CECPA between India and Mauritius

  • IASbaba
  • February 20, 2021
  • 0
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  • GS-2: India and its neighbourhood
  • GS-3: Indian Economy

CECPA between India and Mauritius

Context: Cabinet approved the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) between India and Mauritius which is aimed at liberalising trade between the two countries.

About the agreement

  • Kind of a free trade agreement: CECPA, similar to FTA, will cover 310 export items for India, including foodstuff and beverages, agricultural products, textile, base metals, electricals and electronic items, plastics and chemicals, etc.
  • Includes Trade and Services: In such agreements, the two trading partners cut or eliminate duties on a host of products besides liberalising norms to promote services trade.  
  • Covers all aspects: It will cover trade in goods, rules of origin, trade in services, Technical Barriers to Trade like Sanitary and Phytosanitary (SPS) measures, dispute settlement, movement of natural persons, telecom, financial services, customs procedures and cooperation in other areas.
  • Mauritius will benefit from preferential market access into India for 615 products, including frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and apparel. 
  • This instance will be India’s first such trade pact with an African nation.

Economic Relationship between India and Mauritius

  • Bilateral trade between the countries had dipped to $690 million in 2019-20 from $1.2 billion in 2018-19. 
  • While India’s exports in 2019-20 aggregated to $662 million, imports stood at just $27.89 million.  
  • Mauritius imports petroleum products, pharmaceuticals, cereals, cotton, electrical machinery, apparel and clothing accessories, while India’s imports include iron and steel, pearls, precious/semi-precious stones, etc. 
  • Mauritius was also the second largest source of foreign direct investment into India in 2019-20, accounting for around $8.24 billion (about Rs 57,785 crore) for the year.

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