UAE and Mauritius sign comprehensive economic partnership agreement
The National | 22 July 2024
UAE and Mauritius sign comprehensive economic partnership agreement
by Aarti Nagraj
The UAE signed a comprehensive economic partnership agreement with Mauritius on Monday, with the pact expected to boost both economies by removing tariffs and increasing market access.
The terms for the agreement were concluded in December and it marks the UAE’s first Cepa signed with an African country, the government said in a statement.
Under the deal, Mauritius will remove 99 per cent of tariffs on imports from the UAE, while the Emirates will eliminate 97 per cent of its fees.
It is expected to boost the UAE’s GDP by 0.96 per cent, while adding more than 1 per cent to the economy of Mauritius by 2030, officials said.
The agreement "reflects our shared vision and dedication to improving bilateral relations, promoting economic growth, and generating a wealth of opportunities for our peoples", said Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.
The two countries are deepening trade and investment ties – non-oil trade rose 82.5 per cent annually to $76 million from January to April, according to official data.
In 2023, two-way trade reached $170.4 million, up 14.5 per cent compared to 2022.
"By eliminating or reducing tariffs, removing barriers to trade and enhancing market access, we will push our bilateral non-oil trade beyond $500 million within five years," said Dr Thani Al Zeyoudi, Minister of State for Foreign Trade.
The UAE is currently the eighth-largest investor in Mauritius, with $13.2 billion invested in the country, supporting projects in tourism, real estate, renewable energy and technology.
The Cepa is hoped to further "deepen trade and investment ties, accelerate growth in priority industries, create jobs, strengthen supply chains and streamline market access for UAE and Mauritian businesses", the statement said.
"This agreement is not just about eliminating barriers to trade in goods and services; it is about fostering a deeper understanding and partnership that will benefit both our economies and our people and the wider Gulf region and Africa," said Pravind Kumar Jugnauth, Prime Minister of Mauritius.
"The UAE is an important partner in facilitating the free flow of global trade and investment, fostering international co-operation and maintaining regional stability."
The Emirates is seeking to expand trade with partners as it pursues its target of Dh4 trillion ($1.1 trillion) in non-oil foreign trade and increasing its exports to Dh800 billion by 2031.
Last year, the country’s non-oil trade in goods reached an all-time high of $701 billion, a 12.6 per cent annual increase.
To further grow its trade, the UAE aims to sign 26 Cepas. While deals have been signed with India, Turkey, Israel, Indonesia, Cambodia and Georgia, talks are under way with Serbia, Vietnam, the Philippines, New Zealand and Ecuador.
Overall, Cepas are expected to add about 2.6 per cent to the UAE’s economy by 2030, Dr Al Thani previously said.
The deal with Mauritius is particularly expected to support energy and infrastructure investments, said Suhail Al Mazrouei, Minister of Energy and Infrastructure.
“The agreement will drive both countries’ energy landscapes, especially as Mauritius has an ambitious clean energy programme that seeks to increase the contribution of renewable energy to 60 per cent of the country’s electricity mix by 2030, with a focus on several energy sources including solar, wind, biomass, hydro, and waste-to-energy.”
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, added that the deal will open up new opportunities for the UAE’s private sector.
The Mauritian economy is "one of the most promising" in Africa, posting an 8.5 per cent growth in GDP in 2022 – its fastest in 35 years, he said.
"It also has a dynamic industrial sector, with textiles and light engineering playing an important role in its ongoing economic health," Dr Al Jaber said.
“The potential for collaboration with our own industrialists and investors is significant, both in terms of supplying the Mauritian economy with the materials and resources it needs and in helping to develop their industrial base."
Abdulla bin Touq, Minister of Economy, said Mauritius is a rapidly growing economy that serves as an important gateway into Africa.
“It’s clear that greater economic integration between our nations will reap considerable rewards for us both. Our Cepa will enhance the flow of goods and services between the Gulf and Africa, create new market opportunities for our exporters, and increase investment into priority sectors such as logistics, manufacturing, tourism, and financial and professional services," he said.
"We look forward to fully realising the benefits of this deal in the months and weeks ahead.”
