Mauritius and UAE sign Comprehensive Economic Partnership Agreement
Mauritius and the UAE signed a Comprehensive Economic Partnership Agreement (CEPA) on 22 July, which is aimed at increasing bilateral trade, particularly in the financial, logistics and services sectors. It is the UAE’s first CEPA with an African nation.
Under the agreement, Mauritius will remove 99% of tariffs on imports from the UAE, while the UAE will eliminate 97% of its tariffs. It is estimated to boost the UAE’s GDP by 0.96%, while adding more than 1% to the economy of Mauritius by 2030.
In 2023, two-way trade reached USD170.4 million, up 14.5% compared to 2022. The UAE is currently the eighth-largest investor in Mauritius, with USD13.2 billion invested in the country, supporting projects in tourism, real estate, renewable energy and technology.
“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 Prime Minister of Mauritius Pravind Kumar Jugnauth.
The UAE is seeking to expand trade with partners as it pursues its target of AED4 trillion (USD1.1 trillion) in non-oil foreign trade and increasing its exports to AED800 billion by 2031. Last year, the Emirates’ non-oil trade in goods reached a record USD701 billion, a 12.6% annual increase.
The Mauritian economy is one of the fastest growing in Africa, posting an 8.5% growth in GDP in 2022 – its fastest in 35 years, he said. “The CEPA between the UAE and Mauritius is an important step in our efforts to forge strategic partnerships that consolidate our position as a hub for trade and investment, drive productivity in key export sectors, and increase the global competitiveness of our business ecosystem,” said UAE Minister of State for Financial Affairs Mohamed Hadi Al Hussaini.
It is hoped that the CEPA will help develop an important trade corridor between the UAE and Africa and open up an emerging market to the UAE’s investment community, especially for vital capital projects such as ports, transport hubs, and tourism infrastructure.
The agreement will also 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% of the country’s electricity mix by 2030, with a focus on several energy sources including solar, wind, biomass, hydro and waste-to-energy.
“The UAE, with its advanced technological know-how and extensive experience in renewable energy development, can be a valuable partner to Mauritius in this mission by supporting its transition to a sustainable, low-carbon economy – and potentially a model for the whole of Africa,” said UAE Minister of Energy and Infrastructure Suhail bin Mohammed Al Mazrouei.
The UAE signed its first CEPA with India in February 2022 and aims to deepen ties with strategic partners by signing 26 CEPAs around the world. Agreements have been signed with India, Turkey, Israel, Indonesia, Cambodia and Georgia, and negotiations have been concluded with Chile, Kenya and Ukraine. Talks are currently underway with Serbia, Vietnam, the Philippines, New Zealand and Ecuador.
