Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa

The Mauritius–China Free Trade Agreement (MCFTA), effective January 1, 2021, is analyzed as a likely geopolitical tool rather than an economic driver, given the extreme trade imbalance between the two nations. The authors argue that Mauritius lacks the capacity to penetrate the Chinese market, and the agreement may exacerbate its trade deficit. While the MCFTA is China's first FTA with an African nation, the paper suggests it serves as a strategic base for China to influence the broader African market and the AfCFTA, while potentially acting as a 'laboratory' for future continental engagements.

• The MCFTA is likely driven by geopolitical and strategic interests rather than economic logic, as Mauritius lacks the resources, labor, and market size to be a natural trade partner for China.
• Trade between the two countries is heavily skewed in China's favor; in 2020, China accounted for 16.6% of Mauritius' imports but only 1.5% of its exports, with China responsible for over 25% of Mauritius' total trade deficit.
• Chinese competition has severely damaged the Mauritian textile and clothing industry, particularly in its traditional European markets where exports dropped by nearly 60% between 2000 and 2019.
• The MCFTA provides immediate duty-free access to 7,500 Chinese tariff lines for Mauritius, but the authors argue these benefits are limited due to small preference margins and strong competition from RCEP members like South Korea, Japan, and Vietnam.
• Despite a tariff rate quota (TRQ) of 50,000 tons for sugar, it is unlikely to be fully utilized because Mauritian sugar production has been declining, with a deficit of over 85,000 tons in 2020.
• Chinese investment in Mauritius remains concentrated in real estate and property development, which the authors describe as a 'speculative bubble' with limited value for industrial diversification.
• There is low risk that the MCFTA will divert Mauritian trade away from Africa, as imports from Africa (agricultural/mineral) and China (electronics/construction) do not compete directly.
• The MCFTA may be a strategic move by China to use Mauritius as a 'gateway' or regional headquarters to export services to the rest of Africa under the AfCFTA framework.

APA

ANCHARAZ, V., & NATHOO, R. (2022). Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2022/05/Policy-Insights-127-ancharaz-nathoo.pdf

Chicago

ANCHARAZ, VINAYE, and RAJIV NATHOO. Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa. South African Institute of International Affairs, 2022. https://saiia.org.za/wp-content/uploads/2022/05/Policy-Insights-127-ancharaz-nathoo.pdf.

Wikipedia

{{cite report |last1=ANCHARAZ |first1=VINAYE |last2=NATHOO |first2=RAJIV |title=Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa |publisher=South African Institute of International Affairs |date=May 2022 |url=https://saiia.org.za/wp-content/uploads/2022/05/Policy-Insights-127-ancharaz-nathoo.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ancharaz2022mauritius, author = {ANCHARAZ, VINAYE and NATHOO, RAJIV}, title = {{Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa}}, institution = {South African Institute of International Affairs}, year = {2022}, month = may, url = {https://saiia.org.za/wp-content/uploads/2022/05/Policy-Insights-127-ancharaz-nathoo.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }