Friday, May 20, 2022

Results of China-Mauritius Free Trade Agreement

The South African Institute of International Affairs published on 13 May 2022 a study titled "Mauritius' Free Trade Agreement with China: Lessons and Implications for Africa" by Vinaye Ancharaz and Rajiv Nathoo. 

The Mauritius-China Free Trade Agreement (MCFTA), signed in 2019, has limited scope for driving expanded trade between the two countries.  It is also unlikely that foreign direct investment will increase significantly in either direction.  The MCFTA increases the risk that Mauritius' already significant trade deficit with China will widen.  Given the limited direct economic advantages of the MCFTA, it may be that the key drivers behind the agreement are strategic and geopolitical in nature.