On Monday, the UAE and Mauritius entered into a Comprehensive Economic Partnership Agreement (CEPA), marking the first of its kind with an African nation. This agreement aims to significantly reduce or eliminate over 95% of tariffs on customs duties, encompassing both goods and services.
Sheikh Mohammed bin Rashid Al Maktoum, the UAE's Vice-President, Prime Minister, and Ruler of Dubai, emphasized the intent to foster economic expansion and generate additional prospects for both nations. He highlighted the continuous evolution of UAE's ties with Africa and expressed eagerness to further strengthen these relations.
The agreement was signed by Dr Thani bin Ahmed Al Zeyoudi, UAE's Minister of State for Foreign Trade, and Maneesh Gobin, Mauritius' Minister of Foreign Affairs, Regional Integration, and International Trade. Al Zeyoudi disclosed at a press conference that $13 billion has been invested from the UAE to Mauritius, with $2.2 billion flowing in the opposite direction.
Al Zeyoudi noted that the CEPA prioritizes countries that can mutually enhance each other's economies, with Mauritius' economic model demonstrating a significant trade impact. Gobin also mentioned that Mauritius was the first African country to ink a free trade agreement with China, positioning itself as a prime gateway to Africa.
The UAE has established CEPAs with several countries including India, Israel, Indonesia, Georgia, Turkey, and Cambodia, focusing on tariff reductions, trade barrier elimination, and market access for exporters and investors. Ongoing negotiations include countries like Serbia, Ukraine, Eurasia, Australia, the Philippines, Malaysia, Costa Rica, Kenya, Chile, and Vietnam.
Juma Al Keit, Assistant Under-secretary for Foreign Trade Affairs at the UAE's Ministry of Economy, confirmed that over 14 CEPAs are either concluded or nearing completion. He added that the agreement aims to remove barriers in the service sector, which constitutes over 65% of Mauritius' GDP, opening up opportunities in sectors such as logistics, aviation, maritime, tourism, and financial services. Additionally, the CEPA is expected to facilitate SMEs' transition from domestic to international markets by simplifying import and export processes and enhancing documentation transparency.
