Mauritius WT/TPR/S/198 
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IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. Sugar, textiles and clothing, tourism, and financia l services continue to be the four pillars of 
the Mauritian economy, even though their relative im portance has continued to change, with sugar 
loosing ground, and textiles and clothing suffering a seri ous set-back.  This structure is the heritage of 
preferential access to certain key markets, as well as the incentive schemes (mainly the Export 
Processing Zone (EPZ) Scheme), which helped boos t export-oriented manufacturing.  Efforts are 
being made to develop Mauritius into a cyber-isl and and to make information and communication 
technology (ICT) the fifth pillar of the economy. 
2. Agriculture continues to be an important sector in terms of its share in exports and on account 
of its linkages with other sectors.  However, in the light of decreasing sugar prices on Mauritius' main export market, a new plan has been adopted to restru cture the sector and ensure its long-term viability, 
while promoting alternative goods related to cane pr oduction.  An attempt is also being made to 
transform Mauritius into a seafood hub by develo ping value-added fisheries and seafood-related 
activities.  Mauritius is a net-food-importing countr y.  For food security purposes, it continues to 
maintain import, export, and pri ce controls, and strategic reserv e stocks on certain agricultural 
products.  Marketing boards are in place and m onopolies have been granted to certain public 
enterprises over the importation of certain products.  Incentives are granted to th e agriculture sector to 
reduce production costs (e.g. input, and freight cost s), even though some incentives, such as those 
granted under the Agricultural Development Scheme , have been eliminated.  Quotas are maintained 
on imports of table potatoes and salt, and on exports of chilled fish.  A cess  and the Tea Board fee are 
levied on tea imports.  Tariff protection in agriculture  (Major Division 1 of ISIC Revision 2) averages 
4.9% (down from 14% in 2001), with rates ranging up to 30%. 
3. The manufacturing sector has been dominated by  textiles and clothing, followed by food 
production (including sugar milling, be verages, and tobacco), non-metallic minerals, and chemicals.  
EPZ companies have accounted for the bulk of produc tion.  In response to the changing international 
environment (increasing competition resulting from the multilateral liberalization of textiles and 
clothing) and in order to boost competitiveness, most incentives granted to the sector, including the 
EPZ scheme, were abolished by the Finance Act 2006.  In addition, nominal average tariff protection 
has been lowered from 20.6% in 2001 to the current 6.8%.  Nonetheless, border protection for clothing and footwear remains high, mainly due to the introduction of specific duties with AVEs 
ranging up to 277.5%.  After a negative average a nnual real growth rate during 2001-05, the sector 
seems to be recovering, with growth of around 4%  in 2006-07.  Certain manufactured products are 
subject to import, export, and price co ntrols, and/or technical regulations. 
4. The services sector, dominated by financial services and tourism, is the largest contributor to 
Mauritius' GDP.  Mauritius is a net exporter of services.  Since its last TPR, Mauritius has undertaken 
reforms to strengthen its financial subsector.  Th e air access policy has been somewhat relaxed to 
further boost tourism.  The ICT Act 2001 established the basis for liberalization of the telecommunications sub-sector by removing the ex clusivity rights granted to Mauritius Telecom over 
fixed telecommunications services.  Monopolies or exclusive rights held by state-owned enterprises generally limit competition in certain branches (such as postal services). In general, Mauritius' regime 
on services is more liberal than its commitments under the GATS.  Measures affecting presence of 
natural persons are unbound.  Under Article II of the GATS, Mauritius has maintained MFN 
exemptions (in financial ser vices) on reciprocity grounds. WT/TPR/S/198 Trade Policy Review 
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(2) AGRICULTURE AND RELATED ACTIVITIES  
(i) Overview 
5. Close to half of Mauritius' total territory of 2,040 km2 is used for agriculture; sugar cane alone 
occupies some 36% (2006).  Agricultural production has shown a downward trend during the review 
period (Table IV.1 and Table IV.2), and Maur itius has therefore remain ed a net-food-importing 
country.  As a tropical island, Mauritius is exposed to the vagaries of climate, such as cyclones and 
drought, and agriculture suffers from other inherent  constraints, such as a narrow domestic market, 
land and water scarcity, and high production cost s (mainly labour costs), which keep rising.1  T h e  
latter has resulted in lower returns to investment, and consequently in increased conversion of land for 
non-agricultural purposes.   
Table IV.1 
Main aggregates of the agricultural sector (including fisheries), 2001-06 
 2001 2002 2003 2004a 2005a 2006b 
Value-added at current basic prices (MUR million)  8,596 7,909 8,727  9,830  9,790  9,988  
of which: sugarcane  4,646 3,913 4,508  5,261  5,212  4,995  
Annual real growth rate (%)  +7.2 -16.3 +1.9 +8.1  -5.4 +0.6  
Share of agriculture in GDP at basic prices (%)  7.3 6.3 6.4 6.4 6.0 5.5  
Share of sugar cane in agriculture (%) .. .. 51.7 53.5 53.2 50.0 
Share of agriculture in  total employment (%) .. .. 9.9 9.7 9.6 9.3 
Investment at current prices (MUR million)  648 832 953 1,328  2,025  2,253  
Share of investment in  agriculture in total Gross 
Domestic Fixed Capital Formation  (GDFCF) (%)  2.2 2.7 2.7 3.5 5.1 4.6  
Sugar exports (MUR million)  8,557 8,869 8,775  9,631  10,536  11,165  
Agricultural exports other than sugar (MUR 
million)  273 175 185 290 273 ..  
Share of agricultural expor ts in total domestic 
exports (%)  20.2/26.5 21.0/27.9 21.3/28.7  22.7/30.6  25.7/36.9  ..  
.. Not available. 
a Revised estimates. 
b Provisional. 
Source : Bank of Mauritius (2005 and 2006), Annual Report 2003-04,  Annual Report 2004-05, and Annual Report 2005-06. 
 Viewed at:   http://bom.intnet.mu/;  and Ministry of Fina nce & Economic Development (2005 and 2006), Central 
 Statistics Office, Digest of  Agricultural Statistics 2005 and Digest of Agricultural Statistics 2006 . Viewed at: 
 http://www.gov.mu/portal/s ites/ncb/cso/index.htm. 
 
6. Sugar cane continues to be the main crop (section (ii)(a)), despite falling production 
(Table IV.2).  Other cash crops grown in Mauritius include tea and tobacco.  Mauritius also produces 
flowers, mainly anthurium;  revenue from exports of anthurium amounted to MUR 96 million in 2006 
(up from MUR 70 million in 1998).  Food crops include tomatoes, potatoes, pumpkins, and 
cucumbers (Table IV.3).  The fisheries sub-sect or remains small, and exploitation of traditional 
resources has attained its limits.  Nevertheless, th e Government places high hopes on this sector and 
promotes the development of value-added fisher ies and seafood-related activities.  Mauritius seems 
self-sufficient in poultry;  it produces other meat in  limited quantities.  Forestry is restricted to 
marginal lands. 
7. In order to adapt to the changing economic environment, the Non-Sugar Sector Strategic Plan 
(NSSSP) 2003-07 was reviewed, and a new progra mme proposed: the Strategic Options in Crop 
Diversification and Livestock Sector (2007-15), is complementary to the Multi-Annual Adaptation 
Strategy (MAAS) in the sugar sector (see below).  It s approach is diversification without affecting 
traditional planters in the non-sugar subsector.  The proposal considers a mix of crops that have been 
successful in small-scale trials, and distinguishes  the types of crops that could be grown as 
                                                      
 1 Ministry of Agro Industry and Fisheries (undated). Mauritius WT/TPR/S/198 
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conventional crops (onion, potatoes, tomatoes) from the novel crops (such as neutraceuticals).  It is 
based on the expectations of land under sugar cane be ing released at a faster pace, due to the reduction 
in the sugar price (section (ii)(a)  below).2  The Government considers it vital for environmental and 
social reasons to keep these area s under cultivation.  The overall objective of the new strategy is to 
increase food and agricultural production signifi cantly by 2015 through innovative methods, new 
products, and market diversification. 3 
Table IV.2 
Agricultural  production, 2001-06 
('000 tonnes, unless otherwise specified) 
Commodity 2001 2002 2003 2004 2005 2006a 
Agricultural crops       
Sugar cane 5,792 4,874 5,200 5280 4,984.1 4,749.0 
Tea (green  leaf) 7.4 6.9 7.0 7.2 6.8 7.6 
Tobacco leaf 0.6 0. 5 0.4 0.4 0.4 0.3 
Food crops 129.1    103.9    103.5 111.6 96.8 106.9 
Production of agri-industrial products       
Sugar production 645.6 520.9 537.2 572.3 519.8 504.9 
Tea (manufactured)    1.5 1.4 1.6 
Livestock slaughtered (carcass weight, all species excluding 
poultry) 3.2 3.3 3.4 3.3 3.7 2.9 
Poultry ..  .. .. 33.0 33.0 36.0 
Milk ('000 litres) ..  .. .. 4,000 4,000 4,000 
Fish 10.8 10.8 11.4 10.9 10.8 10.0 
.. Not available. 
a Provisional. 
 
Source :  Ministry of Finance & Economic Developmen t (various years), Central Statistics Office, Historical  Series – 
 Agriculture . Viewedat: http://www.gov.mu/portal/s ites/ncb/cso/hs/agri/hs.htm;  Digest of  Agricultural Statistics 
 2005 and 2006 . Viewed at: http://www.gov.mu/porta l/sites/ncb/cso/index.htm; a nd information provided by the 
 authorities. 
Table IV.3 
Food crops:  area and production, 2001-06 
(Hectares and tonnes) 
 2001 2002 2003 2004 2005 2006  
 Area Prod. Area Prod. Area Prod. Area Prod. Area Prod. Area Prod. 
Fresh 
vegetables: 7,213 112,103 6,579 94,759 6,558 86,803 6,888 95,143 6,246 80,317 6,521 90,001 
Tomato 934 12,395 947 11,738 1,044 13,247 953 14,400 918 12,840 935 14,671 
Potato 779 16,350 606 13,339 588 12,359 607 11,246 599 12,777 589 14,522 
Pumpkin 338 5,439 331 4,997 421 6,151 445 6,685 395 5,299 529 7,759 
Cucumber 497 6,426 450 5,675 540 6,713 543 6,938 440 4,907 506 6,866 
Calabash 322 4,513 331 3,990 356 4,800 423 5,754 399 4,602 412 5,672 
Onion 333 10,950 238 7,117 158 4,183 181 4,682 253 5,637 170 4,550 
Cabbage 459 11,663 330 8,252 267 6,279 287 6,522 224 4,766 236 4,547 
Carrot 719 12,030 509 8,650 320 5,048 377 5,841 262 3,934 271 4,316 
Chouchou 289 6,517 319 6,831 197 5,107 247 5,687 180 3,761 190 3,928 
Brinjal 182 2,721 174 2,359 153 2,097 202 2,819 174 2,074 216 2,839 
        Table IV.3 (cont'd) 
 
                                                      
2 It is expected that by 2015, some 7,000 ha, currently under sugar cane, will be available for 
agricultural and other uses. 
3 Ministry of Agro Industry and Fisheries (2007b). WT/TPR/S/198 Trade Policy Review 
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 2001 2002 2003 2004 2005 2006  
 Area Prod. Area Prod. Area Prod. Area Prod. Area Prod. Area Prod. 
Shallot 140 931 125 936 113 836 149 1,918 126 1,550 131 1,675 
Ginger 52 868 31 473 29 369 38 791 54 1,011 52 1,016 
Sweet potato 50 675 55 620 58 500 60 650 67 652 73 584 
Groundnut 123 323 116 284 255 893 212 610 137 231 183 390 
Manioc 13 186 13 140 9 130 12 225 14 206 15 235 
Eddoes 
(curry) 13 125 13 130 11 100 13 130 18 173 20 217 
Eddoes 
(violet) 9 60 7 81 6 75 7 110 6 87 8 111 
Garlic 6 40 4 25 8 63 8 76 12 93 8 61 
Other  1,955 19,891 1,980 19,122 2,025 17,853 2,124 20,059 1,968 15,717 1,977 16,042 
Fruits: 705 17,016 683 9,117 670 16,652 665 16,490 655 16,465 686 16,901 
Banana 540 11,000 600 7,200 544 12,090 528 12,000 521 11,580 510 11,347 
Pineapple 165 6,016 83 1,917 126 4,562 137 4,490 134 4,885 176 5,554 
Total 7,918 129,119 7,262 103,876 7,228 103,455 7,553 111,633 6,901 96,782 7,207 106,902 
Source : Ministry of Finance & Economic Developmen t (2005 and 2006), Central Statistics Office, Digest of Agricultural 
 Statistics 2005 and 2006. Viewed at: http://www. gov.mu/portal/site/cso. 
8. Mauritius' agricultural policy is aimed at ensuring food security and food safety,  diversifying 
production within and away from suga r, and enhancing the level of self-sufficiency in a number of 
selected agricultural products.  To this end, import and export controls, by means of permits, continue 
to be used, as well as price controls.  Import and ex port controls, and a fixed maximum price system 
apply to a certain number of agricultural products  (Chapter III(2)(vi);  Chapter III(3)(iii);  and 
Chapter III(4)(iii)(b)).  Imports of food products ar e subject to sanitary, phytosanitary, and labelling 
requirements (Chapter III(2)(viii) and (ix)). 
9. Several parastatal bodies under the aegis of the Ministry of Agro Industries and Fisheries 
(MAIF) intervene in the sector (Table IV.4).  Im ports of "strategic" agricultural goods are controlled 
by bodies such as the Agricultural Marketing Boar d (AMB), the Tea Board, and the Tobacco Board 
(Chapter III(4)(ii)).  The main agencies involve d in agricultural research are the Mauritius Sugar 
Industry Research Institute (MSIRI), which focuses on sugar cane (but also on food crops intercropped with sugar cane, i.e. potatoes and ma ize) and the Agricultural Research and Extension 
Unit (AREU), which focuses on non-sugar crops and livestock. 
10. Seed potato, whole onions, and whole garlic can only be imported by the AMB.  The AMB 
also monitors the procurement and sale of the ma in controlled agricultural products on the domestic 
market (Chapter III(4)(ii)).  A "no objection" clearance is required to import milk, beans, garlic paste and powder, processed onions and shallots, lemons a nd limes, and salted fish.  Exports of lemons and 
limes, groundnuts, shallots, spices and salted fish must  also be cleared by AMB.  At the domestic 
level, controlled goods are usually bought by AMB through a guaranteed producer price based on cost 
of production plus a profit mark-up.  The goods are stored and sold to wholesalers, with a maximum 
retail price to consumers recommended by AMB or Government.  Growers are encouraged to sell 
their own produce directly to the market.
4  Strategic reserve stock requirements (at least one month of 
consumption) are maintained by the AMB for, inter alia,  potatoes, onions, and garlic. 
                                                      
4 WTO document G/STR/N/8/MUS, 2 August 2002. Mauritius WT/TPR/S/198 
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Table IV.4 
Parastatal bodies intervening in non- sugar agricultural activities, November 2007 
Agency Main activities 
Agricultural Marketing Board  (AMB) Provides and ensure s efficient marketing for all controlled products at 
"fair and reasonable" prices;  opera tes or provides for operation of 
storage, handling, trans port and processing facilities in respect of these 
products as well as the regulation of their quality. 
Irrigation Authority (IA) Studies the developmen t of irrigation activities and makes proposals to 
the Central Water Authority (CWA ) for prepartion schemes for the 
irrigation of specific areas. 
Food and Agricultural Research Council (FARC) Plans and coor dinates promotion of interdisciplinary collaboration and 
consensus building on priorities amon g Agri-food Research Institutions 
and stakeholders in Mauritius. 
Agricultural Research and Ex tension Unit (AREU), (a unit 
of FARC) Conducts research in non-sugar crop and livestock and provides 
extension services to farmers.   
Farmers Service Corporation Provide s guidance and assistance to small planters in order to enhance 
efficiency and productivity in respect of sugarcane yield. 
Tea Board  Regulates and controls the activities of the tea industry. 
Tobacco Board Controls the pr oduction and sale of leaf tobacco, issues import licences 
for tobacco and tobacco products and fixes purchase and sale prices of 
locally produced leaf tobacco. 
Small Planters Welfare Fund  Is responsible for th e economic and social welfare of around 40,000 small 
planters of sugarcane, tea, tobacco , or food crops including fruits and 
ornamentals on their own land or  on leased land not exceeding 10 
hectares. 
Mauritius Meat Authority (MMA) Manages the Abattoir and controls and regulates the sale of meat and 
meat products. It is essentially con cerned with the slaughter of cattle, 
sheep, goats and pigs. 
Source : Ministry of Agro Industr y and Fisheries (undated),  An Overview of the state of Agriculture in Mauritius since 
 1970's. Viewed at: http://www.gov.mu/portal/site/m oa/menuitem.9664ad5be26e42b8adbea610a0208a0c. 
 
11. The State Trading Corporation is the only authorized importer of ration rice and wheat flour 
(Chapter III(4)(ii)).  In the case of wheat flour, bids are invited from international millers and the local 
milling company (LMLC): STC launches annual tender s for 50% of estimated annual requirements, 
the rest being in principle reserved for the LMLC.  If the best bidder is a foreign miller/exporter, the 
LMLC is required to match the lowest bid for th e supply of its guaranteed 50% of the country's 
requirements.  If the best bid is from the LMLC, th en it supplies the STC 100% of requirements at its 
bid price.5  The tenders for the contract years 2003, 2005, and 2006 were awarded to LMLC;  the 
supply for 2004 was split between Manildra Flour  Mills (Pty) Ltd. (Australia) and LMLC.6  The STC 
also manages storage facilities for rice and flour;  it sells the products to private wholesalers and bakers, who then distribute them to retailers.  
12. Because of scarcity of land, agricultural diversification means the reallocation and 
optimization of land use.  In this respect, th e Sugar Industry Efficiency Act 1988 provided for the 
preservation of agricultural land and the promotion of both sugar and non-suga r agriculture.  In 2001, 
a new Sugar Industry Efficiency Act was adopted
7 to consolidate, amend, and streamline the laws 
relating to the incentives applicable to the sugar indu stry to help the democratization of ownership in 
the industry, restore and maintain its efficiency  and viability, and support the socio-economic 
development of Mauritius.  The conversion into n on-agricultural land is subjectto a Land Conversion 
Permit from the MAIF8, with some exceptions9, and payment of land conve rsion tax.  However, 
                                                      
5 WTO document G/STR/N/8/MUS, 2 August 2002. 
6 STC online information, "Wheat Flour". Viewed  at: http://stc.intnet.mu/activity/acflour.htm. 
7 Several amendments have been made to the Act. 
8 Land is considered to be agricultural if it has been under cultivation at any time during the ten years 
immediately preceding the effectiv e date of an application. 
9 The land conversion permit is not required where the owner was, on 30 September 2005, the owner of 
land which is or part of which is agricultural land not exceeding one hectare in the aggregate;  and the WT/TPR/S/198 Trade Policy Review 
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exemptions from the land conversion tax are gran ted when the land conversion permit has been 
granted for, inter alia , the construction or setting-up of industrial estates, business parks, shopping 
malls, technology parks, hotels, golf courses, and hea lth institutions by the holder of a registration 
certificate issued by the BOI;  or the setting-up of  an agri-based activity.  In 2007, the Act was 
modified to allow the owner of a plot of land to use it for non-agricultural purposes, if the land has not 
been under cultivation during the past ten years.  The ow ner has to make a declara tion to that effect to 
the MAIF which must, within two weeks, confirm the status of the land. 
13. Several incentives are granted to the agricultu re sector.  Under the Agricultural Technology 
Diffusion Scheme, funds are provided to the farmin g community in the non-sugar subsector for the 
consultancy needed to implement modern technolog y.  The Freight Rebate Scheme (FRS), operated 
by the AMB, provides partial refunds of freight  costs for selected expor ts, including agricultural 
products (Chapter III(3)(iv)).  The amount disbur sed under the FRS during the period under review 
varied between MUR 3.1 million (in 2006) and MUR 12.2 million (in 2005).  For 2007/08, some 
MUR 20 million have been allocated as incentiv es under the FRS and Free Drugs Scheme, and as 
subsidies on animal feed and on electricity to food crop growers.  In addition, planting materials and 
products subject to price controls have been elig ible for subsidy.  The Agricultural Development 
Scheme, which provided incentives for the conso lidation of Mauritius' agricultural base, was 
eliminated, effective 1 October 2006.  It supported irrigation, de-rocking, mechanical harvesting and 
food processing projects, and the use of bagasse in energy production. 
14. Under the Income Tax Act, every person who de rives income from agriculture in an income 
year, is allowed relief, by way of deduction of an amount equal to 15% of his net income from 
agriculture or MUR 100,000, whichever is lower.  An annual allowance of 20% for income tax 
purposes is granted on the costs incurred in the cleara nce or improvement of land used or intended for 
use for agriculture (including the construction on agri cultural land of any road, bridge, irrigation work 
or building used for agricultural purposes), and on the costs incurred on research for the purpose of 
establishing a new industry or expanding an existing one.10  Until 2007, income tax exemptions were 
granted to sugar planters and persons providing management servi ces in relation to sugar cane 
cultivation. 
15. Under the Development Incentives Act 1990, exem ptions from payment of income tax on 
dividends paid out of income derived by a compan y holding an Agricultural Development Certificate 
(ADC) or an Agro-based Industry Certificate (AIC ) are granted for 20 years (from its date of 
production or its date of operation).  Exemptions  from duty are also granted exemptions of duty on 
machinery and equipment (excluding vehicles) for companies holding an ADC or an AIC, upon approval by the MAIF;  on selected office equipm ent used by companies holding an ADC, upon 
approval by the MAIF;  as well as on specialized spar e parts of equipment used by companies holding 
an AIC.  In addition, remissions of two thirds of  municipal taxes are granted to companies holding an 
ADC during the tax exemption period, and remission of 50% on registration dues for the purchase of 
land and buildings to be used in relation to projects of companies holding an ADC or an AIC.
 11 
16. Under the Customs Tariff Act, exemptions are granted on:  vegetable seed, plants or parts 
thereof (e.g. grafts) for use as planting material, residues from the food industry used primarily as 
food in the livestock sector, agricultural equipmen t for soil preparation or cultivation or on 
mechanical harvesters,  and milking and dairy m achines.  Some products (such as vegetable seeds, 
plants and parts thereof used as planting material, feeds of the livestock sector, and herbicides) are 
                                                                                                                                                                     
agricultural land is located in an area where development is permissi ble in accordance with an outline scheme or 
a development plan;  and the land is not within an irrigation area. 
10 Ministry of Agro Industry and Fisheries (undated c). 
11 Ministry of Agro Industry and Fisheries (undated c). Mauritius WT/TPR/S/198 
 Page 79 
 
 
exempt from VAT payment.12  Shades, green houses, and fertigation and irrigation pumps and 
machinery for agriculture have b een exempted from VAT since 21 July 2003;  and cotton (HS 52.01, 
52.02 and 53.03) since 1 October 2006.  Until 2006, sugar planters owning at least 5 arpents of cane 
or growing at least 1 arpent of f ood crop were entitled to a remission  of 100% custom s duty every five 
years on the purchase of a double-cab pick-up or a van suitable to transport workers. 
17. The simple average tariff in agriculture (Major Division 1 of ISIC Revision 2) is 4.9%, down 
from 14% in 2001, with a maximum ad valorem  tariff rate of 30% (down from 80% in 2001) 
(Chapter III(2)(ii)(b)).  Tariff rates range from zer o to 30% on food products:  they average 0.7% 
(down from some 10% in 2001) on first-stage pr ocessed food;  about 3.5% (down from 19%) on 
semi-processed food;  and around 12.1% (down from 29%) on fully processed food. 
(ii) Key subsectors  
(a) Sugar 
18. The sugar industry continues to be the main branch of the agriculture sector.  Sugar cane 
accounts for some 90% of cultivated land13 and around half of agricultural income.  Around 26,000 
small farmers (owners of their land), 15,800 work ers (employees), 630 metayers (i.e. those who lease 
land from the owners), 22 "companies agricoles" a nd 8 mills (down from 14 in 2001) are involved in 
sugar production.14  The latter two (the corporate sector) c ount for 60% of sugar production.  In 
addition, the sugar industry has a large multiplier effect on the economy.  Average annual production 
for 2001-06 was 5.1 million tonnes of sugar cane and 550,100 tonnes of sugar.  The estimated 
production for 2007 was 436,000 tonnes, a substan tial reduction from 2006, due to a cyclone in 
February 2007.  During 2001-06, the annual average yield was 7.8 tonnes of sugar per hectare, and the 
extraction rate 10.7%. 
19. Mauritius is among the world's ten largest exporters  of sugar.  Despite its relatively modest 
contribution to GDP (around 3.0%), sugar accounts for 16% of total goods exports and 10% of total 
foreign exchange earnings (2006).  Foreign exchange  earnings from sugar exports  must be repatriated 
and sold on the local market.   
20. Mauritius exports almost all its sugar productio n;  in 2006, exports amounted to 504,010 
tonnes (Table IV.5).  Mauritius exports most of its sugar production to the EC and is the EC's biggest 
single source of sugar (25% of total sugar imports).   It has been benefiting from preferential access to 
the EC under the Sugar Protocol (SP) to the Cotonou Agreement (506,000 tonnes) and Special 
Preferential Sugar (SPS) Agreement (16,000 tonnes,  declining).  The SPS was replaced by the 
Complementary Quantity (CQ) system on 1 July 2006.15  In the 2006/07 crop year, Mauritius 
exported 487,000 tonnes under the SP.  The SP gua ranteed the price of €523.70 per tonne till 
30 June  2006.  The price is scheduled to decline to: € 496.80 from 1 July 2006 to 30 September 2008;  
€434 from 1 October 2008 to 30 Septembe r 2009;  and € 335 as from 1 October 2009. 
21. Mauritius' sugar exports also benefit from preferential access to the U.S. market  under the 
U.S. Sugar tariff quotas;  the minimum quota for Mauritiu s is 12,800 tonnes.  During U.S. fiscal year 
2006, Mauritius exported some 4,020 tonnes of sugar to the United States, filling 27% of its total 
                                                      
12 Ministry of Agro Industry and Fisheries (undated c). 
13 In 2007, 66,000 hectares were under sugar cane cultivation. 
14 Foreigners cannot hold more than 15% of the capital of a sugar company. 
15 The CQ system has a limited duration (until 2008/09). WT/TPR/S/198 Trade Policy Review 
Page 80 
 
 
quota allocation.16  This low fill rate is due mainly to the lower price than on the EC market, as well 
as climatic conditions.  Furthermore, under the SADC  Sugar Protocol, Mauritius is allowed to export 
1,500 tonnes of sugar duty free to the other SACU countries.  A marginal percentage of the production is also exported to other countries under their GSP schemes, including Switzerland, Israel, 
Russian Federation, and Hong Kong (China). 
Table IV.5 
Sugar production and trade, crop years 2001-06  
(Tonnes) 
 2001 2002 2003 2004 2005 2006 
Sugar production 645,598 520,887 537,155 572,316 519,816 504,857 
Total exports 589,862 535,478 535,576 564,124 521,634 504,010 
   Exports under the Sugar Protocol 519,980 504,866 497,553 519,035 489,360 487,310 
   SPS exports 43,610 21,800 28,738 16,700 13,653 n.a. 
   Exports to the United States 19,780 2,317 2,285 21,437 7,156 4,020 
   Other exports 6,492 6,495 7,000 6,952 11,465 12,680 
Imports 17,050 31,849 40,800 41,480 41,990 41,990 
n.a. Not applicable. In 2006, the SPS was re placed by the Complementary Quantity (CQ).  Exports under the CQ were zero in 2006.  
Source:   Information provided by the MSS. 
22. Exports of sugar and products  with sugar content require a permit from the Ministry of 
Industry, Small and Medium Enterprises, Commerce and Cooperatives;  the permit is subject to prior 
approval by the Mauritius Sugar Syndicate (MSS).   
23. The Mauritius' sugar industry has been s upported by its preferential access to and 
remunerative prices in key markets.17  However, it is a high-cost producer, with costs over 50% higher 
than on the world’s lead ing "free" sugar markets.18  Labour accounts for some 55% of total production 
costs of sugar.  Nevertheless, eroding preferences an d the reform of the EC sugar regime (which will 
reduce the guaranteed sugar price by 36% betw een 2006 and 2009) constitute a challenge to the 
Mauritian sugar industry. 
24. The five-year (2001-05) Sugar Sector  Strategic Plan was aimed at, inter alia , lowering 
production costs and reducing the number  of sugar mills.  In the light of lower revenues for Mauritius' 
sugar producers, a new accelerat ed action plan for the sugar in dustry, the Multi-Annual Adaptation 
Strategy (MAAS) 2006-15, was set up.  In the light of the "triple shock" (Chapter I.(2)), the MAAS is aimed at ensuring the long-term viability of the sugar industry, while pr omoting alternative goods 
related to cane production, and increasing its energy potential.  The latter is expected to be done 
through the generation of electricity from bagasse and coal, and the production of ethanol
19, with the 
aim of reducing dependency on oil im ports.  In 2006, the sugar industry provided about 40% of total 
electricity consumption in Mauritius.  With a fifth el ectricity station expected to open in 2007, this 
share is expected to rise to 60%. 
25. The new plan also is aimed at reducing produc tion costs and encouraging economies of scale 
by reducing the number of sugar m ills (from the current 11 to four)20 and clustering together small 
                                                      
16 In 2006/07, the TRQ for Mauritius was 14,690 metric tonnes tel quelle (MTTQ).  In 2005/06 the 
TRQ was 22,572 MTTQ and Mauritius exported 7,156 tonnes. 
17 NPCC online information, "Competitiveness Foresight - What orientations for Mauritius?". Viewed 
at: http://www.npccmauritius.com/competitivenessforesight.pdf. 
18 World Bank (2005). 
19 Ethanol will be blended with petrol for use in vehicles. 
20 To make this possible, a voluntary retirement scheme was launched for workers older than 50. Mauritius WT/TPR/S/198 
 Page 81 
 
 
farms.21 This reform involves also the mechanizati on of all practices (including cane harvesting, 
irrigation, and land preparation), and replanting fiel ds with cane varieties with higher yields. All the 
inputs (including fertilizers, herbicides, and cement) will be provided at zero cost to eligible small 
farmers.  The estimated cost of this reform programme is MUR 25 billion. 
26. Several government bodies intervene in the sugar industry;  they are financed through various 
means (Table IV.6).  The MSA is the coordina ting body between the Government and the various 
organizations of the sugar industry.  The MSS is the sole supplier of sugar to the local market and the 
sole sugar exporter.22  Its laboratory is in charge of insp ecting and testing raw sugars. The main 
functions of the MSTC, jointly held by the Gove rnment and sugar producers, are the storage and 
loading into ships of the raw sugar produced by th e 11 sugar factories;  no other person, except with 
the authorization of the MSTC, can store or load s ugar into ships.  The i ndustry also has its own 
insurance scheme, the SIFB.  The Mauritius S ugar Producers' Association (MSPA), a private 
association, regroups the largest sugar producers. 
27. In addition to the incentives above-mentioned (section (i) above), the Government also 
subsidizes, inter alia , tractor rentals, and cuttings;  the electricity subsidies for pumping water for 
sugar cane irrigation were eliminat ed in December 2006.  In 2007, the Sugar Industry Efficiency Act 
(section (i)) was amended to provide for the social measures that form part of the Multi-Annual Adaptation Strategy.
23 
28. A cess is levied annually on sugar proceeds.24  In 2006, revenue from the cess amounted to 
MUR 587 million (MUR 1160 per tonne of sugar), up from MUR 450 million in 2000.  It is used to 
finance institutions servicing the sugar industry (Table IV.6), and to grant subsidies, e.g. to planters 
for land preparation through the SPMPC,  and in resp ect of cane setts, fertilizers, and lower rates for 
electricity for used irrigation by planters through FSC.25  The revenue from the Cess is expected to 
decrease considerably with the reduction of EC sugar prices.  The Action Plan 2006-15 foresees 
several measures to reduce financing under the cess (called global cess) by cutting operational costs of 
various institutions.  The Sugar Industr y Act has been modified accordingly.26   
29. Local sugar requirements have generally been im ported.  In 2006, the total local requirement, 
of some 41,480 tonnes of sugar, was imported (for dom estic consumption).  Domestic prices of sugar 
are subject to the fixed maximum price system (C hapter III(4)(iii)(b)).  The prices are set for white 
sugar to wholesalers (MUR 3,710 per tonne), white sugar for industrial usage (MUR 8,300 per tonne), 
raw sugar to wholesalers (MUR 2,210 per tonne), an d raw sugar for industrial usage (MUR 8,300 per 
tonne).  The prices have not been reviewed sin ce 1995.  Given that domestic prices are kept below 
import prices (i.e. world prices), subsidies are provided by the industry (Table IV.7), as MSS imports at world prices and sells on the local market at the prices fixed by the government.  Even though 
prices are lower for domestic consumption than for industries, both are subsidized.   All industrial 
users of sugar are required to source it from the MSS.
27 
                                                      
21 Other measures foreseen to reduce costs include  rightsizing of human resources, facilitation of 
recourse to seasonal labour, and reduction of indebtedness.   
22 All sugar producers in Mauritius are members of the MSS. 
23 Sugar Industry Efficiency (Amendment) Act 2007,  1 March 2007. 
24 Mauritius Sugar Authority Act No. 27, 1984. 
25 Ministry of Agro Industry and Fisheries (2006). 
26 Sugar Industry Efficiency (Amendment) Act 2007,  1 March 2007. 
27 Supplies Control Act 1987 (as amended). WT/TPR/S/198 Trade Policy Review 
Page 82 
 
 
Table IV.6 
Institutions intervening in the sugar industry, 2007 
Institution Functions Funding  Allocation of global 
cess, crop 2006   
(MUR '000) 
Mauritius Sugar Authority (MSA)  Overall policy formulation and 
monitoring to ensure that sugar 
industry remains viable  Cess  20,649 
Mauritius Sugar Industry Research 
Institute (MSIRI)  Research, development and 
extension activities  Cess  154,992 
Cane Planters and Millers Arbitration 
and Control Board (CPMACB)  Cane testing and weighing control 
and arbitrating disputes relations 
between planters and millers  Cess  62,659 
Sugar Planters Mechanical Pool 
Corporation (SPMPC)  Provision of land preparation 
equipment to small planters  Cess 63% and payment for 
work undertaken 37%  115,665 
Farmers Service Corporation (FSC)  Extension service  80% cess, 20% Government  66,829 
Mauritius Sugar Terminal Corporation 
(MSTC)  Storage, handling of bulk sugar for 
export  Cess  156,292 
Sugar Industry Labour Welfare Fund 
(SILWF)  Social welfare/recreational facilities 
at village levels  20% cess and 80% from sale 
proceeds  10,000 
Mauritius Sugar Syndicate (MSS)  Marketing of sugar  Funds taken from sale proceeds  n.a. 
Sugar Insurance Fund Board (SIFB) Crop insurance  Premium raised on net sugar 
proceeds.  n.a. 
Bagged Sugar Storage and 
Distribution Company (BSSDC)  Storage, handling of bagged sugar 
for export and the domestic market Financed by Mauritius Sugar 
Syndicate from sale proceeds n.a. 
Irrigation Authority Implementation and monitoring of 
irrigation projects in respect of 
small planters  Government for recurrent 
expenditure, and bilateral loans 
through Government for capital 
expenditure n.a. 
n.a.  Not applicable. 
Source: Ministry of Agro Industry and Fisheries (2006), Multi Annual Adaptation Strategy, Action Plan 2006-2015: 
 Safeguarding the future through consensus , 18 April. Viewed at:http://www. gov.mu/portal/sites/moasite/download 
 /Multi%20Annual%20Adaption%20Strategy.pdf. 
30. Imports of sugar, molasses, and sugar confecti onery are subject to the ceiling tariff of 30% 
(down from 80% in 2001);  lactose and lactose syr up are duty free.  Imports of sugar and chocolate 
confectionery and bubble/chewing gum in the form of  cigarettes are prohibited (Chapter III(2)(vi)).   
Table IV.7 
Subsidies provided by the sugar industry on local market sales, 2002-06  
(MUR million) 
Crop year Cost of imports Local proceeds Subsidy 
2002 245 224 21 
2003 285 224 61 
2004 374 224 149 
2005 554 227 328 
2006 680 232 448 
Source:   Information provided by the MSS. 
(b) Other cash crops 
Tea 
31. Annual production of green tea leaf has been around 7,000 tonnes, with an average annual 
yield of some 10.6 tonnes per ha for 2001-06.  The area under tea was 688 hectares in 2006 (up from Mauritius WT/TPR/S/198 
 Page 83 
 
 
668 in 1998).  The tea industry is characterized by  a large number of small planters cultivating small 
plots of land and a few cultivating larger ones.  Mauritius produces also around 1,500 tonnes of 
manufactured black tea per year (Table IV.2), ma inly for local consumption.  Foreign exchange 
earnings from tea exports in 2006 amounted to MU R 10.5 million;  almost all exports go to France 
(including Reunion Island).  The annual turnover of  the tea industry was around MUR 171 million in 
2005;  it provides livelihood to some 1,500 families.   
32. The Tea Board regulates and controls the tea industry, including the production of green leaf, 
and the manufacture, marketing, imports, and exports of tea.  It sets the conditions for the contracts entered into by planters, metayers, and manufacturers,  and the sale prices of the different categories of 
green leaf supplied to manufacturers.  Green leaf prices are published in the Government Gazette .  
The Board also arbitrates disputes between persons engaged in or connected with the tea industry.
28 
33. Licences for the establishment and cultivation of tea plantations, and for operating tea 
factories, tea blending plants and/or tea packing plants are issued or renewed by the Tea Board on a yearly basis.
29  A nominal licensing fee of MUR 10.00 per ar pent is charged for tea plantations;  the 
licensing fee for other tea properties amounts to MUR 2,000.00 per operating unit.30  I n  2 0 0 5 ,  
1,366 planters were licensed to cultivate tea, among which 528 small planters, 334 planters in 
co-operatives, 496 metayers, one factory, and seven  estates;  three factories were involved in 
manufacturing tea.  All tea factories are privately owned.  
34. To safeguard the livelihood of tea smallholde rs, who face the competition from producers in 
more competitive countries, the Tea Board has the mission of monitoring the conversion of tea plots 
into sugar and food crops production under the agricultural diversification programmes.  The 
agricultural diversification programme in the pu blic tea sector, aimed at converting some 2,500 
hectares planted to tea to sugar cane, was comp leted in August 1999.  As the diversification 
programmes have been completed, no financial assist ance is given to former tea planters who have 
diversified to sugar cane.  Prices for gree n leaves are determined by the Tea Board31;  the price of tea 
is liberalized.  
35. The importation of tea requires an import permit, issued by the Tea Board, and is subject to a 
fee per consignment (MUR 5,000 for black tea, a nd MUR 1,000 for green tea), an import levy (20% 
of the c.i.f. value), a cess (MUR 0.20 per kg.) and the customs tariff at rates ranging from zero to 30% 
(down from 40% in 2001), the highest rate being applie d to imports of black tea.  Revenue collected 
by the Board in 2006 amounted to MUR 775,500.  Tea import and export can only be undertaken by 
companies or individuals licensed by the Tea Board.  In addition, exports are subject to an export 
permit issued by the Tea Board, free of charge.32  
36. Currently, the importation of black tea is not allo wed, except for the equivalent of 2.5% of the 
local consumption of tea for blending purposes, and small quantities of high quality teas for use in the 
hotel industry.  The importation of green tea is allowed. 
                                                      
28 Tea Industry Control Act, 2 August 1975. 
29 Licences are regulated by the Tea Industry  Control regulations 1980, as amended. 
30 If the licence is renewed after 15 Ju ly, a surcharge of 20% is applicable. 
31These prices are determined as follows:  a minimu m interim price payable monthly to the green leaf 
contractor;  a first partial payment of the final price payable to the contractor not later than 31st August of the crop year;  and a second partial payment of the final pri ce as determined by the Board, if the final price is not 
determined by the Board by 30 November of that year (Tea Industry Control Regulations 1980, as amended). 
32 Tea Board online information, "Activities of the Tea Board". Viewed at: 
http://www.gov.mu/portal/site/teaboard/menuitem.9828bf3a6af5365951138e1148a521ca. WT/TPR/S/198 Trade Policy Review 
Page 84 
 
 
Tobacco 
37. Production of leaf tobacco decreased over the re view period (Table IV.2), mainly due to 
unfavourable climatic conditions, but also lack of suitable land, and leaf necrosis caused by residual 
effect of a herbicide in one part of the tobacco be lt;  remedial actions  have  been initiated (including 
residue tests for land).  Some 250 ha are under t obacco cultivation, and leaf production has been 
estimated at 300 tonnes for crop year 2006/07 (Table  IV.8).  Imports of non-manufactured tobacco 
have been increasing accordingly, doubling in volume  between 2001 and 2005 to  207 tonnes.  Imports 
of manufactured tobacco amounted to 448 tonnes in 2006. 
38. The Tobacco Board (under the aegis of the MAIF ) has a mandate to control and regulate the 
local tobacco industry and business.  It does so pr imarily through controls over the production and 
sale of leaf tobacco, as well as the impor tation of tobacco a nd tobacco products.33  The Board keeps a 
register of growers;  there are 296 for crop 2007/08.   
39. During the period under review, the Board allocated to registered tobacco growers annual 
production quotas, based on demand from the only local cigarette manufacturer - British American Tobacco (Mauritius) PLC (BAT) or its agent.  For 2006/07, 510,000 kg of  leaf tobacco were 
requested, but only 298,090 kg. were produced, mainly because 47% of the registered growers did not 
grow tobacco, as well as a recurrence of necrosis  in some plantations.  In general, the Board 
purchased all leaf tobacco then sold the baled leaf to the manufacturer.  The annual quota allocated to 
individual growers was based on the grower's pr oduction capacity.  BAT ceas ed the manufacture of 
cigarettes in Mauritius in June 2007;  leaf tobacco  purchased by it is now exported to its processing 
and manufacturing facilities in Kenya.  From Oct ober 2006 to June 2007, it exported 113,739 kg. of 
leaf.  Currently, all tobacco products sold in Mauritius are imported. 
40. The price paid to growers, as well as the price pa id by the manufacturer/agent to the Board, is 
fixed by the Board at the start of the crop, after discussion.  The Board no longer concurs with the prices of cigarettes fixed by the manufacturer.  Resale prices of imported products are determined by importers. 
41. The Board provides, free of charge, support to the growers through its extension/advisory 
service.  The Board also runs a mechanization and inputs scheme under which interest-free loans are 
granted to growers for the purchase of equipment, spar e parts, fertilizers, chemicals, and materials for 
the repair of barns and curing sheds. For the 2006/ 07 crop, 165 loans were granted under this scheme, 
amounting to MUR 2.7 million.
34  Tobacco seeds are provided free of charge.  Research on tobacco 
cultivation and production is carried out by the Agricultural Research and Extension Unit (AREU)35, 
in collaboration with the Tobacco Board and BAT.   
42. Importation of tobacco and tobacco products is subject to an import licence, issued by the 
Tobacco Board;  the Tobacco Board does not im port tobacco.  In 2006/07, 348 import licences were 
issued.  Packets of imported cigarettes must bear an approved "Health Warning".  An import permit 
from the National Plant Protection Office (NPPO), subj ect to a phytosanitary certificate, is necessary 
for the importation of leaf tobacco.  Imports of  tobacco seeds are subject to quarantine.  The 
importation and sale of tobacco snuff, and chewi ng tobacco are banned on human health grounds.36   
                                                      
33 The Tobacco Board was set up in 1932 by th e Tobacco Production and Marketing Ordinance. 
34 Tobacco Board (2006). 
35 The AREU operates under the aegis of the Fo od and Agricultural Research Council (FARC), a 
parastatal organization. 
36 The Public Health (Restrictions on  Tobacco Product) Regulations 1999. Mauritius WT/TPR/S/198 
 Page 85 
 
 
Table IV.8 
Tobacco and cigarettes production, 1998/1999, 2005-07 
 1998-99 2005-06 2006-07a 
 (Hectares) 
Land allocated 528 410 .. 
Virginia flue-cured 456 360 .. 
Amarello air-cured 72 50 .. 
Area harvested 457 287 249 
Virginia flue-cured 413 264 232 
Amarello air-cured 44 23 17 
 (Tonnes) 
Leaf production 701.7 295.8 298 
Virginia flue-cured 640.8 278.2 283 
Amarello air-cured 60.9 17.6 15 
 (MUR million) 
Value of crops 51.8 34.2 .. 
Virginia flue-cured 49.4 33.2 .. 
Amarello air-cured 2.4 1.0 .. 
 (MUR) 
Average price to planters (per kg. of leaf)    
Virginia flue-cured 77.01 119.3 131.9 
Amarello air-cured 39.58 59.7 67.6 
Average gross revenue  (per hectare harvested)    
Virginia flue-cured 119,492 125,853 .. 
Amarello air-cured 54,782 46,389 .. 
Leaf tobacco used in cigarette manu facture (tonnes) Calendar year 1997   
Domestic leaf 842.9 389.7 .. 
Imported leaf 38.4 137.0 .. 
Total 881.3 526.7 .. 
.. Not available. 
a Provisional. 
Source: WTO (2001),   Trade Policy Review of Mauritius ;  Tobacco Board (2006), Annual Report &Accounts for the Year 
Ended  30 June 2006;  and Ministry of Finance & Economic Deve lopment (2006), Central Statistics Office, Digest of  
 Agricultural Statistics 2006 . Viewed at: http://www.gov.mu/ portal/sites/ncb/cso/index.htm. 
 
43. A 30% rate of customs tariff, as well as excise du ties, is applied to imports of tobacco and 
tobacco products (Table AIII.3).  The tobacco indu stry contributed MUR 2.29 billion (tariffs, excise 
duties and VAT) to government revenue  during financial year 2005/06.37 
(c) Food crops 
44. Food crop production is dominated by small-scale farmers, with an average holding of 
0.25 ha and a few farms greater than 10 ha.  Around 7,200 ha were harvested in 2006, down from 
more than 7,900 ha in 2001 (Table IV.3), a nd food crops production fell from 129,000 to some 
106,900 tonnes (reflecting mainly the decrease in th e production of onions, cabbages, and carrots).  
The main reasons advocated include the rising cost of production (notably labour costs), which reduces planters' returns.  Consequently, there has been an increase in the conversion of land for non-
agricultural purposes and the abandonment of producti on in certain cases.  Mauritius imports annually 
around 70% of its food requirements (for direct c onsumption and processing), though it continues to 
be self-sufficient in fresh vegetables.  Fresh and processed vegetables and fruits represent a very small 
share (around 0.5% on average) of total agricultural exports (including fisheries).  
                                                     
 
37 Tobacco Board (2006). WT/TPR/S/198 Trade Policy Review 
Page 86 
 
 
45. In order to increase the production of controlled food crops, their imports are regulated by the 
AMB (Chapter III(4)(ii), Table AIII(4)), and section (i) above).  The AMB is in charge of encouraging local production, ensuring low marketing costs and limiting price fluctuations, as well as 
regulating their quality.
38  It acts as a buyer of last resort.  Currently, the AMB holds the monopoly 
over the importation of whole onions, whole garlic, a nd seed potato;  it is also the main importer of 
other controlled products, which may also be im ported by private importers, the AMB remaining 
responsible for coordinating these imports.  Imports  of whole onions are expected to be partly 
liberalized as from May 2008. 
46. The AMB also imports some non-controlled products: glass jars (used for pickling by SMEs) 
when required, and some selected vegetables (inc luding carrots, cabbages, and canned tomatoes) in 
case of urgent need (for example after cyclone, or wh en shortages are anticipated).  Import permits for 
controlled agricultural products must be cleared by the AMB, as must exports of certain food crops, such as lemons and limes, groundnuts, shallots, spices, and salted fish.   
47. Imports of table potatoes (one of the most im portant vegetables consumed in Mauritius) are 
subject to a quota representing 50% of estimated requirements (Chapter III(2)(vi)).  The quota is 
allocated to private importers during the period wh en local potatoes are not available (January to 
May), based on their past performance
39;  the remaining 50% is provided by local producers and/or 
imported by the AMB.  Unused quotas are not carried forward.  Imports of table potatoes by the private sector have increased gradually from 22% of  total table potato imports in 2001 to 51% in 
2007.  Nevertheless, the AMB remains the most important importer (with 5,386 tonnes of table 
potatoes imported in 2006, down from 9,250 tonnes in 2003 and 6,832 tonnes in 2001).  Imports of 
potatoes also require a licence from the Ministry in  charge of commerce, and a plant import permit 
from the NPPO. 
48. The AMB is also the sole importer of potato seeds and guarantees a minimum price, 
determined by the National Potato Committee, for registered dealers.
40  According to the authorities, 
the subsidy on the sale of seeds to producers of bot h seed and ware potatoes (in order to reduce the 
production cost of table potatoes) is no longer granted.41  The amount of the subsidy granted during 
the period under review varied between zero (i n 2001) and MUR 4.5 million (in 2002), and was MUR 
2.45 million in 2005 (the most recent year availa ble).  On the other hand, in order to reduce the 
dependency on imports, a local potato boost-up schem e was launched in 2006, under which financial 
facilities are provided for the purchase of seed:  the AMB imports potato seeds and sells them to 
producers at lower prices.  Imports of potato seeds are scheduled to be liberalized as from the 2009 
campaign.  
49. There is also a quota of 750 tonnes imposed on salt imports with the aim of protecting 
socially vulnerable people.  The quota is allocated  equally (free of charge) by the Ministry in charge 
of commerce to all applicants (on a yearly basis). 
50. Customs tariff rates range from zero to 15% on vegetables and edible roots (HS chapter 07), 
and fruits and nuts (HS chapter 08), with respective averages of 6.5% and 5.2%.  Rates range from 
zero to 30% on canned fruits and vege tables (ISIC code 3113), with an average of 10.4%.  Cereals are 
imported duty-free. 
                                                      
38 AMB online information, "About Us". Viewed at: http://amb.intnet.mu/corporate.htm. 
39 To allocate the quotas for table potatoes, the AMB invites (through press a dvertisements) prospective 
importers to register for imports.  A Quota Committee analyses all applica tions received and allocates quotas 
based on previous year's performan ce and forecasted local production.   
40 Republic of Mauritius (undated d). 
41 AMB (2006). Mauritius WT/TPR/S/198 
 Page 87 
 
 
(d) Livestock 
51. Mauritius is a net importer of meat and meat products, and self-sufficient in poultry, which 
constitutes the biggest share of livestock (Table IV.9).  Around 30% of meat requirements are 
imported.  Livestock comprises cattle, sheep, goat, deer, poultry, and pigs.  Range-type animal 
production faces several constraints, such as limited av ailability of land, the priority granted to sugar 
production, as well as lack of pasture and fodder.  Dairy products are mainly imported.  Prices of 
certain meat and dairy products are fixed for Rodrigues Island (Chapter III(4)(iii)(b)). 
Table IV.9 
Livestock and dairy products, 2006  
(Tonnes) 
Commodity Production Imports Exports Domestic use 
    Balance Food 
manufacture Food Other 
Meat         
Cattle meat 2,300 5, 004 147 7,157 - 7,157 - 
Goat & Sheep meat 150 4,663 1 4,812 - 4,812 - 
Pig meat 720 770 - 1,490 200 1,290 - 
Edible offals for the above 3 items 630 1,492 - 2,122 50 2,072 - 
Chicken meat 36,000 89 4 36,085 - 34,290 1,795 
Rabbit meat 25 1 - 26 - 26 - 
Game meat 620 - - 620 - 620 - 
Other offals 100 2 - 102 - 102 - 
Hen eggs 12,570 30 5 12,595 - 10,745 1,850 
Milk and cheese:         
Fresh milk and cream  400 2,853 68 6,785 - 6,400 385 
Dried milk exceeding 1.5 % by weight 
of fat - 2,452 22 2,430 - 2,301 129 
Dried milk not exceeding 1.5 % by 
weight of fat - 11,051 244 10,807 - 10,091 716 
Condensed milk - 975 179 796 - 742 54 
Cheese - 2,786 29 2,757 - 2,629 128 
Source: Ministry of Finance & Ec onomic Development (2006), Ce ntral Statistics Office, Digest of  Agricultural Statistics 
 2006 . Viewed at: http://www.gov.mu/por tal/sites/ncb/cs o/index.htm. 
 
52. Meat production (excluding poultry) has been increasing throughout the period under review 
(Table IV.2);  this, however, is attributable to an  increase in imports of live animals for slaughter.  
Poultry production has also been increasing a nd represented close to 70% of domestic meat 
consumption in 2006.  Im ports of poultry are insignificant and occur mainly in case of shortfall in 
local production. 
53. The production of deer meat has become more important.  Venison produced increased from 
336 tonnes in 2002 to 559 tonnes in 2006;  it is the only meat other than poultry that is not subject to religious considerations.  The national herd is estimated at 70,000 head.  Around 90% is from 
extensive farming (i.e. hunting).
42  Intensive farming, characterized by rearing in feedlots, occupies 
around 1,200 ha.  Most deer farmers are regrouped within the Mauritius Meat  Producers Association 
(MMPA), which currently has 54 deer producers, including the Mauritius Deer Farming Cooperative 
Society Ltd (MDFCS), the main deer meat producer.43     
54. The Mauritius Meat Authority (MMA), a parastat al body under the MAIF , is responsible for 
establishing and managing abattoirs;  marketing meat  and meat products;  controlling and regulating 
the sale of meat and meat products;  licensing pers ons and premises in connection with the slaughter 
of animals, and the preparation, processing, packi ng, and marketing of meat;  and fixing prices with 
                                                      
42 Deer rearing and hunting is regulated by the Wildlife and National Parks Act of 1993. 
43 Almost all deer meat is produced by members of the MMPA.  Republic of Mauritius (undated d). WT/TPR/S/198 Trade Policy Review 
Page 88 
 
 
the approval of the Minister in charge of commerce.  The MMA also holds the monopoly on 
importing livestock for slaughter;  however, in pr actice, animals have not been imported by the 
Authority since 1996.  To import slaughter stock, cl earance is required for the import permit from the 
Division of Veterinary Services (DVS) of the MAIF.  For food safety reasons, slaughtering and 
processing operations are inspected by the Veterinary Services of the MAIF. 
55. In support of small cow-keepers, the AMB c ontinues to run the Milk Marketing Scheme, 
under which raw milk is collected at farm-gate, pasteurized, packed and sold as fresh milk in 
Mauritius.  The farmers are guaranteed a farm-gat e price (MUR 12 per litre in 2007).  Subsidies for 
fresh pasteurized milk for 2003 and 2004amounted to  MUR 10 million.  This scheme is scheduled to 
be phased out by May 2008, as cow-keepers now receive better prices on the market.  
56. Total feed production by five mills (including  one government-owned factory) is about 
150,000 tonnes;  most raw materials are imported.  Wheat bran is supplied by the only wheat flour 
mill to the feed mill, and the rest is re-exporte d.  The Government Feed Mill produces some 6,000 
tonnes annually (65% is dairy cow feed, 25% pig feed, and 8% poultry feed) and sells to small-
holders at less than half the cost of production on a quota basis.  
57. Import and export controls a pply to animals and animal products (Chapter III(2)(vi);  
Chapter III(3)(iii);  and Chapter III(2)(ix)).  Custom s tariffs average 14.2% on live animals (20% in 
2001), 15.8% on meat and edible meat offal (32% in  2001), and 2.7% on dairy products.  Certain 
livestock products, as well as items for livestock breeding, benefit from reduced tariff rates 
(Chapter III(2)(ii)).  Imports of equipment used in  the livestock subsector benefit from "Unclassified" 
tariff exemptions granted to the agriculture sector.  Meat (including poultry), ed ible fats and oils, and 
dairy products are not subject to VAT. 
(e) Fisheries 
58. The subsector encompasses artisanal, bank, sword fish, tuna, and deep-sea demersal fisheries 
and fish chilling; tuna fishery is the major industr ial component.  Aquaculture has been expanding and 
represents around 10% of the total fisheries production.44  Fisheries production has been relatively 
constant throughout the review period (Table IV .10).  The subsector (excluding the processing 
industry) accounts for 1% of the GDP  and employs around 12,000 persons.45  The trade account in the 
fisheries subsector has been in su rplus over the review period. Fish  and fish products imports consist 
mainly of frozen tuna (around 90% of the total) for processing by the canning factory (see below).  
Exports of fish and fish products in 2006 were valued at MUR 7 billi on.  The bulk of exports consist 
of canned tuna and loins. Foreign fish ing licences and import permits annually around 
MUR 42 million annually in revenue for the national budget.46  Revenue from 801 calling vessels in 
Mauritius ports amounts to around MUR 3.5 billion.  The price of fish is market-determined.   
                                                      
44 Aquaculture development is gathering momentum through the development of marine aquaculture.  
An acquaculture master plan has been prepared.  Forecasted production ranges from 23,000 to 39,000 tonnes 
over the medium to long term, with focus on marine fish  production.  An Aquatic Business Activities Bill is 
being prepared to provide the legal framework for acquaculture development. 
45 Total employment amounts to 11,900 persons: fishers (artisanal, banks, semi-industrial, industrial, 
sport fishery) – 5,100;  aquaculture – 250 (with some 26,000 people considered amateur);  fish 
processing/industry (processing, freezi ng, salting, smoking) – 4,000;  impor ters, exporters and fish mongers – 
1000;  fish handling and cold storage (distribution and marketing) – 500; fish inspectors – 50;  and services (bunkering, ship-chandling, ship-repairs, boat building, transshipment, warehousing, handling, processing and 
re-export of seafood products) – 1,000.  Part-time employment in the subsector is estimated at around 2,000 
(Ministry of Agro Industries and Fisheries, 2007a). 
46 Ministry of Agro Industries and Fisheries (2007a). Mauritius WT/TPR/S/198 
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59. The fish processing industry, with a capacity of 100,000 tonnes, and related export activities 
contribute around MUR 7 billion  to the economy per year.  Princes’ Tuna47, a canning factory 
employing 2,100 persons, produces some 50,000 tonnes of canned tuna for export.  The Thon de 
Mascareignes, a joint Mauritian-Spanish venture empl oying some 1,200 person s, started operation in 
2005 with projected annual production of about 50,000 tonnes of loins. 
Table IV.10 
Fisheries production and trade, 2001-06  
(Tonnes and MUR million) 
Sector  Type  2001 2002 2003 2004 2005 2006 
  (Tonnes) 
Artisanal fishery   4,050 3,732 3,843 3,884  3,822 3,435 
Offshore demersal fishery         
Shallow-water banks  Frozen 3,366 3,943 3,713 3,216  2,178 3,112 
Banks deep water snappers  Frozen 329 5 -- 7 -- 0 
St Brandon inshore  Frozen, chilled and salted 557 491 578 204 414 235 
Semi-industrial chilled fish  Chilled 188 204 234 284 223 311 
Tuna fishery  Frozen 0 219 1,118 1,640  1,402 1,380 
Semi-industrial pelagic fi sh  Chilled 87 45 111 97 177 247 
Demersal trawlers  Frozen 2,184 2,113 1,806 1,595  2,584 1,112 
Sub-total   6,711 7,020 7,560 7,043  6,978 6,611 
Grand total  10,761 10,752 11,403 10,927 10,800  10,046  
Imports (tonnes)  52,050 63,032 62,323 80,943 104,830 150,728 
Imports (MUR million)  1,754.3 3,984.5 2,560.1 3,170.1 4,265.7 6,720.9 
Exports (tonnes)  27,381 49,560 48,719 54,241 67,249 79,707 
Exports (MUR million)  1,840.8 4,081.0 3,178.4 3,358.1 4,842.1 7,120.4 
Source:  Ministry of Agro Industries and Fisheries(2007) (Fisheries Division), Mauritius Paper: Trade and Sustainable 
 Approaches to WTO/EPA Negotiations on Fisheries , May. Viewed at:  
 http://www.thecommonwealth.org/shared_asp_files/ GFSR.asp?NodeID=162744; Ministry of Finance & 
 Economic Development(2006), Ce ntral Statisti cs Office, Digest of  Agricultural Statistics 2006 . Viewed at: 
 http://www.gov.mu/portal/sites/ncb /cso/index.htm, and information provided by the Authorities. 
60. Exploitation of traditional resources has its limit.  The emphasis is currently on sustainable 
use of existing resources and maximizing returns th rough value addition, mainly by maximizing value 
from landings of catches in the regi on, and encouraging their re-export.48  The policy objective of the 
Government is to transform Mauritius into a seafood hub by developing value-added fisheries and 
seafood-related activities including transshipment ; storage and warehousing; light processing; 
canning; and ancillary services.  The responsibility for promoting the seafood hub has been attributed 
to the Board of Investment.  It participates in seafood fairs and is counting on, inter alia,  the modern 
port infrastructure, freeport facilities and incentives, and the investment-friendly environment to make 
Mauritius a competitive platform in the Indian Ocean  for the transshipment and processing of seafood.  
So far, a one-stop shop has been set up at the Trad e and Marketing Centre (TMC) in the freeport area 
to facilitate administrative procedures for exports of fish and fish products;  currently permits/licences 
are issued within three days.  The establishment of  a National Fisheries Development Authority is still 
under consideration. 
                                                      
47 Previously called Mauritius Tuna Fishin g and Canning Enterprises (MTFCE) Ltd. 
48 In 2006, some 40% of total exports of fish and fish products were re-exports. WT/TPR/S/198 Trade Policy Review 
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61. In order to reduce fishing in the overexpl oited lagoon, the Government continues to 
encourage fishing in off-lagoon areas, through the use of fish aggregating devices (FAD), which are 
maintained and renewed by the Government.  Th e Government is also providing incentives and 
training to fishermen willing to operate around FADs.49  The use of nets is being discouraged:  the 
Government continues to implement a buy-back pr ogramme for the phasing-out of net fishing.   
62. Banks fishery continues to be managed thro ugh a licensing system for vessels and catch 
quotas.50  Licences are issued against a fee of MUR 1 per GRT.  For the highly-migratory tuna, for 
which Mauritius does not have fishing cap acity, bilateral agreements allow EC51 and Japanese52 
vessels to fish within the Mauritian exclusive econom ic zone.  Other foreign vessels have also been 
allowed to fish for tuna in Mauritian waters.53  The Government also deliv ers fishing licences to other 
foreign fishing vessels, the number of licences incr eased from 85 in 2000 to 231 in 2006.  Licences to 
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; Japan; and Korea have been 
granted against payment of US$2000 per month (with a minimum of three months of licence), plus a 
vessel monitoring fee of US$500 per licence.  The EC  has benefited from a standard package.  In 
2006, revenue from licence fees amounted to €118,000 from EC vessels and to US$1.17 million from 
other nationalities.  Since June 2005, all vessels and boats licensed to fish within Mauritius waters 
must be equipped with a satellite-tracking device.54   
63. The incentives granted by the Government to fishermen include bad weather allowances for 
artisanal fishers (MUR 36 million in 2006, up from MUR 26.6 million in 2001),  closed season allowances (MUR 2.9 million in 2006)
55, scholarship allowances to fishermen's wards 
(MUR 1.6 million in 2006, up from MUR 531,375 in  1998), and duty concessions (see below).  In 
addition, concessionary loans are granted for purchase of equipment.  Since the creation of the Small 
Fishermen Loan Scheme, the Development Bank of  Mauritius has disbursed MUR 57 million at an 
annual interest rate of 3-8%.  However, the aut horities indicate that since 2007, the Scheme is no 
longer applicable at an interest rate of 3%.  A ccording to the revised sch emes, loans are now being 
disbursed (with a reimbursement period of up to seven years) at an annual interest rate of 14.5 % for 
the semi-industrial fishing industry and for the fi sh and seafood processing industry; and at an annual 
interest rate of 9% for off-lagoon artisanal fishing.   In 2007, the Fishermen Investment Trust (FIT) 
Fund was established56, to promote investment in fishing activities, processing activities, marketing, 
and other activities related to the fishing industry.   The FIT's total funds amount to MUR 65 million 
                                                      
49 FAO (2006). 
50 In aggregate, the total allowable catches for fishing seasons are not filled. 
51 There have been five protocols to the Fishin g Agreement signed in 1 990 between the EC and 
Mauritius.  The most recent (relating exclusively to tuna) applicable sinc e 3 December 2003, was for a four-year 
period.  It defined the fishing possibilities, licence fees, and financial compensation. The number of tuna vessels (compared with the previous protocol) was increased from 83 to 90, financial compensation from €412,500 to 
€487,500, and fishing possibilities from 5,500 tonnes to 6,500 tonnes.  In addition, the licence fees were 
increased to €2,000 for a tuna seiner, €1,550 for a long-liner over 150 GRT and €1,100 for others, and €80 per GRT pro rata temporis for a vessel fishing by line.  
52 The Fishing Agreement with the Japan Tuna Fisheries Co-operative Association (JTFCA) (signed in 
2000, and renewed annually) provides for the issue of 50 long-line licences.  
53 The two agreements (signed in March 2005) w ith Seychelles define the fishing possibilities for 
12 purse seiners and 20 long-liners in each other’s waters , as well as the licence fees.  A MOU on fisheries was 
signed with Mozambique in March 2002. In 2006, 15 licences were issued to Japanese long-liners, 7 to the 
Seychelles (for 5 purse seiners and 2 long-liners) and some 139 long-line licences were issued to companies 
from Korea and the Separate Customs Territory of Taiwan, Kinmen, Penghu and Matsu. 
54 The Marine Resources (Vessel Monitoring System) Regulations 2005. 
55 As large and gill nets are not permitted during the closed season, net fishers are paid an allowance 
during that period. 
56 The Fishermen Investment Trust Act 2006, in force since 31 January 2007. Mauritius WT/TPR/S/198 
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(out of which MUR 15 million are granted by the Government).  The FIT will issue shares to 
fishermen in January 2008. 
64. Imports of fish are subject to a permit, and imports of fishing vessels and boats to approval 
from the Fisheries Division of the MAIF (Chapter III (2)(vi)).  Imports (and local manufacture) of nets 
and implements (other than basket traps, fish spear s, hooks, lines, rods, reels and lures) and their parts 
are forbidden, except when appr oved by the Permanent Secretary. 57  Imports of processed and 
prepared fish products has been liberalized, and ta riffs on fish and fish products average some 0.4% 
(down from 14% in 2001); all fish products are ze ro rated with the exception of ornamental fish 
(15%) and caviar (30%).  Fisheries benefit from duty concessions on imported equipment and 
inputs.58  "Unclassified" tariff exemptions are gran ted for imports of ice boxes and life-saving 
equipment and lifebuoys.  Certain fish species, as well as fishing vessels, are exempted from VAT 
payment.  
65. Exports of fish and fish products require a health certificate issued by the Division of 
Veterinary Services of the MAIF, and the approval of  the Minister and the Permanent Secretary of the 
MAIF59;  clearance by AMB is now required only for salte d fish.  Exports of chilled fish continue to 
be subject to a quota,  computed on stock availability, number of vessels involved in the chilled fish 
operation, and past performance.  An export quota of 35 tonnes has been available since 2005. 
(3) MANUFACTURING  
66. The manufacturing sector comprises mainly (in order of value added) clothing;  food, 
including sugar milling (section (2) above);  bevera ges and tobacco;  textiles;  non-metallic minerals; 
and chemicals.  During 2001-06, the sector reco rded average annual real growth of 0.1% 
(Table IV.11).  Some recovery has taken place since 2005, with positive growth of 4.0 % registered in 2006 and estimated growth of 3.7% in 2007.  The sector is important for the economy because of its 
contribution to GDP (Chapter I(1)) and employment (some 23% of the total workforce).  The analysis below, covering the period 2001-06, takes into  account the division of the sector into EPZ and 
non-EPZ subsector, as the EPZ scheme was eliminated on 1 October 2006 (Chapter III(2)(iv)).  
67. The contribution of the manufacturing sector to the economy has decreased gradually 
following the regression of the EPZ subsector.  The latter was dominated by textiles and garments, 
which accounted for 80% of total EPZ employ ment and 70% of EPZ export earnings in 2006 
(section (3) below).  Other products manufactur ed in the EPZ include food products, jewellery, 
watches and clocks, non-metallic mi neral products, and chemical ite ms.  The EPZ sub-sector, after 
having grown at an average rate of 6.2 % during 1995-00, experienced negative average annual 
growth of 3.9% during 2001-06;  however, grow th was 4.6% in 2006, and this momentum was 
maintained in 2007.  Its exports fell from MUR 33. 7 billion in 2001 to MUR 29.0 billion in 2005, but 
recovered in 2006 to MUR 33.7 billion (Table III.12) .  Exports of EPZ products were forecasted to 
exceed MUR 41 billion in 2007.  The main ma rket for EPZ products has been the EC, which 
accounted for 77% of total exports in 2006. 
68. During the period under review, incentives were provided to the manufacturing sector under 
several schemes (Chapter III(4)(i)).  These schemes, t ogether with preferential market access provided 
by certain developed countries, contributed to the development and specialization of the sector in the 
production of labour-intensive goods requiring low skills and low tec hnology, in particular textiles 
                                                     
 
57 The Fisheries and Marine Resources Act 1998. 
58 In 2005 for example, 87 fishers benefited from incentives for the purchase of outboard motors;  
however, the tariff on these items has been reduced to zero. 
59 Fisheries and Marine Resources (Export of Fish and Fish Products) Regulations 2006. WT/TPR/S/198 Trade Policy Review 
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and clothing.  However, this policy has been revi sed and several incentive schemes were abolished by 
the Finance Act 2006 (Chapter III(3)(iv)) and III(4)(i)). 
Table IV.11 
Main indicators of the manufacturing sector, 2001-07 
 2001 2002 2003 2004 2005 2006 2007a 
Share in GDP 23.3 22.4 21.5 21.0 19.8 20.0 19.9 
    EPZ 11.6 10.8 9.6 8.6 7.5 7.5 7.7 
    Non-EPZ 10.5 10.6 10.9 11.3 11.4 11.6 11.4 
    Sugar milling 1.2 1.0 1.0 1.1 1.0 0.9 0.7 
Real annual growth rate (%) 4.4 -2.4 0.0 0.6 -5.5 4.0 3.7 
    EPZ -4.4 -6.0 -6.0 -6.8 -12.3 4.6 7.5b 
    Non-EPZ 4.1 4.2 5.8 6.0 0.0 3.0 2.0 
    Sugar milling 9.9 - 25.0 3.7 10.6 -9.2 -2.9  -7.9 
Share in the economy (value added) (%) 23.3 22.4 21.5 21.0 19.8 20.0  19.9 
Value added at basic prices (manufacturing),  
out of which (%): 27,424 28,227 29,581 31,942 32,187 36,356  40,633  
     EPZ 49.9 48.2 44.5 41.1 37.6 37.7  38.9 
    Non-EPZ 44.9 47.3 50.9 53.8 57.4 58.0  57.4 
    Sugar milling 5.2 4.5 4.6 5.1 5.0 4.4  3.7 
Employment as a % of total employment 28.5 27.7 26.4 24.8 23.7 23.5  23.5 
No. of establishments (large only)  924 915 919 908 884 824  797 
out of which:        
    wearing apparel 341 328 313 292 269 239  221 
    food products 110 108 108 111 117 114  113 
    non-metallic mineral products 77 85 88 89 85 83  80 
    textiles 62 59 57 59 56 52  53 
Employment (large only) 116,960 111,017 108,907 101,715 92,620 91,021  91,670  
out of which:        
    wearing apparel 75,766 69,982 68,334 59,691 52,659 49,501  49,373  
    food products 9,877 9,890 9,104 9,756 9,756 11,135  10,891  
    textiles 8,180 7,995 7,784 8, 282 6,054 6,813  6,826 
    non-metallic mineral produc ts 2,880 3,179 3, 321 3,319 3,198 3,274  3,168 
a Provisional. 
b Previously holding the EPZ certificate. 
Source :  Central Statistic Office online information. Viewd at: http://www.gov.mu/portal/ site/cso; and information 
 provided by the authorities. 
69. In 2005, a new trade promotion organization - Enterprise Mauritius - was set up;  its activities 
focus on manufacturing and non-financial, non-touris m, exportable services.  It operates several 
specialized programmes to assist businesses (Chapter III(3)(v)).  The Government has also set up an 
Empowerment Fund to promote the creation, restructuring, and consolidation of SMEs 
(Chapter III3(v)).  The manufacturing sector also continues to benefit from the strong synergy with 
the Mauritius freeport (Chapter III(4)(i)).  
70. Since the last TPR of Mauritius, nominal aver age tariff protection for manufacturing has been 
reduced considerably, from 20.6% in 2001 to the current 6.8% (slightly above the overall simple tariff average) (Table AIV.1).  However, border protectio n for clothing and footwear remains high, mainly 
due to the introduction of specific duties with AVE s ranging up to 277.5%.  The highest average 
tariffs in the sector apply to footwear (50.7%),  clothing (34%), manufactured tobacco (27.9%) and 
beverages (23%) (Chart IV.1).  The highest AVEs a pply to trousers, breeches, and shorts, imported as 
parts of ensembles (277.5%), and certain rubber footwear (271.1%).   
71. Customs tariffs have been eliminated on most inputs, machinery, and equipment.  Together 
with various incentive schemes, this has raised the level of effective protection of most industries, 
textiles, clothing, and footwear in particular.  Maur itius participates also in the Ministerial Declaration 
on Trade in Information Technology Products and th e related dismantling of tariffs has promoted 
domestic use of information technology products. 
 Mauritius WT/TPR/S/198 
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0510152025303540455055
111
122
210230
311
313321323
331
341351
353
355361369
372
382384
390Chart IV.1
Mauritius' tariff by IS IC classification, 2007
Percent
WTO Secretariat calculations, based on data provided by the Mauritian authorities.International Standard Industrial Classification, Revision 2
Source :111 
121 122130210220230290311312313314321322323
324
331332
341
342Description
Agricultural and livestock production
ForestryLoggingFishingCoal miningCrude petroleum and natural gas productionMetal ore miningOther miningFood productionOther food products and animal feedsBeveragesTobacco manufacturingTextilesManufacture of wearing apparel, except footwearLeather products, except footwear and wearing apparelFootwear, except vulcanized rubber or plastic footwearWood and wood products, except furnitureManufacture of furniture and fixtures, except primarily of 
metal
Paper and paper productsPrinting, publishing and allied industriesDescription
Industrial chemicals
Other chemicals, including pharmaceuticalPetroleum refineriesManufacture of miscellaneous petroleum and coalproductsManufacture of rubber products n.e.s.Manufacture of plastic products n.e.s.Pottery, china and earthenwareManufacture of glass and glass productsOther non-metallic mineral productsIron and steel basic industriesNon-ferrous metal basic industries
Fabricated metal products, except machinery and equipmentNon-electrical machinery including computersElectrical machinery apparatus, appliances and suppliesTransport equipmentProfessional and scientific equipment
Other manufacturing industries
Electrical energy351
352353354
355
356361362369371372381
382
383
384
385
390
410
Simple average
6.6%
 WT/TPR/S/198 Trade Policy Review 
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72. The special VAT regime for EPZ was abolishe d on 1 October 2006, as it was considered to 
favour imports over local goods.  As a counterpart, a fast-track VAT refund system was put in place at 
the MRA and became operational in November 2006 (Cha pter III(2)(ii)(c)).  In addition, a number of 
industrial inputs were exempted or zero-rated, including cotton, silk, wool, yarn, fabrics, textile labels 
and accessories such as buttons and zippers, leather,  dyeing services, silver and platinum, diamonds 
and other precious stones, and textile machinery. 
73. Import and export controls a pply to certain manufactured products (Chapter III(2)(vi) 
and Chapter III(3)(iii));   and some are subject to technical regulations and price controls 
(Chapter III(2)(viii) and Chapter III(4)(iii)(b)). 
74. The development of textile and clothing, the main industry, was favoured in the past by 
preferences under the Multifibre Arrangement (MFA),  and preferential access to key markets such as 
the EC and the United States (Chapter II(4)(iii)).  Othe r factors that have contributed to the growth of 
the industry, include relatively low labour cost s, incentive schemes, a well-developed banking 
subsector, good infrastructure, and long-s tanding business relations with buyers. 
75. Mauritius textiles and clothing industry has been  facing many challenges, such as multilateral 
liberalization, which has resulted in erosion of trade preferences;  rising production costs in Mauritius;  
and the emergence of low-cost producing countries.  In anticipation of the multilateral liberalization 
of the industry in January 2005, most of the major Hong-Kong-owned enterprises  (which dominated 
the industry in Mauritius) ceased operation:  be tween 2001-06, employment in the industry was 
reduced by 27,000 jobs.  This explains the poor performance of both exports and growth of the EPZ 
subsector. 
76. Several steps have been taken to sustain de velopment of the textile and clothing including 
restructuring of enterprises;  promotion of vertical integration to increase value added, as well as high 
value products;  upgrading skills;  improving access to  finance;  and facilitating business operations.  
In 2006, inputs for the industry were exempted or zero-rated.   
77. In order to increase investment and enhance the performance of companies with growth 
potential, the Government set up a ten-year National Equity Fund, following the adoption of the 
2002-03 National Budget.60  One of its objectives is to participate in the equity capital of new ventures 
in cotton spinning, and existing enterprises in the textile and clothing sector that have credible 
business plans for expansion or restructuring. Equity participation normally ranges from MUR 
10 million to MUR 100 million.61 
78. The Clothing and Textile Centre, an arm of the EPZDA (Chapter III(3)(iv)), was in charge of 
helping to enhance value-addition throughout the value chain.  It was replaced in 2005 by the 
Enterprise Mauritius Textile and Apparel Developm ent Centre (TADC), which provides a range of 
training, consultancy, and technical expertise for the industry.  
79. As Mauritius does not benefit from third- country fabric derogation under AGOA 
(Chapter II(4)(iii)), its manufacturers have been encour aged to be vertically integrated.  In order to 
boost investment, a tailor-made pack age of incentives is offered to spinning units in Mauritius.  The 
introduction of the Finance Act 2006 phased out a ll the incentives meant for spinning mills.  
However, three components of the package remain effective for mills that start operations before 
30 June 2008:  a corporate tax holiday until 30 June  2016, special investment tax credit, and a tax 
credit to investors (Table AIII.2).  Similar in centives apply to weaving, dyeing, and knitting 
                                                      
60 National Equity Fund online information. Viewed at: http://www.nef-mauritius.com/index.html. 
61 Regional Agricultural Trade Expansion Support Program (2005). Mauritius WT/TPR/S/198 
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companies (Table AIII.2).  Other incentives to th ese industries include land at concessionary rates;  
duty-free and VAT-free raw materials and equipment;  no tax on dividends or capital gains;  50% 
relief on personal income tax for two expatriate staff;  and concessionary electricity tariffs.62  T h e  
textile industry is expected to become self-suffi cient in cotton yarn and reach a high level of 
integration in few years. 
80. As a result, the industry seems to be adapting to the new environment and some recovery has 
taken place.  EPZ recorded positive growth of 4.6%  in 2006 and exports incr eased by 16.4%.  The 
textile and clothing industry seems to remain a v ital pillar of the economy, representing 5.8% of GDP 
and 49% of total domestic exports in 2006. 
81. The 2007-08 budget provides MUR 40 million to s upport brand developmen t,  innovation,  
market development with an emphasis on the regi onal market, capacity building, product and quality 
improvement, productivity improvement including i ndustrial re-engineering, and management and 
design capacity.63 
(4) ENERGY  
82. Mauritius has no oil, natural gas or coal deposits  and 82% of primary energy requirements are 
imported (petroleum products and coal);  petroleum imports alone represent 16% of the total value of 
imports.  The State Trading Corporation (STC), is the only authorized importer of petroleum products 
(Chapter III.(4)(ii)).  All petroleum products were subject to maximum pricing until April 2004, when 
the system was replaced by an automatic price mechanism (APM) for certain products 
(Chapter III(4)(iii)(b)).   
83. Local production of energy is derived mainly from bagasse (94.3%), hydro-electricity (2.6%) 
and fuelwood (3.1%).  The Central Electricity Board (CEB) is a parastatal body wholly owned by the 
Government.  It is engaged in the generation, tran smission, and distribution of electricity in Mauritius 
and Rodrigues.  Currently, the CEB has the monopoly over the transmission, distribution, and supply of electricity.  In general, the CEB generates around 50% (47.1% in 2006) of total electricity needs  from its four thermal power stations and eight hydroelectric plants (with a combined effective 
capacity of 375.5 MW).  The remainder is provide d by independent power producers (IPPs), which 
have a total effective capacity of  234 MW and produce electricity from coal and bagasse.  IPPs are 
required to sell their production to the CEB under power-purchase agreements.  
84. In 2006, total electricity generated reached 2, 350.2 GWh;  the main source was thermal, 
based on diesel and fuel oil (43.5%), coal ( 34.0%), bagasse (19.0%), and kerosene (0.2%); the 
remainder (3.3%) was water power.
64  Electricity tariffs are set on a cost recovery basis.  However, 
tariffs vary according to category of customer, in  line with the Government's social and economic 
policy (Table IV.12).   
85. Government, with the assistance of the EU and UNDP, has commissioned international 
experts for the preparation of a detailed energy polic y and an action plan, including a master plan for 
renewable energy development.  The definition of the long-term energy policy will address goals such 
as:  broader energy base in order to reduce dependence on imports;  optimal use of local and renewable energy sources;  increased energy efficiency in all sectors of the economy;  and more 
                                                     
 
62 Regional Agricultural Trade Expansion Support Center (2005). 
63Board of Investment online information, "Investo r Note: Sector-Specific Overview". Viewed at: 
http://www.investmauritius.com/sector.htm#MLP. 
64 Central Statistics Office (2007a). WT/TPR/S/198 Trade Policy Review 
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democratic energy supply by opening up the provis ion of power to new entrants.  The report was 
expected for the end of January 2008. 
Table IV.12 
Electricity tariffs, 2007 
Usage  Tariff  Security deposit 
Domestic MUR 2.37 (for initial 25 kWh) - MUR 6.59 per  
kWh MUR 200, 600 or 1,200 
Commercial & bulk MUR 2.54 to 7.28  per  kWh MUR 500 per kW or fraction thereof of total 
connected load  
Industrial  MUR 1.71  to 4.09  per  kWh MUR 400 per kW or fraction thereof of total 
connected load 
Sugar factories  MUR 3.71 or 3.92 per  kWh n.a. 
Street lighting & traffic lights  MUR 5.83 per  kWh n.a. 
Pumping for irrigation  MUR 2.00 per  kWh (off-peak rate) or MUR 3.99 
kWh (peak rate) MUR 300 per kW or fraction thereof of total 
connected load  
Temporary supply  MUR 9.30 per  kWh, plus MUR 750.00 
connection charge n.a.  
n.a. Not applicable. 
Source : Central Electricity Board (2007), Tariffs .  Viewed at: http://cebweb.intnet.mu/. 
86. The reforms foreseen in the subsector cons ist mainly in transforming the CEB into a 
corporate entity that would operate according to sound business principles while remaining fully 
state-owned, and setting up an independent multi-sect or utility regulatory authority.  Legislation has 
already been drafted, but not yet promulgated.  Th e authorities indicate that they are still looking for a 
strategic partner to assist in the management of the CEB.  
(5) SERVICES  
87. The services sector, including electricity, gas, construction, and water, is the largest 
contributor to Mauritius' real GDP (Chapter I(1)).  The sector includes two of the main pillars of the 
economy:  financial services and tourism.  Mauritiu s is a net exporter of services (Chapter I(3)(i)). 
88. The regime applied to services in Mauritius is in  general more liberal than its commitments 
made under the GATS.  Under its horizontal commitm ents, Mauritius listed, as limitations on market 
access and national treatment regarding commercial presence, several Acts w ithout further details.65  
All these acts have been either subject to modificat ion, or repealed.  Therefore, Mauritius' current 
horizontal commitments are unclear. 
89. Measures affecting presence of natural pe rsons are unbound, except for the entry and 
temporary stay of highly qualified natural pers ons, governed by Passport Act 1969 and Immigration 
Act 1973.  Measures affecting cross-border supply and consumption abroad are also generally 
unbound.66  However, commitments have been unde rtaken on a sector-s pecific basis in 
telecommunication services, tourism, and financial services (see below). 
                                                      
65 The 1984 Companies Act, the 1975 Non-Citizens Property Restrictions Act, the 1970 Non-Citizens 
Employment Restrictions Act, the 1974 Income Tax Act, and the 1988 Banking Act. 
66 WTO document GATS/SC/55, Mauritius:  Schedule of Specific Commitments, 15 April 1994. Mauritius WT/TPR/S/198 
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90. On reciprocity grounds, Mauritius maintains MF N exemptions (in financial services) under 
Article II of the GATS, designed to enhance ac cess to foreign financial markets by Mauritian 
financial service suppliers.67 
(i) Financial services 
(a) Overview 
91. Mauritius has a relatively well-developed financ ial system.  Financial services represented 
9.9% of GDP in 2005.  The subsector has grown sign ificantly since the last TPR of Mauritius, with 
total assets of MUR 16,175 million, and is  expected to grow by 7.3% in 2007.68  Total banking assets 
have grown from some 200% of GDP in 2002 to over 300%.  Other subsectors are smaller;  insurance 
and pension assets are equivalent to  some 50% of GDP and those of  regulated non-bank deposit takers 
to 15%.  In December 2004, 8% of Global Bu siness 1 Companies were involved in financial 
activities. 
92. Mauritius has undertaken significant policy and legal reforms in order to strengthen its 
financial sector during the review period.  In add ition to the substantial progress in reforming laws 
and infrastructure relating to banking (section (b) below), the legal framework for insurance 
(section (c) below) and other financial services has also been modified by the adoption of, inter alia,  
the Financial Services Development (FSD) Act 200 1 and the new Financial Services (FS) Act 2007 
(replaced the FSD Act 2001).69  The FSD Act 2001 brought all n on-banking financial services under 
the authority of the Financial Services Commissi on (FSC), such that no such activities or business 
may be carried out unless licensed by the FSC.70  The FS Act 2007 streamlines  the licensing 
procedures and consolidates the regulatory and su pervisory framework for non-banking financial 
services.  The concept of Global Business was re defined (Chapter II(5)).  The FS Act 2007 also 
broadened the scope of the FSC's  enforcement powers by providing for an Enforcement Committee, 
set up on 6 November 2007;  the Committee addresses matters related to breaches, which may lead to administrative sanctions.  Any party aggrieved by  an FSC decision can appeal to the Financial 
Services Review Panel for review of the decision.
71 
93. As a result of reforms, there are two regulatory bodies:  Bank of Mauritius (BOM), and the 
FSC.  The BOM is in charge of regulating, licensing, and supervising the banking subsector.  It is part 
of the Offshore Group of Banking Supervisors ( OGBS) and Eastern Africa Banking Supervisors 
Group.  The FSC is in charge of regulating,  licensing and supervis ing non-bank financial 
institutions.72  These include operators involved in, inter alia,  global business activities (formerly 
offshore activities), and insurance (see section (c) belo w).  The institutions are jointly in charge of 
ensuring the soundness and stability of the financial system in Mauritius. 
                                                      
67 WTO document GATS/EL/55/Suppl.1, Mauritius:  List of Article II (MFN) Exemptions, 
Supplement 1, 26 February 1998. 
68 Central Statistics Office (2007c). 
69 Other Acts that have been adopted (but are not covered here) are th e Securities Act 2005 (as 
amended in 2007) and the Securities (Amendment) Act 2007;  the Financial Services Development Act 2001, 
the Financial Services Development (Amendment) Act 2005, the Stock Exchange Act 1988 and the Unit Trust 
Act 1989 have been repealed. 
70 It was established by the FSD Act 200 1, now replaced by the FS Act 2007. 
71 Certain decisions by the FSC, such as its refusal to grant a licence, or to conduct an investigation, 
cannot be appealed to the Review Panel.  
72 The FSC took over the responsibilities of the former regulatory bodies for securities (Stock 
Exchange Commission), insurance (Insurance Division of the Ministry of Economic Development, Financial 
Services and Corporate Affairs) and global business (Mauritius Offshore Business Activities Authority) (FSC 
online information, "About Us".  Viewed at: http://www.gov.mu/port al/sites/ncb/fsc/about.html). WT/TPR/S/198 Trade Policy Review 
Page 98 
 
 
94. In order to consolidate the reputation of Maur itius as an international financial centre, a new 
legal framework regarding money laundering and terrorism financing has been set up through the 
adoption of the Financial Intelligence and An ti-Money-Laundering (FIAML) Act 2002 and its 
Regulations 2003, the Anti-Money-Laundering (Mi scellaneous Provisions) Act (2003), the Prevention 
of Corruption Act 2002, and the Prevention of Te rrorism Act 2002.  The FIAML Act 2002 laid down 
the basis for the establishment of a Financial Inte lligence Unit (FIU), operational since 2002, which is 
responsible for receiving, requesting, analysi ng, and disseminating to the investigatory and 
supervisory authorities, disclosures of financial in formation concerning suspected proceeds of crime 
and alleged money-laundering offe nces.  Based on the FIAML Act 2002, industry-specific codes were 
issued by the FSC in April 2003.  This legislation has been modified more recently in order to meet 
new standards as set out by international organizations.73  Under the FIAML regulations, banks must 
refuse transactions from clients on an anonymous b asis.  With some exceptions, transactions in cash 
above MUR 500,000 are prohibited.  
95. Mauritius has bound (without limitations) me asures affecting cross-border supply, 
consumption abroad and commercial presence for the supply of:  services auxiliary to insurance (e.g. 
consultancy, actuarial, risk assessment, and clai m settlement services);  all payment and money 
transmission services, including credit, charge and deb it cards, travellers cheques, and bankers drafts;  
and guarantees and commitments. 
96. Mauritius bound (without limitations) measure s affecting cross-border supply and 
consumption abroad of services relating to lending of  all types (excluding factoring, and specialized 
and structured products);  trading for own account  or for account of customers in money market 
instruments, transferable securities, and foreign exch ange;  and participation in issues of all kinds of 
securities and provision of services related to such issues.  It also bound (without limitations) measures affecting consumption abroad of services  relating to acceptance of deposits, settlement and 
clearing services for inter-bank transactions and securiti es,  and provision and transfer of financial 
information and financial data pr ocessing and related software by suppliers of certain financial 
services;  and measures affecting commercial pre sence for the supply of direct life and non-life 
insurance services.  Other commitments on financ ial services contain various limitations.  All 
commitments on financial services are subject to an economic needs test.
74 
(b) Banking 
97. Mauritius has a well-developed network of commercial banks.  The banking subsector 
contributes around 7.0% to GDP (2005), and employs over 5,500 persons.75  At end-December 2007, 
there were 19 banks licensed, of which five were  locally incorporated, nine were foreign-owned 
locally incorporated, and five were branches of fo reign banks.  At end-November 2007, total assets of 
banks amounted to MUR 714.5 billion.  The average capital adequacy ratio of banks was 13.4% in 
September 2007, which is above the Basel requi rement (10%).  The banking system is highly 
concentrated, with the four largest banks (two  long-established domestic and two international 
banking groups) holding 85% of dome stic and 70% of all banking asset s.  During 2005/06, all banks, 
except one, were profitable.  Minimum capital, whic h banks have to maintain  in Mauritius, is MUR 
200 million. 
98. At end-December 2007, there were 13 non-bank deposit-taking institutions, consisting mainly 
of leasing companies but also of parastatal in stitutions such as the Mauritius Housing Company 
                                                      
73 Such as the Financial Action Task Force (FATF), the International Organization of Securities 
Commission (IOSCO) and the International Association of Insurance Supervisors (IAIS). 
74 WTO document GATS/SC/55/Suppl. 2, 26 February 1998. 
75 Board of Investment (2006). Mauritius WT/TPR/S/198 
 Page 99 
 
 
(MHC).  Total assets of these institutions amounted to MUR 34.9 billion at the end-December 2007.  
The number of global business companies involved in banking activities is not available. 
99. The Development Bank of Mauritius (DBM)76 provides credit to various sectors (including 
agriculture, manufacturing, construction, tourism, a nd ICT).  Loans are granted for up to 60% of the 
capital investment for eight to ten years.  Inter est rates vary between 9% and 15% depending on the 
scheme and the amount borrowed.  The DBM has introduced a participation scheme to further 
encourage investment in projects using new tec hnologies, under which it may finance up to 50% of 
the term loan requirements, to a maximum of MUR 10 million, commercial banks finance the rest.77  
Total loans disbursed by the DBM at end-June 2006 amounted to MUR 706 million.  The 
Government has also set up a new programme to provide concessional financ ing to SMEs.  Four 
credit and quasi-equity schemes offer loans or red eemable preference shares for five-year terms at 
interest rates varying from 9% during the first year to 13% in the fifth year.  
100. In general, as a response to the changed econom ic environment (Chapter I(2)), banks have 
been reducing their loans to sugar and agriculture, in favour of other sectors.  In June 2006, the 
construction sector was the biggest credit receiver from banks, followed by traders, tourism, and 
manufacturing.78 
101. The Mauritius Credit Information Bureau (MCI B), set up by the BOM Act 2004, has been 
fully operational since December 2005.  It aims to  facilitate credit decision-making by providing 
banks information on their customers’ debts towards other participating institutions.  Participating 
banks must make an enquiry at the MCIB before  approving or renewing any credit facility.  At 
June 2007, 13 banks participated in the MCIB.  
102. Mauritius has made considerable progress since its  last TPR in reforming the legal framework 
relating to the BOM and banking, through the a doption of the Banking Act (BA) 2004 and Bank of 
Mauritius Act (BOMA) 2004 (both effective since October 2004).  The BA 2004 eliminated the sharp distinction between domestic banks and offshore ba nks (previously Category 1 and Category 2 banks, 
respectively), by providing for banking business to be conducted under a single banking licence 
regime (effective June 2005).  It captures under its  umbrella financial ins titutions, (banks, non-bank 
deposit-taking institutions and cash dealers).  Some  sections of the BA, however, still remain to be 
proclaimed.  In order to facilitate the introduc tion of Islamic banking business, the BA 2004 was 
amended by the Finance Act 2007. 
103. Under the new legislation, the independence of the BOM has been increased.  The BA 
removed ministerial powers from the supervisory aut hority and the possibility of appeal to the Prime 
Minister on licensing and ownership decisions.  It also provides additional powers to the BOM to 
restrain bank actions for soundness considerations , and the legal framework for cooperation with 
foreign supervisory authorities. The BOM staff is pr otected against legal action in respect of any act 
carried out in good faith in their functions.  The BA provides the BOM a br oad range of remedial 
powers.  The BOM establishes prudential standards an d regulations, mainly by issuing Guidelines and 
Guidance Notes.  It has implemented the Basle Capital Accord and endorsed the Basel Committee’s 
Core Principles for effective bank supervision.  Banks  are required to prepare financial statements and 
other reports according to International Financial Reporting Standards.  The BOM licenses new banks 
and has the authority to approve acquisitions of  "significant interests" in established banks;  
incorporation or acquisition of subs idiaries must have prior approval. 
                                                     
 
76 A parastatal institution, not regulated by the BOM. 
77 SADC Secretariat (2007). 
78 Bank of Mauritius (2006b). WT/TPR/S/198 Trade Policy Review 
Page 100 
 
 
104. Foreign banks are allowed to establish either as wholly-owned subsidiaries or branches, and 
to form joint-ventures with local banks.  If the application for the banking licence is made (either 
singly or in joint-venture) by a branch incor porated abroad, the bank must be a "reputable 
international bank" that has operated as a bank for at least 5 years, and subject to consolidated 
supervision by competent foreign regulatory author ities.  Any branch must be managed by persons 
appointed by the parent financial institution, subject to the approval of the BOM.  Where the financial 
institution is a subsidiary (or an associate of a foreign banking group), the BOM may require that its 
board of directors be composed of 40% by non-executive directors instead of the usual 40% independent directors. 
105. A corporate tax of 15% is applied to benef its of domestic banks, wh ile global business banks 
benefit (in practice) from lower rates (Chapter II(5 )).  In addition, in 2007, Mauritius introduced a 
special levy on banks, applicable only to profitable ba nks at a rate of 0.5% of their turnover and 1.7% 
of their accounting profits.  However, for its first y ear of application (2007/08), the amount payable is 
only 30% of the normal rate.   
106. Since 1 January 2003, certain financial services have been subject to VAT payment.
79  
Banking services supplied by banks holding banki ng licences under the BA 2004 cannot be exempted 
from VAT in respect of transactions with non-resi dents and corporations holding global business 
licences. 
(c) Insurance 
107. The insurance subsector in Mauritius is well estab lished and all types of risk are accepted.  at 
end-September 2007, there were 21 registered insu rers and 19 brokers.  Currently, 19 insurance 
companies are in operation, of which two are forei gn insurers.  In 2005, the subsector contributed 
2.9% to GDP80, and employed 2,715 persons.  Insurance bus iness is largely private-sector owned;  
SICOM is the only insurer in which the State has a ma jority stake.  The business is divided into long 
term (LT) insurance business, covering life assuran ce, pensions and "permanent" health insurance; 
and general insurance business, covering accident and health, engineering, guarantee, liability, motor, 
property, transportation, and miscel laneous insurance).  Reinsurance business is growing significantly  
as insurers are required to insure all risks. 
108. In 2006, four of the active insurers carried out only LT business, five provided only General 
Business and ten carried out both.81  Insurance companies have, in general, performed well.  
Competition in the subsector has intensified, reflectin g the struggle for market share in the absence of 
large losses from cyclones.  Three small and medi um-sized insurance companies have had their 
licences suspended, and four other small companies (m ainly in motor insurance) were forced to exit 
the market in the past decade.  Their liquidation cau sed large losses to other insurers, and some claims 
remain to be settled. 
109. Total assets of insurers amounted to MUR 50.7 billion in 2006, corresponding to 24.6% of 
GDP, up from 18% in 2001.  With 84% of total as sets, LT business dominates the local insurance 
market:  gross premiums amounted to MUR 10.5 billion (MUR 3.6 billion for general business and 
                                                      
79 These are:  services provided to merchants accep ting a credit card or debit card as payment for the 
supply of goods or services (merchant discount);  services in respect of safe deposit lockers, issue and renewal 
of credit cards and debit cards; and services for keep ing and maintaining customer s’ accounts (other than 
transactions involving the primary dealer system). 
80 Board of Investment (2006). 
81 Companies may carry out both life and non-life insura nce, but this is expected to  be phased out by 
2011. Mauritius WT/TPR/S/198 
 Page 101 
 
 
MUR 6.8 billion for LT business).  The market is ve ry concentrated, with the eight biggest companies 
holding 93% of assets.  The concentration is par ticularly pronounced in the long-term insurance 
business, where 80% of total net premiums we re generated by the three largest insurers.82 
110. Considerable progress has been made in modern izing insurance regulation and supervision, 
through the adoption of the Insurance Act 2005, which came into force on 28 September 2007, 
together with the Insurance Amendment Act 2007, the Insurance Regulations 2007, and four Rules 
(i.e. Solvency Rules for General Insurance Bu siness, and for Long-Term Insurance Business, 
Statutory Reinsurer Rules, and In surance Returns Rules).  Insuran ce must be contracted with an 
insurer registered or licensed in Mauritius if ther e is a compulsory insurance requirement (i.e. motor 
third-party liability and professional i ndemnity),  or if the risks to be covered relate to an asset 
situated in Mauritius.  The latter obligation is  scheduled to be lifted after 1 May 2010.   
111. The FSD Act 2001 brought the insurance subsector  under the FSC, which is now responsible 
for the licensing of insurance companies and interm ediaries, regulation, monitoring, and supervision 
of the sector.  Any person may carry on insuran ce business in Mauritius provided they hold a licence 
from the FSC.  Foreigners are subject to the same requirements as Mauritians;  no reciprocity 
requirement applies.  In addition, the Insurance Act 2005 provides for extern al insurance business (i.e. 
global business), where the business is restricted to only non-Mauritian policies.  This replaces the 
offshore insurance concept (Chapter II(5)). 
112. Before delivering a licence, the FSC ensures that, inter alia,  the applicant, substantial 
shareholders, and officers of the proposed insurer are "fit and proper persons", and that the insurer 
fulfils prudential requirements.  Solvency margins ar e specified in the solvency rules adopted by the 
FSC in 2007.83  The FSC is a member of the International Association of Insurance Supervisors and of 
the Committee of Insurance, Securities, and Non-Banking Financial Authorities (CISNA) of the SADC.
84  The FSC is empowered to carry out on-site in spections and investigations on the premises 
of insurers. 
113. The FSD Regulations 2001 set up the framework  to facilitate the establishment of captive 
insurance business.85  Applicants for captive insurance li cences are companies with a Category 1 
Global Business Licence (Chapter II(5)).86  In November 2006, there were six captive insurance 
management companies.   
114. The minimum stated capital for an insurance or reinsurance company is MUR 25 million (and 
it should be kept unimpaired).  An external insurer87, must keep the same amount of capital in any 
freely convertible currency.  The ongoing minimum ca pital required is further determined by the 
solvency rules.  Premiums are set  by the market.  Apparently, there are no limitations on commercial 
presence for foreign insurers. 
                                                      
82 FSC (2006). 
83 Insurance (Long-Term Insurance Business Solvency ) Rules 2007, and Insurance (General Insurance 
Business Solvency) Rules 2007. 
84 Board of Investment (2006). 
85 Captive insurance is now governed by the Insurance Act 2005;  the FSD Regulations 2001 have been 
taken over by the FS Act 2007. 
86 Types of captives permissible are (with Minimum Paid-Up Capita l between brackets):  Captive 
General Insurance Business (US$ 100,000), Captive Long Term Insurance Business (US$ 250,000);  and 
Captive General and Long Term Insurance Business (US$ 350,000). 
87 "External insurer" means a corporation licensed to  carry on external insurance business (which is 
restricted by a licence to only non-Mauritian polic ies) that includes captive insurance business. WT/TPR/S/198 Trade Policy Review 
Page 102 
 
 
(ii) Telecommunications 
115. During the period under review, Mauritius revised its telecommunications legislation in an 
attempt to improve overall economic performance and, more specifically , to reduce the cost of doing 
business and position Mauritius as a services hub for Africa.88  The reforms have contributed to the 
improvement of the supply of and access to tel ecoms and related services (see below).  Currently, 
Mauritius is one of the African countries with the highest global telecommunications density (around 
30 in 2006).89  Mauritius also has an entirely digital network.90  In 2006, the information and 
communication technology (ICT) subsector contributed 5.8% to GDP91, up from 4.4% in 2001.92  
Employment in the subsector has risen by 87.6% since 2000. 
116. The ICT Act, enacted in 200193, established the basis for liberalization of the subsector by 
removing the exclusive rights granted to Mauritius Telecom (MT)94 over fixed (domestic and 
international) telecommunications services.95  It also established an ICT Authority (ICTA) responsible 
for regulating telecommunication services and licensi ng, and an Internet Management Committee in 
charge of overseeing internet-related policies.  Se veral other legal instruments have been enacted, 
such as the Electronic Transactions Act govern ing e-commerce (effective 2001), and the Data 
Protection Act 2004 assuring that companies can conduct business online securely.  In 2004, 
Mauritius also developed a National Telecommuni cations Policy, which specifically identifies 
implementation of the WTO agreement on tel ecommunications, adoption of measures aimed at 
promoting competition, and strengthening of the interconnection regime as priorities.96  In 2007, a 
National ICT Strategic Plan 2007-11 was also adopted in line with the vision of Mauritius to make of 
ICT a pillar of the economy and to posit ion the country as a regional ICT hub.  
117. Under the ICT Act, operators are obliged to  grant access to their networks through the 
conclusion of commercial agreement;  interconnections tariffs must be  either approved or determined 
by the ICTA.  Operators are also  obligated to provide access to their other facilities or services.  
Abuses of dominant position and collusion in the ma rket, and agreements likely to have a negative 
effect on competition are prohibited.  Operators are free to set their tariffs, subject to approval from 
the ICTA (prior to implementation).   
118. The ICT Act also provides for the Universal Service Fund (USF).  Regulations to establish 
the USF are being finalized.  The ICTA worked ou t an interim payment mechanism, i.e. a special 
account under its general fund, in September 2003.  Currently, universal services consist mainly in 
sustaining the below-cost access tariffs of the in cumbent operator through payment from the special 
account.  However, a more comprehensive procedur e is expected to be made effective upon the 
adoption of the USF regulations.  
                                                      
88 Ministry of Information and Telecommunications (2004). 
89 The number of fixed telephone lines per 100 inhabitants. 
90 Nov@tech (2007). 
91 Comprising activities of manufacturing, telecommunications, wholesale and retail trade, and other 
activities such as call centres, software development, we bsite development and hosting, multimedia, consulting 
and disaster recovery services.  
92 Central Statistics Office (2007b). 
93 The ICT Act repealed the Telecommunications Act 1998. 
94 The Government of Mauritius, the State Bank of  Mauritius, and the National Pensions Fund hold 
60% shares in the company, the rema inder belongs to France Telecom. 
95 The ICT Act was modified by the ICT Amendment Act 2002, which changed the date for 
liberalization from 1 January 2004 to 1 January 2003. 
96 Ministry of Information and Telecommunications (2004). Mauritius WT/TPR/S/198 
 Page 103 
 
 
119. Prior to liberalization in 2003, MT was the so le fixed public telephone , international, and 
internet service provider in Mauritius.97  Since mid-2003, 37 licences have been issued, including two 
fixed telephone network licences, th ree public land mobile network licences, and seven international 
long-distance network licences.98  Nevertheless, the MT remains the main provider of fixed-line 
telephony services in Mauritius and, together with  Data Communications Limited (DCL), accounts 
for 85% of the clients of international telephone  services.  The other provider of fixed telephony 
services is Mahanagar Telephone (Mauritius) Ltd,  which launched operati ons in 2006.  After 
liberalization, telecom rates, particularly for international telephony, declined considerably 
(Table IV.13).99  Currently, 89% of the Mauritian househol ds have a fixed telephone line, up from 
77% in 2001;  the number of main telephone lines in operation increased from 306,800 in 2001 to 
357,300 in 2006,  of which Mauritius Te lecom alone accounts for about 340,000  subscribers. 
Table IV.13 
Selected telephone and internet tariffs, 2000-06 
(MUR) 
Telephone and internet 2000 2001 2002 2003 2004 2005 2006 
Fixed telephone        
A three-minute local call (off-peak) 1.00 1.00 1.30 2.05 2.05 2.05 1.80 
Residential monthly line rental  60.00 60.00 75.00 90.00 90.00 90.00 90.00 
Business monthly line rental 
100.00 100.0
0 210.00 225.00 225.00 225.00 225.00 
International direct dialling 
Three minute call from fixed telephone (off-peak) to:        
Reunion Island 45.00 45.00 30.00 21.60 21.60 21.60 21.60 
London/Johannesburg 75.00 75.00 54.00 36.00 36.00 36.00 28.80 
New York 90.00 90.00 54.00 36.00 36.00 36.00 28.80 
China 
105.00 105.0
0 54.00 36.00 36.00 36.00 28.80 
Mobile cellular telephone   
Three minute local call on prepaid service        
On same network 3.60 3.60 3.60 3.60 3.60 3.60 3.60 
To a different network 14.40 14.40 14.40 9.00 11.70 11.70 11.70 
To a fixed telephone 14.40 14.40 14.40 12.75 12.75 12.75 13.05 
Dialup peak time (per minute) 0.80 0.80 0.80 0.57 0.57 0.57 0.57 
Internet        
Dialup off-peak time (per minute) 0.50 0.50 0.50 0.27 0.27 0.27 0.27 
ADSL 128 kbps        
Residential use na na na 1,499.00 1,316.00 990.00 750.00 
Business usea na na na 2,500.00 2,500.00 1,900.00 1,860.00 
ADSL 512 kbps        
Residential use na na 2,490.00 2,500.00 2,178.00 1,590.00 1,360.00 
Business use na na na 5,500.00 5,500.00 3,600.00 3,190.00 
Mobile cellular tariffs for 100 minutes of use 
during a monthb as a percentage of GNI per capita 
(%) 4.90 4.40 4.20 3.00 3.00 2.90 2.60 
Internet access tariff for 20 hours of use per 
monthc as a percentage of GNI per capita (%) 10.60 9.50 9.00 5.40 4.90 4.60 4.10 
a Upgraded to 256 kbps in 2006. 
b Average of 100 minutes of use on same network, 100 minutes of use on a different network and 100  minutes of use to a fixed 
 telephone) on a prepaid package. 
c Refers to 10 hours dial-up access during peak time and 10 hours dial-up access off-peak time. 
Source : Central Statistics Office, Economic and Social Indicators, Informa tion and Communication Technologies (ICT) 
 statistics – 2006 . Viewed at: http://www.gov.mu/ portal/goc/cso/ei648/toc.htm. 
                                                      
97 WTO (2001). 
98 In addition to MT, other providers of internatio nal telephone services are:  DCL, Hot Link, TLC 
Mauritius, Emtel and MTML (Information and Communi cation Technology Authority online information, 
Licence Holders . Viewed at: http://www.icta.mu/telecommunications/licences.htm. 
 99 ITU (2003). WT/TPR/S/198 Trade Policy Review 
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120. So far, 12 internet service provider licences have been issued, a lthough only five are 
operational. Telecom Plus, a joint-venture between MT and France Telecom, was the first provider of 
commercial internet services in Mauritius.  It was joined by Digital Communications Services Ltd in 2001.  At end-2006, there was an estimated to tal 137,479 internet services subscribers (up from 
55,000 at end-2002).
100  In 2002, the National Computer Board (NCB)101 estimated internet 
penetration at 13% of Mauritia n households (though 18% of house holds had personal computers)102;  
this percentage had increased to 32.7% in 2006.103  Broadband has recently become the primary 
method of connection to the internet; subscribers we re estimated at 81,069 in 2006 (up from 1,200 in 
2003), overtaking the number of dial-up subscribers (56,410) for the first time.104 
121. The mobile market consists of EMTEL, Cellplus (a n MT cellular subsidiary), and Mahanagar.    
The number of mobile subscribers in Mauritius has increased significantly, from around 200,000 in 2001 to an estimated 772,400 (61.5 % of the population) in 2007, divided among the three operators.  EMTEL, a joint-venture between a domestic business group and a Luxembourg-based mobile 
operator, had around 250,000 subscribers, and Cellpl us had the greatest market share with around 
500,000 subscribers.
105  Mahanagar Telephone, a subsidiary of  an Indian telecoms company, was 
granted a licence in January 2004, and launched operations in 2006.   
122. Mauritius connected to the South Africa-Far Ea st (SAFE) submarine fibre optic cable in 
2002.  The cable provides high-speed, reliable phone  and broadband capacity, linking the country to 
Europe, South Africa, and Malaysia;  it has incr eased Mauritius' broadband capacity by 240% and 
750% in incoming and outgoing satellite bandwidth.  In late 2006, Mauritius became part of the 
African Submarine Cable System (EASSy) project  by signing the NEPAD ICT Broadband Network 
Infrastructure Protocol. 
123. In 2001, Mauritius launched a project on the crea tion of Cyber City:  the Ebène Cyber City is 
located at the SAFE cable landing point.  It comp rises a cyber tower, a business tower, knowledge and 
multimedia complexes, and govern ment administrative complexes.106  Domestic firms are also 
encouraged to provide special loan rates to empl oyees and citizens for the purchase of PCs.  Mauritius 
launched a "Cyber Caravan" project in 2000, with a view to providing computer facilities and training 
in IT to its population.107  Plans have also been announced to  increase the availability of ICTs in 
schools.108 
124. Mauritius is a member of the International Telecommunications Union, the International 
Telecommunications Satellite Organization and the Inte rnational Maritime Satellite Organization.  In 
the WTO, Mauritius has undertaken full commit ments on cross-border supply and consumption 
abroad of facsimile;  paging;  private mobile radi o;  equipment rental, sales, and maintenance;  and 
satellite-based mobile services109;  and measures affecting consum ption abroad of voice telephone, 
packet-switched data transmission, circuit switched data transmission, telex,  telegraph, and private 
                                                      
100 Central Statistics Office (2007b). 
101 The NCB was established by the National Computer Board Act 1988 to promote the uptake of ICTs 
in Mauritius. 
102 ITU (2003). 
103 Central Statistics Office (2007b). 
104 ITU (2004). 
105 Nov@tech, Country Profile – Mauritius , 2007. Viewed at: http://www.novatech2007.org/downloads 
/country_profiles/Mauritius_Country_Profile.pdf. 
106 ITU (2004). 
107 ITU(2003). 
108 ITU (2004). 
109 Measures affecting commercial presence for the s upply of these services have also been bound 
without limitations on market access. Mauritius WT/TPR/S/198 
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leased circuit services.110  In the case of cross-border supply of  voice telephone services, alternative 
calling practices, such as call-back and refile are not permitted.  "country direct" calling card service is possible under agreements conclude d between operators.  In the case of commercial presence for all 
listed services, the limitation on market access consisted of the requirement by the Companies Act 
1994 for foreign companies to have a registered offi ce in Mauritius.  However, the Act was repealed 
in 2001.  Measures affecting the presence of natural persons are unbound, except as listed under 
horizontal commitments (see above). 
125. Telecommunications and postal services in Maur itius have always been provided by separate 
bodies.  Postal Services in Mauritius are governed by the Postal Services Act 2002, and are under the 
authority of the ICTA.  The Act established, amo ng other, rules for licensing postal and courier 
services.  The ICTA sets prices for postal services.  Prior to March 2003, postal services were provided by the Mauritius Post Office (MPO), whic h operated as a government department under the 
portfolio of the Ministry of Information Technology.  In March 2003, the department was turned into the Mauritius Post Ltd. (MPL), a state-owned body- corporate; it operates the Mauritius Post Office 
Savings Bank.  The Post Office (Transfer of Undertaking) Act 2002 essentially transferred the 
activities, rights, and obligations of the MPO to th e MPL.  Mauritius is a member of the Universal 
Postal Union and participates in the activities of th e Southern African Transport and Communications 
Commission of the SADC. 
(iii) Transport 
126. Road transport is the only form of land trans port in Mauritius.  The ne twork is some 2,000 km 
long, of which 1,010 km are motorways or major ro ads.  Mauritius has one international airport at 
Plaisance and a commercial port at Port-Louis.  The bu lk of Mauritius' trade (some 99% of the total 
volume) is handled by sea transport.  There is a freeport zone (near the port), where warehousing, merchandizing space, and other infrastructural servi ces are available;  this has given impetus to 
maritime transportation services (mainly transshipme nt) in Mauritius, with freeport trade amounting 
to some MUR 21.6 billion in 2004/05, up from MU R 7.2 billion in 1999/2000.  The other freeport 
zone is located at the international airport.  Mauritius has undertaken no sector-specific commitments 
on transport services under the GATS. 
(a) Maritime 
127. The Mauritius Ports Authority (MPA)
111, a parastatal body, is the sole national port authority.  
It is responsible for the regulation, control, ad ministration, development, and operation of sea ports 
and port services (including marine services, such as pilotage).112  The state-owned Cargo Handling 
Corporation Ltd (CHCL) is the sole provider of general cargo and certain dry bulk and container 
handling services.  However, cement, wheat, petrol eum products, molasses, and bitumen are handled 
by private operators.  The Mauritius Sugar Terminal  Corporation is responsib le for handling bulk raw 
sugar for export.   
128. The MPA levies port fees for services rendered as per the port tariffs.  The tariffs are revised 
every five years by international consultants and benchmarked on other ports, with the main objective 
of ensuring that the tariffs for both MPA and the CHCL remain regionally competitive.  Following a 
                                                      
110 Measures affecting cross-border supply of these services have been bound without limitations on 
national treatment (WTO document GATS/SC/55/Suppl.1, 11 April 1997). 
111 The MPA replaced the Mauritius Ma rine Authority (MMA) after th e enactment of the Ports Act 
1998 in August 1998. 
112 Pilotage is compulsory for all vessels over 100 grt. WT/TPR/S/198 Trade Policy Review 
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2006 study, new tariffs are to be implemented as fr om February 2008.  Preferential port handling 
charges are granted by MPA and CHCL to enhance freeport and transshipment trade. 
129. Most shipping services, including liner trade, are under the control of foreign shipping 
companies.  There is a state-owned shipping company, which caters for freight and passenger traffic 
to and from Rodrigues, and is also engaged in regional feeder services.  Vessels registered locally are 
granted a 50% discount on pilotage, tug services, and dockage.  A further 20% discount is allowed to 
local registered vessels on other chargeable items.113. 
130. In 2004, Port-Louis Harbour was classified 11th in the top 20 African container ports, with a 
share of 2.6% in total African container port traffic (3.9% in 2003).114  It includes a container terminal 
as well as terminals for handling bulk sugar, pe troleum products, wheat, and cement.  The port 
contributes more than 2% to Mauritius' GDP.115  The Mauritius Container Terminal (MCT), 
operational since January 1999, handles around 90% of  total container throughput (e.g. 380,921 TEUs 
in 2006/07).  Throughput capacity has increased to  some 550,000 TEUs, as a result of the expansion 
of its stacking yard.  In addition, some 150,000 TEUs can be handled at the multipurpose terminal, 
bringing total port capacity to 700,000 TEUs.  Th e dredging of the access channel to -14.5 metres in 
November 2006 enabled Port-Louis to accept container vessels of 5,000+ TEUs.  As a result, the port 
is now ranked as the second deepest container port  in the sub-Saharan Africa.  Transshipment 
agreements have been signed with three major sh ipping lines calling at Port-Louis: Mediterranean 
Shipping Company, with annual traffic of 45,000 TEU s; Maersk, with 20,000 TEUs;  and Mitsui aSK, 
with 8,000 TEUs. 
131. The MPA aims to develop Port-Louis Harbour  into a regional maritime, logistics, and 
business hub.  In this respect, the Government intends  to elaborate a strategy that would result in a 
substantial increase in transshipment trade, fro m the current 103,310 TEUs to at least 800,000 TEUs 
in the medium term.116  Moreover, as part of its developmen t programme, the MPA is implementing a 
series of projects such as the construction of an o il jetty, designed to accommodate tankers of 5,000 to 
50,000 DWT, and the construction of a cruise berth and associated terminal facilities.  Both projects 
are expected to be completed during 2008.  The ne w Port Master Plan Study is expected to be 
finalized by May 2008.  It is foreseen that the MPA will invest in:  the extension of the existing 
container terminal by some 350m and expansion of the stacking yard, bringing capacity to some 
880,000 TEUs;  dredging and reclamation works to deepen the navigational channels as well as 
creation of new land areas for port development;  upgrading of the multipurpose terminal II to 
accommodate a container throughput of some 300,000 TEUs;  construction of a new fishing port;  and 
construction of a breakwater.  The security measures at Port-Louis Harbour have been further enhanced, and the port has been compliant with the In ternational Ship and Port Facility Security Code 
(ISPS Code) since 1 July 2004.  
132. Mauritius' own merchant fleet is of 75,000 grt (Table IV.14).  Ship registration and 
mortgaging are regulated by the Mauritius Merc hant Shipping Act 1986 and the Mauritius Shipping 
(Amendment) Act 1992.
117  The Minister is empowered to exempt any class of ship from any of the 
                                                      
113 As per the first schedule of the Ports (Fees) Regulations 1999. 
114 UNCTAD (2006). 
115 MPA online information, "Strategy & Port Development". Viewed at: http://www.mauport.com/ 
strategy. 
116 This is to be achieved by increasing productivity through:  optimum utilization of existing 
infrastructure;  substantial increase in container hand ling capacity;  quick turnarou nd for container vessels;  
reduced waiting time for ships;  terminal services of international class to the shipping community;  and cost-
effective port services through competition between se rvice providers (Republic of Mauritius, undated b). 
117 The following are allowed to own and register ship s under the Mauritian flag:  citizens of Mauritius;  
companies incorporated in Mauritius and effectively controlled by Mauritian citizens;  companies incorporated Mauritius WT/TPR/S/198 
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requirements laid down under the Act.  A new Me rchant Shipping Act has been elaborated, and 
introduced in the National Assembly.  Its main declared objectives are to ensure that shipping 
operations and practices are conducted according to international safety norms to enhance maritime 
safety and security, to protect conditions of enga gement, employment, work and living on board, and 
to safeguard interests of ship owners, operators,  passengers, and cargo.  The Bill also introduces the 
concept of "maritime entity" to provide for registra tion of vessels by joint-ventures or partnerships.  
Twelve draft regulations have already been prepared. 
133. Several fiscal exemptions are granted under the marine legislation.  Vessels registered in 
Mauritius are exempt from tax on freight earnings.  The personnel working on board a Mauritian flag 
ship is exempted from income tax, and the requireme nt of a work permit for foreigners is waived.  
Ships' stores, consumables, spare parts, and bunke rs are exempted from customs and excise duties.  
No capital gains tax is payable upon the sale or tran sfer of a ship or of the shares in a shipping 
company, and no estate duty is payable up on inheritance of shares in a shipping company.118 
Table IV.14 
Merchant fleet and port traffic, 2001-06 
 2001 2002 2003 2004 2005 2006 
Maritime       
Total merchant fleet ('000 grt/'000 dwt) 97/109 63/56 68/60 79/77 75/72 ..
      oil tankers ../.. ../0 0/0 0/0  0/0 ..
      bulk carriers 4/5 10/13 10/13 10/13  6/8 ..
      general cargo 18/17 17/15 17/15 17/15  17/15 ..
      container ships 48/69 ../0 0/0 0/0  0/0 ..
      other types 28/18 36/27 41/32 52/48  53/49 ..
Port       
Vessels entering (number)a  .. .. 1,588 1,330 1,407 1,365 
Vessels leaving (number)a .. .. 1,578 1,481 1,318 1,321 
Container port traffic (TEUs) 161,574 198,177 381,474 290,118 253,772 266,425
Transshipment container traffic (TEUs) 3,777b .. .. .. 81.792 93,192 
.. Not available. 
a Exclude fishing vessels berthed in Port-Louis only. b Fiscal year. Note grt = Gross register tonna ge;  dwt = Deadweight tonnage. 
Source : UNCTAD (2006), Review of Maritime Transport, 2001- 06. Viewed at: http://www.unctad.org/;  MPA (2006), 
 Annual report 2005-06 . Viewed at: http://www.mauport.com/an nualreport/;  MPA (various issues), Port News. 
 Viewed at: http://www.mauport.com/portn ews; and Central Statistics Office  online information. Viewed at: 
 http://www.gov.mu/ portal/site/cso. 
(b) Air  
134. Passenger traffic at the international airport of  Mauritius grew at an annual average rate of 
3.3% during 2001-06.  Demand for ai r transport is predominantly for tourist services (section (iv) 
below).  The national carrier, Air Mauritius, remains the largest carrier for passengers and airfreight 
into and out of Mauritius.  Air Mauritius is quoted on the Stock Exchange of Mauritus and its shares 
are held by Mauritius Holding Ltd (51%)119, the State Investment Corporation Ltd (4.7%), Pershing 
LLC (4.6%), Government of Mauritius (4.5%), Rogers and Co Ltd (4.3%), British Airways 
Associated Companies Ltd (3.8%), Air France (2 .8%), Air India (2.6%), National Pension Fund 
                                                                                                                                                                     
in Mauritius or abroad, with the approval of the relevant authorities;  companies holding a Category 1 Global 
Business Licence, provided their shipping activities are carried out exclusively outside Mauritius.  These 
persons or companies can also register a foreign ship unde r the Mauritian flag if the ship is bareboat chartered to 
them for at least 12 months. 
118 Republic of Mauritius (undated c). 
119 Air Mauritius Holding Ltd's share capital is held by:  the Government of Mauritius (37.5%), Rogers 
& Co Ltd (15.5%), State Investment Corporation Lt d (15.4%), British Airways Associated Companies Ltd 
(13.2%), Air France (9.6%), and Air India (8.8%). WT/TPR/S/198 Trade Policy Review 
Page 108 
 
 
(2.0%), and other investors (19.7%).  In addition to Air Mauritius, 18 foreign carriers serve Mauritius 
(up from 12 in 2001).  The load factor of the airlines was 74.6% during FY 2006/07.  Tariffs for air transport are set by air companies, and no longer n eed to be filed with the aeronautical authorities.  
However, fares on the Rodrigues route are subject to approval. 
135. Air Mauritius holds a de facto  monopoly over the Port-Louis-Rodrigues route.  In 2005,  
Catovair, owned by Mauritius-based conglomerate Ire land Blyth Limited (IBL), also started flights to 
Rodrigues, but closed down in May 2007.  Ai r Mauritius was also the only provider of ground 
handling services until 2003, when Servisair began operations at Sir Seewoosagur Ramgoolam (SSR) 
International Airport;  its operation was taken ove r in 2006 by Equity Aviation Indian Ocean Ltd 
(EA).
120  Nevertheless, Air Mauritius is still the major service provider, taking care of the cargo 
handling for ten foreign airlines;  and the EA takes care of that of eight airlines. 
136. Air cargo traffic (in tonnage terms) in Mauritiu s grew at an annual average rate of 3.0% 
during 2001-06 to reach 44,985 tonnes from 38,861 in  2001 of which 21,158 was inbound and 23,827 
outbound traffic.  The bulk of the outbound traffic is composed of textiles and textile products, 
originating mainly in the EPZ until it was abolishe d (Chapter III(3)(iv)).  The contribution of the 
Mauritius freeport to air cargo traffic has been far less significant (some 6% of the total air cargo 
exports in 2003) than to the maritime transport. 
137. The air cargo market was liberalized in 1997, but only for cargo flights.  However, the bulk of 
cargo capacity is provided by the belly-hold of passe nger flights, which remain  subject to bilateral 
agreements (see below).  Air Mauritius Cargo is by  far the largest cargo carrier in Mauritius with a 
market share of 46%, followed by Emirates SkyCar go (13%), and British Airways WorldCargo (9%).  
Previously,  only Air Mauritius and Air France serviced Mauritius with full freighter operations;  Air France stopped its operation in winter 2004/05 and Ai r Mauritius ceased its freighter operations in 
December 2006.  Despite the libera lization, no new structural full fre ighter operator has entered the 
market.  The market seems to be perceived comme rcially unattractive due mainly to its limited size.
121 
138. Air transport services have been kept within  the ambit of scheduled services governed by 
bilateral agreements, contingent  upon reciprocity.  Mauritius has concluded some 32 bilateral 
agreements with foreign countries, including a M OU with the United Arab Emirates.  In practice, 
however, services are being operate d only under 18 agreements (Air  Mauritius operating to 14 of 
these countries).122  Cabotage is not allowed.  The agreemen t with Australia provides for self-handling 
by the designated carrier.   
139. The Department of Civil Aviation, under the Ministry of Tourism, Leisure and External 
Communications, is the regulatory body;  it admini sters the Civil Aviation Act and its regulations123, 
and oversees aviation operations including air traffic c ontrol, licensing of aircrafts, meteorology, and 
communication.  It also managed Plaine Corail Ai rport in Rodrigues until 31 March 2007, when the 
management was taken over by Airport of Rodri gues Ltd (a public company set up with government 
shareholding).  In January 2001, an Air Access Advisory Council (AAAC) was established, under the 
Chairmanship of the Prime Minister’s Office, to provide a platform for consultations with stakeholders on air transport issues.  However,  the AAAC never became operational, and it was 
                                                     
 
120 Equity Aviation Indian Ocean Limited is a joint-venture between Ireland Blyth Limited and Equity 
Aviation (SA) Ltd. 
121 Republic of Mauritius (2004). 
122 Australia; Austria; Belgium; France; German y; Hong Kong, China; India; Italy; Kenya; 
Madagascar; Malaysia; Seychelles; Singapore; South Africa; Switzerland; United Arab Emirates; United 
Kingdom; and Zimbabwe. 
123 The Civil Aviation Regulations 2007. Mauritius WT/TPR/S/198 
 Page 109 
 
 
decided in 2005 to replace it by an Air Access Polic y Unit.  A state-owned company, Airports of 
Mauritius Ltd (AML) is responsible for the oper ation, development, and management of the 
SSR-International Airport.  All airports in Mauritius are owned by the State. 
140. During most of the period under review, the ai r access policy of Mauritius seems to have been 
driven by a dual objective of protecting Air Mauritius as a flag carrier, and attracting up-market 
tourists.  The strategy has been characterized by:  maintenance of single designation clauses (one 
airline per route to Mauritius);  double-approval fare systems that entitle governments to control fares;  
restrictions with respect to capacity and frequencies;  reluctance  to exchange 5th freedom rights, a 
non-charter policy (with some exceptions);  modest lib eralization efforts, only in a regional context;  
and no full privatization of Air Mauritius.124   
141. In line with the guidelines for 2005-10, the air access policy has been revised to enable a 
more pragmatic approach with the trend towards multip le designation, no restrictions on capacity or 
frequency, exchange of fifth freedom traffic rights, a nd liberalized fares.  Actions have been focusing 
so far on increasing seat capacity and competition in markets  with high growth potential (such as 
France, South Africa, and India) by, inter alia , reviewing some bilateral agreements and negotiating 
new ones;  facilitating special flights (charters), on an ad hoc  basis, whenever demand exceeds supply 
by scheduled carriers;  and allowing special flights in markets not serviced by scheduled carriers (such 
as Sweden).125 
142. Mauritius is a party to the Chicago Convention on International Civil Aviation of 1944.  It is 
also a party to the International Air Services Tr ansit Agreement 1944, under which parties exchange 
the two first freedoms of the air.  Mauritius has not  concluded any open skies agreements.  SADC and 
COMESA (of which Mauritius is a member) foresee the liberalization of air traffic and support the 
policy and legal provisions made under the Ya moussoukro arrangements.  Mauritius, however, 
withdrew from the Yamoussoukro Decision in March 2003. 
(iv) Tourism 
143. Mauritius' tourism subsector benefits from cultura l diversity and natural gifts, such as scenic 
beauty, climate, sea, and beaches.  It has ove rtaken sugar to become the largest source of 
foreign-exchange earnings (25% of the total in 2 006).  Restaurant and hotel turnover grew at an 
estimated rate of 10.2% in 2007, up from a relatively low level in 2006 (due mainly to the outbreak of 
the "Chikungunya" disease in competing destinations) (Table IV.15).   
144. In 2006, Mauritius' capacity was 10,666 rooms with  21,403 beds in 98 registered hotels.  No 
information is available on informal accommodation (mainly in unregistered private bungalows).  In 
2006, tourism provided direct employment to around 25, 798 persons: total direct employment in large 
establishments represented 8.7% of total employment  in Mauritius.  For each direct job, there are 
estimated to be two indirect jobs (often part time).   In 2006, the room occupancy rate in large hotels 
was 69 % (78% during January-September 2007).   
145. In 2006, some 778,276 tourists visited Mauritius,  up from 660,318 in 2001 .  Tourist arrivals 
from Europe continue to account for around two thirds of  the total, with France as the leading source 
(around 23%, down from 30% in 2001).  Arrivals are est imated to have grown by 12.4% in 2007, as a 
result mainly of market diversification, steps taken to liberalize air access, and increased seat capacity 
on the national airline through the acquisition of two planes since  December 2006 (section (iii)(b) 
above).  Prices in the tourism subsector are market-determined. 
                                                      
124 Republic of Mauritius (2004). WT/TPR/S/198 Trade Policy Review 
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Table IV.15 
Main tourism indicators, 2000-07 
 2000 2001 2002 2003 2004 2005 2006 2007a 
Hotels 95 95 95 97 103 99 98b 88c
Rooms 8,657 9,024 9,623 9,647 10,640 10,497 10,666b 9,126c 
Bed places 17,776 18,350 19, 597 19,727 21,355 21,072 21,403b 18,256 c
Occupancy rates (%)         
Room 70 66 67 63 63 63 66 75d
Bed 62 58 59 55 56 57 59 67d
GDP at current basic prices, restaurants 
and hotels (MUR million) 6,872 8,693 8,923 9,427 11,302 12,426 14,219 ..
Share of tourism in GDP (%) 6.5 7.4 7.1 6.9 7.4 7.6 7.9 ..
Share in real GDP (1992 prices), 
restaurants and hotels (%) 4.5 4.4 4.5 4.4 4.3 4.4 4.5 .. 
Real growth rate, hotels and restaurants .. .. .. 3.0 2.4 5.6 3.5 10.2 
Tourist arrivals 656,453 660,318 681,648 702,018 718,861 761,063 788,276 875,000
Average length of stay (nights) 10.4 10.4 10.5 10.4 10.6 10.7 10.1 ..
Average expenditure (MUR) 21,612 26,076 32,157 .. .. .. .. ..
Gross earnings (MUR million) 14, 234 18,166 18,328 19,415 23, 448 25,704 31,942 36,400
Employmente 17,433 19,522 20,729 21,860 22,613 25,377 25,798 26,247 
   hotels .. 14601 15503 16096 16853 19226 19,536 20,158 
...restaurants .. 1269 1252 1719 1623 1809 1,805 1,793 
...other establishments .. 3652 3974 4045 4137 4342 4,457 4,296 
.. Not available. 
a Projection. 
b Excluding four hotels not operati onal because of renovation works. 
c Excluding 12 hotels not operational becau se of renovation works (end-June 2007). 
d End-June. 
e Large establishments (employing ten or more persons). 
Source:  Ministry of Tourism, Leisure & External Communications, Handbook of Statistical Data 2005  and 2006 . Viewed 
 at: http://www.gov.mu/portal/site/tourist/; and Central Statistics Office online information. Viewed at: 
 http://www.gov.mu/ portal/site/cso. 
146. Mauritius expects tourism to remain a strong gr owth pillar of its economy, especially in the 
context of challenges facing the sugar and textile subsectors.  Low-impact and high-spending tourism 
has been further promoted through the "low-densi ty and low-rise" hotel development policy and the 
priority given to hotel projects of the highest standards (the 4- and 5-star categories).126  Mauritius 
targets 2 million tourist arrivals by 2015, through an annual growth rate  of 10%;  the target for 2008 is 
1 million tourist arrivals.  It is to achieve this objective by, inter alia , further broadening and 
diversifying the tourist product portfolio by promoting eco-tourism  and cultural tourism, as well as 
leisure and recreational activities.  The Government  also intends to develop Mauritius as a duty-free 
shopping destination (Chapter III(ii)).  All this is  to be accompanied by continuous liberalization of 
air traffic (including further relaxing its non-charte r policy) (section (iii)(b) above).  In addition, 
Cabinet agreed in 2005 to open up inbound tour operato r services to foreign investors and promoters.  
Mauritius also intends to position itself as a potential cr uise hub.  Currently, a cruise jetty (the first) is 
being constructed and is expected  to be completed by end 2007.127 
147. The 2007/08 Budget introduced several measur es, including setting up Events Mauritius 
Limited, which will organize special activities to e nhance the image of Mauritius as a destination;  
earmarking MUR 300 million for the Mauritius Touris m Promotion Authority (MTPA) (see below); 
and MUR 35 million for the branding exercise, vi sibility campaign, investing in the upgrading and 
rehabilitation of historical sites and infrastructure.   All these measures are to be capped by a Tourism 
Strategy to be developed by March 2008. 
                                                                                                                                                                     
125 Ministry of Tourism, Leisure and External Communications (2006). 
126 Ministry of Tourism, Leisure and External Communications (undated). 
127 MPA online information, "Strategy & Port Development". Viewed at: 
http://www.mauport.com/strategy. Mauritius WT/TPR/S/198 
 Page 111 
 
 
148. Fiscal incentives (duty and tax concessions and rebates) granted to hotel promoters during the 
period under review were revise d by the Finance Act 2006, throug h the abolition of the Hotel 
Management Services Scheme, and the Hotel Deve lopment Scheme (Table AIII.2), as part of 
government efforts to reform the investment re gime (Chapter II(5)).  Currently, two incentive 
schemes benefit the tourism subsector: the Integrated Resort Scheme (IRS)128, introduced in 2002 to 
encourage the purchase of luxury villas by non-re sidents; and the Real Estate Scheme (RES)129, 
introduced in 2007, to create opportunities for sm all landowners to participate in real estate 
development.  The schemes are grouped together  under the label of Real  Estate Development 
Schemes (REDS).  Concessionary interest rates on loans for the construction or upgrading of hotel 
facilities are offered to SMEs by the Development Bank of Mauritius. 
149. Under the IRS, no authorization from Prime Mini ster's office is required for acquisition of 
immovable property by non-citizens or companies re gistered as foreign companies (Chapter II(5)).  
Investors are also allowed to develop and sell othe r types of residential property and non-residential 
components such as marinas, spas, restaurants,  golf courses, and commercial spaces.  Since 2005, 
owners cannot rent or lease immovable proper ties except through companies holding investment 
certificates under the scheme or their appointees.130  New regulations, operational as from 
November 2007131,  impose a minimum size of over 10 hectares  to the "integrated resort development 
area"; and a social contribution of MUR 200,000 per residential property must be paid.  The IRS 
seems to have been the main trigger for the in crease in FDI in the tourism subsector, which has 
become the biggest recipient of FDI, overtaking banking (Chapter I(3)(ii)). 
150. The RES represents an extension of the IRS for small land owners.  It provides for the 
development of residential units of international st anding on freehold land of at least one arpent but 
not more than 10 hectares (23.69 arpents); commerc ial facilities and leisure amenities attached to the 
residential units; and day-to-day management services  to the residents, such as security, maintenance, 
gardening, solid waste disposal, and househol d services.  Unlike the IRS, the RES imposes no 
minimum purchase fee on a residential plot, nor th e payment of social contribution;  no residence 
permit is attached to the purchase of the residence. 
151. Several general limitations apply to investme nt in the tourism subsector.  Since 1989, the 
maximum number of rooms per hotel has been limite d to 200 for new hotels.  Hotel projects must be 
financed by at least 40% of equity, and the hotel  companies must be incorporated in Mauritius.  
Investment per room should be at least MUR 4.5 million.  In the case of coastal resort hotels, the 
promoter must have at least 4 acres of land.  Foreign-owned coastal hotels must lease land from the 
Government:  the land area must be at least 10 acres per project.  The minimum capital investment requirements of MUR 10 million for foreigners a nd MUR 5 million for Mauritian-owned companies 
were abolished by the Finance Act 2006.  Di ving centres must be owned by Mauritians.  
152. The rapid expansion of touris m is increasing the pressure on the ecology of the land and 
beach areas.  As a remedy, hotels with over 80 room s are required to install their own waste treatment 
plant.  Certain hotels have invested in renovation to take into consideration ecological concerns.  
Three hotels (Labourdonnais Waterfront Hotel, Le Co co Beach Hotel, and Le Prince Maurice) have 
acquired the Green Globe Certification, an indicator  of their commitment to operate in an efficient 
and sustainable environment.  The Labourdonna is Waterfront and Touessrock are also ISO 9002 
                                                     
 
128 The Scheme was introduced by the Investment Promotion (Integrated Resort Scheme) Regulations 
2002, which were replaced in November 2007 by the Investment Promotion (Real Estate Development Scheme) Regulations 2007. 
129 The Investment Promotion (Real Estate Development Scheme) Regulations 2007. 
130 The Investment Promotion (Integrated Resort Scheme) (Amendment) Regulations 2005. 
131 The Investment Promotion (Real Estate Development Scheme) Regulations 2007. WT/TPR/S/198 Trade Policy Review 
Page 112 
 
 
certified.  An environment protection fee of 0.75% is levied on the monthly turnover of hotels and 
boarding houses.132 
153. A Tourism Authority was established in 2002, with the main function of promoting the 
sustainable development of the tourism industry.  It establishes codes of practice and standards, and 
monitors compliance.  All tourist establishments, as well as listed activities, must obtain a tourist 
enterprise licence (TEL) from the Tourism Au thority before starting their operations.133  The Tourism 
Authority is also in charge of delivering pleasu re craft licences, skipper licences as well as canvasser 
permits.  It is administered and managed by a boa rd consisting of a Chairperson (appointed by the 
Minister in charge of tourism) and representatives of the Prime Minister's Office and ministries in 
charge of tourism and finance;  Mauritius Touris m Promotion Authority (see below); and three other 
persons with wide experience in the tour ism industry (appointed by the Minister). 
154. Other institutions responsible for promoting tourism are the Mauritius Tourism Promotion 
Authority (MTPA), the Tourism Fund, and the Tourism Employees Welfare Fund.  The MTPA134, 
established in 1996, promotes Mauritius abroad by conducting advertising campaigns, participating in 
tourism fairs, and organizing, in collaboration with  the local tourism industry, promotional campaigns 
and activities in Mauritius and abroad.  It also ad vises the Minister on all matters relating to the 
promotion of tourism.  The Tourism Fund was set up in 2003 to cater for community development.135  
It is empowered to finance tourism-related projects and tourist sites and attractions in regions with 
high tourist potential.  The Fund can also be cal led upon to finance the deve lopment and maintenance 
of tourist sites.  The Tourism Employees Welfar e Fund was set up in 2002 to provide social and 
economic welfare to employees of tourism enterprises and their families.136 
155. A solidarity levy of 0.85% on the turnover of ho tels, hotel management and tour operators 
was introduced on 1 July 2006.  The levy is an allowable expense for income tax purposes.  A 
passenger fee varying between MUR 150 and 700 is levied on every passenger leaving Mauritius by 
air, excluding passengers whose journey originates in Mauritius. 
156. In the Uruguay Round, Mauritius bound (without limitations on market access and national 
treatment) measures affecting consumption abroad of all types of tourism services.  Measures 
affecting presence of natural persons are unbound with  the exception of those bound under horizontal 
commitments (see above).  Certain limitations have  been maintained on market access and/or national 
treatment in the case of cross-border provision of tourism services and commercial presence.  Foreign 
travel agencies, arranging for services in Mauritiu s, must work through an agent established in 
Mauritius.  Foreign hotel and restaurant operators mu st be staffed predominantly by Mauritians.  The 
provision of tour-operating services is in princi ple restricted to Mauritian nationals, although 
commercial presence is allowed for foreign operato rs subject to a permit from the ministries 
responsible for tourism and finance, and the Prime Minister.  Tourist guide services are restricted to 
                                                      
132 The tax is also levied on monthly turnover of enterprises engaged in stone crushing and in the 
manufacture or processing of  aggregates, concrete, blocks, precast units , coral sand, rock sand, and basalt sand. 
133 These activities are:  hawking on beaches facing hotels or in tourist sites;  helmet diving;  karting;  
operating aquarium for public viewing;  beauty parlour (including hairdressing) or spa within hotel premises;  
eco-tourism activities, golf courses, non-motorized water sports (pedaloes, canoes, kayaks and laser), boat 
houses, pleasure craft for commercial pur pose (other than by a pleasure craf t licensee), or cable cars;  rental 
agencies for jet skies, kite  surfers, paragliders, windsurfers, bicycl es, quads, motorcycle s,  cars, and buses 
(including minibuses);  travel agencies;  scuba diving;  and tour operators or tourist guides (including guides 
employed by a tour operator). 
134 The MTPA is a parastatal. 
135 The Tourism Fund is administered and managed by a committee set up under the Finance and Audit 
(Tourism Fund) Regulations 2003. 
136 The Tourism Employees Welfare Fund Act 2002. Mauritius WT/TPR/S/198 
 Page 113 
 
 
Mauritian nationals (an exception is  made for languages not officially spoken in Mauritius).  The 
provision of car rental services and yacht and cr uise services is reserved to Mauritian nationals.  
Foreign participation in the capital of  duty-free shops is limited to 30%.137 
157. In certain cases, the bound measures are not app lied in practice.  This is the case for 
restrictions on foreign participation in restaurant pr ojects, which is limited to activities of more than 
MUR 10 million, and in hotels with less than 100 ro oms, which is limited to 49%; these have not been 
applied since 2006.  The latter is not applied provide d that the project meets the objectives of "quality 
tourism" and adds value to the existing project.  According to the authorities, the restriction on 
pleasure craft is being maintained due to heavy co ngestion.  Nevertheless, foreign participation is 
allowed if the investment is of at least MUR 10 m illion and approval is obtained from the Ministry of 
Tourism, Leisure and External Communications.  Foreign investment is now allowed in travel 
agencies and tour operator services, subject to:  car rental businesses being reserved for Mauritian 
nationals;  the project having a minimum value of MUR 5 million (except for tour operators operating 
in niche markets); and minimum employment criteria (not yet defined). 
(v) Professional services 
(a) Overview 
158. Mauritius has increasingly been making use of imported labour, especially unskilled workers 
(mainly in textiles and construction).  Since its l ast TPR, it has also taken steps to facilitate work 
permit procedures for foreigners in  general and to open its labour market in the area of emerging 
sectors, with the aim of encouraging investment .  The current GATS Schedule does not include any 
commitments on professionnal services.   
159. In general, foreign professionals are permitted to  practice most types of business services and 
professions such as auditing, engineering, medical services, computer consultancies, provided they 
meet local requirements on qualification for admission to the professions and membership in the relevant professional body.  The provision of va rious professional services, including accountants, and 
medical doctors, requires membership in a domestic professional body specified by law;  lawyers 
must be approved by the Supreme Court.  Memb ership requirements for most professions are 
generally identical for nationals and foreigners. 
160. During the period under review the Scheme to Attract Professionals for Emerging Sectors 
(SAPES) was introduced by the Investment Promot ion (SAPES) Regulations 2002 with the aim of 
providing professional services of a high standard to investors.  The sectors covered under SAPES 
included ICT and financial services.  Incentives grante d included three-year contracts or permission to 
set-up an office or practice in Maur itius;  three-year work and resi dence permits to professionals and 
their spouses;  possibility for perm anent residence in Mauritius;  exemption from payment of duties 
and taxes on household and personal effects imported;   and the possibility to acquire an immovable 
property for personal residence.  The authorities c onsidered that the scope of the scheme was too 
limited, and it was repealed by the Business F acilitation (Miscellaneous Provisions) Act 2006, which 
allows for freer mobility for foreigners to wo rk and live in Mauritius.  SAPES professionals are 
nevertheless entitled to exercise their right s acquired under the repealed provision. 
161. Under the Business Facilitation (Miscellaneous  Provisions) Act 2006, foreign professionals 
are entitled to apply for an occupation permit, which a llows them to live and work in Mauritius for up 
to three years (Chapter II(5)).  Applications for the permit are made to the Passport and Immigration 
Office, through registration with the Board of Invest ment (BOI).  Permits are delivered three working 
                                                     
 
137 WTO document GATS/SC/55, Mauritius:  Schedule of Specific Commitments, 15 April 1994. WT/TPR/S/198 Trade Policy Review 
Page 114 
 
 
days after submission and acceptance of a complete application.  Professionals can obtain the permit 
either as "self-employed" or as "professionals", in which case proof of a valid contract of employment with a firm based in Mauritius and a basic monthly salary exceeding MUR 30,000 are required.  Self-employed professionals are able to  obtain permanent residence permits after three years, provided the 
annual turnover from their economic activity exceeds MUR 3 million during three years.  
Professionals or persons, whose employment in Mauritius is subject to a contract of employment cannot, in principle, obtain a permanent residence permit.
138  Under the Finance Act 2007 
(section (5)(i) above), however, professionals w ith a basic monthly salary of MUR 150,000 are 
eligible to apply for a permanent residence perm it provided they have been working for the three 
consecutive years preceding their application.  Holder s of a permanent residence permit are entitled to 
purchase immovable property for residential purposes. 
(b) Legal services 
162. The legal profession is divided into three branch es: barristers, solicitors or attorneys, and 
notaries.  Legal services are governed by the Law Practitioners Act, the Mauritius Bar Association 
Act, the Mauritius Law Society Act, the Notaries Ac t, and the Law Officers Act, as well as the Code 
of Ethics for Barristers.  Legal fees are charged on a case-by-case basis;  there are no fixed rates. 
163. The Law Practitioners Act provides for the re quirements for practising law and right of 
audience before a Court in Mauritius.  The Act re stricts entitlement to practise law to citizens of 
Mauritius.139  A citizen, who has been called to the Bar of England and Wales and served specified 
periods of apprenticeship with qualified lawyers in Mauritius or in England and Wales, is entitled to 
apply for admission to practise.  Holders of qualif ying law degrees awarded by the University of 
Mauritius or "any other qualifying law degree", w ho have also passed local vocational examinations 
and served 12 months of apprenticeship with local pr actitioners are also entitled to apply to practise.  
The same requirements apply to notaries, except that  they must have followed the course for notaries, 
and their number is restricted by the Notaries Act to 60 in total.   
164. Non-nationals interested in providing legal ser vices may only do so in an advisory capacity 
and act as foreign legal consultants.  They are not eligible to apply for admission to practise domestic 
law in national courts.  However, in specific cases, the right of audience can be granted by the Chief 
of Justice to a barrister entitled to practise law in another country. 
(c) Engineering services 
165. Engineering practice and the registration of engineers in Mauritius are governed by the 
Registered Professional Engineers Council Act 1966.   There is a statutory ob ligation for professional 
engineers intending to practise to hold a valid registration with the Council of Registered Professional Engineers (CRPE).  Procedures and requirements are identical for nationals and expatriates.   
Applicants wishing to register as an engineer must:  be over 21 and of good repute and character;  
hold an accredited degree in engineering from a unive rsity approved by the Council, including from 
the United Kingdom and Ireland, and have at least  two years of experience in the practice of 
engineering;  or hold corporate membership in a so ciety or institution of engineers recognized by the 
CRPE.  Non-nationals must be registered  as professional engineers in Mauritius.   
166. The CRPE generally approves  those satisfy ing the educational requirements of the 
Engineering Council (UK) for registration as Charte red Engineers, or registration as EUR-ING with 
                                                     
 
 138 Board of Investment online information.  View ed at: http://www.investm auritius.com/detail.aspx? 
PagedId=23.  
139  Sections 4 and 6, Law Practitioners Act 1984, Mauritius.   Mauritius WT/TPR/S/198 
 Page 115 
 
 
the Fedération Européenne des Associatiations Nationales des Ingénieurs (FEANI), or those 
accredited for professional engineering practice by any member of the Washington Accord engineering bodies.  Applicants must submit evidence of approved engineering experience.  Applicants holding the approved qualifications and al ready registered as Chartered Engineers in the 
UK or equivalent status of a body approved by th e CRPE are directly registrable, upon application 
and submission of evidence .  The application fee is MUR 500.  The CRPE has registered just over 
1,100 professional engineers, of which more th an 750 (nationals and foreigners) holders of 
qualifications from foreign universities, including th e UK, France, Russia, India, Australia, and South 
Africa.  Mauritius currently has 700 licensed engineers (25 fore igners), although according to 
estimates a further 500 engineering graduates are working without being registered with the CRPE.
140 
(d) Accounting and auditing services  
167. Accounting and auditing services in Mauritius are regulated by the Financial Reporting Act of 
2004.  The Act established the Mauritius Institute  of Professional Accountants (MIPA), and a 
Financial Reporting Council (FRC), charged with developing and enforcing financial reporting, 
accounting, and auditing standards, and maintain ing consistency with In ternational Financial 
Reporting Standards (IFRS).  MIPA is directly  responsible for supervising and monitoring 
professional accountants.  It publishes and maintain s registers of professional and public accountants 
and firms, a code of ethics for the profession, and is  responsible for administering such examinations 
as it deems appropriate in order to register applicants.   
168. Professional accountants must be registered w ith the MIPA. In general, persons who are 
members of a professional accountancy body and have a minimum of three years experience in the 
field are also entitled to apply for membership in MIPA.  Professional auditors, whether individuals or 
firms, must obtain a licence from the MIPA.  Aud itors must prove that they hold a valid practicing 
certificate, are fit and proper persons, and meet  all other requirements MIPA may establish.  
Additionally, the FRC has issued ru les on licensing of auditors requiring that all applicants have:  
passed professional examinations with auditing as one  of the subjects;  240 days of experience in 
actual audit work;  completed two years of professional accounting services;  and satisfactory 
experience in practice management, audit qua lity, and control work, and documenting and 
maintaining quality assurance procedures. 
169. Foreign accounting firms are entitled to provide  accounting and audit services in Mauritius 
provided they have been registered with or licensed  to do so by MIPA.   Non-citizens are entitled to 
apply for membership in MIPA provided they hold a valid work permit or are exempt from holding 
one.   Members of recognized accounting bodies in England, Scotland, Ireland, India, and South 
Africa benefit from simplified procedures .  
(e) Architectural services 
170. Only persons registered with the Professiona l Architects Council in Mauritius are entitled to 
provide architectural services.  Foreign architects wh o have not entered into joint ventures with local 
local architects registered with the Council, may onl y provide architectural services with respect to the 
construction of buildings for statutory bodies or G overnment companies.  In all other cases, non-
national architects can only provide services through a joint-venture with a locally registered architect. 
                                                     
 
140 Council of Registered Professiona l Engineers of Mauritius (2007). Mauritius WT/TPR/S/198 
 Page 117 
 
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