On 17th February 2021, Union Cabinet of India has approved the signing of a comprehensive economic cooperation and partnership agreement between the India and Mauritius.
The union cabinet chaired by Prime Minister Narendra Modi and Prime Minister of India is the ex-officio chairman of the cabinet.
CECPA (Comprehensive Economic Cooperation agreement)
- CECPA is a kind of a free trade agreement between the countries.
- CECPA was signed with the aim of liberalising the norms to boost the bilateral commerce.
- CECPA will cover 310 export items for India such as foodstuff & beverages, agricultural products, textile & textile articles, base metals, electricals & electronic items, plastics & chemicals, wood & its articles.
- The island nation Mauritius will also get preferential market access into India for some 615 products. These products would range from specialty sugar, biscuits, juices, beer, frozen fish, mineral water, fresh fruits, alcoholic drinks, medical & surgical equipment, soaps, bags and apparel.
- CECPA is the India’s first such trade agreement with any African nation.
Significance of the CECPA
- Under this agreement, both friendly and trading countries cut or eliminate the duties on the products and liberalize the norms to promote the services trade.
- A mutually convenient date will be finalized in order to sign the agreement.
- CECPA will cover trade in goods, trade in services, rules of origin, Technical Barriers to Trade, sanitary & phytosanitary measures, dispute settlement, financial services, telecom, customs procedures and movement of natural persons.
Indian exports to Mauritius includes cereals, cotton, pharmaceuticals, petroleum products, electrical machinery, and clothing accessories to Mauritius currently. While, Mauritius exports to India inlcudes pearls, iron & steel, photographic instruments and precision instruments, precious or semi-precious stones, optical instruments. The bilateral trade has reduced to $690 million in FY 2019-20. In FY 2018-19 the trade stood at $1.2 billion in FY 2018-19.
Union Cabinet approved Comprehensive Economic Cooperation