The Hindu : National : Free trade agreement to be signed with Mauritius

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Friday, Mar 25, 2005

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Free trade agreement to be signed with Mauritius

By Our Special Correspondent

NEW DELHI, MARCH 24. India and Mauritius are to sign a free trade agreement as part of a Comprehensive Economic Cooperation and Partnership Accord.

The signing will take place when the Prime Minister, Dr. Manmohan Singh, travels to the island on March 30 on a four-day visit.

Trade between the two countries has so far been substantially in India's favour, with exports to the island being $203 million and imports at $7.5 million in 2003-04.

In contrast, the flow of investment has been largely in the other direction. With a bilateral investment promotion treaty and a double taxation agreement already in place, the island has been the largest source of foreign direct investment (FDI) inflow into India — a total of Rs. 38,024 crore between August 1991 and December 2004.

That is more than twice what has flowed in from the United States, and almost a third of all the foreign direct investment received in the period.

The free trade agreement is intended to provide a leg-up to Mauritius exports to India, government sources here said.

The island is a large exporter of sugar and textiles to Europe, and enjoys a trade surplus with the United States.

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