MOREPRESS RELEASE
EMBARGO:  NOT FOR PUBLICATION UNTIL
1300 GMT 5 NOVEMBER 2001
PRESS/TPRB/176
5 November 2001
(01-5400)
SOUND MACROECONOMIC POLICIES AND DIVERSIFICATION HAVE
CONTRIBUTED TO MAURITIUS' STRONG ECONOMIC PERFOMANCE
Sound macroeconomic policies have contributed to sustained strong economic performance in
Mauritius for two decades with an average growth of   nearly 6% a year.  Concurrently, Mauritius has
successfully diversified its economy away from sugar. Textiles and clothing, tourism, financial
services, and sugar are now the four pillars of the economy, according to a WTO report on the trade
policies and practices of Mauritius.
The WTO Secretariat report, along with the policy statement by the Government of Mauritius,
will serve as a basis for the second trade policy review of Mauritius by the Trade Policy Review Body
of the WTO on 2 and 5 November 2001.
The report indicates that the share of agriculture in real GDP has declined, from around 12%
in 1990 to some 6% now.  The services sector, dominated by tourism and financial services, is the
most important in the economy, accounting for around 74% of real GDP.  Services exports are morethan one third of total foreign exchange earnings, with tourism contributing the largest and increasing
share.  Manufacturing is the source for some 75% of merchandise exports;  it contributes around one
fifth of real GDP, with textiles and clothing accounting for more than 40% of manufacturing output.
The report notes that nevertheless, Mauritius faces challenges.  Its economy has elements of
duality:  companies producing for the domestic market are fairly highly protected, while exportenterprises are granted incentives under various schemes, including the Export Processing Zone
Scheme.  This has led to tensions in resource allocation between the export and domestic sectors, and
highlights the task of transforming the economy away from export- to outward-orientation.  Mauritius
has also become a "high-cost" producer, as real wages have grown faster than productivity.  In
addition, Mauritius faces a changing internatio nal environment, including the narrowing of
preferences for some of its exports, and the consequent increase in competition.  Added to these
factors is a scarcity of arable land and of skilled labour.  In response to these challenges, Mauritius
has been promoting (mainly by means of incentive s) domestic production of capital-intensive higher-PRESS/TPRB/176
Page 2
MOREvalue-added goods and the geographical diversification of exports.  There has also been a certain
delocalization of low-value-added labour-intensive activities to neighbouring countries.
Since its last Trade Policy Review in 1995, Mauritius has continued to implement trade-
related reform, although border protection remains relatively high in some areas.  Differing customs
duties still apply on the bases of import source. A reduction in maximum tariff rates, and an increase
in the number of duty-free lines, have contributed to lowering the simple average MFN tariff to some20%;  this is fairly high, particularly given that over 50% of lines bear a zero rate.  Nearly all rates are
ad valorem;  these rates range to 80%, with high dispersion.  Specific duties are collected on two tariff
lines, with the highest ad valorem equivalent being around 360%.  Since 1995, the number of tariff
bands has remained unchanged at eleven, including the zero rate and the ad valorem equivalents of the
two specific duties.  Using the WTO definition, the simple average tariff is 20.5% on agricultural
imports, and 19.8% on imports of non-agricultural products.
Mauritius has bound nearly 15% of all its tariff lines.  It bound tariffs at a ceiling rate of 65%
on some 1.6% of its total tariff lines for non-agricultural products; tariffs on all agricultural products
(WTO definition) are bound at ceiling rates ranging from 37% to 122%.  Other duties and charges on
all these products are bound at zero or 17%.  An increase in the coverage of bindings and the
narrowing of the gap between bound and applied rates would enhance predictability of Mauritius'
tariff regime.
The report also indicates that the liberaliza tion reforms have fallen short of further
dismantling non-tariff measures maintained on various grounds.  The number of products subject to
import ban, or import control by means of permit, has increased.  Import quotas still apply to table-
potatoes and salt. Several parastatal bodies, including the State Trading Corporation and theAgricultural Marketing Board, purchase, import, and store "strategic" products (including flour, ration
rice, petroleum products, cement, table potatoes, onions, and garlic).  Price controls, consisting of a
fixed maximum price system (on imports and lo cally produced goods) and a maximum percentage
mark-up system (only on imports), are also maintained on some of the strategic products;  the controls
are to be abolished gradually after the enactment of competition legislation, a draft of which is beingvetted by the Office of the Attorney General.  A permit is required for the exportation of products of
"strategic importance" and of goods eligible for preferential-quota treatment in importing countries.
Mauritius applies no duties, taxes or charges to its exports.
Incentives (including duty and tax concessions) are available under various schemes to local
producers, mainly manufacturers, and to exporters,  with a view to encouraging investment and
improving the international competitiveness of Mauritian products.  In addition, partial refunds of air
freight costs are granted to exporters of selected agricultural products.  The incentives, together with
elimination/reduction of tariffs on inputs, increase effective protection for local processing industries.
Mauritius' participation in the multilateral trading system and in various regional agreements
reflects its interests as a small, export-oriented economy with advantages in a few products, sugar,
textiles and clothing in particular.  As part of its economic success is due to preferential market access
granted by major trading partners, Mauritius is taking steps to adjust to changes in this internationalenvironment.
The adjustment needs to emphasize the streamlining and rationalization of existing incentives
so as to lessen the aspects of duality and improve resource allocation.  The resultant
reduction/elimination of duty and tax concessions could contribute to reducing the public deficit and
to facilitating further tariff reforms, which are currently hampered by fiscal concerns as customsduties account for about 50% of tax revenue.PRESS/TPRB/176
Page 3
MOREElimination of non-tariff barriers and of differing customs duties (by source) would enhance
the transparency of Mauritius' trade regime.  Such a regime might also play a greater role in attracting
investment as more tariffs are bound, the gap between applied and bound rates narrows, and GATS
scheduling increases, including perhaps in the context of introducing greater competition in service
subsectors such as telecommunications.  Overall, such adjustments could contribute to an improved
exploitation of Mauritius' comparative advantages, and facilitate the transformation from an export- toan outward-oriented economy.
Note to Editors
Trade Policy Reviews are an exercise, mandated in the WTO agreements, in which member
countries’ trade and related policies are examined and evaluated at regular intervals. Significant
developments which may have an impact on the global trading system are also monitored. For each
review, two documents are prepared: a policy stat ement by the government of the member under
review, and a detailed report written independently by the WTO Secretariat. These two documents are
then discussed by the WTO’s full membership in the Trade Policy Review Body (TPRB). These
documents and the proceedings of the TPRB’s meet ings are published shortly afterwards. Since 1995,
when the WTO came into force, services and trade- related aspects of intellectual property rights have
also been covered.
For this review, the WTO’s Secretariat report, together with a policy statement prepared by
the Government of Mauritius, will be discussed by the Trade Policy Review Body on 2 and 5
November 2001. The Secretariat report covers the development of all aspects of Mauritius trade
policies since the previous review, including domestic laws and regulations, the institutionalframework, trade policies by measure, and developments in selected  sectors.
Attached to this press release is the Overview to the Secretariat report and parts of the
government policy statement. The Secretariat report and the government's policy statement are
available for the press in the newsroom of the WTO internet site (www.wto.org). These twodocuments and the minutes of the TPRB’s discussion and the Chairman’s summing up, will be
published in hardback in due course and will be available from the Secretariat, Centre William
Rappard, 154 rue de Lausanne, 1211 Geneva 21.PRESS/TPRB/176
Page 4
MORESince December 1989, the following reports have been completed: Argentina (1992 and
1999), Australia (1989, 1994 and 1998), Austria (19 92), Bahrain (2000) Bangladesh (1992 and 2000),
Benin (1997), Bolivia (1993 and 1999), Botswa na (1998), Brazil (1992, 1996 and 2000), Brunei
Darussalam (2001), Burkina Faso (1998), Cameroon (1995 and 2001), Canada (1990, 1992, 1994,
1996, 1998 and 2000), Chile (1991 and 1997), Colombia (1990 and 1996), Costa Rica (1995 and
2001), Côte d’Ivoire (1995), Cyprus (1997), th e Czech Republic (1996 and 2001), the Dominican
Republic (1996), Egypt (1992 and 1999), El Salvador (1996), the European Communities (1991,
1993, 1995, 1997 and 2000), Fiji (1997), Finland (1992), Gabon (2001), Ghana (1992 and 2001),
Guinea (1999), Hong Kong (1990, 1994 and 1998),  Hungary (1991 and 1998), Iceland (1994 and
2000), India (1993 and 1998), Indonesia (1991, 1994 and 1998), Israel (1994 and 1999), Jamaica
(1998), Japan (1990, 1992, 1995,1998 and 2000), Keny a (1993 and 2000), Korea, Rep. of (1992, 1996
and 2000), Lesotho (1998), Macao (1994 and 2001), Madagascar (2001), Malaysia (1993 and 1997),
Mali (1998), Mauritius (1995 and 2001), Mexico (1993 and 1997), Morocco (1989 and 1996),Mozambique (2001), New Zealand (1990 and 1996) , Namibia (1998), Nicaragua (1999), Nigeria
(1991 and 1998), Norway (1991, 1996 and 2000), OECS  (2001), Pakistan (1995), Papua New Guinea
(1999), Paraguay (1997), Peru (1994 and 2000), the Philippines (1993 and 1999), Poland (1993 and
2000), Romania (1992 and 1999), Senegal (1994), Singapore (1992, 1996 and 2000), Slovak Republic
(1995), the Solomon Islands (1998), South Africa (1993 and 1998), Sri Lanka (1995), Swaziland(1998), Sweden (1990 and 1994), Switzerland (1991, 1996 and 2000 (jointly with Liechtenstein)),
Tanzania (2000), Thailand (1991, 1995 and 1999), Togo (1999), Trinidad and Tobago (1998), Tunisia
(1994), Turkey (1994 and 1998), the United States (1989, 1992, 1994, 1996, 1999 and 2001), Uganda
(1995), Uruguay (1992 and 1998), Venezuela (1 996), Zambia (1996) and Zimbabwe (1994).PRESS/TPRB/176
Page 5
MORETRADE POLICY REVIEW BODY
MAURITIUS
Report by the Secretariat – Summary Observations
Sound macroeconomic policies have contributed to sustained strong economic performance in
Mauritius for two decades;  on average the economy has grown at nearly 6% a year.  Concurrently,
Mauritius has successfully diversified its economy away from sugar.  Textiles and clothing, tourism,
financial services, and sugar are now the four pillars of the economy.  In consequence, the share of
agriculture in real GDP has declined, from around 12% in 1990 to some 6% now.  The services sector,
dominated by tourism and financial services, is the most important in the economy, accounting for
around 74% of real GDP.  Services exports are more than one third of total foreign exchange earnings,with tourism contributing the largest and increasing share.  Manufacturing is the source for some 75%
of merchandise exports;  it contributes around one  fifth of real GDP, with textiles and clothing
accounting for more than 40% of manufacturing output.
Nevertheless, Mauritius faces challenges.  Its economy has elements of duality:  companies
producing for the domestic market are fairly highly protected, while export enterprises are grantedincentives under various schemes, including the Export Processing Zone Scheme.  This has led to
tensions in resource allocation between the export and domestic sectors, and highlights the task of
transforming the economy away from export- to outward-orientation.  Mauritius has also become a
"high-cost" producer, as real wages have grown faster than productivity.  In addition, Mauritius faces
a changing international environment, including the narrowing of preferences for some of its exports,and the consequent increase in competition.  Added to these factors is a scarcity of arable land and of
skilled labour.  In response to these challenges, Mauritius has been promoting (mainly by means of
incentives) domestic production of capital-intensive higher-value-added goods and the geographical
diversification of exports.  There has also been a certain delocalization of low-value-added labour-
intensive activities to neighbouring countries.
The high ratio of merchandise trade to GDP (around 90% on average since 1995) indicates
the importance of external trade to Mauritius.  Normally it has run trade deficits, which have been
offset from time-to-time by traditional surpluses on the services account.  The bulk of domestic
production is exported, clothing accounting for some 60% of foreign exchange earnings from
merchandise exports followed by sugar (22%).  Mauritius' main imports include machinery and
transport equipment, textiles, and food.
The European Union (EU) is Mauritius' major trading partner:  it is the market for the bulk of
Mauritius' sugar output and for a large share of textiles and clothing exports;  it supplies around one
third of Mauritius' imports.  The major single destinations of Mauritian exports include the United
Kingdom, France, and the United States.  Delocalization of certain manufacturing activities
(combined with their vertical integration) to neighbouring countries has contributed to the promotion
of trade with countries such as Madagascar, to which Mauritius exports semi-finished products andyarns.  The sources of imports are more diversified, with France being the only country supplying
more than 9% of the total value of Mauritius' merchandise imports.
Institutional Framework
The Republic of Mauritius is a multi-party parliamentary democracy.  The Constitution is the
supreme law, followed by the Acts, Regulations, and Rules.  International treaties, including the WTO
Agreements, must be enacted into domestic law to have standing before national courts.  The MinistryPRESS/TPRB/176
Page 6
MOREof Industry, Commerce and International Trade is responsible for the formulation, review, and
assessment of trade policies.  The WTO Standing Co-ordination Committee, chaired by the Minister
of Industry, Commerce and International Trade, and comprising representatives from the public and
private sectors, deals with the implementation, follow-up, and coordination of trade policy issues
falling under the WTO Agreements.  Given Mauritius' membership of several groupings, a Regional
Co-operation Council, chaired by the Minister responsible for Foreign Affairs, has been established toforge a coherent regional strategy for the country.
The Board of Investment (a one-stop shop) became operational on 15 March 2001 under the
authority of the Finance Minister.  It aims to promote Mauritius as an international investment,
business, and service centre.  With the exception of specified activities in the tourism subsector,
acquisition of real estate, and activities still under state monopoly, foreigners are free to invest in
almost all areas open to Mauritians.
Mauritius is an original Member of the WTO and an ITA signatory.  It accords at least MFN
treatment to all its trading partners.  As a small-island developing country with limited natural
resources, Mauritius relies on international trade, and participates actively in the multilateral trading
system and in various regional groupings to, inter alia, secure and increase market access for its
products.  Mauritius believes that non-reciprocal trade preferences are still important to its economy
and that they should be enhanced and consolidated.  It is also of the view that in considering any
future multilateral trade negotiations, priority should be given to implementation issues and to
difficulties faced by "small and vulnerable economies".
Mauritius is a member of, inter alia, the Common Market for Eastern and Southern Africa
(COMESA), the Southern African Development Community (SADC), the Indian Ocean Commission
(IOC), and the Regional Integration Facilitation Forum (RIFF).  Mauritius considers its participationin regional agreements as a step towards building resilience for full integration into the world
economy.  Nevertheless, membership of various regional agreements with differences in geographical
coverage, trade liberalization agenda, provisions on rules of origin, and in goals, is difficult to
manage.
Trade Policy Instruments
Since its last Trade Policy Review in 1995, Mauritius has continued to implement trade-
related reform, although border protection remains relatively high in some areas.  A reduction in
maximum tariff rates, and an increase in the number of duty-free lines, have contributed to lowering
the simple average MFN tariff to some 20%;  this is fairly high, particularly given that over 50% oflines bear a zero rate.  Nearly all rates are ad valorem;  these rates range to 80%, with high dispersion.
Specific duties are collected on two tariff lines, with the highest ad valorem equivalent being around
360%.  Since 1995, the number of tariff bands has remained unchanged at eleven, including the zero
rate and the ad valorem equivalents of the two specific duties.  Using the WTO definition, the simple
average tariff is 20.5% on agricultural imports, and 19.8% on imports of non-agricultural products.
Mauritius has bound nearly 15% of all its tariff lines.  It bound tariffs at a ceiling rate of 65%
on some 1.6% of its total tariff lines for non-agricultural products; all agricultural tariff lines (WTOdefinition) are bound at ceiling rates ranging from 37% to 122%.  Other duties and charges on all
these products are bound at zero or 17%.  An increase in the coverage of bindings and the narrowing
of the gap between bound and applied rates would enhance predictability of Mauritius' tariff regime.
Mauritius has taken steps to harmonize differing customs duties based on source
("scheduled", i.e. Commonwealth and certain major trading partners, and "non-scheduled" territories,i.e. other countries).  As from the 2000/01 Budget, the tariff differential has been reduced from 20 toPRESS/TPRB/176
Page 7
MORE10 percentage points and applies to only one band:  products liable to the MFN tariff rate of 65%
carry a lower rate of 55% when they are imported from scheduled territories.  Differing excise duties
also apply to imports and locally produced goods.  In September 1998, a value-added tax of 10%
replaced the sales tax;  it applies to imports and locally produced goods.  Customs duties and taxes
account for some 50% of total tax revenue.  Since 1 January 2000, Mauritius has applied the
provisions of the WTO Customs Valuation Agreement.
The liberalization reforms have fallen short of further dismantling non-tariff measures
maintained on various grounds.  The number of products subject to import ban, or import control by
means of permit, has increased.  Import quotas still apply to table-potatoes and salt. Several parastatal
bodies, including the State Trading Corporation a nd the Agricultural Marketing Board, purchase,
import, and store "strategic" products (including flour, ration rice, petroleum products, cement, table
potatoes, onions, and garlic).  Price controls, consisting of a fixed maximum price system (on imports
and locally produced goods) and a maximum percentage mark-up system (only on imports), are alsomaintained on some of the strategic products;  the controls are to be abolished gradually after the
enactment of competition legislation, a draft of which is being vetted by the Office of the Attorney
General.  A permit is required for the exportation of products of "strategic importance" and of goods
eligible for preferential-quota treatment in importing countries.  Mauritius applies no duties, taxes or
charges to its exports.
Incentives (including duty and tax concessions) are available under various schemes to local
producers, mainly manufacturers, and to exporters,  with a view to encouraging investment and
improving the international competitiveness of Mauritian products.  In addition, partial refunds of air
freight costs are granted to exporters of selected agricultural products.  The incentives, together with
elimination/reduction of tariffs on inputs, increase effective protection for local processing industries.
Mauritius does not have legislation on contingency trade remedies;  it has not taken any
anti-dumping, countervailing or safeguard actions.  The legislation on government procurement has
been revised several times in recent years;  a High Powered Committee is currently reviewing the
legislation, to ensure conformity with intern ational norms and practices.  Twelve compulsory
standards (up from seven in 1995) apply both to imports and locally produced goods.
Mauritius has revised its Copyright Act.  Further, with a view to meeting its obligations under
the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), Mauritius is
also finalizing new legislation on patents and trade marks, and is drafting legislation on industrial
designs, geographical indications, and layout design of integrated circuits.  Counterfeiting mainly
affects copyrights and trade marks.
Sectoral Trade Policies
Agriculture, though declining in share, remains a leading sector of the Mauritian economy.
The export-led strategy implemented by Mauritius, and preferential market access provided by
developed countries have contributed to the diversification within and away from the sugar industry.
The 1988 Sugar Efficiency Act has also played a role by promoting sugar and non-sugar agriculture;
the Act provides for a land conversion tax on the use of agricultural land for other purposes, and taxrebates for cultivation of crops other than sugar cane.  Other incentives available to producers of
agricultural goods include the Agricultural De velopment Scheme and the Technology Diffusion
Scheme.  The Freight Rebate Scheme is available to exporters of selected agricultural products.
For food security purposes, import, export, and price controls are maintained, and strategic
reserve stocks are required, on certain agricultural products.  Public enterprises, including marketingboards, still hold a monopoly over the importation of certain food products, including flour andPRESS/TPRB/176
Page 8
MOREcertain rice.  Customs tariffs on agricultural imports range from zero to 80%;  the 80% rate applies,
inter alia, to cane or beet sugar, chemically pure sucrose (in solid form), and molasses resulting from
the extraction or refining of sugar.  Imports of some products are prohibited, including sugar and
chocolate confectionery;  quotas are maintained on imports of potatoes and on exports of chilled fish.
Export Processing Zones companies account for the bulk of manufacturing, which is
dominated by textiles and clothing.  In response to the changing international environment (e.g. thedismantling of the Multifibre Arrangement and post Lomé ACP-EU Agreements), and to rising
production costs, Mauritius' manufacturing policy has focused on market and product diversification
(e.g. sectoral integration and shift to higher-val ue products, delocalization of low-cost activities to
neighbouring countries), and on improvement of competitiveness (through, inter alia, various
incentive schemes, and elimination or reduction of customs tariffs on inputs and equipment).  Certain
manufactured products are subject to import and export controls, to the maximum mark-up (under
price controls), and to compulsory standards.  Customs tariffs on manufactured products range fromzero to 80%, with the highest rates applying to textiles, clothing and leather products, as well as to
metallic and non-metallic furniture and fixtures.  The highest ad valorem equivalent of the two
specific duties on manufactured products (about 360%) applies to straps of thong-type sandals.
Mauritius is a net exporter of services.  Co mmitments made by Mauritius under GATS largely
reflect the current state of liberalization of the sector;  monopolies or exclusive rights held by publicenterprises limit competition in certain branches (telecommunications, postal, and transportation
services) and contribute to high production costs.  Measures affecting presence of natural persons are
unbound.  Mauritius maintains MFN exemptions on financial services under Article II of GATS.
Trade Policy and Trading Partners
Mauritius' participation in the multilateral trading system and in various regional agreements
reflects its interests as a small, export-oriented economy with advantages in a few products, sugar,
textiles and clothing in particular.  As part of its economic success is due to preferential market access
granted by major trading partners, Mauritius is taking steps to adjust to changes in this international
environment.
The adjustment needs to emphasize the streamlining and rationalization of existing incentives
so as to lessen the aspects of duality and improve resource allocation.  The resultant
reduction/elimination of duty and tax concessions could contribute to reducing the public deficit and
to facilitating further tariff reforms, which are currently hampered by fiscal concerns as customs
duties account for about 50% of tax revenue.
Elimination of non-tariff barriers and of differing customs duties (by source) would enhance
the transparency of Mauritius' trade regime.  The regime might also play a greater role in attracting
investment as more tariffs are bound, the gap between applied and bound rates narrows, and GATS
scheduling increases, including perhaps in the context of introducing greater competition in service
subsectors such as telecommunications.  Overall, such adjustments could contribute to an improved
exploitation of Mauritius' comparative advantages, and facilitate the transformation from an export- to
an outward-oriented economy.PRESS/TPRB/176
Page 9
MORETRADE POLICY REVIEW BODY
MAURITIUS
Report by the Government of Mauritius – In troduction and Economic development 1995-2000
Small with a land area of approximately 1865 sq. kilometres and densely populated
(1.19 million inhabitants in 2000), Mauritius is situated in the Indian Ocean between latitudes 19050’
and 20030’ south and between longitudes 57018’ and 57046’ east, far from its major markets and
suppliers of raw materials.  Until 1970 a monocrop economy, exporting sugar only, Mauritius has
diversified its economy but it still depends heavily on trade to sustain its economic and social
developments.  The manufacturing, tourism, sugar and financial services sectors are the four maingrowth pillars of the economy.
The country faces a number of challenges emanating in particular as a result of changes
taking place at the international level.  Multilateral trade liberalisation process emboldened by the
advent of the World Trade Organisation has led to a decline in the preferential margins of Mauritius
on its traditional markets and has exposed the economy to global competition.
The problem of Mauritius, besides the more demanding external economic environment is
also exacerbated by the vulnerability emanating from the country’s situation as a small island
developing one.  Indeed as a Small Island Developing country, Mauritius is constrained in its
development by a number of factors characteristic of these countries, including:
- remoteness and insularity – Mauritius is located far from its major markets;
- susceptibility to natural disasters.  The Island is located in a region frequently affected by
adverse climatic conditions such as cyclones and droughts;
- limited diversification due to a very narrow resource base and small domestic market;  the
country's production and export bases are heavily concentrated on a limited number of
products;
- access to external capital – the size of the internal market and rising production costs
which are characteristics of SIDs impede capital inflows and consequently limit growth
prospects.
The economic development prospects of the country will depend on its ability to adjust to the
changing economic environment through modern isation, technological innovation and economic
diversification.  However, without secure and enhanced preferential access to markets, assistance to
meet adjustment costs and to improve competitiveness, it would be difficult for Mauritius to meet the
challenges of globalisation.
Economic Development of Mauritius 1995-2000
The annual real growth rate of Gross Domestic Product (GDP) at basic prices rose from 5.6%
in 1995 to 6.2% in 1996 and then fell to 5.6% in 1997.  GDP growth rose to 5.8% in 1998, fell to
2.1% in 1999 and increased to 8.9% in 2000.  The low figure of GDP growth in 1999 was due mainlyto the severe drought and cyclone experienced by the country.
The average annual growth rate over the period 1995-2000 was 5.7% per annum.  The decline
in growth rates occurred in all sectors with the exception of manufacturing and construction.  The
highest annual growth rate in 2000 was attained by  agriculture at 28.4%, followed by the hotels andPRESS/TPRB/176
Page 10
restaurants at 11% and the manufacturing sector at 8.3%.  Construction and electricity, gas and water
sectors recorded growth rates of 8%.
International trade witnessed an upswing in the total value of trade (imports and exports),
increasing from Rs 61.7 billion in 1995 to Rs 89.8 billion in 1998 and to Rs 95.8 billion in 2000.
Foreign trade recorded an average nominal growth rate of 9.5% during the period 1995-2000.  The
trade deficit deteriorated from Rs 7.0 billion in 1995 to Rs 9.7 billion in 1998, increasing by almostRs 3 billion.
1997, the sharp increase in trade deficit ( Rs 12.4 billion) was mainly due to imports of
machinery and transport equipment, specially imports of aircraft and marine vessels amounting to
Rs 3.7 billion.  The trade deficit in 1998 was lower than that of 1997 due to nearly 19% increase in
exports value as against about 8% increase in imports.  In 1999, the country’s trade deficit worsened
to Rs 16.6 billion since the growth of exports turn ed negative against a 13.8% growth in imports.  The
trade deficit was Rs 13.7 billion in 2000.
The total labour force was estimated at 542,000 in 2000 foreign and local combined,
representing the country’s economically active population for the production of goods and services.
This comprised 527,400 Mauritians and 14,600 foreign workers.  The latter accounted for around
2.7% of the total labour force in Mauritius.  In 2000, over 54.8% were employed in large
establishments including central and local Government and 37.4% in small establishments includingthe self-employed.  The unemployment rate increased from 5.1% in 1995 to 5.5% in 1996 before
shooting to 5.9% in 1997.  It stood at 5.9% in 1998 and rose again to 6.7% in 1999 and to 8.0% in
2000.
In the past five years, Mauritius continued to pursue its commitment to structural reform and
efficient resource allocation with emphasis on manufactured exports, reducing dependence on sugarand stimulating the services sector.
END