India and Mauritius are inching towards finalizing the proposed bilateral free trade agreement (FTA), despite the apprehensions amongst domestic players in both countries about providing unlimited market access for some items. These concerns, which are being addressed by both administrations, have held back the much awaited agreement, which is in final stages.
To address the mutual concerns, it is reliably leant by www.trendsnafrica.com that the two countries have now decided to go for tariff rate quotas (TRQs) for items where limited preferential access is to be given to protect local interests. FTA was ready to be signed between the two countries January this year, when the Mauritius prime minister was on a state visit to India.
Apprehensions relating to items like apparels and marine products held back the signing of the agreement. It is known that a compromise formula has been worked out, which is being endorsed by both countries. With these developments, it is likely that the pact may be signed soon.
TRQs are a sort of import quotas that allow a limited quantity of a specific item into a country. TRQs will be applied on sensitive items to ensure that the import are subjected to quantitative restrictions, so that even if import duties are brought down to zero, imports won’t exceed an agreed quantity. The FTA will help India to get a foothold in the expanding African market using Mauritius as a gateway to penetrate into to other African countries. Significantly, Mauritius has signed an FTA with 44-nation African Union last year. India’s exports to Mauritius in 2018-19 were worth US$1.16 billion while its imports from the country were about US$78.64 million.
