The UAE and Mauritius signed a Comprehensive Economic Partnership Agreement (CEPA) agreement on Monday, the first such agreement with the African countries.
The agreement will see more than 95 per cent of tariffs be reduced or eliminated from customs duties, covering trading goods and services.
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Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said the goal is to promote economic growth and create more opportunities for the two countries.
“This is the first agreement of its kind with an African country. Our relations with Africa are constantly developing, and we are keen to develop them further,” he said.
Dr Thani bin Ahmed Al Zeyoudi, UAE’s minister of state for foreign trade; and Maneesh Gobin, minister of foreign affairs and regional integration and international trade of Mauritius, signed the agreement.
Al Zeyoudi said during a press conference on Monday that $13 billion worth of investments flowed from UAE to Mauritius and $2.2 billion vice-versa.
“For CEPA, we focus on countries that can add value to our economy while we add to theirs. Economy model of Mauritius shows the impact of trade will be more than other countries,” said Al Zeyoudi.
Maneesh Gobin, minister of foreign affairs, regional integration and international trade in Mauritius, said his country was also the first among African nations to sign a free trade agreement with China.
“Mauritius provides an ideal platform and we take pride in being a gateway to Africa,” he added.
CEPA with 14 countries
The UAE signed CEPA with a number of countries including India, Israel, Indonesia, Georgia, Turkey and Cambodia, removing or reducing tariffs, eliminating barriers to trade and opening up market opportunities for exporters and investors.
Negotiations are also underway with several other countries, including Serbia, Ukraine, Eurasia, Australia, the Philippines, Malaysia, Costa Rica, Kenya, Chile and Vietnam.
Juma Al Keit, assistant under-secretary for foreign trade affairs at UAE’s Ministry of Economy, said more than 14 CEPAs have already concluded or are soon to be concluded. “We are in the process of negotiating CEPA with a number of countries in Africa, Asia and Latin America countries.”
He added that more than 65 per cent of Mauritius’ GDP relies on services so barriers in this sector will be removed to give service providers from UAE and Mauritius more opportunities to explore new opportunities in many sectors such as logistics, aviation, maritime, tourism, financial services and many others.
He added that the agreement will encourage SMEs to move from domestic to international markets.
“It will be easier for SMEs to access international markets due to CEPA agreement as it will smoothen the process of import and export as well as bring transparency in documentation,” he said.