Comprehensive Economic Cooperation and Partnership Agreement between India and Mauritius

• Be N By IAS, Delhi
• 17, Feb 2021

For: GS-2: International Relations

CONTEXT:

India and Mauritius have signed Comprehensive Economic Cooperation and Partnership Agreement (CECPA). This is the first trade Agreement signed by India with a country in Africa.

COMPREHENSIVE ECONOMIC COOPERATION AND PARTNERSHIP AGREEMENT:

• The Agreement is a limited agreement, which will cover:
  • Trade in Goods,
  • Rules of Origin,
  • Trade in Services,
  • Technical Barriers to Trade (TBT),
  • Sanitary and Phytosanitary (SPS) measures,
  • Dispute Settlement,
  • Movement of Natural Persons,
  • Telecom, Financial Services,
  • Customs Procedures and
  • Cooperation in other areas.
• Prime Minister of Mauritius Pravind Jugnauth and External Affairs Minister Dr. S. Jaishankar were also present on the occasion.

IMPACT/BENEFITS:

• Trade in Goods: CECPA provides for an institutional mechanism to encourage and improve trade between the two countries.
  • The CECPA between India and Mauritius covers 310 export items for India, including food stuff and beverages (80 lines), agricultural products (25 lines), textile and textile articles (27 lines) etc.
• Preferential market access into India: Mauritius will benefit from for its 615 products, including frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and apparel.
• Trade in services: As regards trade in services, Indian service providers will have access to around 115 sub-sectors from the 11 broad service sectors, such as professional services, computer related services etc.
• Automatic Trigger Safeguard Mechanism: Both sides have also agreed to negotiate an Automatic Trigger Safeguard Mechanism (ATSM) for a limited number of highly sensitive products within two years of the Signing of the Agreement.
• Deep and special relations: The India-Mauritius CECPA will further cement the already deep and special relations between the two countries.
• It will help focus on post pandemic economic recovery. Enable business expansion and greater investments

DEFENCE AGREEMENT:

• India and Mauritius signed a $100 million Defence Line of Credit agreement on Monday.
• This would “enable the procurement of defence assets from India”.
• Mauritius is emerging as an important maritime entity in the Indo-Pacific region.
• Security and Prosperity: “These initiatives underline once again that the security of Mauritius is the security of India; in the prosperity of Mauritius is our prosperity,” S. Jaishankar said.
• Maritime security capabilities: Mauritius would get a Dornier aircraft and an Advanced Light Helicopter Dhruv on lease which would build its maritime security capabilities.

CHAGOS ARCHIPELAGO DISPUTE:

• The two sides also discussed the Chagos Archipelago dispute, which was an issue of sovereignty and sustainable development before the United Nations.
• In 2019, India voted at the U.N. General Assembly in support of the Mauritian position on the issue. India was one of the 116 countries that voted demanding that the U.K. end its “colonial administration” from the group of islands.
• “Jaishankar assured the Prime Minister of India’s steadfast principled support on this issue as has been demonstrated in the past.”

SOURCE: The Hindu

MCQs:

Q. Recently India and Mauritius has signed Comprehensive Economic Cooperation and Partnership Agreement. Consider the following statements regarding it.

1. This is the second trade Agreement signed by India with a country in Africa.
2. The agreement will Automatic Trigger Safeguard Mechanism (ATSM) for a limited number of highly sensitive products within two years of the Signing of the Agreement.

Which of the above statements is/are correct?

• a) Only 1
• b) Only 2
• c) Both 1 and 2
• d) Neither 1 nor 2

ANS: B