OPPORTUNITIES FOR THE CHINA-MAURITIUS FREE TRADE AGREEMENT TO SEIZE
At the geopolitical level, the China-Mauritius FTA is of utmost importance. Beijing usually approaches regional trade policies via small states first, such as New Zealand or Iceland. As a result, the China-Mauritius FTA could be the steppingstone to an all Africa – China FTA. This is known as China’s small-state-first trade diplomacy. In doing so, China gains experience in understanding the regional modus operandi. It then incrementally builds up a brand as an effective trade partner in the region.
Mauritius is interesting in that it already provides a long- standing economic diplomacy where Chinese entities have been operating mostly in the sphere of trade for over centuries. At the freeport level after long years of latency with the Tianli project, the Mauri-China Freezone Development Ltd is now operational.
Coupled with the new economic agreement with China, over the next years, we may see new dynamism for the freeport zones with export and re-export between Mauritius China and Mauritius to the rest of Africa. It is also worth noting that the FTA is not only about trade, the FTA seeks to promote the development of a Renminbi clearing and settlementfacility in Mauritius, which will be crucial in the expansion of trade between African countries and China and the development of fintech services, which is a common thread in the economic strategies of Mauritius,
SMALLER VESSELS AND NEW SHIPPING LINES
China and many countries across Africa. One of the constraints that we have faced is the lack of smaller vessels that can do the transit between the islands and the African coast. There are a couple of projects currently being developed both by private entities and government entities that couldbring new shipping lines across the region. This is a development that is likely to enhance the transhipment business considerably if it comes into being. Moreover, the government of Mauritius has been in discussion with governments in the region including Madagascar and Mozambique towards the development of cabotage between the countries in the region. In the focus towards enhancing business with China, it may also be worth examining collaboration that the freeport could build with ports and businesses from the western African coast.
One of the aspects of what makes Mauritius attractive for freeport activities is the security that prevails in the country. In addition, the freeport zones have additional security features and benefit from top grade amenities. As a result, it is ideal for activities which need higher security for their operations including jewellery and precious stone businesses. There are indeed businesses based out of the freeport that use the secured location to process stones for re-export. Similarly, high value products such as Vanilla conditioning are appropriate for our freeport. Such Security determined businesses often do not depend on cabotage trade. This will be important driver especially because many countries in the region cannot boast to have similar levels of safety and security as we have.
In 2006, the Mauritius Freeport Authority was integrated into the Board of Investment- Now Economic Development Board of Mauritius. Developers within the sites have been engaged in their own promotion with the support of the EDB. As the sector expands, and with the new directions along the China Africa Axis, it may be worth looking at other models across the world to gauge if there is a need to have a dedicated freeport promotion entity.
Mauritius is interesting in that it already provides a long-standing economic diplomacy
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