WT/TPR/S/198 Trade Policy Review 
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II. TRADE AND INVESTMENT REGIMES 
(1) INSTITUTIONAL FRAMEWORK  
1. Under the 1968 Constitution1, the Republic of Mauritius is a sovereign democratic state.  The 
President is the Head of State and Commander-in- Chief of the Republic.  The President and Vice-
President are elected by the National Assembly on a motion made by the Prime Minister and 
supported by the votes of a majority of its members fo r a term of five years;  both are eligible for 
re-election, with no limit on the number of term s.  The President appoints as Prime Minister the 
member of the National Assembly he deems best ab le to command the support of its  majority.  On 
the advice of the Prime Minister, he also appoints the Deputy Prime Minister and the other Ministers 
(from among the members of the Assembly), and the Attorney-General.  The Cabinet, consisting of 
the Prime Minister and other Ministers, is collectively responsible to the National Assembly.   
2. Legislative power rests with the unicameral Nati onal Assembly in place for five-year terms.  
The Assembly is made up of maximum 70 members, out of which 62 are elected by universal adult 
suffrage, and up to eight members are appointed by the Electoral Supervisory Commission (from 
among the unsuccessful candidates with the largest numb er of votes at a legislative election) to ensure 
fair and adequate representation of each community .  The Speaker, or in his absence, the Deputy 
Speaker, or in their absence, a member of the Assembly (not being a Minister) elected by the 
Assembly for the sitting, presides at any sitting of the Assembly. 
3. The judiciary consists of the Supreme Court (holds original, appe llate, and constitutional 
jurisdiction) and lower courts, such as the intermediate  and district courts.  In addition, there is an 
Industrial Court, which has jurisdiction to hear cases relating to employme nt, labour, and industrial 
relations.  There are also a number of administra tive tribunals or committees that assist in the 
adjudication process.  These include the Assessment  Review Committee (ARC), set up to speed up 
determination of tax appeals, replacing the Tax Appeal Tribunal and operational since February 
20032;  and an Industrial Property Tribunal, which b ecame operational in 2006.  The Supreme Court 
is, in principle, the highest judicial authority;  it c onsists of the Chief Justice,  the Senior Puisne Judge, 
and Puisne Judges who currently number 12 in total.  These are appointed by the President, after 
consultation with the Prime Minister, the Chief Justice, and the Judicial and Legal Service 
Commission, respectively.  However, under the Constitu tion, there is still the right of appeal against 
judgements of the Supreme Court to the Privy Council of Great Britain.   
4. The Constitution also provides for the office of  Ombudsman to investigate the exercise of 
administrative functions by public officers or authorities.  The Ombudsman is appointed by the 
President, after consultation with the Prime Minister , the Leader of the Opposition, and such other 
persons deemed by the President to be leaders of parties in the Assembly. 
5. The Joint Economic Council (JEC), founded in 19 70, is the coordinating body of the private 
sector in Mauritius.  The JEC aims to, inter alia , promote the interests of the private sector, free 
enterprise, and consultation among private sector orga nizations.  It liaises with the Government and 
other bodies.3  Its membership includes the nine main bu siness organizations of Mauritius, i.e. the 
Mauritius Chamber of Commerce and Industry, the Mauritius Chamber of Agriculture, the Mauritius 
Employers’ Federation, the Mauritius Sugar Pr oducers' Association, the Mauritius Export  
                                                      
1 The latest amendment was in 2003, to give additional powers to the President in areas such as 
electoral commissions, dissolution of Parliament, and the prerogative of mercy.    
2 The ARC hears appeals against decisions, determinations, notices or claims under various Revenue 
Acts. 
3 Joint Economic Council online information. Viewed at: http://www.jec-mauritius.org/. Mauritius WT/TPR/S/198 
 Page 13 
 
 
Association, the Mauritius Bankers’ Associati on, the Mauritius Insurers’ Association, the 
"Association des Hôteliers et Restaurateurs de l'Ile Maurice", and the Association of Mauritian 
Manufacturers. 
6. The National Productivity and Competitiveness Council (NPCC), grouping representatives of 
the Government, employers, and trade unions, has been  operational since May 2000.  It was created to 
stimulate productivity and quality c onsciousness with the ultimate goals of raising national output and 
achieving sustained growth and international comp etitiveness.  It provides, among other things, a 
forum for dialogue and consensus-building on ma tters relating to pro ductivity, quality and 
competitiveness;  advises Government on the formul ation of national policies and strategies;  and 
monitors and coordinates rela ted programmes and activities. 
7. The State Investment Corporation (SIC), f ounded in 1984, is the investment arm of the 
Government.4  Its main objective is to provide funds, mainly equity, for the realization of high-growth 
entrepreneurial ventures and to assist businesses to develop leadership position.  The SIC is 
incorporated under the Companies Act and, like an y company, is subject to taxation and other 
statutory and fiduciary obligations. 
8. The Small Enterprises and Handicraft Develo pment Authority (SEHDA), created under the 
SEHDA Act 2005 , provides support to potential and existing sm all entrepreneurs to enable them to 
start new enterprises or to improve their existing businesses.5  SEHDA provides services in areas such 
as business counselling and facilitation, skills deve lopment, business forums, marketing assistance 
and design services.  
9. The National Computer Board (NCB), set up in 1988, is in charge of promoting the 
development of information and communication technologies (ICT) in Mauritius.6  It is a para-statal 
body, under the aegis of the Ministry of Information Technology and Telecommunications.  Its core mission is to accelerate the transition of Mauritius into a regional ICT hub and ensure the realization of Government's objective to make the ICT sector one of the main pillars of the economy.  It aims to 
foster the development and growth of inform ation technology (IT), information systems and 
computer-related services.  The NCB advises the Go vernment on the formulation of national policies 
in respect of the promotion, development, and cont rol of IT and its applications, and assists in the 
framing of appropriate national IT educa tion, training, and research plans.  
(2) P
OLICY FORMULATION AND IMPLEMENTATION  
10. A new Government was formed in July 2005, with a reduced number of Ministers (19, down 
from 24).7  Each Ministry formulates policies within its  field and thereafter instructs the Attorney-
General's Office for the drafting of the required bills.  The bills are submitted to the Cabinet for approval, then introduced into Parliament for three readings.  Bills are adopted by a simple majority 
(except those on human rights and democratic princi ples or aimed at altering the Constitution, for 
which a qualified majority or refe rendum is required).  Once adopted, they need Presidential assent to 
become law.  The President may withhold assent (w ith some exceptions) and send a bill back to 
Parliament (only once) for reconsideration.  All laws are Acts of Parliament and published in the 
Government Gazette . 
                                                     
 
4 State Investment Corporation online information.   Viewed at: http://www.stateinvestment.com/. 
5 SEHDA online information. Viewed at: http://www.sehda.org. 
6 National Computer Board online information.View ed at: http:/www.gov.mu/ portal/sites/ncbnew/main 
.jsp. 
7 For the full list of Ministries, see Republic of  Mauritius online information, "A-Z Government 
Listing". Viewed at: http://www.gov.mu/portal/goc/a-z/a_z_min1.jsp. WT/TPR/S/198 Trade Policy Review 
Page 14 
 
 
11. Ministers or implementation bodies may make secondary legislation (regulations, rules and 
orders) for the implementation of an Act, if so pr ovided for by the Act.  A secondary legislation is 
published in the Government Gazette  and comes into force on the date  of publication, unless a specific 
date is provided.  Treaties/intern ational agreements, including those relating to trade, are signed by 
authorized representatives of the Government (i.e. a Minister or a public official).  International 
agreements/treaties must be enacted into domestic  law to have standing before national courts. 
12. The basic legal system is a mixture of English and French Law, and laws enacted by the 
Parliament.  The Constitution is the supreme la w of Mauritius and takes precedence over all 
legislation (including treaties and inte rnational agreements).  It is followed by the Acts of Parliament, 
and secondary legislation.  The le gislation on intellectual property h as been partly updated with the 
aim of bringing it into conformity with the WTO rules. New legislation on government procurement was adopted in 2006 and is to be promulgated soon (Table II.1).  A new bill on competition has been 
drafted, after the failure to proclaim  the Competition Act 2003 (Chapter III(4) (iii));  it was being 
debated in Parliament in Novemb er 2007 and is expected to be passed shortly.  The Antidumping, 
Countervailing and Safeguard Measures Bill is also being finalized and is expected to be presented 
before Parliament for adoption ar ound April 2008 (Chapter III(2)(vii )).  Sector-specific laws are 
applied to the sugar, tea, and tobacco industri es, other manufacturing activities, and tourism, and 
financial services (Chapter IV). 
13. Primary responsibility for the formulation, review, and assessment of trade policies lies with 
the Ministry of Foreign Affairs, International Trade and Cooperation
8, through its Trade Policy Unit 
(TPU).  The TPU is also in charge of ensuring th at Mauritius' concerns are adequately reflected in 
multilateral and regional trade arrangements and global  trade rules.  Major decisions about Mauritius' 
negotiating position (section (iii) below) and trade policy formulation are made, in consultation with 
other Ministries and their agencies, and the private sect or.  The latter is consulted on a regular basis, 
even though no formal framework for consultations exists.  The Ministry of Industry, Small and Medium Enterprises, Commerce and Cooperatives is in  charge of regulating the local market, and 
issues such as import and export controls.   
14. Regular meetings are held on WTO matters.  The private sector is represented in the WTO 
Standing Coordinating Committee, which deals with  the implementation, follow-up and coordination 
of trade policy issues covered by the WTO Agreements .  The Committee is chaired by the Minister of 
Foreign Affairs, International Trade and Coopera tion, and comprises representatives from the public 
and private sectors.  Various sub-committees have also been set up to address issues of specific 
interests.  The TPU also convenes regular, specific meetings to discuss regional and bilateral trade 
negotiations.  The Regional Cooperation Council, aime d at forging a coherent regional strategy for 
Mauritius, has ceased operations. 
15. The Government holds meetings on broad eco nomic policies with the Joint Economic 
Council (JEC).  Periodic meetings on sectoral i ssues are held between the private sector and the 
relevant Ministries.  The Mauritius Chamber of  Commerce and Industry is the main institution 
representing the interest of the private sector w ith regard to trade and industrial issues. 
                                                     
 
8 In 2005, this replaced the Ministry of Industry, Commerce and International Trade. Mauritius WT/TPR/S/198 
 Page 15 
 
 
Table II.1 
Main trade-related laws and regulations, December 2007 
Area Legislation Date of entry into 
force Latest 
modification 
Customs procedures and valuation The Customs Act 1988 2007 
 Customs Regulations  1989 2007 
 The Customs Tariff Act 1970  2007 
Taxes and charges The Value-Added Tax Act 1998 2007 
 The Excise Act 1994 2007 
 Mauritius Revenue Authority Act  2004 2006 
 The Income Tax Act 1995 2007 
 Gaming Regulatory Authority Act 2007 n.a. 
Export duties The Sugar Industry Efficiency Act 1988 2007 
Import and export control The Supplies Control Act 1974 2007 
 The Consumer Protection (Export Control) 
Regulations (Government Notice No. 97) 2000 2007   
 The Consumer Protection (Control of 
Imports) Regulations (Government Notice 
No. 135) 1999 2007 
 Fisheries and Marine Resources (Export of 
Fish and Fish Products) Regulations  2006 2006 
TBT and SPSs The International System of Units Act 1983 n.a. 
 The Mauritius Standards Bureau Act 1993 1999 
 General Notice No. 1058 (Labelling) 1983 n.a. 
 The Food Act 1998 n.a. 
 The Legal Metrology Act 1985 n.a. 
 Chemicals Control Act  2004 n.a. 
 Genetically Modified Organism Act (GMO)  2004 n.a. 
 The Plant Protection Act  2006 n.a. 
 The Animal Diseases Act 1925 1984 
Investment The Investment Promotion Act 2000 2007 
 The Freeport Act 1992 2006 
 The Non-Citizen (Property Restriction) Act 1975 2007 
 The Business Facilitation (miscellaneous 
Provisions Act) 2006 n.a. 
 The Business Registration Act 2006 2007 
 Immigration Act 1973 2007 
 The Non-Citizen (Employment Restriction) 
Act  2001 2007 
 The Sugar Industry Efficiency Act  2001 2007 
 The Investment Promotion (Real Estate 
Development Scheme) Regulation 2007 n.a. 
 The Small Enterprises and Handicraft 
Development Authority (SEHDA) Act 2005 n.a. 
Competition Fair Trading Act 1979 1988 
 Consumer Protection (Price and Supplies 
Control) Act 1991 2007 
 Consumer Protection (Consumer Goods) 
(Maximum Mark Up) Regulations 1998 2007 
   Table II.1 (cont'd) 
 WT/TPR/S/198 Trade Policy Review 
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Area Legislation Date of entry into 
force Latest 
modification 
 Consumer Protection (Consumer Goods) 
(Maximum Price) Regulations  1998 2007 
 Consumer Protection (Control of Price of 
Taxable and Non-Taxable Goods) 
Regulations  1998 2007 
 Consumer Protection (Control of Price of 
Petroleum Products) Regulations 2004 2006 
Government procurement Central Tenders Board Act 2000  2000 2006 
 The Public Procurement Act 2006  2008 n.a. 
Intellectual property The Copyright Act 1997 n.a. 
 The Patent, Industrial Designs and 
Trademarks Act  2003 n.a. 
 The Protection Against Unfair Industrial 
Practices (Industrial Property Rights) Act  2003 n.a. 
 The Layout Designs (Topographies) of 
Integrated Circuits Act 2002 not yet in force n.a. 
 The Geographical Indications Act 2002 not yet in force n.a. 
Banking Banking Act 2004    
 Bank of Mauritius Act 2004   
Non Banking Financial Services  Financial Services Act 2007 2007 2007 
 Insurance Act 2005 2007 2007 
 Securities Act 2005 2007 2007 
n.a. Non applicable. 
Source:  WTO Secretariat. 
16. The Board of Investment (BOI), operational since March 2001, is the leading governmental 
agency responsible for promoting and facilitating investment.9  The Mauritius Freeport Authority 
(MFA) and the Financial Services Promotion Agen cy (FSPA) merged with BOI, in 2005 and 2006 
respectively, to have all promotional activities unde r a single umbrella.  Under the authority of the 
Minister in charge of finance, the BOI aims to  promote Mauritius as an international investment, 
business, and service centre.  The BOI formulates investment promotion strategies and plans;  facilitates investment into Mauritius by simplif ying administrative procedures;  and advises the 
Government on investment policies.  BOI's activ ities include: counselling on investment opportunities 
in Mauritius;  providing tailor-ma de information for the setting up of a business;  organizating 
customized meetings and visits;  and identifying jo int-venture partners.  It also acts as a single 
interface with all investors and liaises with the relevant authorities for occupation, residence, and 
other relevant permits.  Its administrative and mana gement board comprises private and public sector 
senior representatives.  BOI is funded by the State.   
(3) T
RADE POLICY OBJECTIVES  
17. Trade policies in Mauritius are an integral part of economic policies, and as such are aimed at 
improving the living standards of the population and securing full employment through accelerated 
transition towards a globally competitive economy, growi ng at high rates.  This objective is expected 
to be achieved by, inter alia , further opening up the economy and facilitating business, massively 
                                                      
9 BOI took over the investment part of the Mauritius Export Development and Investment Authority 
(MEDIA), which, as a result of this transfer of responsibility, changed its name to Mauritius Industrial Development Authority (MIDA) (Chapter III(3)(v)). Mauritius WT/TPR/S/198 
 Page 17 
 
 
investing in public infrastructures, as well as impl ementing sound macroeconomic  policies, with trade 
and investment promotion playing an important role. 
18. Mauritius intends to gradually move from its cu rrent partial openness to complete openness.  
It intends to pursue tariff simplification in order to transform "Mauritius into a globally competitive 
economy and to move speedily to a Duty Free Island"10, within three years.  The new economic model 
aims to make Mauritius "an integrated, clean and effi cient platform in the global supply chain, mainly 
in services and driven by good governance, an open transparent investment climate, high skills and 
state of the art infrastructure".11  This change in policy orientation has been triggered by the changing 
international environment (erosi on of preferences, increasing competition from lower cost economies, 
and rising oil prices).  The economic developmen t strategies are therefore less dependent on trade 
preferences, but rather on the global competitivene ss of local products.  The latter is to be achieved 
through, inter alia , the reduction of production costs, en forced competition, increased public 
investment in infrastructure, and education and training.   
19. In order to attract investment, the new strategy  of the Government is based on a generally low 
tax regime and targeted promotion (see section (5) below).  The Government Programme 2005-10 
also provides for a comprehensive review of legislat ion in order to establish a friendly and predictable 
business environment, remove all bur eaucratic constraints in terms of access to finance and capacity, 
and improve governance. 12   
20. Given the limitations that its size sets to attracting foreign direct investment (FDI) in 
manufacturing or agri-business, Mauritius sees se rvices as the main area for further economic 
diversification.  A strategy is being put in place to promote Mauritius as an export-oriented centre for 
value-added services.  In addition to financial services and tourism, the following emerging sectors 
have been identified as having the highest potential  for growth:  information technology enabled 
services (ITES), including business process outsourci ng (such as call centres, back-office operations, 
and data processing);  logistics services;  health care, medical and education services;  creative arts and media entertainment; and consultancy services.   The development of the port is also considered to 
be crucial, due to its dual role of handling external trade and s upporting the development of Mauritius 
into a hub for regional and international sea trade.  Mauritius is also encouraging the development of 
emerging sectors like the seafood hub and real estate development, as well as the use of built-up 
capacities and competencies in its traditional sector s (sugar and garments) by investing in more 
competitive locations abroad.  Export mark et diversification is also envisaged. 
21. In order to further enforce competition, the Government intends to set up a Competition 
Commission, whose main role would be to act as a watchdog against restrictive business practices, to 
establish norms and guidelines with the power to take  sanctions, to deal with complaints, and to 
regulate the advertising sector.
13    
(4) TRADE AGREEMENTS AND ARRANGEMENTS  
(i) Overview  
22. Mauritius is participating actively in the multila teral trading system and in various economic 
groupings and trade agreements/arr angements.  As a small island  country, Mauritius considers its 
participation in regional agreements as a necessary st ep towards exploiting its comparative advantages 
                                                      
10 Republic of Mauritius (2006). 
11 Joint Economic Council (2007). 
12 Republic of Mauritius (undated a). 
13 Republic of Mauritius (undated a). WT/TPR/S/198 Trade Policy Review 
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and economies of scale, improving its competitiveness,  diversifying its export s, and facilitating its 
integration into the world economy.  However, ensuring consistency between the national reform 
agenda and participation in a multitude of trade agreements, with different geographical coverage, 
liberalization agenda, provisions, a nd goals, remains a challenge.   
(ii) WTO 
23. Mauritius is an original member of the WTO a nd grants at least MFN treatment to all its 
trading partners.  It is not a signatory to the WT O Plurilateral Agreements but is an observer to the 
Committee on Trade in Civil Aircraft.  It has al so signed the Ministerial declaration on Trade in 
Information Technology.  Mauritius made speci fic commitments in the WTO negotiations on 
telecommunications under the Fourth Protocol (see Ch apter IV(5)(iii)).  It also participated in the 
financial services negotiations and undertoo k commitments under the Fifth Protocol 
(Chapter IV(5)(i)).   
24. Mauritius has made a large number of notifica tions to the WTO, but as of June 2007, 
notifications were still pending on import licensing,  enforcement of intellectual property rights, and 
more notably those under the Agreement on Agriculture, under which no notification has ever been 
made (Table II.2). 
25. Mauritius has used the WTO dispute settlement  mechanism on several occasions, but has 
never appeared as a complainant or respondent.  Sinc e its last Review, Mauritius has participated as a 
third party in following cases (respondents betw een brackets):  Anti-Dumping Investigation of 
High-Fructose Corn Syrup from the United States (Mexico)14;  Conditions for the Granting of Tariff 
Preferences to Developing Countries (European Communities)15;  and Export Subsidies on Sugar 
(European Communities).16  
26. In the context of the Doha Round, Mauritius h as made several contributions and proposals, 
either alone, as part of Small Vu lnerable Economies (SVES), ACP Group,   African Group, or together 
with other WTO Members.  Mauritius is an active defender of the interest of developing countries in 
general, and SVES in particular, and considers that the development interests and concerns of 
developing countries must remain at the centre of th e negotiations.  It considers that bigger market 
access without the capacity to produce is meaningless,  and therefore several issues are of critical 
importance, namely balanced rules that provide  developing countries the policy space to pursue 
development policies, enhanced market access for pr oducts and services of interest to them, capacity-
building programmes and technical assistance (incl uding supply-side capacity, institution building, 
and human resource development), and adjustment support measures.17  Mauritius deems vital the 
engagement of international community in suppor ting developing countries to address the problem of 
supply capacity, competitiveness, and upgrading product standards to meet sanitary and phytosanitary 
(SPS) and technical requirements in the export markets.18  It considers that even though preferences 
are recognized as legal in the WTO system, they sh ould not nonetheless impede trade liberalization 
and calls for concrete trade-rela ted solutions to their erosion19, notably in the case of most 
"vulnerable" products. 
                                                      
14 WTO documents of series WT/DS132. 
15 WTO documents of series WT/DS246. 
16 WTO documents of series WT/DS265, WT/DS266 and WT/DS283. 
17 WTO document WT/MIN(05)/ST/120, 16 December 2005. 
18 WTO document WT/MIN(03)/ST/70, 12 September 2003. 
19 WTO document WT/MIN(05)/ST/120, 16 December 2005. Mauritius WT/TPR/S/198 
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Table II.2 
Most recent notifications to the WTO, January 2008 
Agreement/ 
Decision Symbol and date of most recent notification Description of requirement 
and frequency 
Agreement on Agriculture  
Article 10 and 
Articles 18.2 Not yet submitted Export subsidies;  annual  
Article 18.2 Not yet submitted Domestic support;  annual 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement)  
Article 16.4 G/ADP/N/72/Add.1/Rev.5, 25/ 10/ 2005 Anti-dumping measures;  semi-
annual 
Articles 16.5 and 25.12 G/ADP/N/14/Add.23/Rev.1*-G/SCM/N/ 18/Add.23/Rev.1*, 30/04/ 2007 Authorities and pr ocedures;  once   
Article 18.5  G/ADP/N/1/MUS/2, 13/11/1 995 Laws and regulations;  ad hoc 
Agreement on Implementation of Article VII of the GATT 1994 (Agreement on Customs Valuation)  
Article 22 G/VAL/N/1/MUS/1, 27/09/2 001 Laws and regulations;  once 
Decision on the 
Checklist of Issues 
(G/VAL/5) G/VAL/N/2/MUS/1, 26/09/2001 Checklist of issues/ 
questionnaires (replies);  once  
Agreement on Import Licensing Procedures  
Article 1.4(a) and 
Article 8.2(b) G/LIC/N/1/MUS/2, 11/05/2007 La ws and regulations;  once  
Article 7.3 G/LIC/N/3/MUS/2, 4/07/ 2002, and G/LIC/N/3/MUS/2/Corr.1 
10/09/2002 Completion of questionnaire;  
annual 
Agreement on Preshipment Inspection  
Article 5 G/PSI/N/1/Add.10, 19/07/20 04 Laws and regulations;  once 
Agreement on Rules of Origin 
Article 5 and 
Annex II, 
paragraph 4 G/RO/N/1,  9/05/1995 Laws and regulations (rules of 
origin in effect);  once  
Agreement on Safeguards  
Article 12.6 G/SG/N/1/MUS/1, 3/05/ 1995 Laws and regulations;  once 
Agreement on Subsidies a nd Countervailing Measures  
Article 25.1;  
Article XVI.1 of the 
GATT 1994 G/SCM/N/155/MUS-G/SCM/N/160/MUS, 5/07/2007 
 Subsidy programmes;  every three 
years for full notifications, annual  
for changes 
Article 25.11 G/SCM/N/106/Add. 1/Rev.1, 25/10/2004 Counter vailing actions taken;  
semi-annual  
Article 25.12 G/ADP/N/14/Add. 23/Rev.1*-G/SCM/N/18/A dd.23/Rev.1*, 30/05/ 2007 Author ities and procedures;  once 
Article 27.4 G/SCM/N/163/MUS, 27/ 08/ 2007 Transition period for the 
elimination of export subsidies;  
ad hoc 
Article 32.6 G/SCM/N/1/MUS/2, 29/06/ 1995 Laws and regulations;  once 
Agreement on Technical Barriers to Trade  
Article 2.10 G/TBT/N/MUS/1, 3/05/2005  Technical regulation (urgent),  
ad hoc 
Article 10.1, 10.2 and 10.3 G/TBT/ENQ/29, 12/03/2007 Enquiry point;  once  
Article 15.2 G/TBT/2/Add.40, 17/09/1997 Implementation and 
administration of measures;  once  
  Table II.2 (cont'd) WT/TPR/S/198 Trade Policy Review 
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Agreement/ 
Decision Symbol and date of most recent notification Description of requirement 
and frequency 
Annex 3C G/TBT/CS/N/117, 2/02/2000 Acceptance of the Code of Good 
Practice;  once 
Agreement on Text iles and Clothing 
Article 2.7 G/TMB/N/295, 23/09/1997 Integration programmes (first 
stage);  once  
Article 2.8(a) and 
2.11 G/TMB/N/242, 9/04/1997 Inte gration programmes (second 
stage);  once  
Article 2.8(b) and 
2.11 G/TMB/N/376/Rev.1, 23/03/2001 In tegration programmes (third 
stage);  once  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Annex B, 
paragraph 7 G/SPS/N/MUS/12, 15/09/2004 Sanitary and phytosanitary 
measures;  ad hoc 
Annex B, 
paragraph 3 G/SPS/ENQ/19, 25/01/2006 Enquiry point;  once 
Annex B, 
paragraph 10 G/SPS/NNA/8, 20/12/2004 Nationa l notification authority;  
once 
Agreement on Trade-Related Aspects of  Intellectual Property Rights (TRIPS)  
Article 63.2 Subm itted on 16/01/2008 a Laws and regulations;  once  
 Not yet submitted Checklist of Issues on 
Enforcement;  once 
Article 69 IP/N/3/Rev.7, 19/08/2003 Contact point;  once 
Agreement on Trade-Related In vestment Measures (TRIMS)  
Article 5.1 G/TRIMS/N/1/MUS/1, 4/04/1995 Trade-related investment 
measures;  once  
Article 6.2 G/TRIMS/N/2/Rev.4, 5/08/ 1998 Publications in which TRIMS 
may be found;  ad hoc 
Decision on Notification Procedures for Quantitative Restrictions 
G/L/59  Submitted on 12.04.2007 a Notifications of quantitative 
restrictions;  every two years 
General Agreement on Trade in Services 
Article III:4 and/or Article IV:2 Submitted on 14/01/2008 
a Enquiry point;  once only 
Article V:7(a) Not yet submitted   Economic integration agreements;  
once only 
General Agreement on Tariffs and Trade 1994 
Article XVII:4(a) G/STR/N/8/MUS, 2/ 08/2002 Notification on state-trading 
enterprises;  every three years for 
full notifications, on an annual basis for changes (as from 2004, 
every two years) 
Article XXVIII:5 G/MA/53, 17/02/1997 Modification of the Schedule of 
Concessions (reservation of the 
right to modify the Schedule 
during a three-year period);  every 
three years 
a Notifications being processed by the WTO Secretariat. 
Source: WTO Secretariat. 
27. Mauritius has also submitted or co-signed communications on a wide range of issues, 
including fisheries subsidies;  designation of regi onal bodies for areas such technical barriers to trade 
(TBT),  SPS measures, and trade-related aspects of intellectual property rights;  aid for trade;  
subsidies and countervailing measures;  implementation of international standards;  logistics services;  
post-ATC (Agreement on Textiles and Clothing) adjustment-related issues;  experience with the SPS Mauritius WT/TPR/S/198 
 Page 21 
 
 
agreement;  special and differential treatment and implementation issues;  agriculture;  non-
agricultural market access;  Singapore issues;  deve lopment issues;  transfer of technology;  small 
economies as small suppliers of se rvices;   trade in information technology products;  geographical 
indications;  trade by and issues of concern to  small economies;  and non-trade concerns.  In 
May 2004, Mauritius circulated its offer on services in  the context of the Doha Development Agenda 
negotiations.  Mauritius has also participated activel y in the development of the concept of aid for 
trade. 
(iii) Preferential trade agreements and arrangements   
(a) Common Market for Eastern and Southern Africa (COMESA) 
28. Mauritius is a founding member of COMESA20, which aims to promote regional integration 
through the development of trade, and natural and hu man resources for the benefit of all its members. 
The main objectives of COMESA include the creation of a free-trade area (FTA);  the establishment 
of a customs union;  free movement of capital and investment, supported by the adoption of a 
common investment area;  a gradual establishm ent of a payment union based on the COMESA 
Clearing House and the eventual establishment of a monetary union; and  the adoption of common 
visa arrangements, leading eventually to the free movement of persons.21  COMESA has been notified 
to the WTO under the Enabling Clause.22 
29. The COMESA FTA was launched in October 2000 with nine participating states (including 
Mauritius), after 16 years of gradual reduc tion of tariffs on intra-COMESA trade.23  I n  
November 2007, 13 countries were participating in the FTA;  other member states had carried out 
tariff reductions of between 10% and 80%.24  The FTA was meant to be a step towards the 
establishment of the Customs Union.  Initially, th e common external tariff (CET) was to be in place 
by 2004.  However, the launch of the Customs Un ion was once more deferred for December 2008.  In 
May 2007, the COMESA Council of Minister agreed on the CET rates as follows: zero on raw 
materials and capital goods, 10% on intermediate goods, and 25% on finished goods.  The CET will 
be based on the Common Tariff Nomenclature (CTN), adopted in 2004.  The CTN is being revised by 
the COMESA Secretariat.  The sensitive lists of  goods for exclusion from the CET are also being 
finalized. 
30. To benefit from preferential treatment, goods orig inating in COMESA have to satisfy one of 
five origin criteria.  The COMESA origin is grante d to:  goods wholly produced in the region using no 
outside materials;  goods with a maximum imported c ontent of 60% of the c.i.f. value of materials 
used in production;  goods containing no less than 35% ex-factory value added 25, reduced to 25% if 
                                                      
20 The members of COMESA are:  Burundi, Comoros, Democratic Republic of Congo, Djibouti, 
Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagas car, Malawi, Mauritius, Rwanda, Seychelles, Sudan, 
Swaziland, Uganda, Zambia, and Zimbabwe. 
21 COMESA (2007). 
22 WTO document WT/COMTD/N/3, 29 June 1995. 
23 The COMESA was formed in 1994  as a successor to the Preferen tial Trade Area (PTA).  Tariff 
reduction started already in 1984 w ithin the framework of th e PTA, but was accelerated with the formation of 
COMESA. 
24 Preferential margins granted to CO MESA partners not yet participating in the FTA are: Democratic 
Republic of Congo, zero (i.e. no preference granted); Eritrea, 80%; Ethiopia, 10%;  and Uganda, 80%.  
Swaziland is not participating in the FTA and not exte nding any tariff reduction under derogation, due to its 
membership in the Southern African Customs Union.   
25 Value added is defined as the difference between the ex-factory cost of the finished product and the 
c.i.f. value of material inputs imported from outside the COMESA sub-region.  The minimum level of value added was reduced from 45% to 35% in 2000. WT/TPR/S/198 Trade Policy Review 
Page 22 
 
 
the final product is considered of "particular im portance" to the economic development of a member 
state26;  or goods that have been subject to a chan ge in tariff  heading (4-digit level) following 
transformation.  In December 2007, the change in  tariff heading criterion had been agreed for a 
certain number of tariff lines (HS chapters 1, 2, 3, 22 , 24, and 27);  agreement is yet to be reached on 
other items, notably wheat flour, cooking oil, plastics, textiles, machinery, and equipment. 
31. COMESA cooperates with other regional orga nizations to liberalize trade.  Under 
Memoranda of Understanding, th e Indian Ocean Commission (IOC) (see below), East African 
Community, and Intergovernmental Authority on De velopment have agreed to adopt the COMESA 
trade liberalization programme.  A Joint Task For ce of COMESA, AEC, and SADC (see below) has 
also been set up to harmonize their programmes. 
32.  The COMESA Treaty provides also for trade remedies.  In November 2001, regional Trade 
Remedy Regulations were adopted, and in 2003,  harmonized COMESA public procurement rules, 
regulations, and procedures were adopted.  Speci fic competition rules have been adopted for air 
transport. 
33. A phased monetary harmonization programme is being implemented in four stages beginning 
in 1992.  The last stage should result, in 2018, in a full-fledged monetary union in which there will be 
either permanently fixed exchange rates or a single curre ncy, in order to be in line with the target date 
of 2021 for the establishment of the African M onetary Union;  full harmonization of economic, 
budgetary, and monetary policies;  full integration of  the financial structure;  a pooling of exchange 
reserves;  and the establishment of a single moneta ry authority.  A coordination body composed of 
experts from central banks and ministries of finance,  has been set up to oversee implementation of the 
measures and ensure the progress of the harmonization process. 
34. The decision-making structure of COMESA includes the Authority of Heads of State and 
Government (the supreme policy-ma king organ);  the Council of Ministers;  the Sectoral Ministerial 
Meetings;  the Committee of Governors of Cent ral Banks;  the Intergovernmental Committee;  
Technical Committees;  and the Secretariat.  A Consultative Committee of the Business Community 
and Other Interest Groups has also been established.   
35. In addition, several specialized institutions  have been established to assist COMESA 
members in their development.  The Eastern a nd Southern African Trade and Development Bank 
(PTA Bank) provides trade and project financing to  public and private investors domiciled in a bank 
member state.27  Since 2000, Mauritius has been a me mber of the PTA Re-Insurance Company 
(ZEP-RE), which assists the development of the insu rance and re-insurance industry in the region.  
The Africa Trade Insuranc e Agency (ATI), launched in August 2001, is aimed at creating investor 
confidence by providing cover against political risk;  Mauritius however is not yet member.28  The 
COMESA Court of Justice, operational since 1998, adjudicates and arbitrates on, inter alia , unfair 
trade practices and interpretation of regional legi slative acts, and ensures that member states 
                                                      
26 A long list of approved products is specified in the COMESA Treaty as being of particular 
importance to the economic development of the members. 
27 The PTA Bank currently has 19 shareholders, 14 of which are COMESA me mber States: Burundi, 
Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Sudan, Uganda, Zambia, and 
Zimbabwe. The non-COMESA shareholders are the Afri can Development Bank (institutional investor), China, 
Somalia, and Tanzania. 
28 The ATI is also open to the member states of th e African Union.  It currently has 11 members: 
Burundi, Kenya, Malawi, Rwanda, Tanzania, Uganda, and Zambia (founding members); and Congo D.R., Djibouti, Eritrea, and Madagascar.  Only  Tanzania is a non-COMESA member. Mauritius WT/TPR/S/198 
 Page 23 
 
 
implement and comply with agreed decisions.  Maur itius has not been involved in any formal dispute 
within this framework. 
36. The COMESA Clearing House, established to facilitate the settlement of intra-regional 
transactions in goods and services, ceased its operati ons in 1997.  However, due to the shortage of 
foreign exchange in member states, a new regiona l payment and settlement system (REPSS) is being 
designed, which would enable the use of local currencies in intra-COMESA trade. 
37. In order to attract investment, the COMESA Common Investment Area (CCIA) was launched 
in 1998.  In 1999, it was decided to establish a Re gional Investment Agency (RIA) to implement the 
CCIA;  the RIA was officially launched in June 2006.  The CCIA is expected to be fully functional by 
2010, availing COMESA investors national treatment;  similar treatment should be granted to non-
COMESA investors by 2015.      
38. The Protocol on the Free Movement of Persons, Labour, Services, Right of Establishment and 
Residence is to be implemented in several stag es.  In November 2007, however, only four member 
states (Burundi, Kenya, Rwanda and Zimbabwe) had signed.   
(b) Southern African Development Community (SADC) 
39. Mauritius joined SADC in 1995.  The SADC Treaty aims to provide balanced economic 
growth and development, political stab ility, and security for all its members.29  The Treaty provides 
for several protocols in specific ar eas, such as trade, finance, indus try, agriculture, transport, and 
investment.  The protocols bind only the member states that are parties to them.   
40. The SADC Trade Protocol came into force on 25 January 2000 after ratification by 
12 members.30  It aims to gradually establish a free-trade area (FTA).  To achieve this goal, products 
have been grouped under three main categories.  Category A (mostly capital goods and equipment) 
was liberalized in the first year;  Category B (g oods that constitute important sources of customs 
revenue) is to be libera lized gradually, by 200831;  and Category C (products  deemed sensitive), which 
cannot exceed 15% of each member's total merchandi se trade, is to be liberalized by 2012.  In 
addition, a fourth category (Category E) covers  goods ineligible for preferential treatment under 
general and security exceptions permitted by the Pr otocol.  These are expected to represent a limited 
number of products, so that by 2010 about 98% of intra-SADC merchandise trade should be duty free.  
The phase-down offers (under Categories B and C) are country specific, with more developed 
member states undertaking faster liberalization th an their less developed counterparts.  The SADC 
Free Trade Area has been notified to the WTO.32 
41. The Trade Protocol has also identified several non-tariff measures to be eliminated, such as 
import quotas, cumbersome customs procedures, and export subsidies.  A mechanism for monitoring, 
reporting, and eliminating NTBs was adopted. 
42. A draft regulation on mutual assistance and coop eration in customs matters was approved on 
31 March 2000.33  The SADC Subcommittee on Customs Cooperation and Trade Facilitation has 
                                                      
29 Angola, Botswana, Congo D.R., Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, 
South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe. 
30 The Democratic Republic of Congo has not yet ratified the protocol.  Madagascar acceded to the 
Protocol on 21 February 2006. 
31 Category A and B products cover an estimated 85% of goods traded among SADC members. 
32 WTO documents WT/REG176/N1/Rev.1, 27 August 2004; WT/REG176/1, 8 October 2004; and 
WT/REG176/Rev.1, 19 November 2004. 
33 Appendix I to Annex II of the SADC Protocol on Trade, as amended. WT/TPR/S/198 Trade Policy Review 
Page 24 
 
 
finalized discussions on customs documentation (the format of bills of entry and certificates of 
origin), and commenced the monitoring process fo r removal of non-tariff barriers by establishing 
systems for electronic validation of certificates of or igin.  SADC rules of origin are being negotiated 
on a product-by-product basis.  Negotiations are c ontinuing for certain products, including wheat flour 
and its products, electrical products, and optical, ph otographic, measuring, and surgical instruments.34 
43. The long-term objective for sugar is to fully lib eralize its trade within  the SADC region after 
the year 2012.  The SADC sugar market-access and cooperation agreement has been implemented 
since 2001, and incorporated as Annex VII to the amended Trade Protocol.  A SADC Regional Sugar 
Strategy is being developed in order to promote the sugar industries in the region. 
44. The SADC Protocol on Development of Touris m, signed in 1998, entered into force on 
26 November 2002.  It is aimed at ensuring equita ble, balanced, and complementary development of 
the tourism industry in the region;  optimizing the use of resources through joint development of 
infrastructure;  involving small and micro-enterp rises, local communities, and women and youth; and 
facilitating intra-regional travel through easing of vi sa restrictions.  The Protocol also contains a 
provision for setting up a regional body to market the region as a collective tourism destination.  As 
result, the "Regional Tourism Organization of Sout hern Africa" (RETOSA) was established in 1998.  
The RETOSA is partially funded by the private sector. 
45. The SADC Treaty provides for a tribunal to ad judicate members' disputes arising from the 
interpretation or application of the Treaty, the inte rpretation, application or validity of Protocols or 
other subsidiary instruments.35  Its composition, powers, functi ons, procedures, and other related 
matters are prescribed in the Protocol on Tribunal a nd the Rules of Procedure.  The Members of the 
Tribunal were sworn in on 18 November 2005.  Th e Tribunal is based in Windhoek (Namibia) and 
functions currently with an interim budget. 
46. SADC intends also to liberalize trade in services, but negotiations are yet to start. 
Nevertheless, the SADC programme on trade in services is being implemented through a project 
called Support to SADC Regional Integration and Multilateral Trading System, funded by the EC, 
UNCTAD, and the SADC Secretariat. 
47. The main bodies of SADC are the Summit (com prising Heads of State or Government), 
Organ on Politics Defence and Security (OPDS), th e Council of Ministers, Tribunal, SADC National 
Committees, and the Secretariat. 
(c) Other trade arrangements 
African Economic Community (AEC) and the African Union (AU) 
48. Mauritius is a founding member of the AU, which succeeded the Organization of African 
Unity (OAU) in July 2002.36  The AU aims at becoming, in the longer run, an economic and political 
union, and is being structured largely on the model of the European Union.  Its organs comprise the 
Assembly, composed of Heads of State and Govern ment (decisional body), the Council of Ministers 
(executive body), the Pan-African Parliament (c onsultative body), the Commission (including eight 
                                                      
34 For example, for electrical mach inery, some members want to prevent "single assembly" of white 
goods, while for plastics they want to prevent the use of imported plastic waste.  
35 Article 32 of the Treaty, as amended. 
36 The Charter establishing the OAU was signed on 25 May 1963.  The Constitutive Act of the AU was 
adopted in July 2000 at the Lome Summit (Togo), and entered into force in 2001.  The AU was officially launched at the Durban Summit. Mauritius WT/TPR/S/198 
 Page 25 
 
 
commissioners, each responsible for a portfolio), an d the Peace and Security Council (PSC).  The AU 
will also comprise an African central bank;  an Afri can monetary fund;  an African investment bank;  
a Court of Justice;  an  Economic, Social and Cultu ral Council (whose Statutes have been elaborated);  
and specialized technical committees. 
49. In June 1991, the OAU founded the African Ec onomic Community (AEC).  Under the AU, 
the EAC is to become a customs and monetary union in six stages, over a 34-year period.  The AEC is 
encountering several difficulties, however, incl uding conflicts, ins titutional and budgetary 
insufficiencies, and week commitment by its members. 
50. One of the main initiatives under the AU is th e New Partnership for African Development 
(NEPAD).  The NEPAD has its own Secretariat, b ased in South Africa.  It has resulted from the 
fusion of two other plans proposed for Africa - the Omega Plan and the Millenium African Plan.  The 
goals of NEPAD are to halt the marginalization of  Africa in the globalization process; to eradicate 
poverty; and to promote accelerated growth and sust ainable development.  It places the private sector 
and investment promotion at the centre of its proj ect, and also aims at trade integration and improved 
access to the developed countries markets.37  
51. To respond to the objectives defined by the AU and the NEPAD, an EC-Africa partnership to 
develop trans-African connections  was launched in 2006.  A total of €5.6 billion from the 10th 
European Development Fund (EDF, 2008-13) will s upport regional development in the following 
priority areas: transport, energy, water, inform ation technology, and tel ecommunication networks.38 
Indian Ocean Rim-Association for Regional Cooperation (IOR-ARC)  
52. The IOR-ARC (formerly the Indian Ocean Rim Initiative) was formally launched in 
Mauritius in March 1997.39  It aims to build and expand mutu ally beneficial cooperation through a 
consensus-based, evolutionary, and non-intrusive a pproach.  The four main pillars of the economic 
cooperation are:  trade liberalization, including reduc tion to zero of all tariffs by 2020 for all member 
countries;  trade and investment facilitation, b ased on information sharing regarding trade and 
investment regimes (including information on cust oms regulations, intellectua l property, procurement 
procedures, and harmonization of standards);  economic and technical cooperation, involving 
identification of specific areas for cooperation, and capacity building;  and trade and investment 
dialogue, through regular meetings of government, business, and academia representatives.  No tariff 
preference is yet granted under this forum.   
53. The highest authority of the IOR-ARC is the Council of Foreign Ministers (COM), which 
inter alia , formulates policy, reviews progress on coope ration issues, and makes decisions on new 
areas of cooperation and the establishment of additiona l mechanisms or matters of general interest.  
The Committee of Senior Officials (CSO), composed of government officials, reviews the implementation of the COM decisions.  In coopera tion with the Indian Ocean Rim Business Forum 
and the Indian Ocean Rim Academic Group, the CSO also establishes economic cooperation 
priorities, and develops, monitors , and coordinates work programmes.  The Working Group on Trade 
                                                     
 
37 For more information, see NEPAD online in formation. Viewed at: http://www.nepad.org. 
38 European Commission (2006). 
39 Currently, the IOR-ARC members are:  Australia, Bangladesh, I ndia, Indonesia, Iran, Kenya, 
Madagascar, Malaysia, Mauritius, Mozambique, Oman, Singapore, South Africa, Sri Lanka, Tanzania, 
Thailand, United Arab Emirates, and Yemen.  China, Egypt, France, Japan, and the United Kingdom are  
dialogue partners, while the Seychelles withdrew as a member on 1 July 2003.  The Indian Ocean Tourism 
Organization has observer status.  For further details, see Indian Ocean Rim Network. Viewed at:  
http://www.iornet.com/.   WT/TPR/S/198 Trade Policy Review 
Page 26 
 
 
and Investment (WGTI), established in 1999, has as its main objectives trade facilitation and 
liberalization, and economic and technical coopera tion.  An IOR-ARC Coordinating Secretariat, 
based in Mauritius, coordinates, services, and m onitors the implementation of policy decisions and 
work programmes. 
54. A paper, prepared by the Committee of Senior Officials, "Medium to Long Term Vision of 
the IOR-ARC", has identified the fo llowing priority areas:  trade, investment and finance;  education 
and technology;  fisheries;  tourism;  natural disaster;  and ICT.   
Indian Ocean Commission (IOC) 
55. The IOC was launched in Mauritius in 1982 and established in 1984 by the General 
Agreement of Cooperation by Madagascar, Mauritiu s, and the Seychelles;  Comoros and Reunion 
(France) joined in 1986.  Over the years, the missi on of the IOC has evolved to take into account the 
evolution of other regional organizations, such as COMESA or SADC (see a bove).  Between January 
and July 2005, new strategic orientations were adopted, clarifying the objectives of the IOC.  In 
addition to the political dimension, its activities are now oriented towards defence of insular interests 
of its members in international and regional fora, preservation of and adding value to environment and 
natural resources, and regional di mension of human development.40 
56. The IOC Council of Ministers meets once a year to define the broad orientation of activities 
to be carried out.  Each member State assumes the presidency of the Council, in alphabetical order, 
for one year.  Each member State is also represen ted on the Committee of Permanent Liaison Officers 
(CPLO);  its representative being responsible fo r the coordination and im plementation of regional 
cooperation in his/her home country.  The IOC Gene ral Secretariat, located  in Mauritius, is the 
administrative arm of the IOC, and responsible for the implementation of decisions of the Council and 
of the CPLO. 
57. Regional cooperation within the IOC is characterized by projects reflecting common interests 
and concerns of island countries in areas such as en vironment, tourism, protection of coastal zones, 
fight against fuel spillage, fisheries, and telecomm unications.  These projects are mostly financed by 
the EC.41  Other important funding sources are the World Bank (Global Environment Facility), and 
United Nations.  The Integrated Regional Programme  for the Development of Exchanges (PRIDE), 
aimed at executing a regional strategy facilita ting and promoting the free movement of goods, 
services, capital, and labour, was terminated in Oct ober 2002 with the closure of the project funding.  
However, trade between Mauritius and Madagascar is continuing on a duty -free basis within the 
framework of the IOC.  The IOC intends to develop a new programme Programme Régional 
Innovation, Connaissance, Excellence  (PRICE) with the main objective of improving competitiveness 
and innovation in the region.   
Relationship with the European Communities 
58. Mauritius is signatory to the Cotonou Agreem ent between the Europ ean Communities (EC) 
and 78 African, Caribbean and Pacific (ACP) states.  The agreement was signed in June 2000 (for a period of 20 years) and entered into force in April 2003.
42  It was ratified by Mauritius in September 
                                                      
40 Indian Ocean Commission online information, "La Commission de l'Océan Indi en en bref". Viewed 
at:  http://www.coi-ioc.org/index.php?id=45. 
41 European Commission (undated). 
42 The ACP states comprise 48 Af rican states, covering all sub-Sa haran Africa, 15 states in the 
Caribbean, and 15 in the Pacific (the Democratic Repub lic of East Timor acceded to  the Cotonou Agreement in 
May 2003). Mauritius WT/TPR/S/198 
 Page 27 
 
 
2000.  It aims to reduce poverty, and builds on three interlinked pillars: a political dimension; 
development and finance cooperati on; and economic and trade coopera tion.  The agreement affords 
ACP countries preferential trade and aid links with the EC. 
59. Under the Cotonou Agreement, ACP countri es (except South Africa) benefit from 
non-reciprocal trade preferences during an interim period (2001-07).43  These include duty-free 
treatment on industrial products, certain agricultu ral products, and fishery products, subject to a 
safeguard clause.  For sugar, bananas, beef and v eal, and rice, the EC provides special market access 
under "commodity protocols".  The preferenti al rules of origin contain product-specific 
requirements44, and allow for regional cumulation.  The pr ovisions on unilateral preferences were to 
be replaced on 31 December 2007 at the latest, by a set of Economic Partners hip Agreements (EPAs) 
between the EC and individual ACP countries or regional groupings;  these are expected to be 
reciprocal and WTO-compatible.  
60. The primary objectives of the EPAs are to foster  sustainable development, and integrate the 
ACP states into the world economy.  The basic guiding  principle for EPAs is to build on and reinforce 
ACP regional integration processes, and provide for appropriate differentiation and asymmetry to take 
into account the level of development of ACP countries.  EPAs will provide for the progressive elimination of tariffs and non-tariff measures be tween the parties on goods and services, and are 
expected to address other trade-related issues.
45  Development concerns will be reflected through 
flexibility concerning depth and asymmetry of liberali zation, transition periods, trade coverage and 
exceptions, and assistance from the EC.  The EPA negotiations started formally in September 2002.  
Mauritius is participating in the EPA negotiations as member of the Eastern and Southern Africa 
(ESA) Group.  In December 2007, Mauritius signed an interim agreement, whic h entered into effect 
on 1 January 2008 and will be applicable  until the EPA will come into force. 
61. Mauritius also benefits from preferential tariff treatment on the EC market under the 
Generalized System of Preferences.  It has also  received financial assistance from the EC under, inter 
alia, the European Development Fund through the na tional or regional indicative programmes;  and 
the European Investment Bank for commercial/concessional loans. 
Relationship with the United States 
62. Mauritius benefits from preferential access to th e U.S. market under the Generalized System 
of Preferences (GSP) scheme and the Afri can Growth and Opportunity Act (AGOA).46  Under the 
AGOA, Mauritius qualifies for duty-free and quota-free access for a range of products (including agricultural and textile products) until 2015.
47  Since January 2001, Mauritius also qualifies for 
duty-free access to the U.S. market under the AGOA's "wearing apparel" provisions.  However, as it 
is not considered a Lesser De veloped Country, Mauritius cannot u se non-qualifying third-country 
textile inputs in the manufacture of AGOA-eligible apparel.  The Miscellaneous Trade and Technical 
Corrections Act of 2004 granted Mauritius the lesse r-developed beneficiary country status for one 
                                                      
43 The agreement was under a WTO waiver approved at  the Doha Ministerial Meeting (WTO document 
WT/MIN(01)/15, 14 November 2001). 
44 The requirements relate to maximum import content, specific processing criteria, and change in tariff 
heading. 
45 These may include sanitary and phytosanitary measures, intellectual property rights, public 
procurement, competition policy, investment, trade and environment, trade and labour standards, consumer 
policy regulation and consumer health protection, st andardization and certification, and food security. 
46 The AGOA was amended several times, namely in 2002, 2004 and 2006. 
47 Until its amendment by AGOA Accel eration Act of 2004, the AGOA was due to expire in 2008.  WT/TPR/S/198 Trade Policy Review 
Page 28 
 
 
year (up to 30 September 2005).48  The share of duty-free exports in  total textile and apparel exports 
increased gradually from 13.9% in  2001 to 95.4% in 2007.   
63. In addition, Mauritian apparel made  with third-country fabric was subject to a special sub-cap 
set at 5% of the LDC tariff quota for 2004- 05 (equivalent to approximately 27 million m2 
equivalents).  This provision r esulted in a 4.7% increase of duty-fr ee textiles and apparel exports by 
Mauritius to the United States.  However, since the end of the derogation, e xports of these items under 
the AGOA to the United States have decrea sed from US$147.8 million (in 2004) and US$143.4 
million in 2005 to US$110.3 in 2006.49 
64. In practice, Mauritius has failed to benefit from the AGOA in sectors other than the textile and 
clothing.  Total exports to the Unites States under AGOA amounted to US$160.5 in 2004 and US$152,6 million in 2005;  virtually all were in tex tiles and apparel.  However, in 2006, their share 
fell to 76% (out of total exports of US$157.5 milli on), due mainly to an increase (in absolute and 
relative terms) in export of agricultural products.
50  Between 2005 and 2006, exports of agricultural 
products increased from US$3.4 million to US$35.5 million, comprising mainly fish and fish products.  Exports under the GSP scheme have been fluctuating, falling from US$12.7 million in 2004 
to US$5.8 million in 2005, and then rising to USD 11.7 million in 2006.  In 2007, products exported to 
the United States under the GSP scheme were:  flowers and leaves, fresh fruits and vegetables, sugar, 
silver and gold, sunglasses, frames, carnival mask s, hair brushes and ornaments, marine and 
invertebrate fish, and rum. 
65. A Trade and Investment Framework Agreement (TIFA) between the United States and 
Mauritius was signed on 18 September 2006.  It is aimed at strengthening and expanding trade and 
investment ties between the two countries.  The TI FA contains no specific commitment to move to a 
preferential or free-trade area.  The parties agreed  on a 14-point working programme that is in the 
process of being implemented.  Negotiations ha ve started on a bilateral investment treaty. 
Other preferential agreements 
66. Mauritius also benefits from preferential tariff treatment granted under the GSP schemes of, 
inter alia , Canada, Japan, New Zealand, Norway, and Switzerland.  However, its use of these 
preferences remains limited, mainly due to th e limited quantity of pr oduction, as well as product 
coverage.  In 2007, products exported under the GSP we re:  sugar to Canada;  hair brushes, garments, 
and ornaments to Japan;  fabrics to Turkey;  pi neapples, garments, wooden furniture, watch dials, 
paragliders, and tuna to Switzerland;   ship models, and flowers and l eaves to Canada and Switzerland;  
and sunglasses to Canada and Japan.  
67. Mauritius is not a signatory to the Agreement on Global System of Trade Preferences (GSTP) 
concluded among deve loping countries. 
68. Mauritius grants preferences on a bilateral basis to imports from Pakistan (since 
November 2007).  Negotiations of bilateral prefer ences have been concluded with India, but the 
Agreement has yet to be signed. 
                                                     
 
48 Under the AGOA amendments, the waiver from the normal rules of origin for wearing apparel, as 
applicable to "lesser developed beneficiary countries", was extended from September 2004 to September 2007. 
49 Based on Trade Law Center for Southern Africa online information, "Bi-Lateral Trade Profile : Us – 
Mauritius".  Viewed at: http://www.agoa.info/? view=country_info&country=mu&story=trade. 
50 Based on Trade Law Center for Southern Africa online information, "Bi-Lateral Trade Profile : Us – 
Mauritius". Viewed at: http://www.agoa.info/? view=country_info&country=mu&story=trade. Mauritius WT/TPR/S/198 
 Page 29 
 
 
(5) FOREIGN INVESTMENT REGIME  
69. Since its last TPR in 2001, Mauritius has made ma jor changes to its inv estment regime.  In 
order to set off the decline in investment, th e Government changed its strategy from granting 
numerous and overlapping incentives towards one based  on a low-tax regime and targeted promotion 
of projects.  The new strategy also involves th e creation of a unique brand identity for Mauritius, 
instead of targeting sectors individually through their respective promotion agencies.51  For this, a 
Committee has been set up under the chairmanship of the Minister of Tourism, Leisure and External 
Communications.  The legal framework for businesses h as also been modified, partly as a follow-up 
to Mauritius' 2000 Commitment Letter to the OECD on the elimination of unfair tax competition.  In 
order to facilitate business procedures, the Busi ness Registration Act 2002 and Business Facilitation 
(Miscellaneous Provisions) Act 2006 were enacted ,  the latter providing for the possibility for 
businesses to start their operations on the basis of sel f-adherence to established guidelines, and for ex-
post control of compliance. 
70. Regarding the investment incentives re gime, numerous Acts were amended52 or repealed53 by 
the Finance Act 2006.54  All schemes established under the In vestment Promotion Act, with the 
exception of the Integrated Resort Scheme (IR S)), were also repealed (Chapter III(4)(i)).55  The other 
remaining incentive scheme is the Freeport Scheme (C hapter IV(5)(iii)(a)).  A Real Estate Scheme 
was introduced in November 2007 to create opportuniti es for small landowners to participate in real 
estate development (Chapter IV(5)(iv)).  However,  some incentives are being grandfathered up to 
2012 (up to 2016 in the case of the spinning, weavi ng, dyeing and knitting companies (Chapter IV(3)) 
to promote and protect investments already realized in these sectors. 
71. Corporate tax was reduced from 25% to 22.5% and then to 15% (the rate previously used to 
attract investments under specific schemes), effective 1 July 2007.56  The incentives granted during 
the period under review are summarized in Table A III.2;  all of them are administered by the 
Mauritius Revenue Authority (MRA).  
72. Steps have also been taken to facilitate i nvestment procedures, as well as acquisition of 
properties by foreigners (see below).  In 2006, a single Occupation Permit replaced the former work 
and residence permits; a single Building and Land Use Permit (BLP) replaced the former Development and Building Permits;  and trade licences were abolished.
57  The former "screen and 
                                                      
51 Ministry of Finance and Economic Development (2005). 
52 The amendments concern the Investment Promotion Act, the VAT Act, the Customs Act, as well as 
the Non Citizens (Employment Restriction) Act an d Non Citizens (Property Restriction) Act.   
53 The Export Service Zones Act, Hotel Management (Incentives) Act, Industrial Expansion Act 
(except section 20), and Health Development Certificate Act were repealed. 
54 Repealed by the Finance Act 2006. 
55 The regulations repealed by the Finance Act 2006 are:  Investment Promotion (ICT Scheme) 
Regulations 2002;  Investment Promotion (Permanent Resident Scheme) Regulations 2002;  Investment 
Promotion (Regional Development Scheme) Regulations 2 001;  Investment Promotion (Regional Headquarters 
Scheme) Regulations 2001; and Investment Promotion (SAPES) Regulations 2002.   
56 The Finance Act 2007. The tax is applicable to companies, unit trust schemes, trusts, and 
non-resident societies (partnerships).  Resident societie s are not liable for income ta x, but the associates are 
taxable on their share of income from the societies.  The 15% rate also applies to personal income.  Taxable 
income includes income derived from business, rents, royalties, premium, property, dividends (foreign), and 
interest, but not capital gains.  Income is taxed before distribution of dividend.  A non-resident is liable only on income derived from Mauritius, while residents are liable on their world income.  Resident companies (i.e. 
companies incorporated or having their central management and control in Mauritius) are allowed to claim tax 
credits on account of foreign tax paid on income chargeable to tax in Mauritius. 
57 The Business Facilitation (Miscellaneous Provisions) Act 2006. WT/TPR/S/198 Trade Policy Review 
Page 30 
 
 
approve" approach, where investors were granted i nvestment certificates for qualifying activities, has 
been replaced by an approach based on registrati on with the BOI.  Hence there is no need to submit 
project briefs and feasibility studies, prior appr oval by the BOI, excep t for the Real Estate 
Development Scheme (REDS) (Chapter IV(5)(iv)) and Freeport.  Registration with the BOI is 
optional, but is compulsory for investors intendi ng to apply for an Occ upation Permit;  non-citizen 
investors wishing to acquire property or lease land;  investors wishing to benefit from land conversion tax exemption under the Sugar Industry Efficiency Act;  investors with a development project under 
the REDS or intending to operate in a Freeport Zone;  and companies producing goods for export and 
wishing to benefit from special labour and employme nt provisions (under Section 20 of the repealed 
Industrial Expansion Act). 
73. To register with the BOI, an investor h as to first incorporate/set up a company or société
58 and 
register its business with the Registrar of Businesses (e.g. Registrar of Companies).59  Registration can 
be done online or at the Office of the Co mpanies Division.  With some exceptions60, a business may 
start activities within three working days after regi stration.  Regulated activities require a prior licence 
from a regulatory authority:  these include banking  services (Bank of Mauritius), global business 
(Financial Services Commission), internet service provider (Information and Communication Technologies Authority), and freeport activities (Mau ritius Revenue Authority).  If expected annual 
turnover is less than MUR 10 million and the business employs less than ten employees, it qualifies as 
small or medium-size enterprise (SME) and can be registered with SEHDA, except if it is engaged in 
activities relating to ICT, financial services, cultivation of land, and for religious or charitable purposes. 
74. The Companies Act 2001 replaced the Companies Act 1984
61, and the International 
Companies Act 1994, thereby creating a unified legal regime for all companies.  Changes were also 
brought to the financial services sector, which w as unified by the Financial Services Development 
(FSD) Act 2001.  All financial services, with the exception of banking, were brought under one 
umbrella institution, the Financia l Services Commission (FSC), wh ich became the regulator for non-
banking financial services, including the global busine ss sector (formerly the offshore sector).  In this 
context, the FSC replaced the Mauritius Offs hore Business Activities Authority (MOBAA) 
(Chapter IV(5)(i)).   
75. The Companies Act 2001 provides for various types of  companies:  limited by shares;  limited 
by guarantee;  limited by shares and guarantee;  unlimited;  foreign companies (e.g. incorporated 
outside Mauritius);  and limited life companies.62  Any of these may be licensed as Category 1 or 2 
global business companies (GBC1 and GBC2);  however, limited life company status is available only for GBCs.  A GBC1 may also be regist ered as a protected cell company (PCC).
63  Every company, 
                                                      
58 According to the Investment Promotion Act, an investor is a person carrying out or who intends to 
carry out an economic activity generating an annual  turnover exceeding MUR 3 million, and can be a non-
citizen of Mauritius or a body, whether corporate or incorpor ate, of persons in association, société, partnership 
or company, the control or management of which is vested in persons who are not citizens of Mauritius. 
59 The Business Registration Act 2002.  The following are not required to register:  any person carrying 
on business exclusively in the island of Rodrigues, any office or employment specified in Part I of the First 
Schedule to the Business Registration Act, and any business activity specified in Part II of the First Schedule. 
60 These exceptions concern: regulated activities;  activities that require environmental clearance;  and 
activities that involve land development, or construction works.  
61 With the exception of the sections on insolvency and public companies, which remain in force until 
the adoption of separate legislation.   
62 This form allows the dissolution of the compan y on the occurrence of ev ents specified in the 
Companies Act 2001 (Article 290). 
63 The PCC is a special legal structure made up of cellular and non-cellular assets and provides legal 
segregation of assets attributable to each cell of the comp any (whether owned by indivi duals or body corporate).   Mauritius WT/TPR/S/198 
 Page 31 
 
 
with the exception of a GBC2 (see below), is either  public or private; the private company is not 
allowed to offer shares or debentures to the public.   
76. A foreign company registered in Mauritius is treated for most purposes as a 
Mauritius-incorporated company.  Direct ownershi p by foreigners of an onshore Mauritian company, 
or part of it, requires authorization from the Prime Mi nister.  The authorization is not automatic if the 
activity in question is in compe tition with Mauritian-owned companies.64 
77. Under the Companies Act 2001, the GBC1 repl aced the offshore company.  The FSD Act 
2001, repealed by the Financial Services (FS) Ac t 2007, enabled a GBC1 to undertake only activities 
listed in its Second Schedule.65  Any resident corporation that proposes to conduct business outside 
Mauritius may now apply to the FSC for a Category 1 or 2 Global Business Licence (GBL).  A GBC 
may carry out any activity unless it is unlawful, contra ry to public interest or may cause prejudice to 
the good repute of Mauritius as a centre for financial services.  The conduct of business of a GBC1 
must be managed from within Mauritius.  In this context, a GBC must, inter alia , have at least two 
directors resident in Mauritius.  The GBC1 is c onsidered as resident in Mauritius, and may benefit 
from Mauritius' double taxation avoidance treatie s;  it must, however, hold a Tax Residency 
Certificate.  Annual financial statements must be f iled with the FSC.  A GBC1 is subject to an annual 
licence fee of US$1500 and an application fee of US$500 to the FSC.  A new fee structure was 
scheduled to come into effect in January 2008.66  A GBC1 is liable to corporate tax at the current 
standard rate of 15%, but benefits from a foreign tax credit of 85% which, in practice, lowers the rate 
to 3%. 
78. The GBC2 replaced the international company (IC).   Only a private company is eligible to 
apply for a Category 2 GBL after being incorporated under the Companies Act 2001.  It cannot conduct business with persons resident in Mauritius;   open and maintain with a bank an account in 
Mauritius currency;  lease, hold, acquire or dispo se of an immovable property or any interest in 
immovable property situated in Mauritius;  nor i nvest in any securities listed on a securities exchange 
licensed under the Securities Act 2005.  The GBC2 is treated as non-resident for tax purposes, and is 
therefore exempt from the provisions of the Income Tax Act and cannot benefit from Mauritius' 
double taxation avoidance treaties;  it is not required to file annual accounts.  A GBC2 is not allowed 
to operate in the freeport.  A GBC2 must have  a registered agent in Mauritius who must be a 
management company licensed by the FSC.  It must ha ve at least one director;  corporate directors are 
allowed.   
79. Companies holding a GBL cannot deal with residents.  Nonetheless, a GBC can open and 
maintain with a bank an account in foreign currency;   hold any share, debenture, security or any 
interest in or otherwise deal or transact with a co rporation holding a GBL;  or enter into a business 
relationship with the holder of a management lic ence or a law practitioner or qualified auditor in 
Mauritius.  In addition, a GBC1 may open and main tain with a bank an account in Mauritius currency 
for the purpose of its day-to-day transactions;  le ases, holds, acquires or disposes of an immovable 
property subject to the Non-Citizen s (Property Restrictions) Act;  invests in any securities listed on 
                                                                                                                                                                    
 
The PCC is regulated by the Protected Cell Companies Act 1999 and Protected Ce ll Companies (Amendment of 
Schedule) Regulations 2005. 
64 Grant Thornton online information, "Forms of company". Viewed at: 
http://gtmu.com/index.php?langue=ang&rubrique=108. 
65 These activities were:  aircraft financing and leas ing, assets management, consultancy services,  
employment services, information and communication techno logies, insurance,  licen sing and franchising,  
logistics and or marketing, operational headquarters, pension funds, shipping and shipping management, trading, 
or any other activity as may be approved by the commission. 
66 There have been no changes in the fee structure since its inception in 1994. WT/TPR/S/198 Trade Policy Review 
Page 32 
 
 
the Stock Exchange;  and, subject to authorization from the FSC, deals or transacts with residents in 
Mauritius where this is incidental to the conduct of  business outside Mauritius.  Any person (resident 
or not) may hold shares in a company holding a GBL.  As at 30 September 2007, there were some 33,492 GBCs. 
80. Companies benefit from corporate tax exemptions on royalties payable to non-residents, 
dividends payable by resident companies,  gains on sales of securities by GBCs, and income derived 
from the operation of a registered foreign vessel or from deep sea international trade by a local 
registered vessel.  Tax deduction at source (TDS) ha s been introduced on certain payments.  The rate 
of TDS is 15% for interest, 10% for royalties, 5% fo r rent, 3% for payments to providers of services, 
and 0.75% for payments to contr actors and sub-contractors.  In case of interest however, TDS is 
attracted only if the aggregate amount of deposits held by a depositor in a financial institution, 
including its branches, exceeds MUR 2 million.   
81. A Temporary Solidarity Levy was introduced, eff ective 1 July 2006, on the turnover of hotels, 
hotel management and tour operators.  In addition, an environment protection fee of 0.75% is levied 
on the monthly turnover of hotels and boarding hous es, and enterprises engaged in stone crushing and 
in the manufacture or processing of aggregate, conc rete, blocks, precast units, coral sand, rock sand, 
and basalt sand.  A passenger fee varying betw een MUR 150 and MUR 700 is levied on passengers 
leaving Mauritius by air, excluding  passengers whose journey originates in Mauritius.  A special levy 
on the turnover and accounting profits of banks was introduced, effective from the fiscal year 2007/08 
(i.e. 1 July 2007) (Chapter IV(5)(iv) and (5)(i)(b)). 
82. Under the Non-Citizens (Property Restriction)  Act, a non-citizen investor may acquire 
property in Mauritius subject to prior approval by the Prime Minister.  However, approval is not 
required when property is acquire d under a lease agreement not exceeding 20 years, under the REDS 
to purchase a villa, or when the investor has obt ained approval from the BOI (since October 2006) for 
business purposes. For other regulated activities that require prior clearances from the relevant ministries or agencies, investors must follow guide lines set by these institutions prior to commencing 
their operations.  Each public sector agency deali ng with investment-related matters is required to 
publish clear and transparent guidelines.  The relevant  agencies are responsible for ex-post control to 
ensure compliance.  Other limitations to investme nt by foreigners concern immigration regulations; 
the tourism subsector (Chapter IV(5)(iv));  specif ic incentive schemes (eligibility criteria);  and areas 
still under state monopoly, including water, ports, and airports. 
83. Mauritius has concluded 33 doubl e-taxation avoidance treaties.
67  Investment promotion and 
protection agreements (IPPAs) have been signed and are effective with 16 countries68, and have been 
signed but not yet ratified with 17 more countries.69  Negotiations have been concluded or are under 
way with 12 more countries. 
 
                                                      
67 The treaties currently in  force are with: Barbados, Belgium, Botswana, China, Croatia, Cyprus, 
France, Germany, India, Italy, Kuwait, Lesotho, Luxembourg, Madagascar, Malaysia, Mozambique, Namibia, Nepal, Oman, Pakistan, Rwanda, Senegal, Seychelles, Singapore, South Africa,  Sri Lanka, Swaziland, Sweden, 
Thailand, Uganda, United Kingdom, United Arab Emirat es and Zimbabwe. Other treaties await ratification 
(with Bangladesh, Malawi, Nigeria, Russi a, Tunisia, Viet Nam and Zambia).  
68 China, Czech Republic, France, Germany, India, Indonesia, Madagascar, Mozambique,  Pakistan, 
Portugal, Romania, Singapore, South Africa, Sweden, Switzerland, and the United Kingdom. 
69 Barbados, Belgium, Benin, Botswana, Burund i, Cameroon, Chad, Comoros, Ghana, Guinea 
Republic, Luxembourg, Mauritania, Nepal, Rwanda, Senegal, Swaziland, and Zimbabwe.  Mauritius WT/TPR/S/198 
 Page 33 
 
 
ANNEX II.1:  AID FOR TRADE 
1. Mauritius has benefited from a range of trade-re lated technical assistance activities since its 
last TPR.  Nevertheless, it continues to face signi ficant challenges in the context of the changing 
international environment.  In response to the la tter, Mauritius has undertaken some bold reforms that 
have led to the revival of its economic growth in r ecent years (Chapter I(2)).  The authorities consider 
that Mauritius needs significant international as sistance in its transition from dependence on 
preferences to an open and competitive economy;  th e required reforms could be at least partially 
funded through assistance provided under Aid For Tr ade (AFT).  Past technical assistance activities, 
as well as areas where support from th e international community could help Mauritius achieve greater 
integration into the global economy are highlighted below. 
2. According to the Joint WTO/OECD database,  during the period under review (2001-06), 
Mauritius has benefited from trade-related assistance, funded by international in stitutions and bilateral 
donors.1  The amount of grants and concessional loans to Mauritius has been following an upward 
trend, from US$207,000 in 2001 to US$1,050,0 00 in 2006 (from US$248,000 to US$1,425,000 if all 
grants and loans were taken into account).2  Assistance in trade development has been increasing 
gradually since 2004 and has overtaken that granted under the heading of trade policy and regulations.  
The major donors of gross official development assistance (ODA) to Mauritius over 2004-05 (latest 
data available) were France, EC, Japan, Arab  Agencies, International Fund for Agricultural 
Development (IFAD), United Nations Technical Assistance (UNTA), Canada, Luxembourg, 
United States, and Global Environment Facility (GEF).3 
3. Technical assistance granted by the WTO has been delivered mostly through regional 
activities and workshops, and trade policy courses, but  also through national workshops or technical 
missions.  National activities have been focusing on notifications, rules of origin, subsidies, 
government procurement,  sanitary and phytosanitary  measures and technical barriers to trade, anti-
dumping, market access issues (textiles and clothing), trade-related intellectual property rights, trade 
in services (including domestic regulation an d preparation of initial requests for specific 
commitments), trade facilitation, development of trade negotiating skills, dispute settlement, 
participation in Cotonou and Post-Doha Agenda (outcome and implementation). 
4. Mauritius has been at the forefront of di scussions on AFT since the WTO Ministerial 
Conference in Hong Kong, China in 2005.  The Task Force on AFT identified the following broad 
categories for intervention:  trade policy and re gulations;  trade development;  infrastructural 
development;  productive capacity building;  adjustme nt to cushion the effects of trade liberalization; 
and other trade-related assistance needs.4  A major area of emphasis for Mauritius is trade-related 
adjustment assistance.  Mauritius has proposed that assistance be provided to cover the costs of 
adjustment required by liberalization, including pr eference erosion (e.g. in the textile, clothing and 
sugar industries), loss of tariff revenues, risi ng food prices (following the gradual dismantling of 
                                                      
1 Assistance was granted in agriculture, business-suppo rt services and institutions, customs valuation, 
dispute settlement, market analysis and development, training on negotiations, regional trade agreements, rules, 
sanitary and phytosanitary measures, services, tariff negotiations (non-agricultural market access), tariff 
reforms, technical barriers to trade, textiles and clothi ng, competition regime, trade and environment, trade and 
investment, trade facilitation, mainstreaming trade into development plans, trade promotion strategy design and 
implementation, trade-related intellectual property ri ghts, and transparency in government procurement. 
2 The data for 2006 are still partial. 
3 OECD, Mauritiu . Viewed at: http://www.oecd.org/dataoecd/23/25/1882308.gif. 
4 The first two categories (trade policy and regulations, and trade development) are to follow the 
definition of the Joint WTO/OECD database;  other categories fall under the AFT only if the activities in 
question have been explicitly identified as trade-re lated priorities in the recipient country’s national 
development strategy. WT/TPR/S/198 Trade Policy Review 
Page 34 
 
 
agricultural subsidies), export earning shortfalls, a nd social costs (e.g. those related to employment 
losses).5   
5. Mauritius’ AFT requests are based on its nationa l trade development strategy based on a 
ten-year programme announced in the FY 06/07 Bu dget, which is aimed at opening the economy to 
the rest of the world and implementing wider economic  and social reforms.  In consultation with the 
World Bank and the IMF, Mauritius estimated that su ch reforms would cost € 4 billion, the majority 
of the funding needing to be frontloaded.  While appr oximately half of that amount is expected to be 
financed through investment, the authorities are seeking to obtain the remainder through concessionary finance, preferably under AFT.
6  Mauritius has estimated its trade-related investments 
for 2006-15 at €2,248 million, with the biggest n eeds in ICT, SME support to existing sectors, power 
plant, ports and airports, and seafood hub (Table II.3).   
Table II.3 
Trade-related investment needs, 2006-15  
(€ million) 
Sector TRTA TRCB TRPCB TRInf TRAM Total 
S u g a r :        
   Derocking/irrigation    63   63 
   Mechanization    24   24 
   VRS II compensation      97 97 
   Cess restructuring      24 24 
   Centralization     43  43 
   Blue print compensation      35 35 
   Power plant     215  215 
   Ethanol    16   16 
   Debt servicing      41 41 
   Income support      11 11 
   Research   14    14 
SME Support to existing sectors   100   120 220 
N e w  S e c t o r s :        
Knowledge hub    145   145 
Seafood hub    160   160 
Light engineering   60   60 
Pharmaceuticals/medical hub    85   85 
ICT (EASSy, etc.)     660  660 
Ports & airports    190   190 
Empowerment programme      45 45 
Tariff revenue loss      100 100 
Total   114 743 918 473 2248 
 
TRTA Trade-Related Technical Assistance. TRCB Trade-Related Capacity Building. 
TRPCB Trade-Related Produc tive Capacity Building. 
TRInf  Trade-Related Infrastructure. TRAM Trade-Related Adjustment Measures. 
 
Source:   OECD and WTO (2007), Aid for Trade at a Glance 2007 , Country and Agency Chapters.  The Chapter on 
 Mauritius is available at: http://www.oecd.org/dataoecd/45/47/39639129.pdf.  
 
                                                      
5 WTO document WT/AFT/W/8, 4 May 2006. 
6 Statement by the Minister of Finance and Economic Development at the OECD Policy Dialogue with 
Non-Members on Aid for Trade, 6-7 November 2006. Viewed at: http://www.oecd.org/dataoecd/42/29/3769268 1.pdf.