Reply: I wish to inform the House that Export Incentive Schemes introduced by the previous government, namely the Trade Promotion and Marketing Scheme, the Freight Rebate Scheme, the Export Credit Guarantee Insurance Scheme, and the SME Refund Scheme for Participation in International Fairs were temporary measures and were supposed to end in June 2025. This is clearly mentioned in the guidelines issued in July 2024 by the Economic Development Board for these schemes. The schemes may be terminated or amended at any time. It is important to note that subsidies under World Trade Organisation (WTO) rules must be time-bound and cannot be granted on a permanent basis. To align with WTO obligations and as part of our broader economic restructuring objectives aimed at enhancing competitiveness, reducing inefficiencies, and ensuring fiscal discipline, the four main Export Incentive Schemes will be gradually phased out over the next two years. Furthermore, I am informed by the EDB that large companies have benefited from these schemes substantially more than the SMEs. It has also been observed that the same companies benefit from these schemes year after year. I wish to highlight that the Sea Freight Rebate Scheme for the transport of goods from Mauritius to Rodrigues is being maintained. As part of a broader shift toward long-term competitiveness and innovation-led export growth, Government is introducing a new set of measures to support local operators, namely – (i) A review by the EDB of the existing export promotion model to fully capitalise on the new market opportunities arising from the implementation of the Comprehensive Economic Cooperation and Partnership Agreement with India, the Free Trade Agreement with China, and the African Continental Free Trade Area;

130 (ii) A new ‘En Route vers l’International’ Scheme to be launched in the form of a matching grant to help companies structure their export strategy; (iii) Strengthening the supply-side capabilities of exporting enterprises by promoting greater adoption of digital technologies, encouraging sustainable manufacturing practices, and supporting the use of energy-efficient production methods; (iv) Tax deduction on investments in AI technologies up to an amount of Rs150,000 for Start-Ups and SMEs, and (v) 50% waiver on the increase in electricity prices for industrial operators moving towards 100% renewable energy. It is important to highlight that export-oriented enterprises continue to face challenges due to a shortage of skilled local labour, which affects their capacity to meet export delivery deadlines. To address this, we are accelerating the recruitment of foreign labour and expertise through a streamlined, rule-based work permit system, which will be administered by the Economic Development Board. “SYNTHETIC” DRUGS SEIZURE –RAIDED LOCAL LABORATORIES – TRACK DOWN MEASURES