Mauritius WT/TPR/S/90
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II. TRADE REGIME
(1) INSTITUTIONAL FRAMEWORK
1. Under the 1992 Constitution (as amended up to 1997), the Republic of Mauritius is a
multi-party parliamentary democracy.  The President of the Republic is the Head of State and
Commander-in-Chief of the armed forces.  The President and Vice-President are elected by a simple
majority of the National Assembly for a term of five years;  their tenure may not run beyond two
consecutive terms.  The President appoints as Prime Minister the member of the National Assembly
he deems best able to command a majority in the Assembly.  On the advice of the Prime Minister, the
President also appoints the Deputy Prime Minister and the other Ministers, from among the members
of the Assembly, and the Attorney-General.  The Cabinet, consisting of the Prime Minister and the
Council of Ministers, is collectively responsible to the National Assembly.  Executive power is vested
in the Prime Minister.
2. Legislative power is exercised by Parliament, comprising the President and the
National Assembly.  The Assembly consists of 62 members elected for five-year terms by universal
adult suffrage, plus a maximum of eight members appointed by the Electoral Supervisory
Commission (from among the unsuccessful candidates with the largest number of votes at alegislative election) to ensure fair and adequate representation of each community, and the Speaker
and the Attorney-General (if not elected members).  The Speaker is elected by the National Assembly
from among its members or otherwise;  he is deemed to be a member of the Assembly.  The Deputy
Speaker is elected by the Assembly from among its members.
3. The judiciary consists of the Supreme Court (with unlimited jurisdiction), a Court of
Civil Appeal, a Court of Criminal Appeal and lower courts such as the Industrial Court.  The
Courts of Appeal are divisions of the Supreme Court.  The Industrial Court has jurisdiction to hearcases relating to employment, labour, and industrial relations.  There are no courts specialized in
economic or trade issues.  The Chief Justice of the Supreme Court is appointed by the President
following consultations with the Prime Minister.
1  The President also appoints a non-government
official as Ombudsman to investigate complaints and allegations of injustice, fraud or corruption
brought against any officer or authority in the exercise of her/his administrative functions.
4. The Joint Economic Council (JEC), established in 1970, is the coordinating body of the
private sector of Mauritius.  The JEC aims to:  promote the interests of the private sector and free
enterprise in Mauritius;  provide for joint consultation among the various organizations of the private
sector;  liaise with the Government and other bodies on socio economic issues;  put forward
recommendations regarding legislation and other measures affecting the private sector;  and initiateand encourage activities that may further the development and interests of the private sector, and of
Mauritius.  Its membership includes the nine main business organizations of Mauritius, i.e. the
Mauritius Chamber of Commerce and Industry, the Mauritius Chamber of Agriculture, the
Mauritius Sugar Producers' Association, the Maur itius Export Processing Zone Association, the
"Association des Hôteliers et Restaurateurs de l'Ile Maurice", the Mauritius Bankers' Association, theMauritius Insurers' Association, the Mauritius Employers' Federation, and the Association of
Mauritian Manufacturers.
(2) P
OLICY FORMULATION AND IMPLEMENTATION
5. Each Ministry formulates policies within its field of activities and thereafter submits drafting
instructions relating to the matter to the Attorn ey-General's Office for the drafting of the required
                                                     
1 The Judges are appointed by the Judicial and Legal Service Commission.WT/TPR/S/90 Trade Policy Review
Page 10
bills.  The bills are subsequently submitted to the Cabinet for approval, then introduced into
Parliament where they undergo three readings.  Bill s, except those relating to the Constitution, are
adopted by a simple majority.  Once adopted, they need Presidential assent to become law.  The
President may withhold assent and send a bill back to  Parliament (only once) for reconsideration.  All
laws are stylized "Acts of Parliament" and published in the Government Gazette .
6. Ministers may make regulations that they deem fit for the purpose of enactment or proper
implementation of Acts, international conventions, treaties or agreements.  A regulation must be
published in the Government Gazette  upon its enactment by a Minister.  The Constitution takes
precedence over all legislation, followed by the Acts, Regulations and Rules.
7. International treaties, including those relating to trade, are signed by the President or his
representative, and have generally to be ratified by Parliament.  The legislative process requires thatinternational treaties be enacted into domestic law;  until such time, they have no standing before
national courts.
8. Primary responsibility for the formulation, review, and assessment of trade policies lies with
the Ministry of Industry, Commerce and Internati onal Trade.  Consultations are held with other
Ministries (including those responsible for Finance, Economic Planning and Development,Agriculture, Health, and Foreign Affairs and Regional Cooperation) co-opted on committees that deal
with specific sectors.  Consultations are also held with the private sector in a structured manner, as
well as on an ad hoc basis.  The Government holds regular meetings (usually twice a year) on broad
economic policies with the Joint Economic Council (JEC).  Structured consultations are held every
year on the national budget between the private sector and the Finance Minister.  Meetings on sectoral
issues are held periodically between the private sector and the relevant ministries.  In the process of
consultation, the Mauritius Chamber of Commerce and Industry is the main institution representingthe interest of the private sector with regard to trade and industrial issues.
9. The private sector participates in promotional activities conducted by the Government abroad.
The private sector is also involved in tripartite wage negotiations and is represented in, inter alia :  the
National Negotiating Committee on Post-Lomé discussions;  the WTO Standing Co-ordination
Committee;  and the Regional Cooperation Council.  The WTO Standing Co-ordination Committeewas set up to deal with the implementation, follow-up and coordination of trade policy issues that fall
under the WTO Agreements.  It is chaired by the Minister responsible for international trade, and
comprises representatives from both public and private sectors.  Various sub-committees have been
set up under the aegis of the Committee to address issues of specific interests.  The private sector has
participated in all the WTO Ministerial conferences.  The Regional Cooperation Council has been setup under the chairmanship of the Minister responsible  for Foreign Affairs with a view to forging a
coherent regional strategy for Mauritius given its membership of various groupings.
10. A one-stop shop, the Board of Investment (BOI), became operational on 15 March 2001.
Under the authority of the Finance Minister, it aims to promote Mauritius as an international
investment, business, and service centre.  The BOI formulates investment promotion strategies and
plans;  facilitates investment into Mauritius through simplification of administrative procedures;  and
advises the Government on investment policies.  The administrative and management board of the
BOI consists of a Chairperson, appointed by the Prime Minister, after consultation with the leader of
the opposition, and of six to twelve other members appointed by the Prime Minister from
representatives of the public and private sectors, academia, and trade unions.
2  The Managing Director
of the BOI is appointed by its board with the approval of the Finance Minister.  The Managing
                                                     
2 All the members of the BOI are appointed for three years, renewable.Mauritius WT/TPR/S/90
Page 11
Director is not entitled to vote on any matter before the board.3  The BOI is largely funded by the
State.
11. Applications for investment certificates (com pulsory for investors applying for investment
incentives) are made to the Managing Director of the BOI.4 The BOI processes all investment
applications, except those for financial services, sugar, and the Regional Development Certificate, and
issues the certificates.  Decisions regarding applications for residential permits and acquisitions of realestate by non-residents are made by the Prime Minister.
(3) T
RADE POLICY OBJECTIVES
12. Trade policies in Mauritius, as an integral part of economic policies, are aimed at improving
the standard of living of the population through the establishment of a thriving, competitive, and
modern economy growing at high rates.  This objec tive is expected to be achieved, to a large extent,
by the practice of a liberal economic policy, incl uding liberalization of foreign trade.  Continued
implementation of sound macroeconomic policies is expected to create an environment conducive to
economic growth, full-employment, and price stabil ity, with trade and investment promotion playing
an important role.
13. The Joint Economic Council (JEC) Task Force has identified three main challenges to
Mauritius' economic transition:  uncompetitive national business environment;  international
competitive pressures;  and weak corporate international competitiveness.  The Task Force
recommended that Mauritius diversify away from its narrow product base by converting its traditional
niche production of sugar, textiles, and tourism into dynamic clusters, and by fully exploiting its
comparative advantages in four emerging clusters, i.e. the knowledge cluster, the logistics and
services cluster, the environment cluster, and the pharmacology cluster.5  Some of these clusters are
among the activities the Government intends to promote with a view to creating employmentopportunities;  these activities include printing and pre-press, software development, pharmaceuticals,
light engineering, electronics, agro-industry, and jewellery.
14. The international competitiveness of local products is to be improved through, inter alia , the
reduction of production costs, increased public investment in infrastructure, education and training,
and wider use of information technology and international standards (for quality improvementpurposes).  A National Productivity and Competitiveness Council (NPCC), grouping representatives
of the Government, employers and trade unions, was established to improve efficiency in the
economy by promoting the awareness and practice of productivity and quality.
15. The rates of customs duties on imported inputs are being reduced to zero, starting with more
than 1,300 types of raw materials and equipment, in the 2000-01 Budget (which also reduced the
corporate tax rate from 35% to 25%).
6  Various incentive schemes are also to contribute to the
improvement of competitiveness.  The Board of Investment (BOI) became operational on
15 March 2001 (section (4)).  Special emphasis is being placed on small and medium-scale enterprises
(SMEs), mainly the outward-oriented SMEs, for employment creation purposes.
16. Integration within and among economic sectors is to be strengthened to promote higher value-
added products, mainly for export.  Awareness of th e current situation of relatively high production
                                                     
3 The Investment Promotion Act 2000.
4 A single application form replaced over seven incentive-specific forms previously used. A non-
refundable fee is to be paid regardless of the size of the investment.
5 JEC (2001).
6 Government of Mauritius (2000).WT/TPR/S/90 Trade Policy Review
Page 12
costs (mainly the wage component) has led to the delocalization of certain production sites (of labour-
intensive goods) to neighbouring countries (e.g. clothing in Madagascar and Mozambique, and sugar
in Côte d'Ivoire, Malawi, Mozambique, Tanzania, and Benin).
17. Mauritius is actively participating in the multilateral trading system and in various economic
groupings to, inter alia , secure and increase market shares for its products.  Participation in  regional
agreements is seen as a complement to export diversification;  it is also expected to facilitateMauritius' integration into the multilateral trading system.  Its membership of these agreements has
been instrumental in trade liberalization.
18. Factors and strategies that had contributed to Mauritius' economic performance from the
second half of the 1980s to the early 1990s (e.g. la rge preferential margins under non-reciprocal trade
arrangements) are not as significant as in the past.  Therefore, to mitigate erosion of preferencesinherent in such trade liberalization, the Government is adjusting its trade policies to the new
environment with a view to safeguarding the interests of the country.  Nevertheless, Mauritius still
attaches great importance to non-reciprocal trade preferences and believes that these preferences
should be enhanced through, inter alia , more flexible rules of origin, and less demanding sanitary and
phytosanitary measures.  Moreover, Mauritius also believes that, as a small island developing countrywith all the inherent constraints (and now with the LDC initiative), consolidation of the trade
preferences should be made a top priority;  as a single commodity producer, Mauritius should be
ensured security of access for sugar.
(4) L
AWS AND REGULATIONS
19. The Constitution is the supreme law;  any other law determined to be inconsistent with the
Constitution is, to the extent of the inconsistency, void.7  The main trade-related laws and regulations
in Mauritius are presented in Table II.1.  Some of these laws and regulations, including the Patent andTrade Marks Acts, are being brought into conformity with the relevant WTO Agreements.  Bills on
competition, anti-dumping, countervailing and safeguard measures are being vetted by the Office of
the Attorney-General before their introduction into  the National Assembly (Chapter III(2)(vi) and
III(4)(iii)).
Table II.1
Main trade-related laws and regulations in Mauritius, as at May 2001
Area Legislation Date of entry into force
Customs procedures and valuation The Customs Act 1988
Customs Regulations 1989
The Customs Tariff Act 1994
Taxes and charges The Value-Added Tax Act ..
The Excise Act 1994
Export duties The Sugar Act 1959
The Sugar Industry Efficiency Act, as amended up to
19931988
Import and export control The Supplies Control Act 1974
The Consumer Protection (Export Control) Regulations
(Government Notice No. 97)2000
The Consumer Protection (Control of Imports)
Regulations (Government Notice No. 135)1999
Table II.1 (cont'd)
                                                     
7 Article 2 of the Constitution.Mauritius WT/TPR/S/90
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Area Legislation Date of entry into force
Standards and regulations The International System of Units Act 1983
The Mauritius Standards Bureau Act, as amended up to
19991993
General Notice No. 1058 (Labelling) 1983
The Food Act 1998
The Legal Metrology Act 1985
Investment The Investment Promotion Act 2000
The Freeport Act 1992
The Industrial Expansion Act 1993
The Non-Citizen (Property Restriction) Act 1975
The Hotel Management (Incentives) Act 1982
Competition Fair Trading Act 1979
Consumer Protection Act 1991
Government procurement The Central Tender Board Act 2000
Intellectual property The Patents Act 1875
The Trade Marks Act 1868
The Copyright Act 1997
.. Not available.
Source: Information provided by the Mauritian authorities.
20. The newly enacted Investment Promotion Act 2000 has brought various investment incentive
schemes and the related legislation (including the 1993 Industrial Expansion Act, the 1982 Hotel
Management (Incentives) Act, and the 1992 Health Development Certificate Act) under the authority
of the Board of Investment (BOI).  In consequen ce, the BOI currently administers some 15 incentive
schemes:  the Export Enterprise Scheme;  the Pioneer Status Enterprise Scheme;  the Strategic LocalEnterprise Scheme;  the Modernization and Expansion Scheme;  the Industrial Building Scheme;  the
Small and Medium Enterprise Scheme;  the Export Service Zone;  the Offshore Business;  the
Freeport;  the Stock Exchange;  the Agriculture Development Scheme;  the Hotel Management
Scheme;  the Hotel Development Scheme;  the Regional Headquarters Scheme;  and the Permanent
Residence Scheme.  The incentives range from partial/complete exemption from payment of corporatetax, to customs duty and tax concessions (Chapter III(4)(i)).
21. Sector-specific laws also regulate investment in financial services, the sugar industry, and
other manufacturing activities.  Some of these laws (e.g. the Sugar Industry Efficiency Act) also
provide incentives to investors.  According to the authorities, foreigners are free to invest in all
activities open to local investors and to repatriate  the proceeds and earnings after payments of the
relevant taxes.  The only limitations are:  in pursuance of immigration regulations;  on the acquisition
of real estate by non-residents;  in the tourism subsector;  under specific incentive schemes (eligibility
criteria);  and in areas still under state monopoly, including fixed-line basic telecommunications
services, water, ports, and airports.
22. Foreign ownership in the Export Service Zone is limited to 30%.  The issuance of permits for
new hotel projects is subject to the requirement that the hotels have at least 100 rooms if owned by
foreigners, and a lower minimum of 60 rooms if controlled (at least 51% of the capital held) by
Mauritians;  the minimum capital investment required under the Hotel Management (Incentives) Act
is Mau Rs 10 million for foreign investment and Mau Rs 5 million for Mauritian-owned companies.
Ownership of travel and car rental agencies, tour operators, tourist guides, yacht chartering, and
duty-free shops is limited to Mauritian nationals.  Foreign ownership in restaurant operations isWT/TPR/S/90 Trade Policy Review
Page 14
limited to 49% and only where investment exceeds Mau Rs 10 million.8  No specific restrictions apply
to foreign investments in export processing zones.
(5) TRADE AGREEMENTS AND ARRANGEMENTS
23. Mauritius is an active participant in major multilateral organizations, including the WTO, the
International Monetary Fund, the World Bank, and the United Nations and its agencies;  and in
various groupings, such as the Commonwealth, the Organization of African Unity, the AfricanDevelopment Bank, the Common Market for Easter n and Southern Africa (COMESA), the Southern
African Development Community (SADC), the I ndian Ocean Commission (IOC), and the Indian
Ocean Rim - Association for Regional Cooperation (IOR-ARC).
24. As a small island, Mauritius considers its participation in regional agreements as a first step
towards exploiting its comparative advantages and economies of scale, improving its competitiveness,diversifying its exports, and building resilience for full integration into the world economy.
Membership in various regional agreements with different geographical coverage, trade liberalization
agenda, provisions (e.g. rules of origin), and go als (e.g. COMESA aims to be a customs union, and
SADC a free-trade area) is difficult to manage.  This is precisely the raison d'être of the Regional
Cooperation Council (section (2) above).
9
25. The WTO Agreement and the regional agreements to which Mauritius is a party include
provisions for dispute settlement.  As at April 2001, Mauritius has not been involved, either as a
complainant or as a defendant, in any dispute settl ement proceedings at the multilateral, regional or
bilateral level.
(i) Multilateral agreements
26. On 2 September 1970, Mauritius succeeded to the status of contracting party under GATT
Article XXVI:5(c), after having applied the GATT on a de facto basis since its independence in 1968.Mauritius became an original Member of the WTO on 1 January 1995.  It accords at least MFN
treatment to all its trading partners.  Mauritius is not a signatory to any of the Plurilateral Agreements;
it is a signatory to the Ministerial Declaration on Trade in Information Technology Products.
Table II.2 presents main WTO notifications by Mauritius.
27. On future multilateral trade negotiations, Mauritius believes that priority should be given to
implementation issues and the difficulties facing "small and vulnerable economies".  Any future
negotiations would increase the developing countries' burden in meeting their current WTO
obligations;  these countries are finding it increasingly difficult to integrate into the world economy
and would definitely not be capable of following pace.  Moreover, Mauritius urges that the special
and differential treatment provisions that are embodied in the WTO Agreements and have not beenmade operational be addressed.
                                                     
8 UNCTAD (2001).
9 The Regional Cooperation Council is a public-private sector forum that addresses regional policy
issues and fosters the development of regional cooperation in general.Mauritius WT/TPR/S/90
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Table II.2
Status of selected notification requirements to the WTO, as at April 2001
WTO Agreement Description of requirement PeriodicityDocument No. of most recent
notification
Agriculture (Art. 18.2) Domestic support Annual None
Textiles and Clothing(Art. 2.6 and 2.7)Transitional safeguard mechanism Once G/TMB/N/136, and Adds.1, 2
and 3, 15 February, 6 March, 12
and 13 June 1996
Textiles and Clothing(Art. 2.8 and 2.11)Transitional safeguard mechanism Once G/TMB/N/376/REV.1,
23 March 2001
Textiles and Clothing(Art. 2.17)Administrative arrangements Ad hoc G/TMB/N/139,
12 March 1996
Textiles and Clothing(Art. 3.1)Outstanding measures as of
1 January 1995Once G/TMB/N/94,
24 May 1995
Textiles and Clothing(Art. 6.1)Transitional safeguard mechanism Once G/TMB/N/32 and 95,
6 March and 24 May 1995
Textiles and Clothing(Art. 7.2)Transitional safeguard mechanism Once G/TMB/N/295,
23 September 1997
Subsidies andcountervailing measures
(Art. 32.6)Laws and regulations Once by March 1995, then
changesG/SCM/N/1/MUS/1 and 2,
20 April and 29 June 1995
Subsidies andcountervailing measures
(Art. 25.1)Exports subsidies Annual G/SCM/N/3/MUS and Add.1,
29 June 1995 and
27 February 1996
Subsidies andcountervailing measures
(Art. 25.11)Countervailing actions taken Semi-annual when measure is
takenG/SCM/N/12/Add.1,
18 April 1996;
G/SCM/N/4/Add.1,14 July 1995;  and
G/SCM/N/56/Add.1/Rev.1,
26 October 2000
Subsidies andcountervailing measures
(Art. 25.12)Competent authorities Once, then changes G/SCM/N/18/Add.1,
5 August 1996
Subsidies andcountervailing measures
(Art. 28.1)Existing subsidy programmes Once, then changes G/SCM/N/2/MUS,
29 June 1995
Anti-dumping (Art. 18) Laws and regulations Once by March 1995, then
changesG/ADP/N/1/MUS/1 and 2,
2 June and 13 November 1995
Anti-dumping (Art. 16.4) Anti-dumping actions taken Semi-annual, preliminary or final
anti-dumping actionsG/ADP/N/29/Add.1/Rev.2,
28 October 1998
Anti-dumping (Art. 16.5) Competent authorities Once, then changes G/ADP/N/14/Add.1,
5 August 1996
Safeguards (Art. 11) Phasing-out schedule Once G/SG/4/MUS and G/SG/5/MUS,
3 May 1995
Safeguards (Art. 12.6) Laws and regulations Once by March 1995, then
changesG/SG/N/1/MUS/1,
3 May 1995
Safeguards (Art. 12.7) Investigations and actions taken Ad hoc G/SG/N/2/MUS and
G/SG/N/3/MUS,
3 May 1995
Technical Barriers to Trade(Annex 3C)Acceptance of the WTO TBT
Code of Good PracticeOnce G/TBT/CS/N/117,
2 February 2000
Table II.2 (cont'd)WT/TPR/S/90 Trade Policy Review
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WTO Agreement Description of requirement PeriodicityDocument No. of most recent
notification
Technical Barriers to Trade(Art. 15.2)Laws and regulations Once, promptly after the WTO
Agreement enters into force and
changes thereafterG/TBT/2/Add.40,
17 September 1997
Sanitary and Phytosanitary
Measures
(Art. 7, Annex B)Measures taken Ad hoc G/SPS/N/MUS/1 and 2,
1 September 1999 and
25 January 2001
Import LicensingProcedures (Art. 7.3)Replies to questionnaire;  rules and
information concerning procedures
for the submission of applicationsAnnual for questionnaire;  for
rules and information once, then
changesG/LIC/N/3/MUS/1,
23 January 1996
Import LicensingProcedures (Art. 1.4(a) and
8.2 (b))Laws and regulations Once, then changes G/LIC/N/1/MUS/1, and Add.1
and 3, 24 October 1995,
16 February 1996 and 5 June 1998
Rules of Origin(Annex II, para. 4)Preferential rules of origin As soon as entry into force G/RO/N/1/Add.1,
22 June 1995
Rules of Origin(Art. 5.1)Information and procedures Once, then changes G/RO/N/1/Add.1,
22 June 1995
Customs Valuation(Art. 20.1)Delay in application Once WT/LET/1/Rev.2,
22 May 1995
Trade-related InvestmentMeasures (Art. 6.2)Publications containing TRIMs Ad hoc G/TRIMS/N/2/Rev.4,
5 August 1998
Trade-related InvestmentMeasures (Art. 5.1)TRIMs taken End of March 1995 G/TRIMS/N/1/MUS/1,
4 April 1995
GATT Council for Trade inGoods, G/L/59Complete notifications on non-
tariff measuresEvery two years, beginning
January 1996None
GATT (Art. XXVIII:5) Right to modify Schedules during
the three-year period commencing
on 1 January 1997Triennial G/MA/53,
17 February 1997
GATT 1994
(Art. XVII:4(a))State trading enterprises Due on 30 June 1995 G/STR/N/1/MUS,
25 July 1995;  andG/STR/N/2/MUS, and
G/STR/N/3/MUS,
23 May 1997
GATS (Art. 3.3) Significant alterations in the rules
governing scheduled sectors,
including new rulesAd hoc None
GATS (Art. 3.4 and/or 4.2) Enquiry point Once None
TRIPS (Art. 63.2) Laws and regulations Once, then changes None
Source: WTO documents.
(ii) Regional agreements
(a) Common Market for Eastern and Southern Africa (COMESA)
28. Mauritius was a founding member of the Preferential Trade Area for Eastern and Southern
African States (PTA), which transf ormed itself into COMESA in 1994.10  Its agenda is to deepen and
                                                     
10 The current COMESA members are Angola, Burundi, Comoros, Democratic Republic of Congo,
Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagas car, Malawi, Mauritius, Namibia, Rwanda, Seychelles,
Sudan, Swaziland, Uganda, Zambia, and Zimbabwe.Mauritius WT/TPR/S/90
Page 17
broaden the integration process among member States through:  the adoption of more comprehensive
trade liberalization measures, such as the complete elimination of tariff and non-tariff barriers to trade
and the adoption of a Common External Tariff (CET);  the free movement of capital, labour, goods,
and right of establishment within COMESA;  the ad option of a common set of standards and technical
regulations, quality control procedures, certification schemes, and sanitary and phytosanitary
regulations;  the standardization of taxation rates (including value-added tax and excise duties), andconditions regarding industrial cooperation, particularly on company laws, intellectual property rights,
and investment laws;  and the establishment of a Monetary Union.
11
29. COMESA is thus to be a customs and monetary union.  Its free-trade area (FTA) was
launched on 31 October 2000.  However, only nine of the twenty members, i.e. Djibouti, Egypt,
Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia, and Zimbabwe, met the deadline.  Othermembers are to join the FTA by October 2001.  The Common External Tariff is to be implemented by
2004;  its rates will be 0%, 5%, 15%, and 30%, on capital goods, raw materials, intermediate goods,
and final goods, respectively.
12
30. Under the COMESA Protocol on ru les of origin, goods are eligible for preferential treatment
if they:  are wholly produced in a member State;  contain imported materials of not more than 60% ofthe c.i.f. value of the total cost of materials used in production;  contain not less than 35% ex-factory
value added
13, or not less than 25% value added if the product is listed as being of "vital importance"
to the economic development of member States;  or if they are produced in member States and
are/become classified under a tariff heading other than the tariff heading under which they were
imported.14  All goods eligible for preferential tari ff treatment must be accompanied by a COMESA
Certificate of Origin, completed, stamped, and authenticated by the authorized signatories in the
country of origin.
31. In order to facilitate trade within the regi on, COMESA members have agreed to implement
the Automated System for Customs Data (ASYCUDA) and EUROTRACE.  The objective of
ASYCUDA/EUROTRACE is to assist the business co mmunity to clear goods faster from customs
areas, make available up-to-date and accurate international trade statistics, modernize customs
administrations and, through improved efficiencies, increase revenues.15  Mauritius has shifted to  the
Customs Management System (CMS), after having used ASYCUDA/EUROTRACE
(Chapter III(2)(i)).  In 1998, in tra-COMESA trade amounted to so me US$1.5 billion and represented
7.7% of total exports by the member States, down from 9% in 1970.16  The different types of product
exported by Mauritius to the other COMESA member  countries grew from 12 in 1986 to over 50 in
1998.
32. The Monetary Harmonization Programme is to be implemented in four phases, from 1992 to
2025.  The final phase should culminate in full monetary union, which will imply the use of
irrevocable fixed exchange rates, a single currency, or parallel currencies;  full harmonization of
economic, fiscal, and monetary policies of member States;  full integration of the financial structure of
member States;  pooling of foreign resources;  and the establishment of a common monetaryauthority.
17
                                                     
11 COMESA online information.  Available at:  http://www.comesa.int/background.htm.
12 COMESA online information.  Available at:  http://www.comesa.int/finance.htm.
13 Egypt and Uganda maintain (through a waiver) the former 45% ex-factory value-added criterion.
14 COMESA online information.  Available at:  http://www.comesa.int/trade.htm.
15 COMESA online information. Available at:  http://www.comesa.int/trade/tradaseu.htm.
16 Financial Times , 31 October 2000.
17 COMESA online information.  Available at:  http://www.comesa.int/finance.htm.WT/TPR/S/90 Trade Policy Review
Page 18
33. The COMESA Heads of State have established several institutions to assist members in
attaining their development objectives:  the Eastern and Southern African Trade and Development
Bank (PTA Bank);  the COMESA Clearing-House;  the PTA Reinsurance Company;  and the
COMESA Bankers' Association.  Th e PTA Bank provides trade and project financing to public and
private investors domiciled in member States.  At present, the Bank has 15 members18, including
Mauritius.
34. The COMESA Clearing-House was brought into existence when the countries of the region
had strict exchange control regimes in place and foreign exchange was scarce.  The importance of the
Clearing-House has diminished as most of the CO MESA countries have liberalized their foreign
exchange markets.19  The PTA Re-Insurance Company (ZEP-RE), established in 1990, has
17 signatories and is aimed at fostering/assisting the development of the insurance and reinsuranceindustry in the COMESA sub-region, and promoting the growth of national, sub-regional and regional
underwriting and retention capacity.
20
35. The COMESA Treaty also provides for a Court of Justice.  The Court's primary function is to
uphold the rule of law in the operation of the Treaty by ensuring adherence to law in the interpretation
and application of the Treaty.  Its general jurisdiction is to adjudicate upon all matters that may bereferred to it under the Treaty.  The Court became operational in 1998.
21
(b) Southern African Development Community (SADC)
36. Mauritius became a member of SADC on 28 August 1995.  The SADC Treaty aims to build a
community of nations that together are politically and economically strong to compete in the world
marketplace.  The cornerstone of SADC is the vision of a shared future within the regional family.
Through regional cooperation and integration, the Community aims to provide balanced economic
growth and development, political stability, and security, for all its member States.22
37. The Treaty provides member States a framework for the coordination, harmonization, and
rationalization of their policies, and strategies for sustainable development.  It is based on the
following fundamental principles:  sovereign equali ty of member States;  solidarity, peace, and
security;  human rights, democracy, and rule of law;  and equity, balance, and mutual benefit.23
38. Decisions, policies, and agreements entered into under the auspices of SADC are legally
binding, and the Community is to have the necessary legal instruments to enforce such decisions,
policies, and/or agreements.  The Treaty provides for protocols that will set out the principles and
procedures under which member States will conduct their cooperation in specific areas.24
39. The SADC Trade Protocol was signed in August 1996 by the Heads of State or Government,
and became effective on 26 January 2001.25  The ultimate objective of the Trade Protocol is the
                                                     
18 PTA Bank online information.  Available at:  http://www.ptabank.co.ke/mission.html.
19 COMESA online information.  Available at:  http://www.comesa.int/finance/econcch.htm.
20 PTA Reinsurance Co. online information.  Available at:  http://www.zep-re.com.
21 COMESA online information.  Available at:  http://www.comesa.int/court/courjuri.htm.
22 The current SADC member States are:  Angola, Botswana, the Democratic Republic of Congo,
Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia,
and Zimbabwe (SADC online information.  Available at:  http://www.sadc.int/overview/vision.htm).
23 Article 4 of the Treaty.  SADC online information.  Available at:  http://www.sadc.int/overview/
treaty.htm.
24 SADC online information.  Available at:  http://www.sadc.int/overview/treaty.htm.
25 The implementation of the SADC Trade Protocol was launched on 1 September 2000.Mauritius WT/TPR/S/90
Page 19
establishment of a SADC Free-Trade Area (FTA).  For FTA establishment purposes, products have
been grouped under three categories (A, B, and C).  Category A products (mostly capital goods and
equipment already subject to low tariff rates in each  member State) are to be liberalized in the first
year.  The category B products (e.g. goods that constitute important sources of customs revenue) are
to be liberalized gradually by 2008.  Category C consists of products deemed sensitive by member
States (e.g. imports sensitive to domestic industries);  they are to be liberalized from 2008 to 2012.The phase-down offers are country-specific.  Implementation of the Protocol is based on the principle
of reciprocity, i.e. tariff preferences will be extended only to those member States that have submitted
their instruments of implementation.
40. As at March 2001, eight member States had submitted their implementation instruments:
Botswana, Lesotho, Malawi, Mauritius, South Africa, Swaziland, Zambia, and Zimbabwe.
26  During
the August 2000 SADC Summit in Windhoek, SADC me mber countries were allowed  six months for
the necessary constitutional amendments at national level and for depositing their respective
instruments of implementation.27  Within the SADC regime, substantial progress has already been
made towards the harmonization of customs and trade documentation.  Negotiations are still ongoing
on rules of origin:  in general, the rules will be product specific;  for a few products, they will besimilar to those established under the COMESA Protocol.  As at March 2001, the products for which
the rules of origin criteria have not been set include:  coffee, tea and spices;  wheat flour;  cereals and
flour;  textiles and clothing;  plastics;  electrical products and machinery;  and automobiles.
41. Sugar is covered by a special agreement annexed to the Trade Protocol.  This agreement
includes the provisions of access to SACU market  for non-SACU SADC members.  It is based on
non-reciprocal and duty-free-quota access for a period  of five years (2001-05) and will be subject to
review at the end of the quota period.  The SACU has offered 25,000 tonnes as from 2001.  It has alsobeen agreed that the shares of quota allocated to each of the non-SACU producing countries will be
based on a formula that will take into account their exposure (i.e. sales) to the world market.  Thus, a
country with a high exposure to the world market would be given a higher annual share of the SACU
market.  According to this formula, Mauritius,  which sells about 5,000 tonnes of special sugar
annually to the world market, would be given a share of around 1,000 tonnes in the first year.
42. Intra-SADC trade represents some 20% of the total value of trade by the member States.  In
1999, other SADC members supplied 2% of Mauritius' imports and were destinations for some 7% of
its exports.
43. The SADC Treaty also provides for the constitu tion of a tribunal (the Protocol on Tribunal),
to adjudicate disputes, arising from the Treaty and from subsidiary instruments, that cannot be settledamicably between Members.
28  The composition, powers, functions, procedures, and other related
matters governing the Tribunal have been prescribed  in the Protocol;  the Rules of Procedure, agreed
by the SADC Summit (August 2000), have been ratified so far by Botswana and Namibia.  The
Tribunal has not yet been established.  Decisions of the Tribunal will be final and binding.29
(c) Indian Ocean Commission (IOC)
44. The IOC has five member States:  Comoros, Madagascar, Mauritius, Reunion (France), and
the Seychelles.  The IOC was created in 1984 by the General Agreement of Cooperation.  Its founding
members were Madagascar, Mauritius, and the Seychelles;  Comoros and Reunion (France) joined in
                                                     
26 L'Express , 15 March 2001.
27 There is no deadline, as such, for the implementation of the Trade Protocol.
28 Article 32 of the Treaty.
29 SADC online information.  Available at:  http://www.sadc.int/overview/works.htm.WT/TPR/S/90 Trade Policy Review
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1986.  The main objectives of the IOC are to:  promote commercial exchanges among its members;
strengthen the friendship and solidarity links that exist among people of the member States while
respecting each State's sovereignty;  and improve the standard of living by developing cooperation in
all possible sectors, in particular, in diplomatic, economic, social, cultural, and technical fields.30
45. The work of the Indian Ocean Commission (IOC) is carried out with the financial support of
the European Union (EU), its main sponsor, primarily through the European Development Fund.31
Since it was created, the IOC has completed projects on regional handicraft, a foreign trade statistics
programme, a meteorological programme, phases I and II of the regional tuna fishing programme, and
an international transit centre programme.32
46. The IOC Council of Ministers meets once a year in ordinary session to define the broad
orientation of activities to be carried out.  Each member State is represented on the Council, and inturn assumes the presidency of the Council for one year.  Each member State is also represented on
the Committee of Permanent Liaison Officers (CPLO);  each representative is responsible for the
coordination and implementation of regional cooperation in her/his home country.  The IOC General
Secretariat is located in Mauritius;  it is the administrative arm of the IOC, and responsible for the
implementation of decisions of the Council and of the CPLO.  The General Secretary is nominated by
the Council and serves a non-renewable four-year term.
33
47. The Integrated Regional Programme for the Development of Exchanges (PRIDE) is aimed at
executing a regional strategy facilitating and promoting the free movement of goods, services, capital,
and labour.  A plan to eliminate customs duties on intra-regional trade (on a reciprocal basis) has been
fully implemented by Madagascar and Mauritius si nce mid-March 2000.  Other member States are in
the process of implementation.34  The origin rules of the IOC are based on the provisions of the
COMESA Protocol, with the excepti on that the former 45% value-added criterion still applies under
the IOC Memorandum on Rules of Origin.  In February 2001, the IOC Council of Ministers agreed
that the value-added criterion be aligned on the 35% level that currently prevails in COMESA.  Intra-
IOC trade accounts for some 3% of the total value of trade by the member States.
48. Other current IOC regional projects include programmes for the environment, tourism, an oil
spill contingency planning project, and a programme for the university of the Indian Ocean.  Futureprojects include environmental education, regional security, fishing, health, culture, and plants.
35
(d) Regional Integration Facilitation Forum (RIFF)
49. The Regional Integration Facilitation Forum (RIFF), formerly known as the Cross-Border
Initiative (CBI), aims to move its member countries (including Mauritius) towards increased
economic integration by facilitating private investment, trade, and payments between them.  MemberStates are the countries in eastern and southern Africa, and the Indian Ocean.  The RIFF has been
developed in close collaboration with the economic integration organizations in the region.  As a
forum, the RIFF is to reinforce and complement efforts undertaken by these organizations.  Launched
in 1992, the RIFF is co-sponsored by the European Commission, the International Monetary Fund, the
World Bank, and the African Development Bank.  The RIFF has become largely country-led.  It doesnot have a Secretariat.
                                                     
30 IOC online information.  Available at:  http://www.coi-info.com/anglais/presenta/objectif.htm.
31 IOC online information.  Available at:  http://www.coi-info.com/anglais/presenta/partenai.htm.
32 IOC online information.  Available at:  http://www.coi-info.com/anglais/projects/r-bot.htm.
33 IOC online information.  Available at:  http://www.coi-info.com/anglais/presenta/instance.htm.
34 Reunion (France) is not party to the trade component of the IOC.
35 IOC online information.  Available at:  http://www.coi-info.com/anglais/projects/r-bot.htm.Mauritius WT/TPR/S/90
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(e) Organization of African Unity (OAU) and African Economic Community (AEC)
50. The Charter establishing the OAU was signed on 25 May 1963.36  Mauritius, like the other
members of the OAU, signed the Abuja (Nigeria) Treaty Establishing the AEC in June 1991, as
provided for by the 1980 Lagos Plan of Action.  The Treaty provides for the creation of a pan-African
economic and monetary union (with a parliament) in si x stages, over a period of 34 years.  The organs
and headquarters of the AEC are those of the OAU.  The AEC has not as yet effectively commencedits activities.
(iii) Other agreements or arrangements
51. Mauritius is a signatory to the Cotonou Agreement, the successor agreement to the Lomé
Convention, which affords a group of 71 African, Caribbean, and Pacific (ACP) developing countries
preferential trade and aid links with the European Union (EU).  The current 20-year agreement wassigned in Cotonou, Benin, on 23 June 2000, and replaced the previous agreements signed in Lomé in
1975, 1979, 1984, and 1989.
37  The Cotonou Agreement was ratified by Mauritius in September 2000.
52. Under the Cotonou Agreement, the EU grants n on-reciprocal trade preferences on imports of
products (other than those covered by the Comm on Agricultural Policy) originating from the ACP
States;  for certain products (bananas, beef and veal, and sugar), the EU provides special marketaccess under "commodity protocols".  The Cotonou Agreement abolishes Stabex, Sysmin, and the
rum protocol of the Lomé Conventions.  The current all-ACP non-reciprocal tariff preferences are
maintained until 31 December 2007.  Starting in 2008, a set of Economic Partnership Agreements
(EPAs) will replace them.  These free-trade agreements are expected to be reciprocal and
WTO-compatible.
38
53. Since January 2001, Mauritius has been trading in textiles and clothing, and sugar under the
African Growth and Opportunity Act (AGOA) of the United States;  AGOA offers free access(without restrictions) for some 1,800 manufactured produ cts originating in African countries.  Under
the Generalized System of Preferences (GSP), Mauritius also benefits from preferential tariff
treatment granted by, inter alia , Canada, the Czech Republic, Hungary, Japan, New Zealand, Norway,
Switzerland, and the United States.  Mauritius also pa rticipates in the Indian Ocean Rim – Association
for Regional Cooperation (IOR-ARC), which aims to facilitate business among member countries.Mauritius is not a signatory to the Agreement on Global System of Trade Preferences (GSTP)
concluded among developing countries.
54. The WTO Secretariat is not aware of any bilateral trade agreements concluded by Mauritius.
Mauritius has concluded double-taxation-avoidance treaties (with either a full or partial tax-sparing
clause) and investment-protection agreements with several countries (Table II.3).  It is a member ofthe Multilateral Investment Guarantee Agreement (MIGA) and a signatory to the Convention for the
Settlement of Investment Disputes.
                                                     
36 Almost all the African countries are members of the OAU.
37 Information available at:  http://www.one world.org/acpsec/gb/cotonou/accord1e.htm.
38 Information available at:  http://www.oneworld.org/ecdpm/lome/lnb8_gb.htm.WT/TPR/S/90 Trade Policy Review
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Table II.3
Investment treaties and agreements, as of 30 November 2000
Country Date of signature Date of entry into force
Double taxation treaties
Belgium 04.07.95 28.01.99
Botswana 26.09.95 13.03.96
China 01.08.94 05.05.95
Cyprus 21.01.00 12.06.00
France 11.12.80 17.09.82
Germany 15.03.78 01.01.81
India 24.08.82 11.06.85
Indonesia 10.12.96 20.02.98
Italy 09.03.90 28.04.95
Kuwait 24.03.97 01.09.98
Lesotho 29.08.97 ..
Luxembourg 15.02.95 12.09.96
Madagascar 30.08.94 04.12.95
Malaysia 23.08.92 19.08.93
Mozambique 14.02.97 08.05.99
Namibia 04.03.95 25.07.96
Nepal 03.08.99 10.11.99
Oman 30.03.98 20.07.98
Pakistan 03.09.94 19.05.95
Russian Federation 24.08.95 ..
Singapore 19.08.95 07.06.96
Sri Lanka 12.03.96 02.05.97
South Africa 05.07.96 20.06.97
Swaziland 29.06.94 08.11.94
Sweden 23.04.92 21.12.92
Thailand 01.10.97 10.06.98
United Kingdom 11.02.81 26.10.87
Zimbabwe 06.03.92 05.11.92
Investment promotion and protection agreements
Germany 25.05.71 ..
France 22.03.73 ..
United Kingdom and Northern Ireland 20.05.86 ..
China 04.05.96 ..
Mozambique 14.02.97 ..
Pakistan 03.04.97 ..
Indonesia 05.03.97 ..
Portugal 12.12.97 ..
South Africa 17.02.98 ..
India 04.09.98 ..
Switzerland 26.11.98 ..
Czech Republic 05.04.99 ..
Nepal 03.08.99 ..
Romania 20.01.00 ..
Singapore 04.03.00 ..
Swaziland 15.05.00 ..
Zimbabwe 17.05.00 ..
.. Not available.
Source: Information provided by the Mauritian authorities.