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- India and Mauritius are close to finalising the proposed bilateral free trade agreement (FTA).
- The agreement had got delayed due to apprehensions amongst domestic players in both countries about providing unlimited market access for some items.
- The two countries have now decided to go for tariff rate quotas(TRQs) for items where limited preferential access is to be given to protect local interests.
- TRQs are import quotas that allows a limited quantity of a specific item into a country.By putting in place TRQs on sensitive items,the FTA partners can make sure that even if import duties are brought down to zero,imports won’t exceed an agreed quantity.
- Further,experts have said that once India-Mauritius FTA is in place,it will provide an opportunity to Indian manufacturers to get into the African market through the Mauritius route.
- The decision to go for an FTA with Mauritius is also strategic as China has already concluded its negotiations for a free trade pact with the Mauritius and India does not want to be left out.
- India’s exports to Mauritius in 2018-19 was worth $1.16 billion while its imports from the country was about $78.64 million.
- FTAs are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non tariff barriers on substantial trade between them.
