius is not a signatory to any bilateral preferential agreement. However, Mauritius is a beneficiary under the United States' African Growth and Opportunity Act (AGOA). In addition under the Generalized System of Preferences (GSP), Mauritius also benefits from preferential tariff treatment granted by, inter alia, Canada, the Czech Republic, Hungary, Japan, New Zealand, Norway and Switzerland. Mauritius also participates in the Indian Ocean Rim - Association for Regional Cooperation (IOR-ARC), which aims to facilitate business among member countries. Mauritius is not a signatory to the Agreement on Global System of Trade Preferences (GSTP) concluded among developing countries.

Regional

Mauritius is a member of, the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC), the Indian Ocean Commission (IOC), the Regional Integration Facilitation Forum (RIFF) and the Organization of African Unity (OAU)/African Economic Community (AEC). Mauritius is currently negotiating an Economic Partnership Agreement with the EU through the Eastern and Southern Africa (ESA) configuration

Multilateral

Mauritius is an original Member of the WTO and an ITA signatory. 

NEED PRIORITIES

Mauritius needs assistance in implementing its WTO and regional commitments.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.