Mauritius Pushes for Trade Agreement Amendments with India

Mauritius is seeking amendments to its trade agreements, including the Double Taxation Avoidance Convention with India, to restore its position as a leading investment conduit. The country's Foreign and Trade Minister, Dhananjay Ramful, highlighted the decline in foreign direct investment since treaty revisions in 2016.

Mauritius is advocating for changes in its trade agreements with India, particularly aiming to amend the Double Taxation Avoidance Convention (DTAC). According to Foreign and Trade Minister Dhananjay Ramful, these amendments are critical to restoring Mauritius as a preferred investment conduit, following a significant drop in FDI from the island nation to India since the treaty revision in 2016.

Ramful announced plans for a second joint committee session to address trade imbalances and taxation issues within the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) and DTAC. With FDI inflows from Mauritius sharply declining from USD 15.72 billion in 2016-17 to USD 6.13 billion in 2022-23, the changes aim to recapture previous investment levels.

Despite the decrease, Mauritius remained the third-largest FDI source for India in 2022-23. The country's seek parity with Singapore in trade considerations, hoping to enhance its investment hub status. Beyond taxation issues, Mauritius is positioned as a strategic gateway for investors targeting African markets.

(With inputs from agencies.)