RESTRICTED
WORLD TRADE WT/TPR/G/5
18September 1995
ORGANIZATION(95-2658)
TRADE POLICY REVIEW
MAURITIUS
Report bytheGovernment
Inpursuance oftheAgreement establishing theTrade Policy Review Mechanism (Annex 3
oftheMarrakesh Agreement Establishing theWorld Trade Organization), theinitial policy statement
submitted bytheGovernment ofMauritius isattached.
Note: Thisreport issubject torestricted circulation andpress embargo untiltheendofthemeeting
oftheTrade Policy Review Body onMauritius.Mauritius WT/TPR/G/5
Page iii
Contents
Page
Introduction 1
PART A TRADE POLICIES AND PRACTICES
Chapter 1 Objective ofTrade Policies 3
Chapter 2 Description oftheImport andExport System 4
Chapter 3 TheTrade Policy Framework 6
(a) Domestic laws andregulations 6
(b) Trade policy formulation 9
(c) Bilateral, regional andmultilateral trade agreements 9
Chapter 4 TheImplementation ofTrade Policies 12
(a) Programmes inexistence fortrade liberalization 12
(b) Trade policy measures 12
PART B RELEVANT BACKGROUND AGAINST WHICH ASSESSMENT OFTRADE
POLICIES HAS BEEN CARRIED OUT
Chapter 5 Wider Economic andDevelopment Needs, Policies andObjectives 19
Chapter 6 External Economic Environment 21
(a) Major trends inimports andexports 21
(b) Important trends inthebalance-of-payments, reserves, debt, exchange
andinterest rates 23
(c) International macroeconomic situation affecting theexternal sector 24
Chapter 7 Problems inExternal Markets (Problems ofMarket Access Facing Exports:
Existing Significant Barriers toTrade) 26WT/TPR/G/5
Page ivTrade Policy Review
Annexes
Page
Annex I (a) Listofcontrolled goods 31
(b) Listofdangerous chemicals 33
(c) Listofprohibited goods 36
Annex II (a) Imported goods subject toprice fixing 37
(b) Listofimported goods under maximum mark upsystem 37
Annex III ListofScheduled Territories 38
Annex IV (a) Listofimports byproducts 39
(b) Listofimports bycountries 39
Annex V Imports from EEC bySection 40
Annex VI EPZ Exports, Imports andNetExports 41
Annex VII Balance ofPayments 42
Annex VIII Foreign Reserves 44
Annex IX External Debt Outstanding 45
Annex X Foreign Exchange Rates 1992/93 46
Annex XI Foreign Exchange Rates 1991/92 47
Annex XII Foreign Exchange Rates 1989/90 48
Annex XIII Principal Interest Rates inMauritius March 1992 /December 1993 49
Annex XIV Principal Interest Rates inMauritius December 1989 /June 1991 50
Annex XV Principal Interest Rates inMauritius December 1988 /June 1990 51
Annex XVI Export byDestination 52
Annex XVII Weekly Quota Availability Report 53Mauritius WT/TPR/G/5
Page 1
INTRODUCTION
Mauritius isatropical island ofvolcanic origin withalandareaofapproximately 1865sq.kilometres.
Agriculture occupies 48%ofthetotallandarea, woodland takes upsome 35%while built-up area
claims 13%. Allarable lands arefullycultivated andarebeing encroached upon bydemographic
pressure forhousing purposes andindustrial demand formore space.
Withitssmall size,bothinterms oflandmassandpopulation (1.1million inhabitants), lackofnatural
resources andtheinherent disadvantages ofanisland statecharacterised byremoteness fromboththe
source ofsupply ofitsrawmaterials andthemarkets foritsexport products, Mauritius hastodepend
heavily ontrade foritseconomic development andsocial progress.
Mauritius isexposed tothevagaries oftheweather. Usually, theisland isvisited between December
andApril bycyclones which affect thecountry, especially sugar intheagricultural sector. During
thepre-cyclone period, theisland alsosuffers from droughts which again haveanadverse effect on
thatsector.
However, thegeography oftheisland provides some natural advantages, suchasbeautiful lagoons
andbeaches withtemperature ranging from21ocinwinter toanaverage of29ocinsummer which have
helped thetourism sector todevelop andexpand.
Since achieving independence in1968, Mauritius hasimplemented anumber ofnational development
plans todevelop itseconomy. Itisatpresent implementing itssixth plan.
Over thelasttwenty years, Mauritius hasundergone major structural changes from anagricultural
monocrop economy withagrowing population, highunemployment andlowpercapita income toa
generally satisfactory position offairly stable population, nearfullemployment andadiversifying
economy withemphasis ontheservices sector. Inthisprocess Mauritius hasbeenhelped byits
membership ofcertain preferential trade agreements.
Theeconomy ofMauritius hasbeendominated bysugar asthemaincroptillthelate1960s. Mauritian
sugar, infact,hashadaguaranteed market andenjoyed preferential prices through various agreements
suchastheImperial Preference Regimes, theCommonwealth Sugar Agreement andtheSugar Protocol
annexed totheLomé Convention. During theperiod 1964-72, sugar accounted forover25%ofgross
domestic product (GDP), whereas thesmall manufacturing sector, excluding thesugar industry,
contributed about 7%toGDP. Thissector consisted ofanumber ofsmall industries engaged inthe
food, beverages, tobacco and,footwear sectors andtherepair andassembly ofmachinery andtransport
equipment.
Thestable levelofearnings which Mauritius derives fromitsmembership oftheSugar Protocol have
underwritten thesocio-economic development ofMauritius. These earnings havecontributed towards
thefinancing ofthemanufacturing sector especially intheEPZ. Thisprocess hasbeenassisted by
thepreferential access which Mauritius enjoys intheEUmarkets foritsmanufactured products under
thesuccessive Lomé Conventions. Inaway, themembership ofMauritius tothese important trade
andaidinstruments hashelped mitigate theinherent disadvantage which Mauritius suffers asasmall
island state.
In1970 Government launched theExport Processing Zone Scheme toencourage thedevelopment of
themanufacturing sector. TheEPZhastransformed theeconomy where manufacturing forexportWT/TPR/G/5
Page 2Trade Policy Review
hasbecome theleading sector. Actually theEPZaccounts for67%oftotalexport earnings andprovides
employment tosome 91,000 people ofwhich 70%arefemales. However, EPZactivities arehighly
concentrated inthemanufacture oftextile products which areprone tovarious adverse effects onthe
international market.
Moreover, atpresent theEPZindustries faceanumber ofproblems suchasthevulnerability ofthe
garments industry todemand fluctuations intheU.S.andtheEEC; shortage oflabour onthelocal
market; andtheinternational competitiveness ofMauritian exports. Infact,themanufacturing sector
hasreached aturning point owing tonewdevelopments intheinternational trade scenario especially
inthewakeoftheGATTAgreement,theNorthAmericanFreeTradeAgreement(NAFTA),thecreation
ofSingle Europe andtheadvent ofmarket economy intheEastandCentral European countries, among
others.
Itisfeared thattheagreements resulting fromtheGATT Uruguay Round willseriously erode thetrade
preferences which Mauritius receives under theLomé Convention. Itwillalsobeaffected asanet-food
importing country. Unless the"acquis" under thepreferential agreements arepreserved andmeasures
takenonthelocalfronttomaintainthecompetitivenessofMauritianproductsontheirtraditionalmarkets,
themanufacturing sector ismost likely tofacedifficulties.
Conscious ofthefactthatMauritius cannot sustain itseconomic growth byrelying solely onthe
agricultural andmanufacturing sectors, itisimplementing strategies fordiversifying theindustrial base
andpromoting theservices sector, inparticular. Tourism andtheoff-shore business sector arealso
expected toplayanincreasingly important rôle.
Theshare oftheservices sector intheGross Domestic Product (GDP) ismore than50%andaccounts
for35%ofthetotaltrade. With aviewtopromoting theservices sector, Government hascreated
theFreeport Authority, theMauritius 0ffshore Business Activities Authority inorder toturnMauritius
intoaninternational financial andbusiness centre. Other measures include thelaunching oftheStock
Exchange ofMauritius (SEM) withtheobjective offurther democratising theeconomy andtoeffectively
regulate theissuance ofsecurities andtheirtrading generally andtopromote thefinancial centre in
particular.
Toovercome itsinherent development constraints andinorder tobenefit fromeconomics ofscaleand
foreign inputs foritsindustrial transformation, Mauritius isactively promoting andparticipating in
regional cooperation andeconomic integration. Itforms partofsome regional groupings inAfrica.
Italsoproposes toplayaleading roleinthecreation oftheIndian Ocean Rimgrouping.
Theauthorities consider strong andsustained economic growth asbeing central tothemaintenance
ofpolitical andsocial stability inamulti-racial society likethatofMauritius. Theeconomic well-being
ofthepopulation, especially theimprovement ofitsstandard ofliving, hasalsostrengthened multi-party
democracy inMauritius.
Theobjective oftheGovernment ofMauritius istoimprove thequality oflifeofthepopulation through
asustainable levelofexport-led economic growth andtheparticipation oftheentire population inthe
process ofeconomic development.Mauritius WT/TPR/G/5
Page 3
PartA:Trade Policies andPractices
Chapter 1
0bjectives ofTrade Policies
Mauritius practises anopentrading system andhasalongtradition ofinternational trade.
Thetrade policies ofMauritius aregeared towards securing theimport requirements ofitspopulation
andtheprotection ofconsumer interest aswellaspromotion ofMauritius overseas asabusiness centre
from where export andre-export activities canfullytakeplace.
Tothisend,theprocedures fortheconduct ofinternational tradehavebeensignificantly relaxed. Price
controls exercised untiltheearly1980'shavebeendismantled withexception made forcertain sensitive
items. Customs duties havebeenreduced onalmost allimported goods withtheexception ofafew
items. Inrespect oftheagricultural sector, dueconsideration isgiven tothespecificity ofMauritius,
asmall island state, inthedetermination ofcustoms duties.
Import andexport licensing hasbeenabolished withtheexception ofafewproducts thatrequire a
measure ofcontrol. Control onforeign exchange regulation hasbeenrelaxed tofacilitate international
financial transactions. Steps arebeing taken tofurther facilitate tradepractices through theinstallation
oftheTradenet system which willprocess trade documentation electronically andprovide up-to-date
information ontrade.
Theultimate objective ofMauritius istoestablish adynamic andoutward-looking economy. This
objective isexpected tobeachieved byaliberal economic policy andthrough theliberalisation offoreign
trade.Inthisrespect,MauritiuswillavailitselffullyoftheopportunitiesofferedintheLoméConvention
(Title IV:General Provisions forleastdeveloped, landlocked andisland ACPStates) andtheGATT
Uruguay Round Accord (Articles 6(4)(b), 9(4)and15oftheAgreement onAgriculture), wherein
provision ismade forspecial anddifferential treatment. Moreover, thelegislative andadministrative
framework governing theagricultural sector inMauritius privileges those categories ofproducers who
arevulnerable, bearing inmind thatMauritius isprone tonatural disasters.
Thestrategy ofopenness ofitseconomy isaimed atallowing Mauritius tobecome acompetitive trade
partner using fullyitscomparative advantage andtointegrate itselfintheworld trading system whilst
atthesametimeensuring thatallcategories ofproducers aregiven afairdealandachance toparticipate
inthedevelopment process.WT/TPR/G/5
Page 4Trade Policy Review
Chapter 2
Description oftheImport andExport System
Import System
Imports andexports aregoverned byregulations made bytheMinister responsible fortrade.
Prior totheyear1984, most ofthegoods imported intothecountry were subject toimport control
exercised bytheImport Division oftheMinistry ofTrade andShipping. Therestriction onimports
wasconsidered necessary toprotect andpromote local infant industries andtoprevent theoutflow
offoreign exchange.
In1985 theimportation ofallgoods wasliberalised inviewofGovernment 'scommitment towards
theI.M.F. under astand-by agreement.
TheImport Licensing System continued tooperate inspiteoftheregime ofliberalization, since an
"import levy" of17%wascollected fromimporters bytheMinistry ofTrade andShipping atthetime
ofissue ofanimport permit. Thecollection oftheimport levywastransferred totheCustoms
Department inJune1988.
During theperiod July1988 toJune1991, theimportation ofgoods wasclosely monitored bythe
Ministry ofTrade andShipping incollaboration withtheBank ofMauritius. TheImport Licensing
System wasmaintained forthatpurpose andforthecompilation oftrade statistics aswell.
InJuly1991 Government decided toreduce thenumber ofitems subject toimport permit andalist
ofgoods which necessitate apermit forhealth, security, environmental purposes andnational interest
wasdrawn up(SeeAnnex I).
TheMinistry ofTrade andShipping isresponsible forthecontrol ofimportation ofthese items under
theSupplies Control Actincollaboration withother controlling agencies. Import permits areissued
within forty-eight hours attheImport Division oftheMinistry under amanual system.
However,thewholesystemisbeingcomputerisedwiththeinstallationoftheElectronicDataInterchange
Link(EDI) whereby importers shallapply forandreceive theirimport permits electronically from
theMinistry ofTrade andShipping which willactasa"One StopShop".
Export System
Exports aregoverned byregulations made bytheMinister ofTrade andShipping under Section 5of
theSupplies Control Act(Government Notice 1994). Inlinewiththepolicy oftrade liberalisation,
export procedures havebeenstreamlined. Exports ofalmost allitems canbeconducted freely except
forafewcontrolled items forwhich export permits arerequired priortoeffecting export. Theproducts
forwhich export permits arerequired arethose ofstrategic importance andproducts sensitive tothe
economy andalsothose products whose market access isrestricted byquotas applied byimporting
countries. Theexport ofthefollowing products arecontrolled:Mauritius WT/TPR/G/5
Page 5
H.S. CODE DESCRIPTION
0101-05 Liveanimals, allspecies including birds
0201-10 Meat, allspecies including poultry, meat,fresh, chilled orfrozen
0301-05 Allfishandfishproducts (fresh, frozen, salted)
0508 Corals, rawseashells
0601 Aquatic bulbs
0603-04 0rnamentals: plants, flowers andleaves (green ordried)
0701-0713 Vegetables (general andgreen)
0713 Redlentils
0713-50 Broad beans
0714 Roots
0801 Coconuts, including drycoconuts
0801-14 Fruits
0804-0910 Species
1005 Maize, popcorn
1006 Rice
110 Wheat, flour
1201-07 0ilseeds
1211 Medicinal herbs
1401 Dried raffia
1601-02 Cooked meat, orprocessed, canned, smoked, salted
1791 Sugar
1704 Sugar confectioneries andproducts withcontent
2008 Palms
2009 Fruit juice
2106 Soyabean meal
2202 Softbeverages (lemonade andpepsi)
2302 Wheat bran(MT) Wheat ground (MT)
2505 Sand
2521 Limestone
2523 Portland Cement
3001 0rgans (animals)
3002 Serum, samples ofblood, biologicals needed forveterinary research, vaccines, deadorliveattenuated, freeze-dried
orwetform
4101-11 Product ofanimals, origin skinandhides, stuffed head
5001-6300 Textile andtextile products forexport toUSA andCanada
6701 Birds'feathers
7106 Silver
7107 Basemetal cladwithsilver
7108 Gold
7109 Basemetal orsilver cladwithgold
7110 Platinum
7111 Basemetal, silver andgoldcladwithplatinum
7112 Waste andscrap ofprecious metal ormetal cladwithprecious metal
7204 Scrap metal
7404 Scrap copper
7602 Scrap aluminium
9601 Decorative seashells
Theissueofexport permit forthefollowing products requires priorapproval ofrespective authorities:
Products Authorising Body
(i) Sugar Mauritius Sugar Syndicate
(ii) Tea TeaBoard
(iii) Spices, etc. Mauritius Agricultural Marketing Board
(iv) 0ther agricultural products Ministry ofAgriculture
(v) Pharmaceutical products Ministry ofHealth
Although theservices oftheMinistry ofTrade andShipping areperformed manually atpresent, export
permits areapproved andissued almost immediately aftertheyaresubmitted. Allservices provided
bytheMinistry ofTrade andShipping regarding export permits arefree.WT/TPR/G/5
Page 6Trade Policy Review
Following thecomputerisation oftradematters, theMinistry ofTrade andShipping willbecalled upon
toplaytherôleof"aonestopshop" withonlinelinkwiththeCustoms Department andallother
institutions connected withtrade fortherelease oftrade documents. Thiswillbedoneelectronically
andisplanned tobeoperational byJanuary 1995.
Chapter 3
TheTrade Policy Framework
(a) Domestic Laws andRegulations Governing theApplication ofTrade Policies
Trade Policies inMauritius aregoverned bythefollowing Actsmade under theaegis oftheMinistry
ofTrade andShipping:-
(i) TheSupplies Control Actof1974
(ii) TheFairTrading Actof1979.
(iii) TheConsumer Protection Actof1991
(iv) TheHirePurchase Actof1969
(v) TheLegal Metrology Actof1985
(vi) TheInternational System ofUnits (SI)Actof1983
(vii) ThePatents Actof1875 asamended
(viii) TheTrade Marks Actof1868 asamended upto1983
(i) TheSupplies Control Act
ThisActwaspassed inl974toregulate theproduction, manufacture, keeping, storage, movement,
distribution, sale,transfer, rationing, export, import, useorother dealing onanyarticle.
Themain regulations made under theSupplies Control Actofl974concern thefixing ofprices and
supply ofarticles, thecontrol ofimports andexports ofgoods. These regulations havebeenmade
toconform withtheGovernment 'spolicy oftrade liberalization.
Theprices ofalimited number ofcommodities areeither fixed orsubject toamaximum mark up.
Alistofthese items areatAnnex II.
(ii) TheFairTrading Act
TheFairTrading Actwasenacted inl979withaviewtoproviding forbetter control ofcommercial
practices andrelated matters andthepreparation ofcodes ofpractice aswell.
Regulations under theFairTrading Actwerealsomeant tocontrol thecountry oforigin ofimported
goods, thesaleofelectrical andelectronic domestic appliances, thelabelling andprepackaging offoods
andthecompliance ofcertain items withtheMauritius Standard Specifications.Mauritius WT/TPR/G/5
Page 7
(iii) TheConsumer Protection Act
TheConsumer Protection Actwasenacted inl991tomake provision forconsumer protection. The
Toys(Safety) Regulations ofl994aretheonlyregulations made sofarunder thisActtoprovide safety
tochildren.
(iv) TheHirePurchase Act
TheHirePurchase Actwasenacted inl969toregulate transactions onahirepurchase basis.
ThisActisbeing updated andamended withaviewtomaking itcompatible withtheeconomic realities
ofthecountry.
(v) TheLegal Metrology Act
ThisActwaspassed inl985tomake better provision fortheassizing ofinstruments, weights and
measures andtheprotection ofthepublic inrelation tothesaleofarticles byweight ormeasure.
(vi) TheInternational System ofUnits (si)Actof1984
ThisActwaspassed in1984 toprovide fortheapplication inMauritius oftheInternational System
ofUnits (SI).
The"SIUnit" means aunitoftheInternational System ofUnits approved bytheGeneral Conference
onWeights andMeasures (CGPM) established under theMetric Conventions ofl875andconsists of:-
(a) baseunits;
(b) supplementary units; and
(c) derived units.
Theadministration ofthe(SI)Act1984 fallsunder thepurview oftheDepartment ofMetrology.
(vii) ThePatents Actof1875 assubsequently amended upto1983
ThePatents Actprovides fortheissue ofpatents, which confer onthepatentee soleandexclusive
privilegebyhimself,executors,administratorsorassignstomake,sellandusetheinventioninMauritius
andtoauthorise others todoso.
(viii) TheTrade Marks Act1868 asamended upto1993
TheTrade Marks Actprovides fortheregistration, renewal, transfer, cancellation, assignment and
publication ofamark.
ACentral Industrial Property Office hasbeenestablished intheMinistry ofTrade andShipping in
1994fortheadministration ofthePatents andTrade Marks Acts. Government hastaken stepstoupdate
those Acts.WT/TPR/G/5
Page 8Trade Policy Review
Legislation Falling under thePurview oftheCustoms &Excise Department
(i) TheCustoms Act,1988
TheCustoms Act,1988laysdown thegeneral legalframework fortheadministration oftheDepartment
anddefines theregulations forimport andexport ofgoods. The1988Customs Actwhich wasdrafted
withassistancefromtheInternationalMonetaryFundaimedatsimplifyingandmodernizingtheCustoms
Act1947especially when thetraditional rôleofCustoms expanded tonewareas ofactivity. In1994,
amajor amendment wasmade toallow theuseofcomputer systems forimport andexport ofgoods
through Electronic DataInterchange. ASYCUDA Version 2.6iscurrently being usedfortheprocessing
ofallimport andexport entries.
(ii) TheCustoms Tariff Act,1969
TheCustoms Tariff Act,1969 isthetariff legislation which alsosetsoutthenomenclature forthe
classification ofgoods. TheDepartment isatpresent applying the1992Version ofHarmonised System
Commodity Description andCoding System (H.S.). Mauritius Customs wasoneofthefirstsignatories
oftheHarmonised System inl988when theBrussels Tariff Nomenclature wasrepealed.
TheCentral Statistical 0ffice, however, stillcompiles trade statistics ontheSITC model.
Various reforms havebeenmade tothetariff ratestructure. Amajor reform wasmade inJune1994
when ratesof0%to600% havebeenreduced to0%to80%andareduction oftariff bands to8from
60previously. Thetariffratestructure hasbeenamended withtheconsolidation ofgeneral tariffrate,
preferential rateandcustoms rateintoonesingle customs rate. Thepreferential rateofdutyisgranted
toascheduled listofcountries when goods attract dutyat55%ormore. Atpresent, import duties
arelevied onanadvalorem basis except fortwocategories ofgoods, namely thong-type sandals
(HS402.201) andstraps forsandals (HS6406.101). Prior to1994, some goods attracted specific rates
ofdutyoracombination ofad-valorem andspecific rates.
Before l994, aseparate tariffstructure wasapplicable togoods originating fromthePreferential Trade
Area (PTA). With theelimination ofthePTA common list,ageneral 60% reduction ofrates is
applicable toallgoods originating from thePreferential Trade Area.
(iii) TheImport Levy Act,1990
Animport levyof17%wasapplicable toallimports, withsome exceptions, under theImport Levy
Act,1990. In1994, theImport Levy Acthasbeenrepealed andthelevyitself hasbeenintegrated
intothecustoms duty.
(iv) TheSales TaxAct,1983
Onbehalf oftheSales TaxDivision oftheMinistry ofFinance, theCustoms Department collects sales
taxatimportation which iscurrently at5%ofthevalue ofthegoods.
(v) TheExcise Act,1994
TheExcise Act,1994 replaces theExcise Act,l947. Anexcise dutyisnowapplicable onselected
items, (spirits, motor vehicles, petroleum products, cigarettes) bothatimportation andonlocal
manufacture.Mauritius WT/TPR/G/5
Page 9
(vi) TheFreeport Act,1992
TheFreeport Act,1992laysdown conditions forthefreeport zoneoperations, namely forthedisposal
ofgoods inthefreeport zoneandthesafeguards forcustoms dutyandother taxes ongoods destined
forthefreeport zone.
(vii) TheIndustrial Expansion Act,1993
TheIndustrial Expansion Act,1993laysdown conditions fortheoperations ofenterprises oftheExport
Processing Zones, enterprises holding Pioneer Status Enterprise Certificate, andregistered small and
medium enterprises anddutyfreetreatment ofequipment andmaterials.
(b) Trade Policy Formulation
Summary description oftheprocess oftrade policy formulation
Trade policy isanintegral partofthenational development policy ofMauritius. Itsprimary aimis
toboost-up thetrading activities ofthecountry.
Theformulation oftrade policy involves theMinister responsible fortrade, theCabinet andthe
Parliament.
Informulating suchapolicy theMinister maydelegate authority tohisSenior 0fficials responsible
fortrade matters toconsult orcoordinate withother Ministries andinstitutions suchastheMinistry
ofFinance, Ministry ofEconomic Planning andDevelopment, Ministry ofAgriculture, Ministry of
Industry andIndustrial Technology, Ministry ofHealth, Customs Department andrepresentatives of
theprivate sector.
Trade policies havetobeapproved bytheCabinet. Forthose policies thatneedtobeenacted into
law,therelevant billsaresubmitted toandpassed byParliament.
(c) Bilateral, Regional andMultilateral orPreferential Trading Agreements
Toincrease themarket access ofMauritian products overseas andtoestablish trade relationship with
therestoftheworld, Mauritius hasentered intoanumber ofagreements which areeither ofabilateral,
regional ormultilateral nature. Inpursuing these objectives, Mauritius hasentered intothefollowing
trade agreements:
BILATERAL AGREEMENTS
Mauritius hasconcluded anumber ofbilateral tradeagreements which fallunder twocategories namely
general trade agreements andtextile agreements.
(i) General Trade Agreements
Mauritius hassigned agreements withPakistan, Egypt, Madagascar, Hungary andtheCentral African
Republic.WT/TPR/G/5
Page 10Trade Policy Review
These agreements havebeenconcluded forperiods ranging fromtwotofiveyears. Buttheycontain
provisions fortheirtacitrenewal unless oneoftheparties expresses itsintention toterminate the
agreement.
Themain objective ofthese agreements istopromote trade between Mauritius andthesignatory
countries, forinstance, byremoving obstacles tobilateral trade, including thephased reduction oftariff
andnon-tariff barriers.
(ii) Textile Agreements
Mauritius hasentered intobilateral textile agreements withtheUnited States ofAmerica andCanada.
Theagreements which havebeenconcluded under Article 8oftheMulti-Fibre Arrangement, laydown
quotas ontheexports ofcertain categories oftextile andclothing products from Mauritius tothese
countries.
Thelatest textile agreement between Mauritius andtheUSA wasconcluded in0ctober l993andwill
lasttill31December l995.
REGIONAL AGREEMENTS
There arethreeregional groupings towhich Mauritius belongs: thePreferential Trade Area/COMESA,
theIndian 0cean Commission andtheAbuja Treaty onAfrican Economic Community. They have
beensetupwithaviewtoenhancing regional cooperation. Thepromotion ofinter-regional trade is
oneoftheobjectives ofthese regional groupings.
(i) PTA/COMESA
ThePreferential Trade AreaforEastern andSouthern African States (PTA) entered intoforce in1982.
Ithasatpresent 22members. InNovember 1993, itwasdecided totransform thePTAintotheCommon
Market forEastern andSouthern Africa (COMESA).
TheCOMESA aimsatpromoting cooperation anddevelopment inallfields ofeconomic activity,
including trade. Atpresent, goods originating inoneMember Statebenefit frompreferential treatment
ontheirentry intotheterritory ofanother Member State.
Themembers ofPTA/COMESA haveagreed toreduce progressively andeventually eliminate customs
duties andnon-tariff barriers totradeamong themselves. Aprogramme oftariffcutshasbeenadopted
bythePTA/COMESA Member States withaviewtotheelimination oftariffs bytheyear2000.
Inaddition, itisproposed toestablish gradually acommon external tariff atthelevelofCOMESA
inrespect ofgoods imported intotheterritory ofamember StateofPTA/COMESA fromanon-member
State.
(ii) Indian 0cean Commission
TheIndian 0cean Commission (IOC) wassetupin1982withaviewtopromoting cooperation among
theislands oftheIndian 0cean intheeconomic, social, cultural, agricultural, scientific andother fields.
Itsmembers areMauritius, Madagascar, Seychelles, Comoros andReunion Island (French 0verseas
Department).Mauritius WT/TPR/G/5
Page 11
Intheareaoftrade, theIOCproposes toimplement the"Programme Regional Integré deDéveloppement
desEchanges" (PRIDE) which concerns trade ingoods andservices among themember states ofthe
Indian 0cean Commission. Theprogramme aimsatpromoting intra-regional trade byproviding for
theremoval oftrade barriers andthefacilitation ofpayments forimports. Itisexpected thatPRIDE
willcontribute towards theintegration ofthemarkets ofIOCMember States. Thisproject isexpected
toenter intoforce bytheendof1994 oratthebeginning of1995.
(iii) Abuja Treaty onAfrican Economic Community
Mauritius isaparty totheTreaty Establishing theAfrican Economic Community which wasconcluded
on3June1991 inAbuja, Nigeria.
ThisTreaty provides forthegradual establishment ofanAfrican Economic Community bytheyear
2025.
MULTILATERAL AGREEMENTS
Mauritius isamember ofGATT l947. Ithassigned theFinal ActonGATT Uruguay Round andthe
Agreement Establishing theWorld Trade Organization. Mauritius isanoriginal member oftheWTO
inaccordance withitsArticle XI.
Further, Mauritius isasignatory totheLomé IVConvention which covers different aspects of
cooperation between theEuropean Union andtheACPGroup ofStates, including cooperation inthe
fieldoftrade. TheLomé IVConvention contains provisions which aimatpromoting trade notonly
between ACP States andtheEuropean Union, butalsoamong ACP States.
Under thepreferential trade regime oftheLomé Convention, Mauritian goods enjoy duty-free access
tothemarkets oftheEuropean Union provided thattheysatisfy therules oforigin laiddown in
Protocol 1oftheConvention. However, export totheEUofcertain agricultural products isgoverned
byspecific provisions oftheConvention.
Asasignatory StateoftheSugar Protocol, Mauritius exports annually totheEECabout 500,000 MT
ofsugar ataguaranteed price.
Mauritius hastaken noteoftheprovisions ofArticle 3oftheAgreement onAgriculture (Incorporation
ofConcessions andCommitments) aswellasthevarious commitments made bytheEUandtheUSA.
Moreover, Mauritius asanACP State, intends tofullyutilise theprovisions ofAnnex XXVII ofthe
Lomé IVConvention.
TheLomé IVConvention, which hasbeen concluded foraperiod oftenyears, willexpire on
28February 2000.WT/TPR/G/5
Page 12Trade Policy Review
Chapter 4
TheImplementation ofTrade Policies
Programme inExistence forTrade liberalisation
Mauritius isintheprocess ofliberalising itstrade procedures. Import andexport permits havebeen
abolished formostitems. However, forreasons ofsecurity, environment, health, andquota imposed
bycertain importing countries, import andexport permits havebeenmaintained forcertain products.
Thepermits must besought from theMinistry ofTrade andShipping forsuchproducts.
Trade Policy Measures
During thelastfewyears, Mauritius hassuccessfully implemented anumber ofstructural changes to
itstrade policy especially itstariff structure. Infact,tariffs arenowthemain trade instrument.
(i) TheTariff Structure
The1988Tariff Ratestructure wascomplex. Itcomprised thefiscal duty, theGeneral Customs Duty
andthePreferential Customs Duty. Fiscal duties varied between 5percent and100percent; special
ratesupto450percent were applicable togasoline, alcohol, tobacco, crown corks, andcars.
Customs duties applied onlytoimports fromnon-preferential countries, i.e.,generally other thanthe
Commonwealth countries, theEC,andtheUnited States. These duties varied between 5percent and
50percent. ThePreferential Customs dutywhich weregenerally 0percent wereapplicable toscheduled
territories. Alistofsuchterritories isatAnnex III.
InJanuary 1987 themaximum tariffs onimports frompreferential andgeneral sources werereduced
to127%. However, petroleum products, tobacco products andalcoholic beverages were excluded
from thisreduction.
The1988 Tariff structure contained about 60different ratesofduty, themajority ofwhich being ad
valorem, some being specific andothers being acombination ofbothspecific andadvalorem.
Inaddition, most imports were subject toastamp dutyatarateof17percent payable when import
permits were issued bytheMinistry ofTrade andShipping.
Imported goods were alsosubject toasales taxat5percent (registered persons) or6percent (non-
registered persons) onCIFvalue pluscustoms duties andstamp duty.
The1994 Tariff structure hasbeenrationalised andcontains onlyeightbands ofTariff rates, varying
between 0%and80%. 0nlytwoitems attract specific ratesofduty. Allgoods dutiable at55%or
more, imported fromnon-scheduled territories, attract anadditional rateofdutyof20%. Anexcise
dutyisalsoapplicable atthetimeofimportation onanumber ofgoods falling under Chapters 22,
24,27and87andispaidtogether withcustoms dutyandsalestax.Anadditional excise dutyof40%
isapplicabletovehiclesfallingunderheadings87.03and87.04,importedfromnon-scheduledterritories.
Allgoods originating inamember stateofthePreferential Trade Areaattract dutyattherateof40%
oftheratesofcustoms dutyapplicable toallgoods specified intheTariff Schedule.Mauritius WT/TPR/G/5
Page 13
The17%import levychargeable under theImport Levy Act1990isnolonger payable, withtherepeal
oftheImport Levy ActinJune1994.
(ii) Customs Valuation
Since 1988 theCustoms Department isapplying adefinition ofvaluation based onahybrid system
combining theBrussels andtheGATT definitions ofvalue. Theapplication ofsuchasystem is
considered necessary tocounter under orover-invoicing ofgoods. Thedutiable value ofimported
goods iscalculated ontheCIFvalue. Itisproposed toadopt infuture theGATT Customs Valuation
Code afteracomplete study hasbeenmade onallpossible implications ofachange fromtheexisting
system. Itistobenoted thatunder Article 20oftheGATT Uruguay Round Agreement onCustoms
Valuation, Mauritius hastheoption todelay theapplication oftheprovision oftheagreement forfive
years.
Import ofgoods from anyscheduled territory, forwhich preferential tariff treatment isclaimed in
Mauritius, isgoverned bytheCustoms Tariff Regulations 1989 (G.N. No.209of1989).
(iii) Rules of0rigin
Acertificate oforigin mustbeproduced totheCustoms Department. Ithastobeissued inthescheduled
territory where thegoods originate. Thiscertificate mustalsobesigned orvisaed byaGovernment
Authority orbyaChamber ofCommerce intheoriginating scheduled territory.
Suchcertificate mustspecify thatthefinalmanufacturing process hasinfacttaken placeinthescheduled
territory andthegoods haveundergone substantial processing withatleast50%ofmaterials, labour
andother manufacturing costs inthatsame scheduled territory.
Themanufacturing costs, which areex-factory costs, havealsotobeclearly defined.
Special provisions havebeenmade regarding scheduled territory goods: (1)which havetransited in
anycountry; (2)which arenotmerchandise forsaleofavalue notexceeding Rs1000 andreceived
bypost; (3)which arethepersonal orhousehold effects ofpassengers; and(4)forwhich theimporter
isunable toproduce theproper certificate oforigin atthetimeofentry.
(iv) TaxRebates
Under theCustoms Tariff Act,theCustoms Department administers about 90schemes ofexemption
andconcession ofdutytovarious sectors ofagriculture, industry andtravellers.
Drawback isallowed ongoods which havebeenimported forthepurpose ofundergoing processing
andthereafter exported.
Duty exemptions arealsogranted toUNpersonnel anddiplomatic missions upon certification from
theMinistry ofExternal Affairs.
Provisions arealsomade forthetemporary admission ofgoods. Mauritius isacontracting party to
theATA Convention.
Annex IVshows themain categories ofimports byproducts andimports bycountries oforigin for
theperiod 1991-93.WT/TPR/G/5
Page 14Trade Policy Review
(v) State Trading Organisations
Forcertain strategic reasons, including foodsecurity, tradeinsome products iscarried outbypara-statal
organisations. Itisconsidered essential thattheliberalization policies becomplemented byanefficient
regulatory system which ensures control onthesupply ofsome sensitive products onthemarket.
TheState Trading Corporation (STC), theAgricultural Marketing Board (AMB) andtheMauritius
Meat Authority (MMA) arethethreepara-statal organisations involved intheprocurement andstorage
ofcertain products, leaving thedistribution andretailing totheprivate sector. These Organisations
areinaccordance withArticle XVIII oftheGATT.
TheSTChasbeeninvolved intheimport andsupply ofthefollowing items: rice,flour, cement,
petroleum products, fruits etcasshown intablebelow:
Importations BySTATE TRADING CORPORATION (Metric Tons)
Financial
yearRice
Flour CementPetroleum
productsFruit OthersaTotal30-35%
Brokens<5% Brokens/
Other Grade A
1989/89 85,460 - 34,686 195,614 488,231 - 803,991
1989/90 68,243 8,530 4,252 224,698 517,164 9 822,896
1990/91 83,810 1,500 11,459 218,868 494,738 9 810,382
1991/92 57,308 6,000 7,770 245,613 557,309 10 115 874,125
1992/93 68,528 16,852 7,204 279,403 561,061 237 2 933,287
a (a)Breakdown: 1991/92: Fertiliser = 111
Helmet = 4(or2952 units)
1992/93 Helmet = 2(or1340 units)
(b)TheCorporation doesnotintend toimport fertilizer andhelmet infuture.
RICE
TheGovernment 'sintervention inthericetrade hasbeenguided byitspolicy tomake available to
theMauritian public, especially totheeconomically weaker section ofthecommunity, thisstaple food
atthelowest possible pricewhile ensuring regular supplies andmaintaining acceptable quality standards.
Given thatricehastobesoldatareasonable price themain concern oftheGovernment hasbeento
obtain thebestpossible prices from suppliers bypurchasing inbulkforawhole year, preferably on
Government toGovernment basis.
CEMENT
TheState Trading Corporation imports only50%ofthecountry 'srequirements. Theother 50%is
imported bytheprivate sector which isatpresent responsible forthecommercialisation oftheproduct.
PETROLEUM PRODUCTS
Mauritius imports itsentire needinpetroleum products. Given thestrategic roleofpetroleum products
intheMauritian economy andtheirimpact onthebalance oftrade, Government decided in1983 that
there should besome public intervention inthissector. TheGovernment tookoverfromtheexisting
importers 25%ofthecountry 'sdomestic requirements. Thegood performance interms ofpricesMauritius WT/TPR/G/5
Page 15
obtained andresulting intosubstantial savings inforeign exchange prompted theGovernment totake
overtheimportation ofallthecountry 'srequirements asfrom1985. Theprocurement ofpetroleum
products isdonethrough international tender.
(vi) AGRICULTURE
Sugar isandwillremain formany years tocome thebackbone oftheMauritian economy, ingeneral,
andofMauritian agriculture inparticular. Thenational objective istostepuptheannual sugar
production tobetween 650,000-700,000 tonnes through improvements inon-farm andoff-farm
productivity. Asasignatory totheSugar Protocol annexed totheLomé Convention, Mauritius exports
thebulkofitsrawsugar totheEuropean Union (EU). TheSugar Protocol isanimportant contractual
trade agreement which hasbeenconcluded foranindefinite duration. Itguarantees access ofagreed
quantities ofsugar intotheEUmarket atguaranteed prices.
Mauritius hassofarhonoured fullyitsexport commitment totheEU. Following itsenlargement,
theEUhasbeenexperiencing adeficit initsrawsugar requirements. Mauritius along withother ACP
countries intends togearupitsefforts todeliver theadditional quantities ofsugar tocover theentire
deficit oftheEUrefiners..
Sugar, inexcess ofthequantities supplied totheEUandtheUSA, issoldontheworld market. With
thegrowing demand fororganic products ontheinternational market, Mauritius haslaunched the
production oforganic sugar forexport. Inaddition, Mauritius produces several varieties ofspecial
sugars forexport.
Thesugar industry hadbeensubject toexport dutyforaverylongtime. Intherecent past,various
rebates hadbeenintroduced aspartoftheincentive package offered totheindustry. AsfromlstJuly
1994, theexport dutyonsugar hasbeencompletely abolished.
Mauritius facessomeimportant constraints withregard tothecompetitiveness ofitsagricultural produce
intheexport markets. They areduetotheshortage ofland, thedistance from major European or
other markets andthehighcostoflabour etc.. Thepolicy, therefore, istoencourage investment in
high-value production forniche markets.
Traditionally, teaandflowers havebeenthemainnon-sugar agricultural exports fromMauritius. Tea
exports arelikely todecline inthecoming years, bothinvolume andvalue terms, because ofthe
intrinsic unprofitability ofthiscropinMauritius. Flower exports havehitherto beendominated by
anthurium. Infuture, exports ofother flowers suchascarnation androses, arelikely topickup.A
rebate scheme provides forrefunds ofupto50%ofthefreight costsincurred byexporters ofspecified
agricultural products subject tocertain conditions.
StepsarealsobeingtakentostandardiseMauritianagriculturalproduceandexportstosatisfyinternational
norms. These include:
(a) Adoption ofinternationally accepted standards forfishandmeataswellasfruits and
vegetables inaccordance withtheWHO/FAO Joint Codex Alimentarius;
(b) Setting upofaPesticide Residue Laboratory todetect chemical residues infood;
(c) Establishment ofaFood Hygiene Laboratory tomonitor standards offoods ofanimal
origin; andWT/TPR/G/5
Page 16Trade Policy Review
(d) Review oflegislations pertaining tolivestock andplants.
Mauritius depends toalarge extent onimports especially ofrice,flouranddairy products, tosatisfy
itsnational foodrequirements, except inthecaseoffresh vegetables, chicken andporkinrespect of
which self-sufficiency hasbeenattained. Itisfeared thattheimplementation oftheGATT Uruguay
Round Agreement onAgriculture willadversely affect Mauritius asanetfoodimporting country.
Theimport ofagricultural products issubject toveterinary orphytosanitary control asappropriate.
Theobjective istoensure thattheimported products aredisease-free andthusprotect localagriculture
andhuman health.
Theimport ofagricultural products ofmassconsumption iscanalised through oneofthethreeparastatal
bodies mentioned earlier inthereport.
Toovercome theconstraints inthevarious production factors, anumber ofmeasures havebeentaken
tostepupagricultural production. These measures would fallbroadly under thecategory ofGeneral
ServicesprovidedbytheGovernmentandassuchtheyarecompatiblewiththeprovisionsoftheUruguay
Round Agreement onAgriculture.
(vii) Health
Theformulation andimplementation ofsanitary health measures andtheimport andcontrol ofdrugs
andpesticides fallunder thepurview oftheMinistry ofHealth.
Sanitary Health Measures
TheSanitary Health Regulations ofMauritius arebased ontheBritish Model Legislations relating to
theProtection ofHuman Health andHygiene dateasfarbackas1925. Thelawsenacted atthattime
proved tobeeffective inthethenprevailing circumstances. Since thentremendous changes havetaken
place, including population growth, urbanisation andindustrialization aswellastheneedtokeepup
withdevelopment which necessitate theadoption ofnewmeasures.
Initsendeavour toabide byandmaintain international norms, theMinistry ofHealth ispresently
implementing measures prescribed bytheFA0, WHO andtheEuropean Union (EU). These measures
aremeant toharmonise appropriate standards.
Theoverriding concern oftheMinistry ofHealth istoprotect thepopulation against disease infection
from abroad. With suchanobjective inmind theMinistry ofHealth hasintroduced theQuarantine
ActRevised Laws ofMauritius toprevent quarantine diseases likeCholera, Plague, Yellow Fever,
Relapsing Fever andTyphus from getting access toMauritius.
Toputintopractice thebroad object oftheAct,theQuarantine Regulations Revised LawofMauritius,
make provisions forthefollowing:
(a) tocollect andtransmit epidemiological andsanitary information;
(b) toprevent thespread ofinfection carried byships, aircrafts, persons, etccoming from
abroad;
(c) toestablish signals tobedisplayed byships when entering thecountry;Mauritius WT/TPR/G/5
Page 17
(d) toinstitute health declaration, according totheInternational Health Regulations, that
should befurnished bythemasters orpilots when entering thecountry;
(e) tocontrol andmanage thequarantine station;
(f) forkeeping thesanitation ofthePortandAirport andtheirsurroundings, including
measures forkeeping themfreefromrodents, mosquitoes andothervectors ofdiseases;
(g) forconferring powers toappropriate officers toboard ships andaircrafts.
Article 151ofthePublic Health ActRevised lawsofMauritius l992prevents theimportation offood
which isunfitforhuman consumption.
TheFood andDrugs Act,Revised Laws ofMauritius l992, hasbeenintroduced withaviewtoensuring
thatfoods areimported inasureandgenuine condition. Itconfers totheappropriate officers ofthe
Ministry ofHealth powers totakesamples offoodforthepurpose ofanalysis. Italsoempowers the
Minister ofHealth tomake Regulations forprohibiting andrestricting addition ofanysubstance and
toregulate thecomposition ofanyfoodandtotakemeasures fortheprevention ofdanger tohealth
fromtheimportation, transport andstorage offoodofvarious industries meant forhuman consumption.
TheMinistry ofHealth hasmade thefollowing regulations foradequate control offoodanddrugs:
(a) Food andDrugs (Colouring Matter) Regulation l980
(b) Food andDrugs (Flavouring Substances) Regulation l979
(c) Food andDrugs (Preservative) Regulation l976
(d) Food andDrugs (Antioxidants inFood) Regulations l982
(e) Food andDrugs (Control ofEmulsifiers andStabilisers) Regulation l979
(f) Food andDrugs (Control ofAflatoxins) Regulations l979
(g) Food andDrugs (Ghee) Regulation l962
(h) Food andDrugs (Solvents inFood) Regulation l979
(i) Food andDrugs (Phytopharmaceutical Residues) Regulation l980
(j) Food andDrugs (Trace ofelements inFood) Regulation l979.
AnewFood Actisintheprocess ofreplacing theexisting Food andDrugs Act. Allthevarious
regulations made under theFood andDrugs Actsarealsobeing consolidated intooneup-to-date
Regulation which isinlinewiththeInternational Codex Alimentarus.
Themanufacturing offoodingoodsanitary conditions infactories isgoverned bytheTrade &Industries
Regulations 47ofl954.
Importation andControl ofDrugs inMauritius
Theparamount importance ofdrugregulation iswellknown. Itsrelevance duetotheimpact ithas
onpublic opinion isalsogenerally recognised. Theeffect ofadrugdoesnotconcern onlythecountry
oforigin orproduction, butextends toanynation likely tobeinterested initsuse.Thisnecessitates
acertain degree ofcontrol onimport anduseofdrugs.
TheMinistry ofHealth hasadopted alistofessential substances required tomeetthecountry 'sclinical
needs. Theadoption ofsuchapolicy permits themosteconomical wayofsecuring drugs andatthe
same timeensuring theiravailability atalltimes.WT/TPR/G/5
Page 18Trade Policy Review
Controlled drugs likepsychotropic drugs andnarcotics which aresubject tointernational control under
International Conventions areimported through animport-export licensing system. Thequantities of
these drugs arestrictly controlled inorder toensure theirlegitimate use.
Asregards theimport ofother drugs inuseinthepublic sector, theyaresubject tointernational tenders.
Thecriteria usedarequality, price anddelivery. They arerequired tosatisfy good manufacturing
practice intheexporting countries.
Medicines onsaleintheprivate sector areimported byregistered wholesale pharmaceutical
establishments. They arerequired toberegistered withthePharmacy Board priortoeffect importation
inaccordance withthePharmacy Actl985. Asystem ofmaximum mark upshasbeenestablished
fordetermining theprices ofmedicines bywholesale aswellasbyretail. Thewholesaler obtains 17%
onthelanded costandtheretailer gets27%onthewholesale price.
Theharmonisation ofdrugregulations isconsidered necessary tofacilitate research andtosimplify
procedures.
Importation andControl ofPesticides inMauritius
Mauritius hastoimport many types ofpesticides alltheyearround foruseintheagricultural sector.
Thefirstattempt toexercise control ontheimportation, manufacture, distribution andsaleofpesticides
wasmade inl970bytheenactment ofthePesticides Control Actwiththefollowing aims:
(i) togrant permits forthemanufacture, import, saleanddistribution ofpesticides;
(ii) tofixtheconditionstobeobservedforthemanufacture,importandsaleofanypesticide;
(iii) toadvise theMinister ofHealth onanymatter relating topesticides.
Pesticides usage inMauritius issubstantial. Theaverage amount imported annually overtheperiod
l977-l986 was1153 tons. Around 200agrochemicals areregistered foruse.
During thelastcouple ofyears, regulations havebeenmade under thePesticide Control Actoutlining
requirements forpackaging andmarketing.
Theimporter hasalsotoprovide evidence thatthepesticide, which heproposes toimport intoMauritius,
isregistered inthecountry oforigin. Based ontheinformation submitted, thePesticide Control Board
(PCB) examines therequest onacasebycasebasisanddecides astowhether ornotonimport permit
canbegranted. ThePCBisguided initsdecisions byanumber ofinternationally recognised references
likethose ofWHO, FAO etc.
Moreover, withtherapid industrialisation ofMauritius especially overthepast10years, there has
beenincreasing useofchemical intheindustrial sector andinprivate households. Some ofthese
chemical substances maypresent risktoworkers incontact withthem, thegeneral population andthe
environment atlarge. So,aspartoftheproject under theEnvironment Investment Programme (EIP)
animportant proposal ispresently under consideration byGovernment tointroduce aHazardous
Substances Act(HSA). Thiswillessentially extend thePesticide Control Act(PCA) toenglobe all
dangerous chemicals andtakeoverresponsibility from thePCA. Itwillmonitor andcontrol the
importation, storage, useanddisposal ofallpotentially hazardous substances. Theimplementation
andenforcement ofthisnewlegislation willinvolve closecollaboration between theMinistries ofHealth,
Labour, Environment, thePolice andFireAuthorities, aswellastheCustoms andExcise Department.Mauritius WT/TPR/G/5
Page 19
PART B
Relevant Background Against Which theAssessment ofTrade Policies hasbeenCarried Out
Chapter 5
Wider Economic andDevelopmental Needs, Policies andObjectives
Theeconomic development ofMauritius during thepasttwenty-five years orduring thefirstphase
ofindustrial development maybeattributed tothree main factors namely:
(i) important amounts offoreign investment attracted bythecountry 'spolitical andsocial
stability aswellasthestaple levelofforeign exchange earnings generated bytheexport
ofsugar under theSugar Protocol;
(ii) anabundant andliterate reserve oflabour; and
(iii) preferential market access to:
(a) theEuropean Union under theLomé Convention and
(b) theUSforsugar under aquota system andtextile under abilateral trade
agreement.
Theperiod 1988-89 marked forMauritius theendofrapid, labour-based growth andthebeginning
ofasecond round ofdevelopment. Table Ibelow shows thatduring l989-90 theeconomy hadslowed
down. Average growth fellto5.9% from 7.5% overthepreceding fiveyears; inflation hadrisen to
9.1% compared with3.4% earlier; andtheexternal account deficit widened (average of4.5% ofGDP
compared with1.7% earlier).
Table I:Selected Economic Indicators, 1984-93
Indicators 1984-88 1989-90 1991-92 1993
GDP growth (5) 7.5 5.9 6.0 5.0
Investment/GDP (%) 24.5 30.7 28.3 28.1
National Savings/GDP (5) 22.8 26.2 27.8 24.2
CPIInflation (%) 3.4 9.1 5.8 10.5
RealExchange Rate(1980 =100) 86.0 80.7 80.0 80.1
External Current -1.7 -4.5 -0.5 -1.4
Account/GDP (%)
Fiscal Deficit/GDP (%) -1.1 -3.2 -2.4 -2.2
Change in%ofM2atstartofperiod M2(%) 27.8 19.2 20.7 13.6
NetForeign Assets (%) 21.1 58.3 13.4 -1.7
NetDomestic Credit (%) 10.4 15.2 14.1 18.0
o/wNetClaims onGovernment (%) -2.2 4.4 5.2 3.8
o/wClaims onPrivate Sector (%) 15.4 10.6 8.8 14.2
Source: Central Statistical Office.WT/TPR/G/5
Page 20Trade Policy Review
These conditions made theGovernment reflect onpolicies thatwould berequired inthefuture todeal
withproblems relating tolabour shortage, wagepressure andstiffer competition, especially intheworld
textile markets.
Shortage oflabour being theprimary constraint onfuture growth, measures havebeentaken toupgrade
theskills ofworkers andtechnology toboost upproductivity.
Asecond problem relates tothedeclining international competitiveness ofMauritian exports. Since
1989, theincrease inwages andthehigher domestic inflation ledtocomparatively highcostof
production, thusrendering theexports ofMauritius lesscompetitive ontheinternational market.
Torestore itscompetitiveness, Mauritius ismoving intotheupper segment ofthemarket byencouraging
production through theuseofsophisticated technology.
Athirdchallenge arises fromtheAgreements onAgriculture andTextiles andclothing reached inthe
context oftheGATT Uruguay Round. Theoutcome oftheUruguay Round onMTNs, which isexpected
tobring about trade liberalisation andimprovement ofmarket access through gradual elimination of
quantitativerestrictionsandreductionoftariffsonindustrialproductsandreductionofdomesticproducer
subsidy andexport subsidy onagricultural products, islikely toaffect Mauritius.
Regardingsugar,Mauritius,alongwithotherACPsugarsupplyingstates,isexaminingthecommitments
oftheEUinrespect ofmarket access andexport competition inthecontext ofthereview ofthesugar
regime oftheEU.
Inthecaseoftextiles andclothing, quotas areexpected tobephased outoveraperiod oftenyears
bygradual integration ofthissector under GATT 1994. Thiswillresult intheerosion ofthepreferences
which Mauritius enjoys fortheexport ofitstextiles andclothing products totheEUunder theLomé
Convention andtheUSandCanada under bilateral agreements concluded under theMFA.
Asanetfoodimporting country, Mauritius willalsobeadversely affected bytheimplementation of
theGATT Uruguay Round Agreement onAgriculture because itisquite likely thattheworld market
prices forfoodstuff willriseresulting inanincrease inthefoodimport billsofMauritius. Thismay
impact adversely onthebalance oftrade ofMauritius which isalready negative.
Mauritius urges theadoption ofcorrective andcompensatory measures, asprovided forintheFinal
ActoftheGATT Uruguay Round, inorder toenable ittotideovertheadverse impact oftheGATT
Uruguay Round Agreements onitseconomy.
Mauritiusis,however,cognizantofthefactthatthesustainablegrowthofitseconomyinevitablydepends
onthedevelopment ofitshuman resources, efficient allocation ofresources andtheuseofmodern
technology, etc.Mauritius WT/TPR/G/5
Page 21
Chapter 6
External Economic Environment
(a) Major Trends inImports andExports (1989-93)
(i) Total International Trade andBalance ofVisible Trade
Astudy oftheevolution ofinternational tradebetween 1989and1993shows anincrease of51percent,
from Rs36billion in1989 toRs54billion in1993.
During thisperiod negative tradebalances wereregistered ranging fromRs4.5billion toRs6.8billion.
(ii) Development intheTerms ofTrade andCommodity Prices
Throughout theperiod under study, Mauritius experienced favourable terms oftrade. Theterms of
tradeindex which shows pricemovements ofexports relative toimports computed on1968=100 stood
at103in1993 against 98in1989.
Fortheperiod 1989-1993 theExport Price Index (Unit value) indicates anannual growth of7percent
inexport prices withEPZexport prices estimated at7percent andsugar prices at5percent. 0nthe
other hand, import prices lagged behind growing atanannual rateof5percent.
(iii) Exports
Total export proceeds fortheyear1993attained Rs23.5billion about 52percent above the1989level
ofRs15.5billion. Involume terms, exports grew byanaverage of1percent asmostofthenominal
increase isexplained bytheeffect ofprice.
Comparative export figures bymain sectors forl989andl993aregiven below.
SectorValue f.o.b. Rs.billion
1989 1993 %Change
Sugar 4.9 5.8 +18
EPZ 9.1 15.8 +74
Other 1.5 1.9 +27
Total exports 15.5 23.5 +52
EPZExports:
Theriseinexports between 1989 and1993 ismainly attributable toasubstantial 74percentrise
intheexport proceeds oftheEPZsector which shotuptoRs15.8billion in1993 against Rs9.1
billion in1989, anannual growth rateof12percent. After allowing forprice increases, volume-
wisetheEPZsector grew byabout 4percent.WT/TPR/G/5
Page 22Trade Policy Review
Sugar
Receipts from sugar increased by18percenttoRs5.8billion in1993 compared toRs4.9billion
in1989 growing atanominal rateof3percentannually. 0nly540,000 metric tonsofsugar were
exported in1993 compared to636,000 metric tonsin1989 showing acontraction, inthevolume
ofsugar exported, ofaround 15percent.
Main Markets
During theperiod under study thecountry 'smain importer remained theEEC accounting for
about 80percentupto1993 when itdropped to73percentmainly duetoincrease inexports to
theUSA.
(iv) Imports
Between 1989 and1993 theimport billincreased by50percentfrom Rs20.2billion in1989 to
Rs0.3million inl993. After allowing forprice increases ofaround 5percent,thegrowth involume
works outto3percent.
Asshown inthecomparative import figures given inthetablebelow, allproducts groups haverecorded
highincreases ranging from 32percentto68percent.
Value c.i.f. Rsbn.
1989 1993 %Increase
Food, beverages andtobacco 2.4 3.9 +61
Fuel 1.5 2.1 +40
Chemicals 1.3 2.2 +68
Manufactured goods 9.3 13.9 +50
Machinery 4.6 6.8 +47
Other goods 1.1 1.4 +32
Total imports ofwhich 20.2 30.3 +50
EPZImport Market (7.5) (9.3) (+24)
Figures atAnnex Vshow thatfrom theyearl989tol993themain source ofimport ofMauritius
remained theEEC.
(v) TheEPZ Sector
Import intheEPZalso increased significantly from Rs7.5billion in1989 toRs9.3billion in1993
thatisanincrease of24percentoranannual growth rateof4percent.
0vertheperiod netEPZexports improved considerably fromRs1.5billion inl989toRs6.5billion
in1993 withitsratiorising to41percentin1993 from17percentin1989. Forfigures mentioned
above please seeAnnex VI.Mauritius WT/TPR/G/5
Page 23
(b) Important Trends intheBalance ofPayments, Reserves, Debt, Exchange andInterest
Rates
Theoverall balance ofpayments hascontinuously recorded surpluses since1985. However, theoverall
surplus declined from Rs2,950 million in1991 toRs721million in1992 andtoRs140million in
1993. asshown intablebelow. Thisdeclining surplus waslargely duetocertain developments in
thecapital account. Adropinthenetinflows ofcapital onaccount ofparastatal bodies andasurge
inprivate direct investment abroad ledtoanetoutflow ofcapital during 1992 andonlyasmall net
inflow in1993 asagainst relatively large netinflows during thepreceding years. Annex VIIgives
thebalance ofpayments accounts fortheyears 1987-92.
Following developments intheoverall balance ofpayments position since1991-92, thelevelofforeign
exchange reserves oftheBank ofMauritius hasdropped from Rs14,712 million attheendofJune
1992 toRs13,692 million inJune1993 andtoRs12,729 million inJune1994. AttheendofJune
1994 thelevel offoreign exchange reserves represented twenty oneweeks ofimports ascompared
withtwenty sixweeks inJune1993 andthirty weeks inJune1992. Fordetails please refer to
Annex VIII.
Balance ofPayments Summary
(RsMillion)
1989 1990 1991 1992 1993 (e)
Current account -1,593 -1,783 -285 -181 -1,624
Merchandise -3,219 -4,007 -3,193 -1,817 -4,487
Exports f.o.b. 15,166 17,914 19,019 20,100 23,020
Imports f.o.b. 18,385 21,921 22,212 22,917 27,507
Imports c.i.f. 20,217 24,019 24,383 25,280 30,319
Services (net) 477 786 1,635 1,204 1,166
Transfers (net) 1,149 1,438 1,273 1,432 1,697
Capital Account 526 1,416 655 -230 216
Errors andOmissions 3,292 3,809 2,580 1,132 1,548
Overall balance ofpayments 2,225 3,442 2,950 721 140
Monetary Movements ofwhich: -2,225 -3,442 -2,950 -721 -140
Reserve Movements (-indicates anincrease) -1,659 -2,797 -2,628 -721 -140
Other -566 -645 -322 0 0
External Debt
Total external debtoutstanding attheendofJune1993 wasRs17,059 million, ofwhich Rs5,712
million wereCentral Government debt,Rs7,546 million otherofficial debtandRs3,801 million private
sector debt. 0vertheyears, theshares ofother official debtandprivate sector debtintotalexternal
debthaveincreased. Thedebtservice ratioofthecountry was7.4percentin1991-92, 8.1percent
in1992-93 and6.5percentin1993-94. Fordetails please refertoAnnex IX.
Exchange Rate
TheMauritian Rupee waspegged toatrade-weighted basket ofcurrencies since February 1983.
Moreover, theauthorities havepursued aflexible exchange ratepolicy inrecent years. TheBank ofWT/TPR/G/5
Page 24Trade Policy Review
Mauritius hadbeenquoting theRupee/US dollar, theRupee/French francandtheRupee/pound sterling
rates. TheBank ofMauritius nowintervenes intheforeign exchange market bybuying orselling
USdollars only. Thiswillhelpthedevelopment ofamore efficient foreign exchange market andan
exchange ratepolicy withtheobjective ofensuring amore stable rupee.
Exchange ratesoftherupee against major currencies forrecent years aregiven inannexes. (SeeAnnex
X,XI,XII).
Interest Rates
Interest rateshavebeenfullyliberalised since July1988. With aviewtoallowing market forces to
playagreater roleinthedetermination ofinterest rates, theBank Ratehas,since June1994, been
linked totheaverage Treasury Billauction rateoverthepreceding twelve weeks, plusamargin of
onepercentage point. Principal interest ratesforrecent years aregiven inAnnexes XIII, XIV, XV.
Financial Measures Applicable toImport andExports -Exchange Control
There arecurrently norestrictions onthemaking ofpayments andtransfers forcurrent international
transactions, including trade inservices.
Moreover, theGovernment ofMauritius has,witheffect from 29thSeptember l993, accepted the
obligations ofArticle VIII,Sections 2,3and4oftheIMFArticles ofAgreement. Byaccepting the
obligations ofArticle VIII, Mauritius undertakes torefrain fromimposing restrictions onthemaking
ofpayments andtransfers forcurrent international transactions orfrom engaging indiscriminatory
currency arrangements ormultiple currency practices without IMFapproval.
Thegraduation ofMauritius toArticle VIIIstatus thusgives confidence totheinternational community
thatitwillpursue sound economic policies thatwillobviate theneedtouserestrictions onthemaking
ofpayments andtransfers forcurrent international transactions andthereby contribute toamultilateral
payments system freeofrestrictions.
Since July1994, allremaining controls oncapital flows havebeenabolished. Hence, there arenow
noforeign exchange controls inMauritius. Afurther steptowards theintegration ofthedomestic
economy withtheglobal economy hasthusbeenmade.
(c) International Macroeconomic Situation Affecting theExternal Sector
Theeconomy ofMauritius isexternally oriented andassuchitisvulnerable toadverse developments
suchasrecession andfinancial crisis initsmainexternal market. Downturn intheeconomic activities
inthese markets nodoubt leads toareduction indemand andcontraction inconsumption andhence
inimports ofproducts ofexport interest toMauritius. Luckily, Mauritius hadbeen spared, toalarge
extent thenegative effects arising fromthelasteconomic downturn inanumber ofdeveloped countries.
However, thefollowing recent developments areofconcern toMauritius:
(a) Thesetting upoftheNorth American FreeTrade Area (NAFTA) andthepossibility ofits
extension toother Latin American countries, besides Mexico
(b) Theconclusion ofAssociation Agreements between EUandanumber ofcountries ofEastern
andCentral Europe.Mauritius WT/TPR/G/5
Page 25
(c) Thedismantling oftheCommunity ofMutual Economic Aid(CMEA) andintegration offormer
communist economies intotheworld economy
(d) Thesetting upofexport processing zones inanumber ofdeveloping countries thereby bringing
inmore supplies oftraditional items suchastextiles andclothing ontheworld market.
Asasignatory member oftheLomé Convention, Mauritius cannot remain unaffected bychanges taking
place intheEuropean Union .Theextension oftrade preferences byEUtoEastern andCentral
European countries hasadirect negative bearing onMauritian exports. These countries havealsoan
edgeonMauritius interms ofsupply ofrawmaterials,availability ofskills, technology, infrastructure
andproduction costinaddition totheirgeographical proximity tothemarkets oftheEUmember states.
Another areaofconcern istheimplementation oftheprovisions ofthenewGATT Accord. The
provisions oftheFinalGATT Uruguay Round willerode thetradepreferences oftheLomé Convention.
Increased competition ontheNorth American market duetotradeliberalisation, ontheonehand, and
NAFTA Agreement, ontheother ,isalsolikely toimpact onMauritian exports.
Mauritius hasalready initiated action toupgrade thevarious sectors ofitseconomy. Itisalsoenvisaging
investment forthedevelopment ofnewareas ofeconomic activities.WT/TPR/G/5
Page 26Trade Policy Review
Chapter 7
Problems InExternal Markets (Problems OfMarket Access Facing Exports: Existing Significant
Barriers ToTrade)
Background
Mauritius exports mainly toEECcountries andtheUSA which purchased respectively some 73per
centand18percentofitsexports in1993. With respect to1993 EPZexports, France, USA, UK,
Germany andItalytogether bought 82.3percentofgoods. They represent thetraditional markets
ofMauritius. Textiles andclothing constitute thedominant share (84percent) oftheEPZexports.
Fordetails please seeAnnex XVI.
Mauritius considers markets enlargement anddiversification asvitaltoensure expansion ofexports.
However, penetration incertain markets hasbeendifficult duetotheexistence ofsignificant tariff &
non-tariff barriers totrade.
Barriers totrade
EUMarkets
Market access toEUCountries isnotcharacterised bybarriers totrade asgoods manufactured in
Mauritius enter these markets quota-free andduty-free provided theorigin criteria aremet.
US&Canada
0ntheUSandCanadianmarkets,Mauritiusexportssuchproductsasdresses,shirts,blousesandtrousers
under bilateral quotas agreements. Ithasunfortunately underutilised itsquota. Annex XVII shows
theunused quotas fordifferent items ontheUSmarket.
Moreover Mauritian exporters havetopaytariffs ranging between 3.5% and34.2% depending onthe
apparel products, whenever these products enter theUSmarket. Itseems thatinspiteoftheUruguay
Round Agreements there willbenochanges totheexisting UStariffs asoutlined intheHarmonized
Tariffs, chapters 61and62.
Mauritius enjoys theBritish Preferential Tariff (BPT) andtheMost-Favoured Nation Tariff (MFNT)
Status withCanada.
Inthecaseofapparel imports fromMauritius transhipped through theUS,theapplicable dutycould
beraised byseven percent.
Australia
In1991 theAustralian Government announced thatimport quotas onTextiles, Clothing &Footwear
(TCF) products entering theAustralian market would beabolished on28February 1993 andthese
products would besubject toimport duties only. Theimport duties would begradually reduced over
thenextnineyears andby1July2000 theimport duties onTCFwould be:Mauritius WT/TPR/G/5
Page 27
General rate
Country rateDeveloping
Clothing andcertain finished textiles 25% 20%
Footwear, cotton sheeting andfabrics 15% 10%
Footwear parts andexisting non-quota 10% 5%
Thehighimport duties onapparel andcertain finished textiles donotfacilitate trade. Theannual
'3points 'decrease asfrom 1994 onwards isnotsignificant enough toenable Mauritius to
penetrate andestablish afoothold intheAustralian markets foritsexport products.
Eastern &Southern Africa
Unlike Mauritius, several other PTA members areimplementing thePTA time table forthe
gradual tariff elimination ataslower pace.
Non-tariff barriers (e.gimport &export licensing requirements) have beenidentified asthemain
impediment totrade inthisregion. Therestrictive import licensing policy ofseveral PTA
countries doesnotallow Mauritius toexport tothese countries.
Thevalue-added criteria of45%ofex-factory costs isconsidered toostringent, thusdiscouraging
export ofMauritian products tothePTAcountries.
Theabsence ofnorms andstandards incertain PTA countries hasmade businessmen reluctant to
trade infresh foodwiththese countries, aslegal protection incaseofdelivery ofpoorquality of
goods would benon-existent.
Insufficient information dissemination about transport routes andinadequate ofsealinks have
hampered trade development intheregion.
South African products enjoy preferential tariff treatment when exported toMauritius. However
Mauritian goods exported toSouth Africa have tofacehighimport duties plusasurcharge on
certain items. Forexample, duties onready made garments are90% withasurcharge of15%
though theactual dutyapplicable willdepend upon theminimum andmaximum dutyratesallowed
which varyfrom itemtoitem.
India
High custom duties arelevied onsuch goods ascarbonless paper, woollen pullovers &fabrics
when these products areexported toIndia. Carbonless paper issubjected toanimport dutyof
205%. Theexistence ofsuchhighduties doesnotallow Mauritius toexport itsproducts toIndia.Mauritius WT/TPR/G/5
Page 29
ANNEXESMauritius WT/TPR/G/5
Page 31
Annex 1(a)
Listofcontrolled goods
C.T.N. Description
03.05 Salted fish
04.01 Milk (fresh/liquid)
07.01 Potatoes (inallforms) including seed
0703.10 Onions andshallots
0703.20 Garlic
0708.20 Beans
0708.90 Other broad beans
0802 Groundnut
0805.10 Oranges
0805.20 Tangerines, mandarines
0805.30 Lemons andlimes
0805.40 Grapefruit
0904 to0910 Spices
10.05, 1103.13,
1102.20Maize inallforms
10.06 Rice
11.01 Wheat ormeslin flour
12.11 Plants andparts ofplants (including seeds andfruit), ofakindusedprimarily inpharmacy, fresh ordried,
whether ornotcut,crushed orpowdered.
15.07 Soybean oilanditsfractions, whether ornotrefined, butnotchemically modified.
15.11 Palm oilanditsfractions, whether ornotrefined, butnotchemically modified.
15.12 Sunflower seed, safflower orcotton-seed oilandtheirfractions, whether ornotrefined, butnotchemically
modifed.
1513.11,
1513.19Coconut oil(copra) anditsfractions, whether ornotrefined, butnotchemically modified.
15.14 Rape, colza ormustard oilandtheirfractions, whether ornotrefined butnotchemically modified.
1515.21 Maize (corn) oilanditsfractions (crude).
1515.29 Maize (corn) oilanditsfractions (other).
15.16 Animal orvegetable fatsandoilsandtheirfractions, partly orwholly hydrogenated, inter-esterified, re-esterified
orelaidonised, whether ornotrefined, butnotfurther prepared.
15.17 Margarine edible mixtures orpreparations ofanimal orvegetable fatsoroilsoroffractions ofdifferent fatsor
oilsofchapter 15,other thanedible fatsoroilsortheirfractions ofHeading No.15.16.
15.18 Animal orvegetable fatsandoilsandtheirfractions boiled, oxidised, dehydrated, sulphurised, blown,
polymerised byheatinvacuum orininertgasorotherwise chemically modified.
17.02 Artificial sweeteners.
1901.10,
1905.401, 04.01Infant formulas
21.06 Nutrient supplements
21.06 Dietary foods
2106.902 Bakery additives
2402.20 Cigarettes containing tobacco
25.01 Salt
2523.21,
2523.29Portland cement
27.09 Petroleum oilsandoilsobtained from bituminous minerals crude
27.10 Petroleum oilsandoilsobtained from bituminous minerals other thancrude
2916.1 Acrylic acid
Chapter 30 Pharmaceutical products
Ayurvedic andother traditional medicines
3006.20,
3006.30, 38.22Diagnostic materials ofbiological origin
38.08 Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products andplant growth regulators, disinfectants
andsimilar products, putupinforms orpackings forretail saleoraspreparations orarticles (forexample,
sulphur-treated bands, wicks andcandles andfly-paper).
3917.23 PVC pipes
39.26 Plastic-feeding bottles
3926.909,
4014.90Teats andsoothers
Annex 1(a)cont'dWT/TPR/G/5
Page 32Trade Policy Review
C.T.N. Description
6506.101 Motor-cyclists 'helmets (crash helmets)
71.08 Gold (including gold-plated withplatinum), unwrought orinsemi-manufactured forms, orinpowder form.
7112.10 Waste andscrap ofgold, including metal cladwithgold, butexcluding sweepings containing other precious
metals.
8417.20,
8438.10, 85.14Bakery andpastry equipment
84.23 Weighing machinery
8516.10 Electric water heaters andimmersion heaters andparts thereof
87.02 Public transport type, passenger motor vehicles, bus
8706.001 Buschassis fitted withengines
89.01 Cruise ships, excursion boats, ferry-boats, cargo ships, barges andsimilar vessels forthetransport ofpersons or
goods.
89.02 Fishing vessels, factory ships andother vessels forprocessing orpreserving fishery products.
89.04 Tugs andpusher craft
90.17 Instruments formeasuring length, foruseinthehand (forexample measuring rodsandtapes).
9018.31 Syringes withorwithout needles
9018.39 Sutures andligatures
9603.10 Brooms
Falling under
following
chapters: 13,
21,28,32,33,
35and38Food additives (preservatives, colouring substances, flavouring substances, flavour enhancers).
- -Second-hand (used/reconditioned) motor vehicles
- -Second-hand motor vehicle parts andaccessories
- -Other used, scrapped andsecond-hand goodsMauritius WT/TPR/G/5
Page 33
Annex 1(b)
Listofdangerous chemicals
HSCode Description
2912.12 Acetaldehyde
2924.29 Acetaminophen
2926.90 Acetonitrile
2912.19 Acrolein
2915.24 Acetin Anhydride
2915.96 Acetyl Chloride
2926.10 Acerylonitrile
2814.10 Ammonia
2922.29 4-Amino Dyphemyl
2921.41 Aminobenzene
2927.00 Aminoazotoluene
2921.41 Aniline
2811.29 Arsenic
2524.00 Asbestos
2925.10 Auramine
2617.10, 8110.00 Antimony
2902.02 Benzene
C.T.N. Description
2902.90 Benzo Anthracene
2902.90 Benzo Fluoranthene
2902.90 Benzopyrene
2921.59 Benzidine
2916.31 Benzoic Acid
2903.59 Benzotrichloride
2617.90, 8112.11, 8112.19 Beryllium
2903.30 Ethylene Dibromide
2930.90 Ethylene Thiourea
2902.90 Fluoranthene
2912.11 Formaldehyde
2903.40 Flurotrichloromethane
2910.90 Gudrin Aldehyde Endrin
2910.90 Heptachlor Epoxide
2903.62 Hexachlorobenzene
2931.00 Hexachlorobutadiene
2811.19 Hydrogen Sulfide
2903.19 Hexachloroethane
2806.10 Hydrogen Chloride
2825.10 Hydrazine
2902.90 Undenol (1,2, 3-cd) Pyrene
2914.29 Isophorone
2607.00 Chap. 78 Lead
3204 Magenta
2805.40 Mercury
2916 Methacrylic Acid
2909.60 Methyl Ethyl Ketone
2903.30 Methyl Bromide
2903.12 Methylene Chloride
2909.19 Methyl Chloromethyl Ether
Annex 1(b)(cont'd)WT/TPR/G/5
Page 34Trade Policy Review
C.T.N. Description
2924.10 Methyl Nitrosourea
2921.59 Methylene Bis-O-Chloraniline
2905.50 Methyl Methane Sulphonate
2902.90 Naphtalene
2910.90 Dieldrinaldrin
2903.19 1,1Dichloroethene
2903.15 1,2Dichloroethane
2908.90 2,4Dintirophenol
2903.40 Dichlorodifluoromethane
2917.34 Diethyl Phthalate (Diethyl Sulfate) (Dimethyl Sulfate)
2903.61 1,2,2 Dichlorobenzene
2908.10 2,4Dimethylphenol
2932.90 1,4Dioxane
2917.34 Dimethyl Phthalate
2922.19 4-Dimethyylamino Benzene
2908.19 Dimethylnitrosamine
2903.10 4,6Dinitro 2-Methylphenol
2908.61 1,3Dichlorobenzene
2921.59 3,3Dichlorobenzidine
2903.15 1,2Dichloroethane
2904.20 2,4Dinotortoluene-24-Diaminotoluene
2903.15 1.1.Dichloroethane
2917.31 Di-N-Butyl Phthalate
2928.00 1-1,Dimethyl Hydrazine
2928.00 122-Diphenylhydrazine
2904.20 2,6Dinotretoluene
2908.10 2,4Dichlorophenol
2910.30 Epichlorohydrin
2902.60 Ethylbenzene
2904.10 Ethylmethyl Sulfonate
2941.29 Napthylamine (Alpha, Beta)
2604.00 Chap. 75 Nickel
2903.19 N-Nutyl Chloride
2904.20 Nitrobenzene
2904.20 4-Nitrodiphenyl
2908.90 2Nitrophenol
2921.18 N-Notrosodimethylamine
2921.19 N-Nitrosodi-n-Propylamine
2921.19 N-Nitrosodiphenylamine
2921.59 N-N-Diacetylbenzidine
2910.90 Oxirane
2902.90 Polychlorinate Biphenyls (PCB) 1260, 54,48,42,32,21,1016
2902.90 Polybrominated Biphenyls; Polychlorinated Triphenyls
2908.10 P-Chloro-N-Cresol
2924.29 P-Chloroanline
2932.00 P-Dioxin
2921.51 P-Phenylenediamine
2908.16 Pentachlorophenol
2914.41 2-Pentanene, 4-Methyl
2902.90 Phenanthrene
2907.11 Phenol
2907.19 Phenol, 2-Methyl
2930.90 1,3Propane Sultone
Annex 1(b)(cont'd)Mauritius WT/TPR/G/5
Page 35
C.T.N. Description
2904.20 2-Nitropropane
2925.20 Propylenimine
2505.10, 2506 Quarts
2932 Beta-Propiolactone
2903.51 BHC-ALPHA, Camma, Beta, Deta
2909.19 Bis(2Chloromethyl) Ether
2909.19 Bis(Chloromethyl) Ether
2917.34 Bis(2Ethylihexy) Phthalate
2903.40 Bromodichloromethane
2903.30 Bromoform
2903.30 Bromethane
2914.50 2-Butanone
8107.00 Cadmium
2933.59 Carbon Disulfide
2903.14 Carbon Tetrachloride
2903.61 Chlorobenzene
2903.69 Chloroditromomethane
2903.13 Chloroform
2903.11 Chloromethane
2904.90 Chloropiorin
2903.59 Chlordane
2610.00, 8112.20 Chromium
2902.90 Chrysene
2603.00, Chap. 74 Copper, Crocidolite
2851.00 Cyanamide
2927.00 Diazomethane
2903.40 1,2-Dibromo-3-Chloropropane (DBCP)
2910.90 1,2,3,4 -Diepoxy Butane
2902.90 Dibenzo (a)(h)Anthracene
2903.61 1,4-Dichlorobenzene
2804.90 Selenium
2616.90, 7105 Silver
2902.50 Styrene
2903.19 1.1.2.2. Tetrachloroethane
2903.10 Tetrachloroethen
8112.91, 8112.99 Thallium
2930.90 Thioacetamide
2980.90 Thiourea, Tremolite
2903.69 1,2,4 Trichlorobenzene
2903.15 122-Trans Dichloroethane
2903.19 1.1.1 -Trichloroethane
2903.19 1,1,2 -Trichloroethene
2903.22 Trichloroethene
2933.39 Trichloracetic Acid 2908.10; 2,4,6 Trichlorophenol
2919.50 Tris(2,3-Dibromoproyl); Phosphate
2902.30 Teluene
2921.40 0-Toluidine
2902 Total Xylenes; Toxaphene
2924.16 Urethane
2903.62 U,U-DDE, DDT, DDD
2903.62 Vinyl Chloride
2902.10 Polyvinyl Chloride
2902.19 4-Vinyl Cyclohexene
Chap. 79 Zinc
29.10, 34.03 Cutting oils-cutting fluids
2939.29 HydroquinineWT/TPR/G/5
Page 36Trade Policy Review
Annex 1(c)
Listofprohibited goods
1. Ballvalve bottles
2. Explosive capsfortoypistols andgunscontaining amixture ofpotassium chlorate andredphosphorus
3. Firecrackers ofatypecommonly known as"petards rapes"
4. White phosphorous matches
5. Rubber tyres which havebeenremoulded, recapped orregrooved
6. Kerosene stoves ofatypecommonly known as"lampes vertes" andparts thereof
7. Water scooters
8. Ivory andtortoise shell
9. Underwater fishing guns
10. Sugar andchocolate confectionary andbubble/chewing gumintheform ofcigarettes
11 Second-hand motor vehicle spare parts andaccessories asfollows:-
(a) Tyres, tubes andwheels
(b) Radiators
(c) Springs andfront legs
(d) Lorry cabins andparts thereof
(e) Injector nozzles
(f) Chassis andparts thereof
(g) Brake linings
(h) Clutch nutandparts thereof
(i) Fueltanks
(j) Filters
(k) Hoses
(l) Engine mountings
(m) Bolts
(n) Oilseals
(o) Balljoints
(p) Bearings
(q) Shock absorbers
(r) Spring leaves
(s) Carbodies
12. Toymotor-cyclists 'helmets
13 "Roll yourown" cigarette papers imported under Customs Tariff Heading No.48.13Mauritius WT/TPR/G/5
Page 37
Annex II(a)
Listofimported goods subject toprice fixing
Cement Cheese Cooking gas(LPC)
Fertilizers Flour Frozen fish
Infant milkpowder Ironandsteelbars Petroleum products including kerosene
Rice Salted snoek
Listoflocally produced goods subject toprice fixing
PartI
Onions Potatoes Sugar
PartII
Aerated beverages Bread Edible oil
Fertilizers Frozen fish Iron/steel bars
Flour, including whole wheat flour
Annex II(b)
Listofimported goods under maximum mark upsystem
1.Ceramic tiles 2.Crash helmets
3.Domestic washing machines 4.Electric floor polisher
5.Electric foodgrinders andmixers, fruitorvegetable juice extractors 6.Electric kettles
7.Electric ricecookers 8.Electric smooth irons
9.Glass panes 10.Plywood
11.Refrigerators andfreezers 12.Sanitary ware
13.School textbooks 14.Timber
15.Tyres 16.Vacuum cleaners
17.Vinyl tiles 18.Pharmaceutical products
19.Simple drug 20.Sports goods
21.Fresh fruitWT/TPR/G/5
Page 38Trade Policy Review
Annex III
Listofscheduled territories
Ashmore andCartier Islands Lesotho
Australia Luxembourg
Australian Antartic Territory Madagascar
Bahamas Malawi
Bangladesh Malaysia (comprising Federation ofMalaya, Sarawak andSabah)
Barbados Malta
Belgium Monaco -French territory
Bermuda Mozambique
Botswana Myanmar
British Antartic Territory Namibia
British Indian Ocean Territory (comprising Chagos Archipelago,
Aldabra, Farquhar andDesroches)Nauru
Netherlands
Brunei Darussalam NewZealand
Burundi Nigeria
Canada Norfolk Island
Cayman Islands Pakistan
Channel Islands Papua
Christmas Island Portugal
Cocos orKeeling Islands Ross Dependency
Comoros Islands Rwanda
Cyprus Seychelles
Denmark Sierra Leone
Djibouti Singapore
Egypt Soloman Islands
Ethiopia Somalia
Falkland Islands andDependencies South Africa
Fiji Spain
France SriLanka
Gambia St.Helena (with Ascension andTristan daCunha)
Germany Swaziland
Ghana Sweden
Gibraltar Tanzania (comprising Tanganyika andZanzibar)
Gilbert andEllice Islands Colony Territory ofNewGuinea
Greece Tonga
Guyana Trinidad andTobago
Heard Island andMcDonald Island Turks andCaicos Islands
Honduras Uganda
Hong Kong Union oftheSoviet Socialist Republics
India United Kingdom
Ireland United States
IsleofMan Virgin Islands (British)
Italy Western Samoa
Jamaica
KenyaWinward Islands (comprising Dominica, Grenada, St.Lucia and
St.Vincent)
Leeward Islands (comprising Antigua, Montserat, St.Christopher,
Nevis andAnguilla)Zambia
ZimbabweMauritius WT/TPR/G/5
Page 39
Annex IV(a)
Listofimports byproducts
Combed cabled cotton yarn, with 85% cotton, NPRS,
>80mnPortland cement other thanwhite cement, whether ornot
coloured
1991 549,892,272 1991 498,907,746
1992 532,743,700 1992 540,568,682
1993 837,097,002 1993 631,771,162
Gasoilsobtained from petroleum orbituminous mineral Kerosene, excluding jetfuel
1991 517,534,181 1991 191,072,498
1992 465,056,224 1992 576,506,746
1993 590,943,904 1993 580,762,145
Parts ofaeroplanes orhelicopters, excluding 880310-20 Semi-milled orwholly milled rice, whether ornotpolished
orglazed
1991 391,412,386 1991 292,314,993
1992 542,900,612 1992 267,857,181
1993 208,242,045 1993 446,607,641
Medicament n.e.s. notcontaining
antibiotic/harmone/alkaloid/vitaminNon-industrial diamond unworked/simply sawn,
cleaved/bruted, notmounted/se
1991 256,441,874 1991 299,861,871
1992 343,996,492 1992 266,807,493
1993 373,522,633 1993 343,493,529
Dyed woven fabrics ofcotton, >2000g/M2, n.e.s. Fueloilsobtained from petroleum orbituminous minerals
1991 152,478,954 1991 320,582,177
1992 287,594,044 1992 246,150,172
1993 436,666,348 1993 309,541,145
Annex IV(b)
Listofimports bycountries
Total imports France South Africa
1991 24,686,238,903 1991 3,271,122,805 1991 2,696,451,356
1992 25,933,322,296 1992 3,603,297,716 1992 3,161,711,339
1993 30,762,213,967 1993 3,823,005,793 1993 4,408,419,757
United Kingdom Japan Germany
1991 1,682,180,133 1991 1,756,034,056 1991 1,358,797,825
1992 1,902,278,367 1992 1,928,363,334 1992 1,275,092,014
1993 2,239,384,316 1993 1,824,412,391 1993 1,703,448,288
India Hong Kong Chinese Taipei
1991 1,115,374,367 1991 1,058,043,971 1991 1,008,961,394
1992 1,282,206,323 1992 1,091,266,000 1992 954,852,252
1993 1,732,526,713 1993 1,402,549,000 1993 1,275,981,343
China Italy
1991 933,852,200 1991 783,669,939
1992 847,505,081 1992 755,075,401
1993 1,282,587,167 1993 1,063,905,716WT/TPR/G/5
Page 40Trade Policy Review
Annex V
Imports from EEC bysection, 1989-93
SITC
SectionGroup ofcountries 1989 1990 1991 1992 1993
0 2,346 2,610 2,692 2,915 3,744
EEC 783 850 744 853 1,208
Preferential tariff 1,207 1,406 1,527 1,643 1,919
General tariff 356 354 421 419 617
1 75 89 113 132 152
EEC 53 68 78 99 108
Preferential tariff 19 20 34 32 43
General tariff 3 1 1 1 1
2 748 765 801 749 951
EEC 159 120 100 69 54
Preferential tariff 471 526 557 551 649
General tariff 118 119 144 129 248
3 1,509 1,939 2,053 1,945 2,109
EEC 25 29 24 34 25
Preferential tariff 185 355 799 1,354 1,875
General tariff 1,299 1,555 1,230 557 209
4 220 235 255 275 290
EEC 31 24 31 28 41
Preferential tariff 55 80 71 72 97
General tariff 134 131 153 175 152
5 1,319 1,618 1,739 1,901 2,216
EEC 697 812 806 894 1,050
Preferential tariff 386 466 587 632 735
General tariff 236 340 346 375 431
6 7,580 8,360 8,624 9,141 11,039
EEC 2,262 2,810 2,423 2,728 3,062
Preferential tariff 2,776 2,970 3,504 3,770 4,630
General tariff 2,542 2,580 2,697 2,643 3,347
7 4,639 6,290 5,840 5,715 6,787
EEC 2,084 2,910 2,746 2,407 3,279
Preferential tariff 672 1,850 1,322 1,180 1,569
General tariff 1,883 1,530 1,772 2,128 1,939
8 1,684 1,869 2,160 2,361 2,871
EEC 738 814 945 926 1,160
Preferential tariff 489 568 722 823 1,058
General tariff 457 487 493 612 653
9 97 167 106 146 160
EEC 91 158 105 146 158
Preferential tariff 2 2 1 0 0
General tariff 4 7 0 0 2
Total imports 20,217 23,942 24,383 25,280 30,319
EEC 6,923 8,595 8,002 8,184 10,145
Preferential tariff 6,262 8,243 9,124 10,057 12,575
General tariff 7,032 7,104 7,257 7,039 7,599WT/TPR/G/5
Page 44Trade Policy Review
Annex VIII
Foreign reserves
Bank of
Mauritius
Foreign AssetsGovernment of
Mauritius
Foreign AssetsReserve Position
inIMFCommercial
Banks Net
Foreign AssetsTotal Reserves
January 1990 8,201.9 1.9 - 357.2 8,561.0
February 8,252.4 0.9 - 372.6 8,625.9
March 8,508.8 0.3 - 409.6 8,918.7
April 8,471.2 0.3 - 572.0 9,043.5
May 9,066.7 1.2 - 421.6 9,489.5
June 9,211.4 1.7 - 419.0 9,632.1
July 9,120.8 1.8 - 431.9 9,554.5
August 9,449.5 1.6 - 506.5 9,957.6
September 9,715.8 1.6 - 340.0 10,057.4
October 10,370.7 3.9 - 411.2 10,785.8
November 10,539.2 1.7 2.0 432.0 10,974.9
December 10,633.2 0.0 2.0 428.3 11,063.5
January 1991 10,879.6 0.8 2.0 595.2 11,477.6
February 10,870.3 0.6 2.0 451.6 11,324.5
March 11,122.4 0.7 2.1 503.1 11,628.3
April 11,773.6 3.9 2.2 464.2 12,243.9
May 11,688.3 1.2 2.2 513.0 12,204.7
June 11,666.7 1.3 2.2 514.7 12,184.9
July 11,691.2 1.5 2.2 453.6 12,148.5
August 12,096.8 1.6 2.2 525.5 12,626.1
September 12,693.6 0.8 2.2 468.7 13,165.3
October 12,528.6 0.7 28.4 564.5 13,122.2
November 12,770.6 1.4 28.1 585.5 13,385.6
December 13,259.5 1.9 27.5 616.6 13,905.5
January 1992 13,439.9 0.6 28.0 620.6 14,089.1
February 13,863.5 1.9 28.3 482.9 14,376.6
March 14,341.2 3.9 28.4 470.5 14,844.0
April 14,655.6 2.9 28.6 421.0 15,108.1
May 14,557.7 4.8 28.4 426.2 15,017.1
June 14,712.4 3.2 28.2 434.7 15,178.5
July 14,500.4 2.9 27.9 361.9 14,893.1
August 14,819.1 2.7 27.5 402.0 15,251.3
September 14,676.4 2.4 28.3 410.6 15,117.7
October 13,906.7 2.5 29.1 415.2 14,353.5
November 14,055.9 2.1 142.5 395.0 14,595.5
December 13,866.7 2.3 145.1 541.9 14,556.0
January 1993 14,092.3 2.6 145.3 496.6 14,736.8
February 14,350.2 2.7 148.1 467.9 14,968.9
March 14,085.3 1.3 147.7 369.3 15,203.6
April 14,144.7 1.3 147.1 446.6 14,739.7
May 14,026.4 2.8 153.8 382.5 14,565.5
June 13,691.7 1.1 179.1 354.4 14,226.3
July 13,543.1 2.3 188.5 882.5 14,616.4
August 13,871.3 1.3 185.6 996.5 15,054.7
September 14,295.3 1.1 184.4 871.1 15,351.9
October 14,068.5 1.5 187.7 865.7 15,123.4
November 13,966.1 1.4 187.2 871.7 15,026.4
December 14,008.1 1.0 187.4 948.7 15,145.2Mauritius WT/TPR/G/5
Page 45
Annex IX
External debtoutstanding
(Mau Rsmillion)
Year
(asatendJune)Central
Government
(excl. IMF)IMFcredit and
trust fund loanPrivate
sector Others Total
1983 3,463 2,060 190 464 6,177
1984 3,945 2,494 195 561 7,195
1985 5,207 2,488 201 682 8,578
1986 4,633 2,202 292 828 7,955
1987 4,844 1,989 645 1,230 8,708
1988 5,802 1,624 1,128 2,702 11,256
1989 5,735 1,265 1,394 3,468 11,862
1990 5,868 720 1,943 4,038 12,569
1991 5,964 - 2,586 5,826 14,376
1992 5,476 - 2,879 6,221 14,576
1993a5,712 - 3,801 7,546 17,059
a Provisional.
Source: Ministry ofFinance, Government ofMauritius.WT/TPR/G/5
Page 52Trade Policy Review
Annex XVI
Export bydestination
(Mau Rsmillion)
1992 1993
EUcountries 16,135 16,861
Other preferential countries 3,519 5,460
ofwhich United States (2,508) (4,117)
General tariff countries 590 671
Total exports 20,244 22,992
ofwhich EPZexports 13,081 15,821
(France) (4,006) (4,390)
(United States) (2,329) (3,972)
(United Kingdom) (2,170) (2,268)
(Germany) (1,694) (1,564)
(Italy) (769) (831)