Reply (The Minister of Foreign Affairs, Regional Integration & International Trade): At the outset, let me emphasise that Mauritius has left no stone unturned to safeguard our interests regarding both the imposition of trade tariffs announced by the United States (US) and the renewal of African Growth and Opportunity Act (AGOA) preferences. The US is the 4th largest buyer of Mauritian products and our exports to the United States represent some 10% of total exports. As the House is aware, the AGOA trade preferences have been signed into law in the United States, in the year 2000 and subsequently renewed on numerous occasions, and most recently in 2015, for a period of 10 years. As matters stand, AGOA is set to expire on 30 September 2025. Well before the expiry of AGOA preferences, my Ministry had already been engaged in a lobbying exercise alongside other AGOA eligible Sub-Saharan countries for an expeditious extension of AGOA preferences so as to ensure trade continuity post 30 September 2025. At last, the AGOA Forum was held in July 2024 in Washington D.C. AGOA Ministers called for a 16-year extension of AGOA and for the current graduation clause to be addressed side by side. Buyers require predictability and orders are normally placed 9 months in advance. Mauritius also joined forces with other AGOA eligible countries with a view to sensitising US lawmakers on the urgency of renewing AGOA as well as maintaining the third country fabric provision and addressing the graduation clause. Under the leadership of Mauritius, a letter was sent by the Dean of the African Diplomatic Corps in Washington D.C to the Chairman of the US House of Representatives Ways and Means Committee in November 2024, urging for the expeditious renewal of AGOA. In March 2025, I addressed a letter to Ambassador Greer following his appointment as United States Trade Representative (USTR) and sought the support of the United States for a long-term renewal of AGOA to ensure business certainty and predictability. As the House is aware, the situation had become very volatile since 02 April 2025 when the United States unilaterally announced reciprocal tariffs on most of the products entering the

136 country. As far as Mauritius is concerned, a reciprocal tariff rate of 40% was announced. The reciprocal tariff of 40% nullifies AGOA preferences as it is applicable to AGOA beneficiaries as well. However, the US President announced on 09 April 2025 that the reciprocal tariff rate was lowered to 10% and would be in place for 90 days. Since then, as had been previously emphasised by the Hon. Prime Minister in the House on 8 April 2025, Mauritius had engaged in national consultations with a view to charting the way forward and mitigating the impact on our economy. My colleague, hon. Ameer Meea and myself have met with private sector representatives on numerous occasions to take stock of the situation and chart a way forward. Taking into account these national consultations, I would like to inform the House that the following course of action has been undertaken by Government – (a) A letter from the hon. Prime Minister, Dr Navin Ramgoolam was addressed to President Trump on 10 April 2025 proposing a partnership with the United States to deepen cooperation in economic and regional security matters; (b) A joint letter signed by myself and hon. Ameer Meea was sent to the USTR on 23 April 2025, proposing a Bilateral Agreement between the United States and Mauritius; (c) Subsequent to these letters, the United States and Mauritius signed a confidentiality agreement on upcoming negotiations on 30 April 2025; (d) A joint letter from the Deputy Prime Minister, hon. Mr P. Bérenger and hon. Minister Ameer Meea was sent to the USTR on 27 May 2025, expressing our readiness to initiate discussions with the US, aimed at deepening our ties, addressing trade imbalances and charting out a new economic partnership; (e) On 04 June 2025, President Trump replied to the hon. Prime Minister’s letter and informed that the Office of the USTR has been delegated to engage with Mauritius as soon as possible. President Trump stated that both parties can negotiate a deal that not only addresses the trade imbalances but also enhances the partnership between our nations; (f) In a letter dated 02 June 2025, the USTR requested that Mauritius submit its best offer for consideration by the US authorities;

137 (g) In a letter dated 04 June 2025 sent by my Ministry, Mauritius emphasized that most products exported by the US to Mauritius have no duties and that we are considering to source more products from U.S into Mauritius. In return, Mauritius requested the retention of current duty-free preferences under AGOA for key exports. Let me also inform the House that my colleague, hon. Minister Ameer Meea, met the Assistant USTR for Africa, Mrs C. Hamilton on 25 June 2025 in the sidelines of the US Africa Business Summit in Luanda, Angola. Hon. Minister Ameer Meea reiterated the request of Mauritius for a mutually beneficial bilateral trade agreement which would address our concerns over tariff related unpredictability affecting business confidence and impacting future orders. In this respect, hon. Minister Ameer Meea requested for the maintenance of AGOA like preferences pending a bilateral trade agreement between Mauritius and the US. In all our interactions with the US, Mauritius has emphasized the important role in the regional supply and value chains especially in the textiles and apparel sector. As an example, Mauritius sources raw materials from Zambia which are spun into yarn and thereafter transformed into fabrics and garments for exports to the United States. On 07 July 2025, President Trump announced a further postponement of the deadline to 01 August 2025 alongside revised rates for several countries. The rate for Mauritius is yet to be announced. However, we have been informed that the proposals from Mauritius are being duly considered by the United States Administration. A response is being awaited. On 21 July 2025, the hon. Prime Minister wrote a letter to President Trump expressing his thanks to the US President for mandating the staff of the USTR to engage in a dialogue with the officers of my Ministry and reiterating our proposal to engage in discussions for a bilateral partnership. The hon. Prime Minister has also offered to host the US-Africa Business Summit jointly with the Corporate Council on Africa in June 2026. This Summit will further enhance business relations between Africa, Mauritius and the United States. With respect to part (b) of the question, allow me to mention that live animals, apparel, cane sugar, jewellery, fish are among the top export product categories to the US to the value of Rs6.8 billion. At present, textile and apparel, amounting to approximately Rs1.6 billion, is among the largest export sector benefitting from AGOA preferences.

138 As far as exports regarding the seafood sector, which do not fall under AGOA exports to the US might lose its competitiveness vis a vis exports from Asian or Nordic countries depending on the tariffs applicable and considering freight costs. The non-renewal of AGOA will eliminate our preferential access compared with large exporters from South East Asia. In case of non-renewal of AGOA after 30 September 2025, our products will attract Customs Duties from 12% to 32% in the United States. Any reciprocal tariffs imposed by the US will be in addition to the existing general tariffs. As we approach the final months of AGOA, it may be noted that there has been a decline in export revenues. Exports between January to March 2024 amounted to Rs1.7 billion compared to Rs1.2 billion for January to March 2025. In comparison to quarter of 2024, exports to the United States decreased by 11.3%. LE MORNE PUBLIC BEACH – RENOVATION WORKS – STATUS