Port Louis, Mauritius (CU)_ According to reports, the India-Mauritius trade deal is expected to include safeguard mechanism-related terms to protect the domestic sector against a sudden or anomalous increase in imports of products. The agreement between the two nations took effect on April 1, 2021. If both parties agree, provisions can be included to such agreements following their implementation. According to the sources, a subject on general economic cooperation is also anticipated to be added in the Comprehensive Economic Cooperation and Partnership Agreement (CECPA).
The safeguard mechanism is activated when there is a rapid surge in imports of any item that threatens domestic industry. In accordance with this provision, concessional customs duty on that specific product is substituted with existing taxes that are applicable to all nations. Additionally, the method contains more stringent rules of origin to prevent the routing of goods from a third nation. According to the sources, the Union cabinet’s consent would be required to finalize the inclusion of the safeguard mechanism and broad economic cooperation in the treaty.
The ministry of commerce and industry has solicited the opinions of other ministries on the subject before approaching the cabinet. On February 22, 2021, CECPA, a type of free trade agreement, was inked between India and Mauritius. As a result of this agreement, numerous Indian items, notably textiles and chemicals, are gaining enhanced market access and duty concessions in Mauritius.
The agreement includes 310 export commodities for India, including food and drinks, agricultural goods, textiles and textile materials, basic metals, electrical and electronic equipment, plastics and chemicals, and wood. For its 615 goods such as frozen fish, specialty sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic beverages, soaps, bags, medicinal and surgical equipment, and clothes, Mauritius has benefitted from preferential market access into India.
The present agreement is a limited deal that includes trade in products, rules of origin, trade in services, technological obstacles to trade, sanitary and phytosanitary initiatives, dispute settlement, mobility of natural persons, telecom, financial services, and customs processes. CECPA is the first trade agreement between India and an African nation.