Background

1. A Joint Study Group (JSG) constituted in November 2003 to study modalities of the CECPA discussed in detail the complementariness and potential synergies between the two economies and, in its report of November, 2004, identified Investment, Trade in Goods and Services and General Economic Cooperation for developing modalities of CECPA.
   
   
2. During his visit to Mauritius from March 30-April 2, 2005, the Hon’ble Prime Minister of India conveyed India’s acceptance of the report by the Joint Study Group on Comprehensive Economic Cooperation and Partnership Agreement and both sides agreed to set up a high-powered negotiating team for processing and finalizing the recommendations of this report within a twelve-month period. Accordingly an empowered team was constituted for negotiating a Comprehensive Economic Cooperation and Partnership Agreement (CECPA) with Mauritius. Ten rounds of talks have so far been held by the empowered team.

State of play of negotiations

1. Chapter on Trade in Goods (Preferential Trade Agreement) which includes Tariffs, Texts of Preferential Trade Agreement (PTA) and its annexures, viz. Rules of Origin, Operational Certification Procedures and Trade Defence Measures has been finalised.
   
   
2. Negotiations were held on Trade in Services with a view to creating a more liberal, facilitative, transparent and competitive services regime in the two countries and to strengthen cooperation in services sector. Negotiations were also held on Trade in Investments for improving the legal framework existing in both countries in this regard, including the bilateral Double Taxation Avoidance Convention (DTAC) and Bilateral Investment Promotion & Protection Agreement (BIPA), and other issues related to facilitation of investment.
   
   
3. Chapters on Trade in Services and Trade in Investment could not be finalized as the two sides did not agree on the definition of 'Enterprise' and treatment to 'Shell Companies'. Consequently, negotiations are at a standstill since the tenth round held on 23-24October, 2006. India’s proposal for modifications to India-Mauritius DTAC has not so far been acceptable to Mauritius. Hence, India has decided to link the finalisation of India-Mauritius CECPA and revision of India-Mauritius DTAC and put on hold the CECPA negotiations until necessary modifications in the India-Mauritius DTAC, as proposed by the Department of Revenue, are accepted by Mauritian side.

CECPA related Memoranda of Understanding

Following MOUs were signed by India and Mauritius in October, 2005 under the aegis of CECPA :

1. MOU in the field of Consumer Protection and Legal Metrology.
    
   
2. MOU between Bureau of Indian Standards (BIS) and Mauritius Standards Bureau (MSB).
   
   
3. MOU between Indian Institute of Public Administration (IIPA) and Government of Mauritius.
   
   
4. MOU on Preferential Trade Agreement (PTA).