Country Report Mauritius February 2011

Outlook for 2011-12: International relations

The main aims of Mauritius's foreign policy are to negotiate favourable access to developed markets for its exports, to encourage foreign investment and to cultivate economic relationships. As part of the Common Market for Eastern and Southern Africa, Mauritius is negotiating an economic partnership agreement (EPA) with the EU and will continue to receive financial assistance from the EU for restructuring the sugar sector and other development projects. An EPA being negotiated with India will consolidate the two countries' close relations, although their double-taxation agreement, dating back to 1982, is likely to be amended and this could cost Mauritius many of the advantages that it offers to investors in India. The relationship between Mauritius and China is deepening: Mauritius is to be the site of one of China's economic and trade co-operation zones in Africa. Relations with the British government are overshadowed by its refusal to recognise Mauritian sovereignty over the Chagos Islands and to allow the expelled Chagossians to return. Although Mauritian politicians will denounce British policy in this matter, economic and cultural relations between the two countries will remain close.

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