Mauritius-China Free Trade Agreement (FTA)

Background

The Free Trade Agreement between The Government of the Republic of Mauritius and The Government of the People's Republic of China was signed in October 2019 in Beijing. Following the completion of ratification procedures by both sides, the Mauritius-China FTA entered into force on 01 January 2021.

The Mauritius-China FTA is a symbol of the excellent bilateral relations between Mauritius and China which have endured and thrived for several decades.

China represents a market of 1.4 billion people. The Mauritius-China FTA achieves the goal of mutually beneficial outcomes. It is China's first FTA with an African country and it provides more solid institutional guarantee for deepening economic and trade relations between the two countries.

Agreement highlights

Coverage of the Mauritius-China FTA

The Mauritius-China FTA comprises of four main components which pertain to trade in goods, trade in services, investment and economic cooperation.

The text of the Agreement comprises of chapters covering sanitary and phytosanitary measures (SPS), technical barriers to trade (TBT), trade remedies, competition, intellectual property, and electronic commerce.

Tariff reduction

With regard to trade in goods, upon the entry into force of the FTA in 2021, Mauritius benefited from immediate duty free access on the Chinese market on 7,504 tariff lines. Tariffs on an additional 723 tariff lines is being phased out over a 5 to 7-year period as from 01 January 2021.

Quota

Furthermore, a Tariff Rate Quota for the export of 50,000 tonnes of Mauritian sugar at an in-quota rate of 15% is being implemented on a progressive basis over a period of 8 years, with an initial quantity of 15,000 tonnes in 2021.

Rules of origin

To benefit from preferential treatment under the Agreement, exporters must comply with the rules of origin as stipulated in the Agreement.

The following reflects the rules of origin under the FTA i.e. the following goods shall be considered as originating in Mauritius:

• Goods wholly obtained or produced in Mauritius as defined below (Goods considered as wholly obtained or produced in Mauritius);
• Goods produced in Mauritius exclusively from originating materials; or
• Goods produced from non-originating materials in Mauritius, provided that the goods conform to a regional value content of no less than 40%,
  1. Except for the goods listed in the Annex II (Product Specific Rules of Origin) which must comply with the requirements specified therein.

Goods considered as wholly obtained or produced in Mauritius

Some examples of what constitute a wholly obtained good are given below:

The following goods shall be considered as wholly obtained or produced in Mauritius:

• a) Live animals born and raised in Mauritius;
• b) Goods obtained from live animals referred to in paragraph (a) above;
• c) Plant and plant products grown, and harvested, picked or gathered in Mauritius;
• d) Goods obtained from hunting, trapping, fishing, aquaculture, gathering or capturing conducted in Mauritius;
• e) Goods extracted from the waters, seabed or subsoil beneath the seabed outside the territorial waters of Mauritius, provided that Mauritius has the right to exploit such waters, seabed or subsoil beneath the seabed in accordance with international law and its domestic law;
• f) Goods of sea fishing and other marine products taken from the sea outside the territorial waters of a Party (Mauritius or China) by a vessel registered in a Party (Mauritius or China) and flying the flag of that Party (Mauritius or China);
• g) Goods processed or made on board factory ships registered in a Party (Mauritius or China) and flying the flag of that Party (Mauritius or China), exclusively from goods referred to in paragraph (f) above.

Certificate of origin

The Certificate of Origin for the Mauritius-China FTA is issued by the Customs Department of the Mauritius Revenue Authority on application by the exporter or producer, provided that the goods can be considered as originating in Mauritius. The contact details of the Mauritius Revenue Authority Customs Department are as follows:

Mauritius Revenue Authority
Customs Department
Customs House
Mer Rouge
Port Louis
Tel : +230 202 0500
Email: customs@mra.mu; origin.customs@mra.mu

Dispute Settlement

Mauritius and China shall endeavor to agree on the interpretation and application of the FTA, and shall make every attempt through cooperation and consultation to arrive at a mutually satisfactory resolution of any matter that might affect operation of the FTA when a dispute occurs.

Exceptions

The Exceptions Clauses of the Mauritius-China FTA relate to essential security, taxation, disclosure of information, and measures to safeguard the Balance of Payments.

Trade in Services

With respect to trade in services, both parties have agreed to remove restrictions in more than 100 service sectors. These include financial services, telecommunications, Information and Communications Technology, professional services, construction and health services.

China is the world's 2nd-biggest importer of services.

The Trade in Services Chapter of the Mauritius-China FTA comprises of the following annexes:

• Annex on Financial Services (To regulate the supply of insurance, reinsurance and banking services.)
• Annex on Movement of Natural Persons (The rules governing the movement of natural persons are subject to the commitments in the schedules of commitments.)
• Annex on Traditional Chinese Medicine Cooperation (To encourage collaboration between the parties to recognize and make available traditional forms of Chinese medicine in Mauritius.)