Free Trade Agreement between China and Mauritius: What You Need to Know
The relationship between China and Mauritius has been growing steadily over the years. Both countries have been working towards forging a stronger economic partnership, and one key development in this regard is the signing of the Free Trade Agreement (FTA) between China and Mauritius.
Let`s take a closer look at the FTA and what it means for both countries.
What is an FTA?
An FTA is a bilateral agreement between two countries that aims to facilitate trade by reducing or eliminating tariffs, quotas, and other trade barriers. It is designed to promote economic integration and encourage trade liberalization.
The China-Mauritius FTA
China and Mauritius signed the FTA on October 17, 2019. The agreement covers trade in goods, services, and investment.
Under the FTA, Mauritius will benefit from tariff reductions on almost 8,547 products, which account for 96% of China`s tariff lines. In return, China will get duty-free access to 8,140 goods from Mauritius.
In addition to the tariff reductions, the FTA also covers a wide range of services, including telecommunications, financial services, and tourism. The FTA also includes liberalization measures for investment, intellectual property rights, and e-commerce.
Benefits of the FTA
The FTA has several benefits for both countries. For Mauritius, the agreement provides a significant boost to its exports to China, which is its second-largest trading partner after the European Union. The FTA will help Mauritian businesses to be more competitive in the Chinese market by eliminating or reducing tariffs on their products.
For China, the FTA opens up new opportunities for investment and trade in Africa. Mauritius serves as a gateway to Africa, and Chinese companies can use the island nation as a hub to access other African markets.
Conclusion
The China-Mauritius FTA is a significant development for both countries. It represents a further step towards economic integration and will help both countries to strengthen their trade, investment, and business ties. The FTA is expected to create new opportunities for businesses and promote economic growth and development.
