India inks free trade agreement with Mauritius, provides additional 1,00,000 COVID-19 vaccines
The agreement will enable the Indian investors to use the island nation as a launchpad for the business expansion into Africa helping the prospect of Mauritius emerging as a ‘hub of Africa’.
India and Mauritius on February 22, 2021, signed free trade agreement along with 5 key pacts. This is the first such agreement of India with an African country and it was signed during the visit of EAM S Jaishankar to the island nation.
The External Affairs Minister while addressing the media with the PM of Mauritius mentioned that India is privileged to have entered CECPA- Comprehensive Cooperation and Partnership Agreement with Mauritius.
India also delivered 1,00,000 doses of Made in India Coronavirus vaccines to Mauritius. The country had already supplied 1,00,000 doses earlier.
Significance of Free Trade Agreement:
According to EAM S. Jaishankar, the agreement will provide a timely boost for the revival of post-COVID-19 economies.
A special day for our special relationship.— Dr. S. Jaishankar (@DrSJaishankar) February 22, 2021
Privileged to witness along with PM @JugnauthKumar the signing of Comprehensive Economic Cooperation Partnership Agreement. India’s first such agreement with an African country. pic.twitter.com/nz6r1qLjJa
It will also enable the Indian investors to use the island nation as a launchpad for the business expansion into Africa helping the prospect of Mauritius emerging as a ‘hub of Africa’.
He further added that CECPA will boost the dynamism of the services sector in Mauritius. It can facilitate Indian investment in the country, particularly the ICT sector, as the Indian companies can be benefitted by leveraging the bilingual prowess of the island country for the investments in Francophone Africa.
Comprehensive Cooperation and Partnership Agreement: Key Highlights
• It will provide preferential access to Mauritius for the bulk of trade as well as also for many aspirational items in the future in the Indian market consisting of over a billion people.
• The items include specialty sugar, frozen fish, fresh fruits, biscuits, soaps, mineral water, juices, medical and surgical equipment, bags, and apparel.
• Under the agreement, Mauritius will be getting preferential access for the export of 40,000 tonnes of sugar in India at an early time frame. In a similar way, there will also be an excess for the export of 7.5 million pieces of apparel.
• India, as regards trade in services, has offered 95 sub-sectors from 11 broad services sectors. This contributes 76% of the GDP of the island nation.
Other agreements signed between India and Mauritius:
• Both the countries signed another agreement under which India will be providing an Advanced Light Helicopter ‘Dhruv’ and a Dornier aircraft on lease to Mauritius on a gratis basis for two years.
• A pact for the special US $100 million Defence Line of Credit was also signed between India and Mauritius.