Country Information - Mauritius

ECONOMIC BACKGROUND Since independence in 1968, Mauritius has developed from a low-income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors. For most of the period, annual growth has been in the order of 5% to 6%. This remarkable achievement has been reflected in more equitable income distribution, increased life expectancy, lowered infant mortality, and a much improved infrastructure. Sugarcane is grown on about 90% of the cultivated land area and accounts for 25% of export earnings. The government's development strategy centers on foreign investment. Mauritius has attracted more than 9,000 offshore entities, many aimed at commerce in India and South Africa, and investment in the banking sector alone has reached over $1 billion. Mauritius, with its strong textile sector and responsible fiscal management, was well-poised to take advantage of the Africa Growth and Opportunity Act (AGOA). Click here for Country Map [23kB]

BI-LATERAL TRADE OVERVIEW Mauritius annually records a significant trade surplus with the United States, which in 2002 amounted to $ 253 million (2001: $249 million). There are strong indications that the magnitude of trade between Mauritius and the US will persist in the foreseeable future. However, over 90% of Mauritius' exports to the U.S. consist of 'textiles and apparel', a trade category that has remained relatively constant in recent years. Other exports to the U.S. are diversified and emanate from a cross section of different industry sectors. Mauritius qualified under AGOA's 'Wearing Apparel' provisions on 18 January 2001, being one of the first AGOA-eligible Sub-Saharan African (SSA) countries to do so. However, the country is not deemed a 'Lesser Developed Country', which means that Mauritius is unable to use non-qualifying third-country textile inputs in the manufacture of AGOA-eligible apparel exports. As a result, only 40% of Mauritius' exports in the 'textiles and apparel' category qualify for AGOA benefits (2001: 16%). However, this percentage marks a significant increase from the previous year, and is likely to increase further as Mauritius utilises a greater number of 'qualifying' regional textiles in its textile sourcing networks. Click here for Detailed Trade Profile