PM's panel to take up imports from Mauritius

The Prime Minister's Trade and Economic Relations Committee (TERC) will meet this week to consider the quantum of sugar and textile imports to be allowed from Mauritius under the proposed Comprehensive Economic Cooperation and Partnership Agreement (CEC&PA).

The CEC&PA will cover goods, services and investment. The commerce ministry has favoured operationalising a preferential trade agreement with Mauritius before moving to a full CEC&PA. Under trade in goods, the island country has a competitive advantage in two items "" sugar and textiles.

"Since both sugar and textiles are sensitive to the domestic industry, the TERC will examine measures such as a tariff rate quota for sugar," an official said. Under a TRQ, India would allow import of sugar up to a fixed quantity either at a lower duty or duty free.

TERC will also examine the possibility of making duty-free imports of made-ups conditional to Mauritius sourcing fabric from India.

"An option being examined is that the quantum of made-ups allowed to be imported duty free would be equal to the amount of fabric sourced from India," an official said.

The fifth meeting of the negotiating team on the CEC&PA was held in the capital last month.

Both sides had reviewed the Preferential Trade Agreement (PTA), including rules of origin, operational certification procedures and preferential safeguard measures.