Thank you, Madam Speaker. I would like to thank the hon. Member for this PQ as this will give me the opportunity to shed some light on AGOA and the issue of US Reciprocal Tariff. Madam Speaker, with regard to part (a) of the question, I wish to inform the House that African Growth and Opportunity Act (AGOA) which became effective in May 2000 has been a lifeline for our industry operators to make inroads into the US market through duty free and quota free access for some 6,400 product lines. I wish to remind the House that the initial discussions on the Mauritian side around the establishment of AGOA were held in the late 1990’s under the leadership of Dr. Navinchandra Ramgoolam, our current Prime Minister. The AGOA was last renewed in 2015 for a period of 10 years and is therefore due to expire in September 2025. I am informed that prior to its expiry, Government authorities took the necessary steps to initiate discussions with the US counterparts to forcefully lobby for an early renewal of AGOA in an endeavour for our exporters to have more visibility on the US market. There was a general indication that AGOA was set to be renewed for an additional 16 periods, up to 2041 following the AGOA Renewal and Improvement Bill that was introduced in the US Senate in April 2024. As the House is aware, on 02 April 2025, the US President came forward with an executive order to impose a reciprocal tariff of 40% on imports from Mauritius. I wish to inform the House that on 07 April 2025, the Prime Minister chaired a meeting in the presence of the Minister of Foreign Affairs, myself as Minister of Industry and the Junior Minister of Finance, also the Ag. Financial Secretary, the Economic Advisors at the Prime Minister’s Office to take stock of the situation and decide on the way forward. Thereafter, on 08 April 2025, the Prime Minister made a statement in the House, whereby he highlighted the importance of AGOA for Mauritius and the impact on the reciprocal tariff on our exports. He also outlined the course of action that would be followed by Mauritius to safeguard the interests of the export manufacturing industry. The Prime Minister also informed the House that he is writing to President Trump with a view to discuss the concerns of Mauritius. Consequently, on 09 April 2025, the US Government announced a 19-day pause on the new tariff and a lowering of the reciprocal tariff rate at 10% effective immediately. I should

73 emphasise that with the coming into force of this US trade policy, the advantages enjoyed by our industry operators under AGOA would cease to exist. I should apprise the House that USA is our fourth export market destination for locally manufactured products such as wearing apparel, live primates, jewellery, fish, fish preparations, medical devices and optical goods amongst others. As a matter of fact, domestic export to the USA stood at Rs6.8 billion in 2024, with 79 enterprises exporting to this market. Out of them, there were 41 export-oriented enterprises exporting to this market. Out of them, there were 41 export-oriented enterprises exporting to the US market to the tune of Rs5.7 billion. And out of these 41 export-oriented enterprises, 11 derived more than 50% of their export revenue from USA. Altogether, these 41 enterprises employ around 21,000 workers, out of whom 10,000 are Mauritians. In the wake of the event of the recent imposition of reciprocal tariffs by the US Government, I wish to inform the House that my Ministry conducted a quick survey from 07 to 10 April 2025 among the 41 export-oriented enterprises exporting to the USA, to assess its potential impact on their business operations. Most of these enterprises surveyed have indicated that – (a) They have contacted their clients in the USA who are awaiting clarifications on the reciprocal tariffs’ applications by the US custom operatives to decide on the way forward. (b) There is a sense of uncertainty amongst some clients who have put their orders on hold. (c) At this stage, it is still premature to assess the full cost implications and spillover effects on the new tariffs imposed on them, particularly if US clients proceed with cancellation of orders in the coming months, and (d) They are envisaging to explore new market destinations, thus this process will take time to materialise. Furthermore, the Prime Minister will be chairing a follow-up meeting tomorrow 16 April 2025 to have latest updates on the matter and to decide accordingly on the next course of action. Madam Speaker, with respect to part (b) of the question, I wish to inform the House that the export manufacturing sector is already being supported through a host of measures, among which – (a) Reduce corporate tax for 3% on profits derived from exports of goods;

74 (b) Flexible work permit policies whereby there is no ratio, no quota for export- oriented enterprises; (c) Provision of a refund of 60% on basic air freight cost incurred on exports for all products to the USA under market destination under the Trade Promotion and Marketing Scheme; (d) Provision of a grant of 25% of the basic ocean freight cost up to a maximum of USD 600 per 40 feet container exported to 47 eligible ports in Africa through the Freight Rebate Scheme; (e) Provision of a 50% subsidy on the Export Trading Guarantee Insurance Premium incurred by enterprises when they subscribe to an insurance policy to cover their exports to all countries under the Export Trading Guarantee Insurance Scheme; (f) Provision for a subsidy on the rental and administrative cost of warehouses operated by Mauritian companies in Tanzania, Kenya through the African Warehousing Scheme, and (g) A refund of Rs500,000 annually for the SMEs participating in international fares under the SME Refund Scheme. Madam Speaker, it has been a long-time policy of my Ministry to move towards rebalancing our exports, so as to cushion against setbacks in any one of our traditional markets, including the USA. In this vein, we consider that Africa holds promising potential for our industry operators, in view of the fact that the AfCFTA, SADC and COMESA Freetrade Agreements have opened up the gateway for a more diversified market base. Furthermore, there is a need to consolidate and expand market outreach in Europe and also tap new opportunities in economies having high purchasing power such as the UAE, Australia and Japan. To conclude, Madam Speaker, my Ministry will coordinate efforts with relevant institutions to urgently elaborate an action plan backed by significant financial and human resources to aggressively conduct targeted export promotion campaigns in these high potential economies, by leveraging on free trade agreements wherever applicable, which was unfortunately not being performed by the Economic Development Board during the last ten years.

Thank you very much. Yes?

Thank you, Madam Speaker. May I ask the hon. Minister whether Government will envisage appointing a foreign consultant or a lobbyist in the United States

75 to help the Mauritian Government with regards to future negotiations with the US or in the aftermath of the 90 days of President Trump?

Yes, Madam Speaker, we already have a lobbyist doing this job and we have a panel of experts working on this issue under the leadership of the Prime Minister.

Thank you. Thank you so much. Hon. Second Member for Mahebourg and Plaine Magnien! BASALT LTD, PLAINE MAGNIEN – LANDS & RESIDENTIAL PROPERTIES – CONSTRUCTION PERMITS GRANT