QU 10: Mauritius belongs to several regional groupings.

To what extent do you think that the

regional cooperation policy of Mauritius has contributed to its economic development?
PLAN
A: What are the regional groups?
1) SADC
2) ESA/COMESA
3) AFRICAN UNION
4) AGOA
5) ACP
6) IOC
7) EAC
8) IGAD
B: Indicators of economic development
GDP per capita
Life expectancy
Literacy rates
Measures of poverty
Demographic indicators
Disease indicators
Aggregate indices of development (HDI, Happiness Index)
C: Advantages each regional group brought?
Describe each group
Write evidences about the induced benefits to the Mauritian economy
Opportunities for Mauritius for being in the group
D: Complexities brought by the regional groupings?


INTRODUCTION
A regional integration arrangement is a preferential agreement among countries that reduces
barriers to economic and non-economic transactions. The regional communities to which Mauritius
belongs is the Common Market for Eastern and Southern Africa (COMESA) and the Southern Africa
Development Community (SADC). Mauritius has a track record of being one of the most effective
trade negotiators in Africa, being a key player at regional level, as well as in the African, Caribbean
and Pacific (ACP) Group and in the current negotiations of an Economic Partnership Agreement
(EPA)
Regional integration can be a key force for sustainable development. It can promote economic
growth, reduce poverty, foster social development or protect the environment. But it can also have
negative economic and social impacts, notably when the domestic regulatory framework is
inadequate or not implemented effectively

THE 3 MAIN REGIONAL GROUPS
1) SADC
Currently, the SADC comprises of 15 member states, has a total population size of 257 Million and a
GDP of $471.1 Billion. It was first established in 1980 as the Southern African Development
Coordination Conference (SADCC) and was transformed into the Southern African Development
Community (SADC) in 1992.
An important objective for each Member State of the SADC is achieving sustained Economic Growth
and sustainable development so that countries in the region gain from better living standards and
employment opportunities. The economic benefits expected from Regional Integration, include
increased market size, improved intra-regional trade and investment flows, and increased transfer of
technology and experience.
SADC identified a group of related sectors as key priority areas and addresses its goal and objectives
through work in each of these sectors (Trade, Industry, Finance and Investment).
The SADC Protocol came into effect in 2000, the SADC Free Trade Agreement in 2008 and the
merger of the 3 FTAs; SADC, EAC, and COMESA were to be done by 2012 and the establishment of a
common external tariff to be done by 2010. In this Free Trade Area, Member States agreed to
remove tariffs against each other but remained free to levy their own external tariffs on non-
member nations; thereby fostering economic cooperation between Member States. These common
markets were to be established to facilitate trade and financial liberalisation, to establish
competitive and diversified industrial development, to increase investment, and eradicate poverty.


2) COMESA
Set up in 1994, succeeding the Preferential Trade Agreement which existed since 1981, the COMESA
comprises of 20 member states; of which 11 (including Mauritius) of the States formed a Free Trade
Area (FTA) and eliminated their tariffs on COMESA originating products in accordance with the Tariff
Reduction Schedule voted in 1992. The FTA was formed in October 2000 as the result of a long
period of tariff reductions and also followed some open regionalism principles.
COMESAs main focus is strengthening regional integration through promotion of cross-border trade
and investment. It has programmes on trade and transport facilitation, trade in services, free
movement of persons and investment. Other features include gender policy, conflict prevention and
a COMESA Court of Justice.

3) THE ACP GROUP
The Lom Conventions are agreements laying down the framework for cooperation on development
policy, economic policy, trade and industry between the EU and the ACP countries. In 2000, the
Lom Conventions were replaced by a new 20-year partnership agreement called the Cotonou
Agreement, which entered into force in April 2003. The Cotonou Agreement continues the
experiences of the Lom Conventions, but also adds some new elements. The objectives of the
Cotonou Agreement are to reduce and, in time, eradicate poverty, and also to promote sustainable
development and the progressive integration of the ACP countries into the global economy.

CONTRIBUTION TO ECONOMIC DEVELOPMENT:
The SADC Trade Protocol brought the following preferences to Mauritius:
Duty on 85% of the tariff lines were eliminated by 2008 and all the remaining duties were to
be eliminated by 2012
South Africa eliminated custom duties on most goods exported under the SADC Protocol. It
is to be noted that Mauritius having the RSA as main import partner (greater than 10% of
imports from there) benefited from cheaper imports since 2006