RESTRICTED WORLD TRADE WT/TPR/G/5 18 September 1995 ORGANIZATION (95-2658)

TRADE POLICY REVIEW

MAURITIUS

Report by the Government

In pursuance of the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), the initial policy statement submitted by the Government of Mauritius is attached.

Note: This report is subject to restricted circulation and press embargo until the end of the meeting of the Trade Policy Review Body on Mauritius.

Mauritius WT/TPR/G/5 Page iii

Contents

Page

Introduction 1

PART A TRADE POLICIES AND PRACTICES

Chapter 1 Objective of Trade Policies 3

Chapter 2 Description of the Import and Export System 4

Chapter 3 The Trade Policy Framework 6

(a) Domestic laws and regulations 6 (b) Trade policy formulation 9 (c) Bilateral, regional and multilateral trade agreements 9

Chapter 4 The Implementation of Trade Policies 12

(a) Programmes in existence for trade liberalization 12 (b) Trade policy measures 12

PART B RELEVANT BACKGROUND AGAINST WHICH ASSESSMENT OF TRADE POLICIES HAS BEEN CARRIED OUT

Chapter 5 Wider Economic and Development Needs, Policies and Objectives 19

Chapter 6 External Economic Environment 21

(a) Major trends in imports and exports 21 (b) Important trends in the balance-of-payments, reserves, debt, exchange and interest rates 23 (c) International macroeconomic situation affecting the external sector 24

Chapter 7 Problems in External Markets (Problems of Market Access Facing Exports: Existing Significant Barriers to Trade) 26 WT/TPR/G/5 Trade Policy Review Page iv

Annexes

Page

Annex I (a) List of controlled goods 31 (b) List of dangerous chemicals 33 (c) List of prohibited goods 36

Annex II (a) Imported goods subject to price fixing 37 (b) List of imported goods under maximum mark up system 37

Annex III List of Scheduled Territories 38

Annex IV (a) List of imports by products 39 (b) List of imports by countries 39

Annex V Imports from EEC by Section 40

Annex VI EPZ Exports, Imports and Net Exports 41

Annex VII Balance of Payments 42

Annex VIII Foreign Reserves 44

Annex IX External Debt Outstanding 45

Annex X Foreign Exchange Rates 1992/93 46

Annex XI Foreign Exchange Rates 1991/92 47

Annex XII Foreign Exchange Rates 1989/90 48

Annex XIII Principal Interest Rates in Mauritius March 1992 / December 1993 49

Annex XIV Principal Interest Rates in Mauritius December 1989 / June 1991 50

Annex XV Principal Interest Rates in Mauritius December 1988 / June 1990 51

Annex XVI Export by Destination 52

Annex XVII Weekly Quota Availability Report 53 Mauritius WT/TPR/G/5 Page 1

INTRODUCTION

Mauritius is a tropical island of volcanic origin with a land area of approximately 1865 sq. kilometres. Agriculture occupies 48% of the total land area, woodland takes up some 35% while built-up area claims 13%. All arable lands are fully cultivated and are being encroached upon by demographic pressure for housing purposes and industrial demand for more space.

With its small size, both in terms of land mass and population (1.1 million inhabitants), lack of natural resources and the inherent disadvantages of an island state characterised by remoteness from both the source of supply of its raw materials and the markets for its export products, Mauritius has to depend heavily on trade for its economic development and social progress.

Mauritius is exposed to the vagaries of the weather. Usually, the island is visited between December and April by cyclones which affect the country, especially sugar in the agricultural sector. During the pre-cyclone period, the island also suffers from droughts which again have an adverse effect on that sector.

However, the geography of the island provides some natural advantages, such as beautiful lagoons and beaches with temperature ranging from 21oc in winter to an average of 29oc in summer which have helped the tourism sector to develop and expand.

Since achieving independence in 1968, Mauritius has implemented a number of national development plans to develop its economy. It is at present implementing its sixth plan.

Over the last twenty years, Mauritius has undergone major structural changes from an agricultural monocrop economy with a growing population, high unemployment and low per capita income to a generally satisfactory position of fairly stable population, near full employment and a diversifying economy with emphasis on the services sector. In this process Mauritius has been helped by its membership of certain preferential trade agreements.

The economy of Mauritius has been dominated by sugar as the main crop till the late 1960s. Mauritian sugar, in fact, has had a guaranteed market and enjoyed preferential prices through various agreements such as the Imperial Preference Regimes, the Commonwealth Sugar Agreement and the Sugar Protocol annexed to the Lomé Convention. During the period 1964-72, sugar accounted for over 25% of gross domestic product (GDP), whereas the small manufacturing sector, excluding the sugar industry, contributed about 7% to GDP. This sector consisted of a number of small industries engaged in the food, beverages, tobacco and, footwear sectors and the repair and assembly of machinery and transport equipment.

The stable level of earnings which Mauritius derives from its membership of the Sugar Protocol have underwritten the socio-economic development of Mauritius. These earnings have contributed towards the financing of the manufacturing sector especially in the EPZ. This process has been assisted by the preferential access which Mauritius enjoys in the EU markets for its manufactured products under the successive Lomé Conventions. In a way, the membership of Mauritius to these important trade and aid instruments has helped mitigate the inherent disadvantage which Mauritius suffers as a small island state.

In 1970 Government launched the Export Processing Zone Scheme to encourage the development of the manufacturing sector. The EPZ has transformed the economy where manufacturing for export WT/TPR/G/5 Trade Policy Review Page 2 has become the leading sector. Actually the EPZ accounts for 67% of total export earnings and provides employment to some 91,000 people of which 70% are females. However, EPZ activities are highly concentrated in the manufacture of textile products which are prone to various adverse effects on the international market.

Moreover, at present the EPZ industries face a number of problems such as the vulnerability of the garments industry to demand fluctuations in the U.S. and the EEC; shortage of labour on the local market; and the international competitiveness of Mauritian exports. In fact, the manufacturing sector has reached a turning point owing to new developments in the international trade scenario especially in the wake of the GATT Agreement, the North American Free Trade Agreement (NAFTA), the creation of Single Europe and the advent of market economy in the East and Central European countries, among others.

It is feared that the agreements resulting from the GATT Uruguay Round will seriously erode the trade preferences which Mauritius receives under the Lomé Convention. It will also be affected as a net-food importing country. Unless the "acquis" under the preferential agreements are preserved and measures taken on the local front to maintain the competitiveness of Mauritian products on their traditional markets, the manufacturing sector is most likely to face difficulties.

Conscious of the fact that Mauritius cannot sustain its economic growth by relying solely on the agricultural and manufacturing sectors, it is implementing strategies for diversifying the industrial base and promoting the services sector, in particular. Tourism and the off-shore business sector are also expected to play an increasingly important rôle.

The share of the services sector in the Gross Domestic Product (GDP) is more than 50% and accounts for 35% of the total trade. With a view to promoting the services sector, Government has created the Freeport Authority, the Mauritius 0ffshore Business Activities Authority in order to turn Mauritius into an international financial and business centre. Other measures include the launching of the Stock Exchange of Mauritius (SEM) with the objective of further democratising the economy and to effectively regulate the issuance of securities and their trading generally and to promote the financial centre in particular.

To overcome its inherent development constraints and in order to benefit from economics of scale and foreign inputs for its industrial transformation, Mauritius is actively promoting and participating in regional cooperation and economic integration. It forms part of some regional groupings in Africa. It also proposes to play a leading role in the creation of the Indian Ocean Rim grouping.

The authorities consider strong and sustained economic growth as being central to the maintenance of political and social stability in a multi-racial society like that of Mauritius. The economic well-being of the population, especially the improvement of its standard of living, has also strengthened multi-party democracy in Mauritius.

The objective of the Government of Mauritius is to improve the quality of life of the population through a sustainable level of export-led economic growth and the participation of the entire population in the process of economic development. Mauritius WT/TPR/G/5 Page 3

Part A: Trade Policies and Practices

Chapter 1

0bjectives of Trade Policies

Mauritius practises an open trading system and has a long tradition of international trade.

The trade policies of Mauritius are geared towards securing the import requirements of its population and the protection of consumer interest as well as promotion of Mauritius overseas as a business centre from where export and re-export activities can fully take place.

To this end, the procedures for the conduct of international trade have been significantly relaxed. Price controls exercised until the early 1980's have been dismantled with exception made for certain sensitive items. Customs duties have been reduced on almost all imported goods with the exception of a few items. In respect of the agricultural sector, due consideration is given to the specificity of Mauritius, a small island state, in the determination of customs duties.

Import and export licensing has been abolished with the exception of a few products that require a measure of control. Control on foreign exchange regulation has been relaxed to facilitate international financial transactions. Steps are being taken to further facilitate trade practices through the installation of the Tradenet system which will process trade documentation electronically and provide up-to-date information on trade.

The ultimate objective of Mauritius is to establish a dynamic and outward-looking economy. This objective is expected to be achieved by a liberal economic policy and through the liberalisation of foreign trade. In this respect, Mauritius will avail itself fully of the opportunities offered in the Lomé Convention (Title IV: General Provisions for least developed, land locked and island ACP States) and the GATT Uruguay Round Accord (Articles 6(4)(b), 9(4) and 15 of the Agreement on Agriculture), wherein provision is made for special and differential treatment. Moreover, the legislative and administrative framework governing the agricultural sector in Mauritius privileges those categories of producers who are vulnerable, bearing in mind that Mauritius is prone to natural disasters.

The strategy of openness of its economy is aimed at allowing Mauritius to become a competitive trade partner using fully its comparative advantage and to integrate itself in the world trading system whilst at the same time ensuring that all categories of producers are given a fair deal and a chance to participate in the development process. WT/TPR/G/5 Trade Policy Review Page 4

Chapter 2

Description of the Import and Export System

Import System

Imports and exports are governed by regulations made by the Minister responsible for trade.

Prior to the year 1984, most of the goods imported into the country were subject to import control exercised by the Import Division of the Ministry of Trade and Shipping. The restriction on imports was considered necessary to protect and promote local infant industries and to prevent the outflow of foreign exchange.

In 1985 the importation of all goods was liberalised in view of Government's commitment towards the I.M.F. under a stand-by agreement.

The Import Licensing System continued to operate in spite of the regime of liberalization, since an "import levy" of 17% was collected from importers by the Ministry of Trade and Shipping at the time of issue of an import permit. The collection of the import levy was transferred to the Customs Department in June 1988.

During the period July 1988 to June 1991, the importation of goods was closely monitored by the Ministry of Trade and Shipping in collaboration with the Bank of Mauritius. The Import Licensing System was maintained for that purpose and for the compilation of trade statistics as well.

In July 1991 Government decided to reduce the number of items subject to import permit and a list of goods which necessitate a permit for health, security, environmental purposes and national interest was drawn up (See Annex I).

The Ministry of Trade and Shipping is responsible for the control of importation of these items under the Supplies Control Act in collaboration with other controlling agencies. Import permits are issued within forty-eight hours at the Import Division of the Ministry under a manual system.

However, the whole system is being computerised with the installation of the Electronic Data Interchange Link (EDI) whereby importers shall apply for and receive their import permits electronically from the Ministry of Trade and Shipping which will act as a "One Stop Shop".

Export System

Exports are governed by regulations made by the Minister of Trade and Shipping under Section 5 of the Supplies Control Act (Government Notice 1994). In line with the policy of trade liberalisation, export procedures have been streamlined. Exports of almost all items can be conducted freely except for a few controlled items for which export permits are required prior to effecting export. The products for which export permits are required are those of strategic importance and products sensitive to the economy and also those products whose market access is restricted by quotas applied by importing countries. The export of the following products are controlled: Mauritius WT/TPR/G/5 Page 5

H.S. CODE DESCRIPTION

0101-05 Live animals, all species including birds 0201-10 Meat, all species including poultry, meat,fresh, chilled or frozen 0301-05 All fish and fish products (fresh, frozen, salted) 0508 Corals, raw sea shells 0601 Aquatic bulbs 0603-04 0rnamentals: plants, flowers and leaves (green or dried) 0701-0713 Vegetables (general and green) 0713 Red lentils 0713-50 Broad beans 0714 Roots 0801 Coconuts, including dry coconuts 0801-14 Fruits 0804-0910 Species 1005 Maize, popcorn 1006 Rice 110 Wheat, flour 1201-07 0il seeds 1211 Medicinal herbs 1401 Dried raffia 1601-02 Cooked meat, or processed, canned, smoked, salted 1791 Sugar 1704 Sugar confectioneries and products with content 2008 Palms 2009 Fruit juice 2106 Soyabean meal 2202 Soft beverages (lemonade and pepsi) 2302 Wheat bran (MT) Wheat ground (MT) 2505 Sand 2521 Limestone 2523 Portland Cement 3001 0rgans (animals) 3002 Serum, samples of blood, biologicals needed for veterinary research, vaccines, dead or live attenuated, freeze-dried or wet form 4101-11 Product of animals, origin skin and hides, stuffed head 5001-6300 Textile and textile products for export to USA and Canada 6701 Birds' feathers 7106 Silver 7107 Base metal clad with silver 7108 Gold 7109 Base metal or silver clad with gold 7110 Platinum 7111 Base metal, silver and gold clad with platinum 7112 Waste and scrap of precious metal or metal clad with precious metal 7204 Scrap metal 7404 Scrap copper 7602 Scrap aluminium 9601 Decorative sea shells

The issue of export permit for the following products requires prior approval of respective authorities:

Products Authorising Body

(i) Sugar Mauritius Sugar Syndicate (ii) Tea Tea Board (iii) Spices, etc. Mauritius Agricultural Marketing Board (iv) 0ther agricultural products Ministry of Agriculture (v) Pharmaceutical products Ministry of Health

Although the services of the Ministry of Trade and Shipping are performed manually at present, export permits are approved and issued almost immediately after they are submitted. All services provided by the Ministry of Trade and Shipping regarding export permits are free. WT/TPR/G/5 Trade Policy Review Page 6

Following the computerisation of trade matters, the Ministry of Trade and Shipping will be called upon to play the rôle of "a one stop shop" with on line link with the Customs Department and all other institutions connected with trade for the release of trade documents. This will be done electronically and is planned to be operational by January 1995.

Chapter 3

The Trade Policy Framework

(a) Domestic Laws and Regulations Governing the Application of Trade Policies

Trade Policies in Mauritius are governed by the following Acts made under the aegis of the Ministry of Trade and Shipping:-

(i) The Supplies Control Act of 1974 (ii) The Fair Trading Act of 1979. (iii) The Consumer Protection Act of 1991 (iv) The Hire Purchase Act of 1969 (v) The Legal Metrology Act of 1985 (vi) The International System of Units (SI) Act of 1983 (vii) The Patents Act of 1875 as amended (viii) The Trade Marks Act of 1868 as amended up to 1983

(i) The Supplies Control Act

This Act was passed in l974 to regulate the production, manufacture, keeping, storage, movement, distribution, sale, transfer, rationing, export, import, use or other dealing on any article.

The main regulations made under the Supplies Control Act of l974 concern the fixing of prices and supply of articles, the control of imports and exports of goods. These regulations have been made to conform with the Government's policy of trade liberalization.

The prices of a limited number of commodities are either fixed or subject to a maximum mark up. A list of these items are at Annex II.

(ii) The Fair Trading Act

The Fair Trading Act was enacted in l979 with a view to providing for better control of commercial practices and related matters and the preparation of codes of practice as well.

Regulations under the Fair Trading Act were also meant to control the country of origin of imported goods, the sale of electrical and electronic domestic appliances, the labelling and prepackaging of foods and the compliance of certain items with the Mauritius Standard Specifications. Mauritius WT/TPR/G/5 Page 7

(iii) The Consumer Protection Act

The Consumer Protection Act was enacted in l991 to make provision for consumer protection. The Toys (Safety) Regulations of l994 are the only regulations made so far under this Act to provide safety to children.

(iv) The Hire Purchase Act

The Hire Purchase Act was enacted in l969 to regulate transactions on a hire purchase basis. This Act is being updated and amended with a view to making it compatible with the economic realities of the country.

(v) The Legal Metrology Act

This Act was passed in l985 to make better provision for the assizing of instruments, weights and measures and the protection of the public in relation to the sale of articles by weight or measure.

(vi) The International System of Units (si) Act of 1984

This Act was passed in 1984 to provide for the application in Mauritius of the International System of Units (SI).

The "SI Unit" means a unit of the International System of Units approved by the General Conference on Weights and Measures (CGPM) established under the Metric Conventions of l875 and consists of:-

(a) base units; (b) supplementary units; and (c) derived units.

The administration of the (SI) Act 1984 falls under the purview of the Department of Metrology.

(vii) The Patents Act of 1875 as subsequently amended up to 1983

The Patents Act provides for the issue of patents, which confer on the patentee sole and exclusive privilege by himself, executors, administrators or assigns to make, sell and use the invention in Mauritius and to authorise others to do so.

(viii) The Trade Marks Act 1868 as amended up to 1993

The Trade Marks Act provides for the registration, renewal, transfer, cancellation, assignment and publication of a mark.

A Central Industrial Property Office has been established in the Ministry of Trade and Shipping in 1994 for the administration of the Patents and Trade Marks Acts. Government has taken steps to update those Acts. WT/TPR/G/5 Trade Policy Review Page 8

Legislation Falling under the Purview of the Customs & Excise Department

(i) The Customs Act, 1988

The Customs Act, 1988 lays down the general legal framework for the administration of the Department and defines the regulations for import and export of goods. The 1988 Customs Act which was drafted with assistance from the International Monetary Fund aimed at simplifying and modernizing the Customs Act 1947 especially when the traditional rôle of Customs expanded to new areas of activity. In 1994, a major amendment was made to allow the use of computer systems for import and export of goods through Electronic Data Interchange. ASYCUDA Version 2.6 is currently being used for the processing of all import and export entries.

(ii) The Customs Tariff Act, 1969

The Customs Tariff Act, 1969 is the tariff legislation which also sets out the nomenclature for the classification of goods. The Department is at present applying the 1992 Version of Harmonised System Commodity Description and Coding System (H.S.). Mauritius Customs was one of the first signatories of the Harmonised System in l988 when the Brussels Tariff Nomenclature was repealed.

The Central Statistical 0ffice, however, still compiles trade statistics on the SITC model.

Various reforms have been made to the tariff rate structure. A major reform was made in June 1994 when rates of 0% to 600% have been reduced to 0% to 80% and a reduction of tariff bands to 8 from 60 previously. The tariff rate structure has been amended with the consolidation of general tariff rate, preferential rate and customs rate into one single customs rate. The preferential rate of duty is granted to a scheduled list of countries when goods attract duty at 55% or more. At present, import duties are levied on an ad valorem basis except for two categories of goods, namely thong-type sandals (HS 402.201) and straps for sandals (HS 6406.101). Prior to 1994, some goods attracted specific rates of duty or a combination of ad-valorem and specific rates.

Before l994, a separate tariff structure was applicable to goods originating from the Preferential Trade Area (PTA). With the elimination of the PTA common list, a general 60% reduction of rates is applicable to all goods originating from the Preferential Trade Area.

(iii) The Import Levy Act, 1990

An import levy of 17% was applicable to all imports, with some exceptions, under the Import Levy Act, 1990. In 1994, the Import Levy Act has been repealed and the levy itself has been integrated into the customs duty.

(iv) The Sales Tax Act, 1983

On behalf of the Sales Tax Division of the Ministry of Finance, the Customs Department collects sales tax at importation which is currently at 5% of the value of the goods.

(v) The Excise Act, 1994

The Excise Act, 1994 replaces the Excise Act, l947. An excise duty is now applicable on selected items, (spirits, motor vehicles, petroleum products, cigarettes) both at importation and on local manufacture. Mauritius WT/TPR/G/5 Page 9

(vi) The Freeport Act, 1992

The Freeport Act, 1992 lays down conditions for the freeport zone operations, namely for the disposal of goods in the freeport zone and the safeguards for customs duty and other taxes on goods destined for the freeport zone.

(vii) The Industrial Expansion Act, 1993

The Industrial Expansion Act, 1993 lays down conditions for the operations of enterprises of the Export Processing Zones, enterprises holding Pioneer Status Enterprise Certificate, and registered small and medium enterprises and duty free treatment of equipment and materials.

(b) Trade Policy Formulation

Summary description of the process of trade policy formulation

Trade policy is an integral part of the national development policy of Mauritius. Its primary aim is to boost-up the trading activities of the country.

The formulation of trade policy involves the Minister responsible for trade, the Cabinet and the Parliament.

In formulating such a policy the Minister may delegate authority to his Senior 0fficials responsible for trade matters to consult or coordinate with other Ministries and institutions such as the Ministry of Finance, Ministry of Economic Planning and Development, Ministry of Agriculture, Ministry of Industry and Industrial Technology, Ministry of Health, Customs Department and representatives of the private sector.

Trade policies have to be approved by the Cabinet. For those policies that need to be enacted into law, the relevant bills are submitted to and passed by Parliament.

(c) Bilateral, Regional and Multilateral or Preferential Trading Agreements

To increase the market access of Mauritian products overseas and to establish trade relationship with the rest of the world, Mauritius has entered into a number of agreements which are either of a bilateral, regional or multilateral nature. In pursuing these objectives, Mauritius has entered into the following trade agreements:

BILATERAL AGREEMENTS

Mauritius has concluded a number of bilateral trade agreements which fall under two categories namely general trade agreements and textile agreements.

(i) General Trade Agreements

Mauritius has signed agreements with Pakistan, Egypt, Madagascar, Hungary and the Central African Republic. WT/TPR/G/5 Trade Policy Review Page 10

These agreements have been concluded for periods ranging from two to five years. But they contain provisions for their tacit renewal unless one of the parties expresses its intention to terminate the agreement.

The main objective of these agreements is to promote trade between Mauritius and the signatory countries, for instance, by removing obstacles to bilateral trade, including the phased reduction of tariff and non-tariff barriers.

(ii) Textile Agreements

Mauritius has entered into bilateral textile agreements with the United States of America and Canada. The agreements which have been concluded under Article 8 of the Multi-Fibre Arrangement, lay down quotas on the exports of certain categories of textile and clothing products from Mauritius to these countries. The latest textile agreement between Mauritius and the USA was concluded in 0ctober l993 and will last till 31 December l995.

REGIONAL AGREEMENTS

There are three regional groupings to which Mauritius belongs: the Preferential Trade Area/COMESA, the Indian 0cean Commission and the Abuja Treaty on African Economic Community. They have been set up with a view to enhancing regional cooperation. The promotion of inter-regional trade is one of the objectives of these regional groupings.

(i) PTA/COMESA

The Preferential Trade Area for Eastern and Southern African States (PTA) entered into force in 1982. It has at present 22 members. In November 1993, it was decided to transform the PTA into the Common Market for Eastern and Southern Africa (COMESA).

The COMESA aims at promoting cooperation and development in all fields of economic activity, including trade. At present, goods originating in one Member State benefit from preferential treatment on their entry into the territory of another Member State.

The members of PTA/COMESA have agreed to reduce progressively and eventually eliminate customs duties and non-tariff barriers to trade among themselves. A programme of tariff cuts has been adopted by the PTA/COMESA Member States with a view to the elimination of tariffs by the year 2000.

In addition, it is proposed to establish gradually a common external tariff at the level of COMESA in respect of goods imported into the territory of a member State of PTA/COMESA from a non-member State.

(ii) Indian 0cean Commission

The Indian 0cean Commission (IOC) was set up in 1982 with a view to promoting cooperation among the islands of the Indian 0cean in the economic, social, cultural, agricultural, scientific and other fields. Its members are Mauritius, Madagascar, Seychelles, Comoros and Reunion Island (French 0verseas Department). Mauritius WT/TPR/G/5 Page 11

In the area of trade, the IOC proposesto implement the "Programme Regional Integré de Développement des Echanges" (PRIDE) which concerns trade in goods and services among the member states of the Indian 0cean Commission. The programme aims at promoting intra-regional trade by providing for the removal of trade barriers and the facilitation of payments for imports. It is expected that PRIDE will contribute towards the integration of the markets of IOC Member States. This project is expected to enter into force by the end of 1994 or at the beginning of 1995.

(iii) Abuja Treaty on African Economic Community

Mauritius is a party to the Treaty Establishing the African Economic Community which was concluded on 3 June 1991 in Abuja, Nigeria.

This Treaty provides for the gradual establishment of an African Economic Community by the year 2025.

MULTILATERAL AGREEMENTS

Mauritius is a member of GATT l947. It has signed the Final Act on GATT Uruguay Round and the Agreement Establishing the World Trade Organization. Mauritius is an original member of the WTO in accordance with its Article XI.

Further, Mauritius is a signatory to the Lomé IV Convention which covers different aspects of cooperation between the European Union and the ACP Group of States, including cooperation in the field of trade. The Lomé IV Convention contains provisions which aim at promoting trade not only between ACP States and the European Union, but also among ACP States.

Under the preferential trade regime of the Lomé Convention, Mauritian goods enjoy duty-free access to the markets of the European Union provided that they satisfy the rules of origin laid down in Protocol 1 of the Convention. However, export to the EU of certain agricultural products is governed by specific provisions of the Convention.

As a signatory State of the Sugar Protocol, Mauritius exports annually to the EEC about 500,000 MT of sugar at a guaranteed price.

Mauritius has taken note of the provisions of Article 3 of the Agreement on Agriculture (Incorporation of Concessions and Commitments) as well as the various commitments made by the EU and the USA. Moreover, Mauritius as an ACP State, intends to fully utilise the provisions of Annex XXVII of the Lomé IV Convention.

The Lomé IV Convention, which has been concluded for a period of ten years, will expire on 28 February 2000. WT/TPR/G/5 Trade Policy Review Page 12

Chapter 4

The Implementation of Trade Policies

Programme in Existence for Trade liberalisation

Mauritius is in the process of liberalising its trade procedures. Import and export permits have been abolished for most items. However, for reasons of security, environment, health, and quota imposed by certain importing countries, import and export permits have been maintained for certain products. The permits must be sought from the Ministry of Trade and Shipping for such products.

Trade Policy Measures

During the last few years, Mauritius has successfully implemented a number of structural changes to its trade policy especially its tariff structure. In fact, tariffs are now the main trade instrument.

(i) The Tariff Structure

The 1988 Tariff Rate structure was complex. It comprised the fiscal duty, the General Customs Duty and the Preferential Customs Duty. Fiscal duties varied between 5 percent and 100 percent; special rates up to 450 percent were applicable to gasoline, alcohol, tobacco, crown corks, and cars.

Customs duties applied only to imports from non-preferential countries, i.e., generally other than the Commonwealth countries, the EC, and the United States. These duties varied between 5 percent and 50 percent. The Preferential Customs duty which were generally 0 percent were applicable to scheduled territories. A list of such territories is at Annex III.

In January 1987 the maximum tariffs on imports from preferential and general sources were reduced to 127%. However, petroleum products, tobacco products and alcoholic beverages were excluded from this reduction.

The 1988 Tariff structure contained about 60 different rates of duty, the majority of which being ad valorem, some being specific and others being a combination of both specific and ad valorem.

In addition, most imports were subject to a stamp duty at a rate of 17 percent payable when import permits were issued by the Ministry of Trade and Shipping.

Imported goods were also subject to a sales tax at 5 percent (registered persons) or 6 percent (non- registered persons) on CIF value plus customs duties and stamp duty.

The 1994 Tariff structure has been rationalised and contains only eight bands of Tariff rates, varying between 0% and 80%. 0nly two items attract specific rates of duty. All goods dutiable at 55% or more, imported from non-scheduled territories, attract an additional rate of duty of 20%. An excise duty is also applicable at the time of importation on a number of goods falling under Chapters 22, 24, 27 and 87 and is paid together with customs duty and sales tax. An additional excise duty of 40% is applicable to vehicles falling under headings 87.03 and 87.04, imported from non-scheduled territories.

All goods originating in a member state of the Preferential Trade Area attract duty at the rate of 40% of the rates of customs duty applicable to all goods specified in the Tariff Schedule. Mauritius WT/TPR/G/5 Page 13

The 17% import levy chargeable under the Import Levy Act 1990 is no longer payable, with the repeal of the Import Levy Act in June 1994.

(ii) Customs Valuation

Since 1988 the Customs Department is applying a definition of valuation based on a hybrid system combining the Brussels and the GATT definitions of value. The application of such a system is considered necessary to counter under or over-invoicing of goods. The dutiable value of imported goods is calculated on the CIF value. It is proposed to adopt in future the GATT Customs Valuation Code after a complete study has been made on all possible implications of a change from the existing system. It is to be noted that under Article 20 of the GATT Uruguay Round Agreement on Customs Valuation, Mauritius has the option to delay the application of the provision of the agreement for five years.

Import of goods from any scheduled territory, for which preferential tariff treatment is claimed in Mauritius, is governed by the Customs Tariff Regulations 1989 (G.N. No. 209 of 1989).

(iii) Rules of 0rigin

A certificate of origin must be produced to the Customs Department. It has to be issued in the scheduled territory where the goods originate. This certificate must also be signed or visaed by a Government Authority or by a Chamber of Commerce in the originating scheduled territory.

Such certificate must specify that the final manufacturing process has in fact taken place in the scheduled territory and the goods have undergone substantial processing with at least 50% of materials, labour and other manufacturing costs in that same scheduled territory.

The manufacturing costs, which are ex-factory costs, have also to be clearly defined.

Special provisions have been made regarding scheduled territory goods: (1) which have transited in any country; (2) which are not merchandise for sale of a value not exceeding Rs 1000 and received by post; (3) which are the personal or household effects of passengers; and (4) for which the importer is unable to produce the proper certificate of origin at the time of entry.

(iv) Tax Rebates

Under the Customs Tariff Act, the Customs Department administers about 90 schemes of exemption and concession of duty to various sectors of agriculture, industry and travellers.

Drawback is allowed on goods which have been imported for the purpose of undergoing processing and thereafter exported.

Duty exemptions are also granted to UN personnel and diplomatic missions upon certification from the Ministry of External Affairs.

Provisions are also made for the temporary admission of goods. Mauritius is a contracting party to the ATA Convention.

Annex IV shows the main categories of imports by products and imports by countries of origin for the period 1991-93. WT/TPR/G/5 Trade Policy Review Page 14

(v) State Trading Organisations

For certain strategic reasons, including food security, trade in some products is carried out by para-statal organisations. It is considered essential that the liberalization policies be complemented by an efficient regulatory system which ensures control on the supply of some sensitive products on the market.

The State Trading Corporation (STC), the Agricultural Marketing Board (AMB) and the Mauritius Meat Authority (MMA) are the three para-statal organisations involved in the procurement and storage of certain products, leaving the distribution and retailing to the private sector. These Organisations are in accordance with Article XVIII of the GATT.

The STC has been involved in the import and supply of the following items: rice, flour, cement, petroleum products, fruits etc as shown in table below:

Importations By STATE TRADING CORPORATION (Metric Tons)

Rice Financial Petroleum Flour Cement Fruit Othersa Total year 30-35% <5% Brokens/ products Brokens Other Grade A

1989/89 85,460 - 34,686 195,614 488,231 - 803,991 1989/90 68,243 8,530 4,252 224,698 517,164 9 822,896 1990/91 83,810 1,500 11,459 218,868 494,738 9 810,382 1991/92 57,308 6,000 7,770 245,613 557,309 10 115 874,125 1992/93 68,528 16,852 7,204 279,403 561,061 237 2 933,287 a (a) Breakdown: 1991/92: Fertiliser = 111 Helmet = 4 (or 2952 units) 1992/93 Helmet = 2 (or 1340 units) (b) The Corporation does not intend to import fertilizer and helmet in future.

RICE

The Government's intervention in the rice trade has been guided by its policy to make available to the Mauritian public, especially to the economically weaker section of the community, this staple food at the lowest possibleprice while ensuring regular supplies and maintainingacceptable qualitystandards. Given that rice has to be sold at a reasonable price the main concern of the Government has been to obtain the best possible prices from suppliers by purchasing in bulk for a whole year, preferably on Government to Government basis.

CEMENT

The State Trading Corporation imports only 50% of the country's requirements. The other 50% is imported by the private sector which is at present responsible for the commercialisation of the product.

PETROLEUM PRODUCTS

Mauritius imports its entire need in petroleum products. Given the strategic role of petroleum products in the Mauritian economy and their impact on the balance of trade, Government decided in 1983 that there should be some public intervention in this sector. The Government took over from the existing importers 25% of the country's domestic requirements. The good performance in terms of prices Mauritius WT/TPR/G/5 Page 15 obtained and resulting into substantial savings in foreign exchange prompted the Government to take over the importation of all the country's requirements as from 1985. The procurement of petroleum products is done through international tender.

(vi) AGRICULTURE

Sugar is and will remain for many years to come the backbone of the Mauritian economy, in general, and of Mauritian agriculture in particular. The national objective is to step up the annual sugar production to between 650,000-700,000 tonnes through improvements in on-farm and off-farm productivity. As a signatory to the Sugar Protocol annexed to the Lomé Convention, Mauritius exports the bulk of its raw sugar to the European Union (EU). The Sugar Protocol is an important contractual trade agreement which has been concluded for an indefinite duration. It guarantees access of agreed quantities of sugar into the EU market at guaranteed prices.

Mauritius has so far honoured fully its export commitment to the EU. Following its enlargement, the EU has been experiencing a deficit in its raw sugar requirements. Mauritius along with other ACP countries intends to gear up its efforts to deliver the additional quantities of sugar to cover the entire deficit of the EU refiners..

Sugar, in excess of the quantities supplied to the EU and the USA, is sold on the world market. With the growing demand for organic products on the international market, Mauritius has launched the production of organic sugar for export. In addition, Mauritius produces several varieties of special sugars for export.

The sugar industry had been subject to export duty for a very long time. In the recent past, various rebates had been introduced as part of the incentive package offered to the industry. As from lst July 1994, the export duty on sugar has been completely abolished.

Mauritius faces some important constraints with regard to the competitiveness of its agricultural produce in the export markets. They are due to the shortage of land, the distance from major European or other markets and the high cost of labour etc.. The policy, therefore, is to encourage investment in high-value production for niche markets.

Traditionally, tea and flowers have been the main non-sugar agricultural exports from Mauritius. Tea exports are likely to decline in the coming years, both in volume and value terms, because of the intrinsic unprofitability of this crop in Mauritius. Flower exports have hitherto been dominated by anthurium. In future, exports of other flowers such as carnation and roses, are likely to pick up. A rebate scheme provides for refunds of up to 50% of the freight costs incurred by exporters of specified agricultural products subject to certain conditions.

Steps are also being taken to standardise Mauritian agricultural produce and exports to satisfy international norms. These include:

(a) Adoption of internationally accepted standards for fish and meat as well as fruits and vegetables in accordance with the WHO/FAO Joint Codex Alimentarius;

(b) Setting up of a Pesticide Residue Laboratory to detect chemical residues in food;

(c) Establishment of a Food Hygiene Laboratory to monitor standards of foods of animal origin; and WT/TPR/G/5 Trade Policy Review Page 16

(d) Review of legislations pertaining to livestock and plants.

Mauritius depends to a large extent on imports especially of rice, flour and dairy products, to satisfy its national food requirements, except in the case of fresh vegetables, chicken and pork in respect of which self-sufficiency has been attained. It is feared that the implementation of the GATT Uruguay Round Agreement on Agriculture will adversely affect Mauritius as a net food importing country.

The import of agricultural products is subject to veterinary or phytosanitary control as appropriate. The objective is to ensure that the imported products are disease-free and thus protect local agriculture and human health.

The import of agricultural products of mass consumption is canalised through one of the three parastatal bodies mentioned earlier in the report.

To overcome the constraints in the various production factors, a number of measures have been taken to step up agricultural production. These measures would fall broadly under the category of General Services provided by the Government and as such they are compatible with the provisions of the Uruguay Round Agreement on Agriculture.

(vii) Health

The formulation and implementation of sanitary health measures and the import and control of drugs and pesticides fall under the purview of the Ministry of Health.

Sanitary Health Measures

The Sanitary Health Regulations of Mauritius are based on the British Model Legislations relating to the Protection of Human Health and Hygiene date as far back as 1925. The laws enacted at that time proved to be effective in the then prevailing circumstances. Since then tremendous changes have taken place, including population growth, urbanisation and industrialization as well as the need to keep up with development which necessitate the adoption of new measures.

In its endeavour to abide by and maintain international norms, the Ministry of Health is presently implementing measures prescribed by the FA0, WHO and the European Union (EU). These measures are meant to harmonise appropriate standards.

The overriding concern of the Ministry of Health is to protect the population against disease infection from abroad. With such an objective in mind the Ministry of Health has introduced the Quarantine Act Revised Laws of Mauritius to prevent quarantine diseases like Cholera, Plague, Yellow Fever, Relapsing Fever and Typhus from getting access to Mauritius.

To put into practice the broad object of the Act, the Quarantine Regulations Revised Law of Mauritius, make provisions for the following:

(a) to collect and transmit epidemiological and sanitary information;

(b) to prevent the spread of infection carried by ships, aircrafts, persons, etc coming from abroad;

(c) to establish signals to be displayed by ships when entering the country; Mauritius WT/TPR/G/5 Page 17

(d) to institute health declaration, according to the International Health Regulations, that should be furnished by the masters or pilots when entering the country;

(e) to control and manage the quarantine station;

(f) for keeping the sanitation of the Port and Airport and their surroundings, including measures for keeping them free from rodents, mosquitoes and other vectors of diseases;

(g) for conferring powers to appropriate officers to board ships and aircrafts.

Article 151 of the Public Health Act Revised laws of Mauritius l992 prevents the importation of food which is unfit for human consumption.

The Food and Drugs Act, Revised Laws of Mauritius l992, has been introduced with a view to ensuring that foods are imported in a sure and genuine condition. It confers to the appropriate officers of the Ministry of Health powers to take samples of food for the purpose of analysis. It also empowers the Minister of Health to make Regulations for prohibiting and restricting addition of any substance and to regulate the composition of any food and to take measures for the prevention of danger to health from the importation, transport and storage of food of various industries meant for human consumption.

The Ministry of Health has made the following regulations for adequate control of food and drugs:

(a) Food and Drugs (Colouring Matter) Regulation l980 (b) Food and Drugs (Flavouring Substances) Regulation l979 (c) Food and Drugs (Preservative) Regulation l976 (d) Food and Drugs (Antioxidants in Food) Regulations l982 (e) Food and Drugs (Control of Emulsifiers and Stabilisers) Regulation l979 (f) Food and Drugs (Control of Aflatoxins) Regulations l979 (g) Food and Drugs (Ghee) Regulation l962 (h) Food and Drugs (Solvents in Food) Regulation l979 (i) Food and Drugs (Phytopharmaceutical Residues) Regulation l980 (j) Food and Drugs (Trace of elements in Food) Regulation l979.

A new Food Act is in the process of replacing the existing Food and Drugs Act. All the various regulations made under the Food and Drugs Acts are also being consolidated into one up-to-date Regulation which is in line with the International Codex Alimentarus.

The manufacturing of food in good sanitary conditions in factories is governed by the Trade & Industries Regulations 47 of l954.

Importation and Control of Drugs in Mauritius

The paramount importance of drug regulation is well known. Its relevance due to the impact it has on public opinion is also generally recognised. The effect of a drug does not concern only the country of origin or production, but extends to any nation likely to be interested in its use. This necessitates a certain degree of control on import and use of drugs.

The Ministry of Health has adopted a list of essential substances required to meet the country's clinical needs. The adoption of such a policy permits the most economical way of securing drugs and at the same time ensuring their availability at all times. WT/TPR/G/5 Trade Policy Review Page 18

Controlled drugs like psychotropic drugs and narcotics which are subject to international control under International Conventions are imported through an import-export licensing system. The quantities of these drugs are strictly controlled in order to ensure their legitimate use.

As regards the import of other drugs in use in the public sector, they are subject to international tenders. The criteria used are quality, price and delivery. They are required to satisfy good manufacturing practice in the exporting countries.

Medicines on sale in the private sector are imported by registered wholesale pharmaceutical establishments. They are required to be registered with the Pharmacy Board prior to effect importation in accordance with the Pharmacy Act l985. A system of maximum mark ups has been established for determining the prices of medicines by wholesale as well as by retail. The wholesaler obtains 17% on the landed cost and the retailer gets 27% on the wholesale price.

The harmonisation of drug regulations is considered necessary to facilitate research and to simplify procedures.

Importation and Control of Pesticides in Mauritius

Mauritius has to import many types of pesticides all the year round for use in the agricultural sector.

The first attempt to exercise control on the importation, manufacture, distribution and sale of pesticides was made in l970 by the enactment of the Pesticides Control Act with the following aims:

(i) to grant permits for the manufacture, import, sale and distribution of pesticides; (ii) to fix the conditions to be observed for the manufacture, import and sale of any pesticide; (iii) to advise the Minister of Health on any matter relating to pesticides.

Pesticides usage in Mauritius is substantial. The average amount imported annually over the period l977-l986 was 1153 tons. Around 200 agrochemicals are registered for use.

During the last couple of years, regulations have been made under the Pesticide Control Act outlining requirements for packaging and marketing.

The importer has also to provide evidence that the pesticide, which he proposes to import into Mauritius, is registered in the country of origin. Based on the information submitted, the Pesticide Control Board (PCB) examines the request on a case by case basis and decides as to whether or not on import permit can be granted. The PCB is guided in its decisions by a number of internationally recognised references like those of WHO, FAO etc.

Moreover, with the rapid industrialisation of Mauritius especially over the past 10 years, there has been increasing use of chemical in the industrial sector and in private households. Some of these chemical substances may present risk to workers in contact with them, the general population and the environment at large. So, as part of the project under the Environment Investment Programme (EIP) an important proposal is presently under consideration by Government to introduce a Hazardous Substances Act (HSA). This will essentially extend the Pesticide Control Act (PCA) to englobe all dangerous chemicals and take over responsibility from the PCA. It will monitor and control the importation, storage, use and disposal of all potentially hazardous substances. The implementation and enforcement of this new legislationwillinvolve close collaboration between the Ministries of Health, Labour, Environment, the Police and Fire Authorities, as well as the Customs and Excise Department. Mauritius WT/TPR/G/5 Page 19

PART B

Relevant Background Against Which the Assessment of Trade Policies has been Carried Out

Chapter 5 Wider Economic and Developmental Needs, Policies and Objectives

The economic development of Mauritius during the past twenty-five years or during the first phase of industrial development may be attributed to three main factors namely:

(i) important amounts of foreign investment attracted by the country's political and social stability as well as the staple level of foreign exchange earnings generated by the export of sugar under the Sugar Protocol; (ii) an abundant and literate reserve of labour; and (iii) preferential market access to:

(a) the European Union under the Lomé Convention and (b) the US for sugar under a quota system and textile under a bilateral trade agreement.

The period 1988-89 marked for Mauritius the end of rapid, labour-based growth and the beginning of a second round of development. Table I below shows that during l989-90 the economy had slowed down. Average growth fell to 5.9% from 7.5% over the preceding five years; inflation had risen to 9.1% compared with 3.4% earlier; and the external account deficit widened (average of 4.5% of GDP compared with 1.7% earlier).

Table I: Selected Economic Indicators, 1984-93

Indicators 1984-88 1989-90 1991-92 1993

GDP growth (5) 7.5 5.9 6.0 5.0 Investment/GDP (%) 24.5 30.7 28.3 28.1 National Savings/GDP (5) 22.8 26.2 27.8 24.2 CPI Inflation (%) 3.4 9.1 5.8 10.5 Real Exchange Rate (1980 = 100) 86.0 80.7 80.0 80.1 External Current -1.7 -4.5 -0.5 -1.4 Account/GDP (%) Fiscal Deficit/GDP (%) -1.1 -3.2 -2.4 -2.2 Change in % of M2 at start of period M2 (%) 27.8 19.2 20.7 13.6 Net Foreign Assets (%) 21.1 58.3 13.4 -1.7 Net Domestic Credit (%) 10.4 15.2 14.1 18.0 o/w Net Claims on Government (%) -2.2 4.4 5.2 3.8 o/w Claims on Private Sector (%) 15.4 10.6 8.8 14.2

Source: Central Statistical Office. WT/TPR/G/5 Trade Policy Review Page 20

These conditions made the Government reflect on policies that would be required in the future to deal with problems relating to labour shortage, wage pressure and stiffer competition, especially in the world textile markets.

Shortage of labour being the primary constraint on future growth, measures have been taken to upgrade the skills of workers and technology to boost up productivity.

A second problem relates to the declining international competitiveness of Mauritian exports. Since 1989, the increase in wages and the higher domestic inflation led to comparatively high cost of production, thus rendering the exports of Mauritius less competitive on the international market.

To restore its competitiveness, Mauritius is moving into the upper segment of the market by encouraging production through the use of sophisticated technology.

A third challenge arises from the Agreements on Agriculture and Textiles and clothing reached in the context of the GATT Uruguay Round. The outcome of the Uruguay Round on MTNs, which is expected to bring about trade liberalisation and improvement of market access through gradual elimination of quantitative restrictions and reduction of tariffs on industrial products and reduction of domestic producer subsidy and export subsidy on agricultural products, is likely to affect Mauritius.

Regarding sugar, Mauritius, along with other ACP sugar supplying states, is examining the commitments of the EU in respect of market access and export competition in the context of the review of the sugar regime of the EU.

In the case of textiles and clothing, quotas are expected to be phased out over a period of ten years by gradual integration of this sector under GATT 1994. This will result in the erosion of the preferences which Mauritius enjoys for the export of its textiles and clothing products to the EU under the Lomé Convention and the US and Canada under bilateral agreements concluded under the MFA.

As a net food importing country, Mauritius will also be adversely affected by the implementation of the GATT Uruguay Round Agreement on Agriculture because it is quite likely that the world market prices for foodstuff will rise resulting in an increase in the food import bills of Mauritius. This may impact adversely on the balance of trade of Mauritius which is already negative.

Mauritius urges the adoption of corrective and compensatory measures, as provided for in the Final Act of the GATT Uruguay Round, in order to enable it to tide over the adverse impact of the GATT Uruguay Round Agreements on its economy.

Mauritius is, however, cognizant of the fact that the sustainable growth of its economy inevitably depends on the development of its human resources, efficient allocation of resources and the use of modern technology, etc. Mauritius WT/TPR/G/5 Page 21

Chapter 6

External Economic Environment

(a) Major Trends in Imports and Exports (1989-93)

(i) Total International Trade and Balance of Visible Trade

A study of the evolution of international trade between 1989 and 1993 shows an increase of 51 percent, from Rs 36 billion in 1989 to Rs 54 billion in 1993.

During this period negative trade balances were registered ranging from Rs 4.5 billion to Rs 6.8 billion.

(ii) Development in the Terms of Trade and Commodity Prices

Throughout the period under study, Mauritius experienced favourable terms of trade. The terms of trade index which shows price movements of exports relative to imports computed on 1968=100 stood at 103 in 1993 against 98 in 1989.

For the period 1989-1993 the Export Price Index (Unit value) indicates an annual growth of 7 percent in export prices with EPZ export prices estimated at 7 percent and sugar prices at 5 percent. 0n the other hand, import prices lagged behind growing at an annual rate of 5 percent.

(iii) Exports

Total export proceeds for the year 1993 attained Rs 23.5 billion about 52 percent above the 1989 level of Rs 15.5 billion. In volume terms, exports grew by an average of 1 percent as most of the nominal increase is explained by the effect of price.

Comparative export figures by main sectors for l989 and l993 are given below.

Value f.o.b. Rs. billion Sector 1989 1993 % Change

Sugar 4.9 5.8 +18 EPZ 9.1 15.8 +74 Other 1.5 1.9 +27 Total exports 15.5 23.5 +52

EPZ Exports:

The rise in exports between 1989 and 1993 is mainly attributable to a substantial 74 per cent rise in the export proceeds of the EPZ sector which shot up to Rs 15.8 billion in 1993 against Rs 9.1 billion in 1989, an annual growth rate of 12 per cent. After allowing for price increases, volume- wise the EPZ sector grew by about 4 per cent. WT/TPR/G/5 Trade Policy Review Page 22

Sugar

Receipts from sugar increased by 18 per cent to Rs 5.8 billion in 1993 compared to Rs 4.9 billion in 1989 growing at a nominal rate of 3 per cent annually. 0nly 540,000 metric tons of sugar were exported in 1993 compared to 636,000 metric tons in 1989 showing a contraction, in the volume of sugar exported, of around 15 per cent.

Main Markets

During the period under study the country's main importer remained the EEC accounting for about 80 per cent up to 1993 when it dropped to 73 per cent mainly due to increase in exports to the USA.

(iv) Imports

Between 1989 and 1993 the import bill increased by 50 per cent from Rs 20.2 billion in 1989 to Rs 0.3 million in l993. After allowing for price increases of around 5 per cent, the growth in volume works out to 3 per cent.

As shown in the comparative import figures given in the table below, all products groups have recorded high increases ranging from 32 per cent to 68 per cent.

Value c.i.f. Rs bn. 1989 1993 % Increase

Food, beverages and tobacco 2.4 3.9 +61 Fuel 1.5 2.1 +40 Chemicals 1.3 2.2 +68 Manufactured goods 9.3 13.9 +50 Machinery 4.6 6.8 +47 Other goods 1.1 1.4 +32 Total imports of which 20.2 30.3 +50 EPZ Import Market (7.5) (9.3) (+24)

Figures at Annex V show that from the year l989 to l993 the main source of import of Mauritius remained the EEC.

(v) The EPZ Sector

Import in the EPZalso increased significantly from Rs 7.5 billion in 1989 to Rs 9.3 billion in 1993 that is an increase of 24 per cent or an annual growth rate of 4 per cent.

0ver the period net EPZ exports improved considerably from Rs 1.5 billion in l989 to Rs 6.5 billion in 1993 with its ratio rising to 41 per cent in 1993 from 17 per cent in 1989. For figures mentioned above please see Annex VI. Mauritius WT/TPR/G/5 Page 23

(b) Important Trends in the Balance of Payments, Reserves, Debt, Exchange and Interest Rates

The overall balance of payments has continuously recorded surpluses since 1985. However, the overall surplus declined from Rs 2,950 million in 1991 to Rs 721 million in 1992 and to Rs 140 million in 1993. as shown in table below. This declining surplus was largely due to certain developments in the capital account. A drop in the net inflows of capital on account of parastatal bodies and a surge in private direct investment abroad led to a net outflow of capital during 1992 and only a small net inflow in 1993 as against relatively large net inflows during the preceding years. Annex VII gives the balance of payments accounts for the years 1987-92.

Following developments in the overall balance of payments position since 1991-92, the level of foreign exchange reserves of the Bank of Mauritius has dropped from Rs 14,712 million at the end of June 1992 to Rs 13,692 million in June 1993 and to Rs 12,729 million in June 1994. At the end of June 1994 the level of foreign exchange reserves represented twenty one weeks of imports as compared with twenty six weeks in June 1993 and thirty weeks in June 1992. For details please refer to Annex VIII.

Balance of Payments Summary (Rs Million)

1989 1990 1991 1992 1993 (e) Current account -1,593 -1,783 -285 -181 -1,624 Merchandise -3,219 -4,007 -3,193 -1,817 -4,487 Exports f.o.b. 15,166 17,914 19,019 20,100 23,020 Imports f.o.b. 18,385 21,921 22,212 22,917 27,507 Imports c.i.f. 20,217 24,019 24,383 25,280 30,319 Services (net) 477 786 1,635 1,204 1,166 Transfers (net) 1,149 1,438 1,273 1,432 1,697

Capital Account 526 1,416 655 -230 216 Errors and Omissions 3,292 3,809 2,580 1,132 1,548 Overall balance of payments 2,225 3,442 2,950 721 140

Monetary Movements of which: -2,225 -3,442 -2,950 -721 -140 Reserve Movements (- indicates an increase) -1,659 -2,797 -2,628 -721 -140

Other -566 -645 -322 0 0

External Debt

Total external debt outstanding at the end of June 1993 was Rs 17,059 million, of which Rs 5,712 million were Central Government debt, Rs 7,546 million other official debt and Rs 3,801 million private sector debt. 0ver the years, the shares of other official debt and private sector debt in total external debt have increased. The debt service ratio of the country was 7.4 per cent in 1991-92, 8.1 per cent in 1992-93 and 6.5 per cent in 1993-94. For details please refer to Annex IX.

Exchange Rate

The Mauritian Rupee was pegged to a trade-weighted basket of currencies since February 1983. Moreover, the authorities have pursued a flexible exchange rate policy in recent years. The Bank of WT/TPR/G/5 Trade Policy Review Page 24

Mauritius had been quoting the Rupee/US dollar, the Rupee/French franc and the Rupee/pound sterling rates. The Bank of Mauritius now intervenes in the foreign exchange market by buying or selling US dollars only. This will help the development of a more efficient foreign exchange market and an exchange rate policy with the objective of ensuring a more stable rupee.

Exchange rates of the rupee against major currencies for recent years are given in annexes. (See Annex X, XI, XII).

Interest Rates

Interest rates have been fully liberalised since July 1988. With a view to allowing market forces to play a greater role in the determination of interest rates, the Bank Rate has, since June 1994, been linked to the average Treasury Bill auction rate over the preceding twelve weeks, plus a margin of one percentage point. Principal interest rates for recent years are given in Annexes XIII, XIV, XV.

Financial Measures Applicable to Import and Exports - Exchange Control

There are currently no restrictions on the making of payments and transfers for current international transactions, including trade in services.

Moreover, the Government of Mauritius has, with effect from 29th September l993, accepted the obligations of Article VIII, Sections 2,3 and 4 of the IMF Articles of Agreement. By accepting the obligations of Article VIII, Mauritius undertakes to refrain from imposing restrictions on the making of payments and transfers for current international transactions or from engaging in discriminatory currency arrangements or multiple currency practices without IMF approval.

The graduation of Mauritius to Article VIII status thus gives confidence to the international community that it will pursue sound economic policies that will obviate the need to use restrictions on the making of payments and transfers for current international transactions and thereby contribute to a multilateral payments system free of restrictions.

Since July 1994, all remaining controls on capital flows have been abolished. Hence, there are now no foreign exchange controls in Mauritius. A further step towards the integration of the domestic economy with the global economy has thus been made.

(c) International Macroeconomic Situation Affecting the External Sector

The economy of Mauritius is externally oriented and as such it is vulnerable to adverse developments such as recession and financial crisis in its main external market. Downturn in the economic activities in these markets no doubt leads to a reduction in demand and contraction in consumption and hence in imports of products of export interest to Mauritius. Luckily, Mauritius had been spared, to a large extent the negative effects arising from the last economic downturn in a number of developed countries.

However, the following recent developments are of concern to Mauritius:

(a) The setting up of the North American Free Trade Area (NAFTA) and the possibility of its extension to other Latin American countries, besides Mexico

(b) The conclusion of Association Agreements between EU and a number of countries of Eastern and Central Europe. Mauritius WT/TPR/G/5 Page 25

(c) The dismantling of the Community of Mutual Economic Aid (CMEA) and integration of former communist economies into the world economy

(d) The setting up of export processing zones in a number of developing countries thereby bringing in more supplies of traditional items such as textiles and clothing on the world market.

As a signatory member of the Lomé Convention, Mauritius cannot remain unaffected by changes taking place in the European Union . The extension of trade preferences by EU to Eastern and Central European countries has a direct negative bearing on Mauritian exports. These countries have also an edge on Mauritius in terms of supply of raw materials,availability of skills, technology, infrastructure and production cost in addition to their geographical proximity to the markets of the EU member states.

Another area of concern is the implementation of the provisions of the new GATT Accord. The provisions of the Final GATT Uruguay Round will erode the trade preferences of the Lomé Convention.

Increased competition on the North American market due to trade liberalisation, on the one hand, and NAFTA Agreement, on the other , is also likely to impact on Mauritian exports.

Mauritius has already initiated action to upgrade the various sectors of its economy. It is also envisaging investment for the development of new areas of economic activities. WT/TPR/G/5 Trade Policy Review Page 26

Chapter 7

Problems In External Markets (Problems Of Market Access Facing Exports: Existing Significant Barriers To Trade)

Background

Mauritius exports mainly to EEC countries and the USA which purchased respectively some 73 per cent and 18 per cent of its exports in 1993. With respect to 1993 EPZ exports, France, USA, UK, Germany and Italy together bought 82.3 per cent of goods. They represent the traditional markets of Mauritius. Textiles and clothing constitute the dominant share (84 per cent) of the EPZ exports. For details please see Annex XVI.

Mauritius considers markets enlargement and diversification as vital to ensure expansion of exports. However, penetration in certain markets has been difficult due to the existence of significant tariff & non-tariff barriers to trade.

Barriers to trade

EU Markets

Market access to EU Countries is not characterised by barriers to trade as goods manufactured in Mauritius enter these markets quota-free and duty-free provided the origin criteria are met.

US & Canada

0n the US and Canadian markets, Mauritius exports such products as dresses, shirts, blouses and trousers under bilateral quotas agreements. It has unfortunately underutilised its quota. Annex XVII shows the unused quotas for different items on the US market.

Moreover Mauritian exporters have to pay tariffs ranging between 3.5% and 34.2% depending on the apparel products, whenever these products enter the US market. It seems that in spite of the Uruguay Round Agreements there will be no changes to the existing US tariffs as outlined in the Harmonized Tariffs, chapters 61 and 62.

Mauritius enjoys the British Preferential Tariff (BPT) and the Most-Favoured Nation Tariff (MFNT) Status with Canada.

In the case of apparel imports from Mauritius transhipped through the US, the applicable duty could be raised by seven per cent.

Australia

In 1991 the Australian Government announced that import quotas on Textiles, Clothing & Footwear (TCF) products entering the Australian market would be abolished on 28 February 1993 and these products would be subject to import duties only. The import duties would be gradually reduced over the next nine years and by 1 July 2000 the import duties on TCF would be: Mauritius WT/TPR/G/5 Page 27

General rate Developing Country rate Clothing and certain finished textiles 25% 20% Footwear, cotton sheeting and fabrics 15% 10% Footwear parts and existing non-quota 10% 5%

The high import duties on apparel and certain finished textiles do not facilitate trade. The annual '3 points' decrease as from 1994 onwards is not significant enough to enable Mauritius to penetrate and establish a foothold in the Australian markets for its export products.

Eastern & Southern Africa

Unlike Mauritius, several other PTA members are implementing the PTA time table for the gradual tariff elimination at a slower pace.

Non-tariff barriers (e.g import & export licensing requirements) have been identified as the main impediment to trade in this region. The restrictive import licensing policy of several PTA countries does not allow Mauritius to export to these countries.

The value-added criteria of 45% of ex-factory costs is considered too stringent, thus discouraging export of Mauritian products to the PTA countries.

The absence of norms and standards in certain PTA countries has made businessmen reluctant to trade in fresh food with these countries, as legal protection in case of delivery of poor quality of goods would be non-existent.

Insufficient information dissemination about transport routes and inadequate of sea links have hampered trade development in the region.

South African products enjoy preferential tariff treatment when exported to Mauritius. However Mauritian goods exported to South Africa have to face high import duties plus a surcharge on certain items. For example, duties on ready made garments are 90% with a surcharge of 15% though the actual duty applicable will depend upon the minimum and maximum duty rates allowed which vary from item to item.

India

High custom duties are levied on such goods as carbonless paper, woollen pullovers & fabrics when these products are exported to India. Carbonless paper is subjected to an import duty of 205%. The existence of such high duties does not allow Mauritius to export its products to India.

Mauritius WT/TPR/G/5 Page 29

ANNEXES

Mauritius WT/TPR/G/5 Page 31

Annex 1(a) List of controlled goods C.T.N. Description

03.05 Salted fish 04.01 Milk (fresh/liquid) 07.01 Potatoes (in all forms) including seed 0703.10 Onions and shallots 0703.20 Garlic 0708.20 Beans 0708.90 Other broad beans 0802 Groundnut 0805.10 Oranges 0805.20 Tangerines, mandarines 0805.30 Lemons and limes 0805.40 Grapefruit 0904 to 0910 Spices 10.05, 1103.13, Maize in all forms 1102.20 10.06 Rice 11.01 Wheat or meslin flour 12.11 Plants and parts of plants (including seeds and fruit), of a kind used primarily in pharmacy, fresh or dried, whether or not cut, crushed or powdered. 15.07 Soybean oil and its fractions, whether or not refined, but not chemically modified. 15.11 Palm oil and its fractions, whether or not refined, but not chemically modified. 15.12 Sunflower seed, safflower or cotton-seed oil and their fractions, whether or not refined, but not chemically modifed. 1513.11, Coconut oil (copra) and its fractions, whether or not refined, but not chemically modified. 1513.19 15.14 Rape, colza or mustard oil and their fractions, whether or not refined but not chemically modified. 1515.21 Maize (corn) oil and its fractions (crude). 1515.29 Maize (corn) oil and its fractions (other). 15.16 Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidonised, whether or not refined, but not further prepared. 15.17 Margarine edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of chapter 15, other than edible fats or oils or their fractions of Heading No. 15.16. 15.18 Animal or vegetable fats and oils and their fractions boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified. 17.02 Artificial sweeteners. 1901.10, Infant formulas 1905.401, 04.01 21.06 Nutrient supplements 21.06 Dietary foods 2106.902 Bakery additives 2402.20 Cigarettes containing tobacco 25.01 Salt 2523.21, Portland cement 2523.29 27.09 Petroleum oils and oils obtained from bituminous minerals crude 27.10 Petroleum oils and oils obtained from bituminous minerals other than crude 2916.1 Acrylic acid Chapter 30 Pharmaceutical products Ayurvedic and other traditional medicines 3006.20, Diagnostic materials of biological origin 3006.30, 38.22 38.08 Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphur-treated bands, wicks and candles and fly-paper). 3917.23 PVC pipes 39.26 Plastic-feeding bottles 3926.909, Teats and soothers 4014.90 Annex 1(a) cont'd WT/TPR/G/5 Trade Policy Review Page 32

C.T.N. Description

6506.101 Motor-cyclists' helmets (crash helmets) 71.08 Gold (including gold-plated with platinum), unwrought or in semi-manufactured forms, or in powder form. 7112.10 Waste and scrap of gold, including metal clad with gold, but excluding sweepings containing other precious metals. 8417.20, Bakery and pastry equipment 8438.10, 85.14 84.23 Weighing machinery 8516.10 Electric water heaters and immersion heaters and parts thereof 87.02 Public transport type, passenger motor vehicles, bus 8706.001 Bus chassis fitted with engines 89.01 Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods. 89.02 Fishing vessels, factory ships and other vessels for processing or preserving fishery products. 89.04 Tugs and pusher craft 90.17 Instruments for measuring length, for use in the hand (for example measuring rods and tapes). 9018.31 Syringes with or without needles 9018.39 Sutures and ligatures 9603.10 Brooms Falling under Food additives (preservatives, colouring substances, flavouring substances, flavour enhancers). following chapters: 13, 21, 28, 32, 33, 35 and 38 - - Second-hand (used/reconditioned) motor vehicles - - Second-hand motor vehicle parts and accessories - - Other used, scrapped and second-hand goods Mauritius WT/TPR/G/5 Page 33

Annex 1(b) List of dangerous chemicals

HS Code Description

2912.12 Acetaldehyde 2924.29 Acetaminophen 2926.90 Acetonitrile 2912.19 Acrolein 2915.24 Acetin Anhydride 2915.96 Acetyl Chloride 2926.10 Acerylonitrile 2814.10 Ammonia 2922.29 4-Amino Dyphemyl 2921.41 Aminobenzene 2927.00 Aminoazotoluene 2921.41 Aniline 2811.29 Arsenic 2524.00 Asbestos 2925.10 Auramine 2617.10, 8110.00 Antimony 2902.02 Benzene

C.T.N. Description

2902.90 Benzo Anthracene 2902.90 Benzo Fluoranthene 2902.90 Benzopyrene 2921.59 Benzidine 2916.31 Benzoic Acid 2903.59 Benzotrichloride 2617.90, 8112.11, 8112.19 Beryllium 2903.30 Ethylene Dibromide 2930.90 Ethylene Thiourea 2902.90 Fluoranthene 2912.11 Formaldehyde 2903.40 Flurotrichloromethane 2910.90 Gudrin Aldehyde Endrin 2910.90 Heptachlor Epoxide 2903.62 Hexachlorobenzene 2931.00 Hexachlorobutadiene 2811.19 Hydrogen Sulfide 2903.19 Hexachloroethane 2806.10 Hydrogen Chloride 2825.10 Hydrazine 2902.90 Undenol (1,2, 3-cd) Pyrene 2914.29 Isophorone 2607.00 Chap. 78 Lead 3204 Magenta 2805.40 Mercury 2916 Methacrylic Acid 2909.60 Methyl Ethyl Ketone 2903.30 Methyl Bromide 2903.12 Methylene Chloride 2909.19 Methyl Chloromethyl Ether

Annex 1(b) (cont'd) WT/TPR/G/5 Trade Policy Review Page 34

C.T.N. Description

2924.10 Methyl Nitrosourea 2921.59 Methylene Bis-O-Chloraniline 2905.50 Methyl Methane Sulphonate 2902.90 Naphtalene 2910.90 Dieldrinaldrin 2903.19 1,1 Dichloroethene 2903.15 1,2 Dichloroethane 2908.90 2,4 Dintirophenol 2903.40 Dichlorodifluoromethane 2917.34 Diethyl Phthalate (Diethyl Sulfate) (Dimethyl Sulfate) 2903.61 1,2,2 Dichlorobenzene 2908.10 2,4 Dimethylphenol 2932.90 1,4 Dioxane 2917.34 Dimethyl Phthalate 2922.19 4-Dimethyylamino Benzene 2908.19 Dimethylnitrosamine 2903.10 4,6 Dinitro 2-Methylphenol 2908.61 1,3 Dichlorobenzene 2921.59 3,3 Dichlorobenzidine 2903.15 1,2 Dichloroethane 2904.20 2,4 Dinotortoluene-24-Diaminotoluene 2903.15 1.1. Dichloroethane 2917.31 Di-N-Butyl Phthalate 2928.00 1-1, Dimethyl Hydrazine 2928.00 122-Diphenylhydrazine 2904.20 2,6 Dinotretoluene 2908.10 2,4 Dichlorophenol 2910.30 Epichlorohydrin 2902.60 Ethylbenzene 2904.10 Ethylmethyl Sulfonate 2941.29 Napthylamine (Alpha, Beta) 2604.00 Chap. 75 Nickel 2903.19 N-Nutyl Chloride 2904.20 Nitrobenzene 2904.20 4-Nitrodiphenyl 2908.90 2 Nitrophenol 2921.18 N-Notrosodimethylamine 2921.19 N-Nitrosodi-n-Propylamine 2921.19 N-Nitrosodiphenylamine 2921.59 N-N-Diacetylbenzidine 2910.90 Oxirane 2902.90 Polychlorinate Biphenyls (PCB) 1260, 54, 48, 42, 32, 21, 1016 2902.90 Polybrominated Biphenyls; Polychlorinated Triphenyls 2908.10 P-Chloro-N-Cresol 2924.29 P-Chloroanline 2932.00 P-Dioxin 2921.51 P-Phenylenediamine 2908.16 Pentachlorophenol 2914.41 2-Pentanene, 4-Methyl 2902.90 Phenanthrene 2907.11 Phenol 2907.19 Phenol, 2-Methyl 2930.90 1,3 Propane Sultone

Annex 1(b) (cont'd) Mauritius WT/TPR/G/5 Page 35

C.T.N. Description 2904.20 2-Nitropropane 2925.20 Propylenimine 2505.10, 2506 Quarts 2932 Beta-Propiolactone 2903.51 BHC-ALPHA, Camma, Beta, Deta 2909.19 Bis (2 Chloromethyl) Ether 2909.19 Bis (Chloromethyl) Ether 2917.34 Bis (2 Ethylihexy) Phthalate 2903.40 Bromodichloromethane 2903.30 Bromoform 2903.30 Bromethane 2914.50 2-Butanone 8107.00 Cadmium 2933.59 Carbon Disulfide 2903.14 Carbon Tetrachloride 2903.61 Chlorobenzene 2903.69 Chloroditromomethane 2903.13 Chloroform 2903.11 Chloromethane 2904.90 Chloropiorin 2903.59 Chlordane 2610.00, 8112.20 Chromium 2902.90 Chrysene 2603.00, Chap. 74 Copper, Crocidolite 2851.00 Cyanamide 2927.00 Diazomethane 2903.40 1,2 - Dibromo-3-Chloropropane (DBCP) 2910.90 1,2,3,4 - Diepoxy Butane 2902.90 Dibenzo (a) (h) Anthracene 2903.61 1,4 - Dichlorobenzene 2804.90 Selenium 2616.90, 7105 Silver 2902.50 Styrene 2903.19 1.1.2.2. Tetrachloroethane 2903.10 Tetrachloroethen 8112.91, 8112.99 Thallium 2930.90 Thioacetamide 2980.90 Thiourea, Tremolite 2903.69 1,2,4 Trichlorobenzene 2903.15 122 - Trans Dichloroethane 2903.19 1.1.1 - Trichloroethane 2903.19 1,1,2 - Trichloroethene 2903.22 Trichloroethene 2933.39 Trichloracetic Acid 2908.10; 2,4,6 Trichlorophenol 2919.50 Tris (2,3 - Dibromoproyl); Phosphate 2902.30 Teluene 2921.40 0 - Toluidine 2902 Total Xylenes; Toxaphene 2924.16 Urethane 2903.62 U, U - DDE, DDT, DDD 2903.62 Vinyl Chloride 2902.10 Polyvinyl Chloride 2902.19 4 - Vinyl Cyclohexene Chap. 79 Zinc 29.10, 34.03 Cutting oils - cutting fluids 2939.29 Hydroquinine WT/TPR/G/5 Trade Policy Review Page 36

Annex 1(c) List of prohibited goods

1. Ball valve bottles 2. Explosive caps for toy pistols and guns containing a mixture of potassium chlorate and red phosphorus 3. Fire crackers of a type commonly known as "petards rapes" 4. White phosphorous matches 5. Rubber tyres which have been remoulded, recapped or regrooved 6. Kerosene stoves of a type commonly known as "lampes vertes" and parts thereof 7. Water scooters 8. Ivory and tortoise shell 9. Underwater fishing guns 10. Sugar and chocolate confectionary and bubble/chewing gum in the form of cigarettes 11 Second-hand motor vehicle spare parts and accessories as follows:- (a) Tyres, tubes and wheels (b) Radiators (c) Springs and front legs (d) Lorry cabins and parts thereof (e) Injector nozzles (f) Chassis and parts thereof (g) Brake linings (h) Clutch nut and parts thereof (i) Fuel tanks (j) Filters (k) Hoses (l) Engine mountings (m) Bolts (n) Oil seals (o) Ball joints (p) Bearings (q) Shock absorbers (r) Spring leaves (s) Car bodies 12. Toy motor-cyclists' helmets 13 "Roll your own" cigarette papers imported under Customs Tariff Heading No. 48.13 Mauritius WT/TPR/G/5 Page 37

Annex II(a)

List of imported goods subject to price fixing

Cement Cheese Cooking gas (LPC) Fertilizers Flour Frozen fish Infant milk powder Iron and steel bars Petroleum products including kerosene Rice Salted snoek

List of locally produced goods subject to price fixing Part I Onions Potatoes Sugar

Part II Aerated beverages Bread Edible oil Fertilizers Frozen fish Iron/steel bars Flour, including whole wheat flour

Annex II(b) List of imported goods under maximum mark up system 1. Ceramic tiles 2. Crash helmets 3. Domestic washing machines 4. Electric floor polisher 5. Electric food grinders and mixers, fruit or vegetable juice extractors 6. Electric kettles 7. Electric rice cookers 8. Electric smooth irons 9. Glass panes 10. Plywood 11. Refrigerators and freezers 12. Sanitary ware 13. School text books 14. Timber 15. Tyres 16. Vacuum cleaners 17. Vinyl tiles 18. Pharmaceutical products 19. Simple drug 20. Sports goods 21. Fresh fruit WT/TPR/G/5 Trade Policy Review Page 38

Annex III List of scheduled territories Ashmore and Cartier Islands Lesotho Australia Luxembourg Australian Antartic Territory Madagascar Bahamas Malawi Bangladesh Malaysia (comprising Federation of Malaya, Sarawak and Sabah) Barbados Malta Belgium Monaco - French territory Bermuda Mozambique Botswana Myanmar British Antartic Territory Namibia British Indian Ocean Territory (comprising Chagos Archipelago, Nauru Aldabra, Farquhar and Desroches) Netherlands Brunei Darussalam New Zealand Burundi Nigeria Canada Norfolk Island Cayman Islands Pakistan Channel Islands Papua Christmas Island Portugal Cocos or Keeling Islands Ross Dependency Comoros Islands Rwanda Cyprus Seychelles Denmark Sierra Leone Djibouti Singapore Egypt Soloman Islands Ethiopia Somalia Falkland Islands and Dependencies South Africa Fiji Spain France Sri Lanka Gambia St. Helena (with Ascension and Tristan da Cunha) Germany Swaziland Ghana Sweden Gibraltar Tanzania (comprising Tanganyika and Zanzibar) Gilbert and Ellice Islands Colony Territory of New Guinea Greece Tonga Guyana Trinidad and Tobago Heard Island and McDonald Island Turks and Caicos Islands Honduras Uganda Hong Kong Union of the Soviet Socialist Republics India United Kingdom Ireland United States Isle of Man Virgin Islands (British) Italy Western Samoa Jamaica Winward Islands (comprising Dominica, Grenada, St. Lucia and Kenya St. Vincent) Leeward Islands (comprising Antigua, Montserat, St. Christopher, Zambia Nevis and Anguilla) Zimbabwe Mauritius WT/TPR/G/5 Page 39

Annex IV(a) List of imports by products Combed cabled cotton yarn, with 85% cotton, NPRS, Portland cement other than white cement, whether or not >80mn coloured 1991 549,892,272 1991 498,907,746 1992 532,743,700 1992 540,568,682 1993 837,097,002 1993 631,771,162 Gas oils obtained from petroleum or bituminous mineral Kerosene, excluding jet fuel 1991 517,534,181 1991 191,072,498 1992 465,056,224 1992 576,506,746 1993 590,943,904 1993 580,762,145 Parts of aeroplanes or helicopters, excluding 880310-20 Semi-milled or wholly milled rice, whether or not polished or glazed 1991 391,412,386 1991 292,314,993 1992 542,900,612 1992 267,857,181 1993 208,242,045 1993 446,607,641 Medicament n.e.s. not containing Non-industrial diamond unworked/simply sawn, antibiotic/harmone/alkaloid/vitamin cleaved/bruted, not mounted/se 1991 256,441,874 1991 299,861,871 1992 343,996,492 1992 266,807,493 1993 373,522,633 1993 343,493,529 Dyed woven fabrics of cotton, >2000g/M2, n.e.s. Fuel oils obtained from petroleum or bituminous minerals 1991 152,478,954 1991 320,582,177 1992 287,594,044 1992 246,150,172 1993 436,666,348 1993 309,541,145

Annex IV(b) List of imports by countries

Total imports France South Africa 1991 24,686,238,903 1991 3,271,122,805 1991 2,696,451,356 1992 25,933,322,296 1992 3,603,297,716 1992 3,161,711,339 1993 30,762,213,967 1993 3,823,005,793 1993 4,408,419,757 United Kingdom Japan Germany 1991 1,682,180,133 1991 1,756,034,056 1991 1,358,797,825 1992 1,902,278,367 1992 1,928,363,334 1992 1,275,092,014 1993 2,239,384,316 1993 1,824,412,391 1993 1,703,448,288 India Hong Kong Chinese Taipei 1991 1,115,374,367 1991 1,058,043,971 1991 1,008,961,394 1992 1,282,206,323 1992 1,091,266,000 1992 954,852,252 1993 1,732,526,713 1993 1,402,549,000 1993 1,275,981,343 China Italy 1991 933,852,200 1991 783,669,939 1992 847,505,081 1992 755,075,401 1993 1,282,587,167 1993 1,063,905,716 WT/TPR/G/5 Trade Policy Review Page 40

Annex V Imports from EEC by section, 1989-93 SITC Group of countries 1989 1990 1991 1992 1993 Section 0 2,346 2,610 2,692 2,915 3,744 EEC 783 850 744 853 1,208 Preferential tariff 1,207 1,406 1,527 1,643 1,919 General tariff 356 354 421 419 617 1 75 89 113 132 152 EEC 53 68 78 99 108 Preferential tariff 19 20 34 32 43 General tariff 3 1 1 1 1 2 748 765 801 749 951 EEC 159 120 100 69 54 Preferential tariff 471 526 557 551 649 General tariff 118 119 144 129 248 3 1,509 1,939 2,053 1,945 2,109 EEC 25 29 24 34 25 Preferential tariff 185 355 799 1,354 1,875 General tariff 1,299 1,555 1,230 557 209 4 220 235 255 275 290 EEC 31 24 31 28 41 Preferential tariff 55 80 71 72 97 General tariff 134 131 153 175 152 5 1,319 1,618 1,739 1,901 2,216 EEC 697 812 806 894 1,050 Preferential tariff 386 466 587 632 735 General tariff 236 340 346 375 431 6 7,580 8,360 8,624 9,141 11,039 EEC 2,262 2,810 2,423 2,728 3,062 Preferential tariff 2,776 2,970 3,504 3,770 4,630 General tariff 2,542 2,580 2,697 2,643 3,347 7 4,639 6,290 5,840 5,715 6,787 EEC 2,084 2,910 2,746 2,407 3,279 Preferential tariff 672 1,850 1,322 1,180 1,569 General tariff 1,883 1,530 1,772 2,128 1,939 8 1,684 1,869 2,160 2,361 2,871 EEC 738 814 945 926 1,160 Preferential tariff 489 568 722 823 1,058 General tariff 457 487 493 612 653 9 97 167 106 146 160 EEC 91 158 105 146 158 Preferential tariff 2 2 1 0 0 General tariff 4 7 0 0 2 Total imports 20,217 23,942 24,383 25,280 30,319 EEC 6,923 8,595 8,002 8,184 10,145 Preferential tariff 6,262 8,243 9,124 10,057 12,575 General tariff 7,032 7,104 7,257 7,039 7,599

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Annex VIII Foreign reserves Bank of Government of Commercial Reserve Position Mauritius Mauritius Banks Net Total Reserves in IMF Foreign Assets Foreign Assets Foreign Assets

January 1990 8,201.9 1.9 - 357.2 8,561.0 February 8,252.4 0.9 - 372.6 8,625.9 March 8,508.8 0.3 - 409.6 8,918.7 April 8,471.2 0.3 - 572.0 9,043.5 May 9,066.7 1.2 - 421.6 9,489.5 June 9,211.4 1.7 - 419.0 9,632.1 July 9,120.8 1.8 - 431.9 9,554.5 August 9,449.5 1.6 - 506.5 9,957.6 September 9,715.8 1.6 - 340.0 10,057.4 October 10,370.7 3.9 - 411.2 10,785.8 November 10,539.2 1.7 2.0 432.0 10,974.9 December 10,633.2 0.0 2.0 428.3 11,063.5 January 1991 10,879.6 0.8 2.0 595.2 11,477.6 February 10,870.3 0.6 2.0 451.6 11,324.5 March 11,122.4 0.7 2.1 503.1 11,628.3 April 11,773.6 3.9 2.2 464.2 12,243.9 May 11,688.3 1.2 2.2 513.0 12,204.7 June 11,666.7 1.3 2.2 514.7 12,184.9 July 11,691.2 1.5 2.2 453.6 12,148.5 August 12,096.8 1.6 2.2 525.5 12,626.1 September 12,693.6 0.8 2.2 468.7 13,165.3 October 12,528.6 0.7 28.4 564.5 13,122.2 November 12,770.6 1.4 28.1 585.5 13,385.6 December 13,259.5 1.9 27.5 616.6 13,905.5 January 1992 13,439.9 0.6 28.0 620.6 14,089.1 February 13,863.5 1.9 28.3 482.9 14,376.6 March 14,341.2 3.9 28.4 470.5 14,844.0 April 14,655.6 2.9 28.6 421.0 15,108.1 May 14,557.7 4.8 28.4 426.2 15,017.1 June 14,712.4 3.2 28.2 434.7 15,178.5 July 14,500.4 2.9 27.9 361.9 14,893.1 August 14,819.1 2.7 27.5 402.0 15,251.3 September 14,676.4 2.4 28.3 410.6 15,117.7 October 13,906.7 2.5 29.1 415.2 14,353.5 November 14,055.9 2.1 142.5 395.0 14,595.5 December 13,866.7 2.3 145.1 541.9 14,556.0 January 1993 14,092.3 2.6 145.3 496.6 14,736.8 February 14,350.2 2.7 148.1 467.9 14,968.9 March 14,085.3 1.3 147.7 369.3 15,203.6 April 14,144.7 1.3 147.1 446.6 14,739.7 May 14,026.4 2.8 153.8 382.5 14,565.5 June 13,691.7 1.1 179.1 354.4 14,226.3 July 13,543.1 2.3 188.5 882.5 14,616.4 August 13,871.3 1.3 185.6 996.5 15,054.7 September 14,295.3 1.1 184.4 871.1 15,351.9 October 14,068.5 1.5 187.7 865.7 15,123.4 November 13,966.1 1.4 187.2 871.7 15,026.4 December 14,008.1 1.0 187.4 948.7 15,145.2 Mauritius WT/TPR/G/5 Page 45

Annex IX External debt outstanding (Mau Rs million)

Year Central IMF credit and Private (as at end June) Government trust fund loan sector Others Total (excl. IMF)

1983 3,463 2,060 190 464 6,177 1984 3,945 2,494 195 561 7,195 1985 5,207 2,488 201 682 8,578 1986 4,633 2,202 292 828 7,955 1987 4,844 1,989 645 1,230 8,708 1988 5,802 1,624 1,128 2,702 11,256 1989 5,735 1,265 1,394 3,468 11,862 1990 5,868 720 1,943 4,038 12,569 1991 5,964 - 2,586 5,826 14,376 1992 5,476 - 2,879 6,221 14,576 1993a 5,712 - 3,801 7,546 17,059 a Provisional.

Source: Ministry of Finance, Government of Mauritius.

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Annex XVI Export by destination (Mau Rs million)

1992 1993

EU countries 16,135 16,861 Other preferential countries 3,519 5,460 of which United States (2,508) (4,117) General tariff countries 590 671 Total exports 20,244 22,992 of which EPZ exports 13,081 15,821 (France) (4,006) (4,390) (United States) (2,329) (3,972) (United Kingdom) (2,170) (2,268) (Germany) (1,694) (1,564) (Italy) (769) (831)