Implications of Brexit for Mauritius (Draft)

Disclaimer
This document is an interim report and is provided for information only. The information contained
herein is subject to change and does not commit the Economic Development Board (EDB). The
final version of the report will be published by the EDB following additional tests on the economic
models included therein and further consultations with stakeholders.

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 Implications of Brexit for Mauritius (Draft)

Implications of Brexit for Mauritius BREXIT TIMELINE

▪ The UK votes for Brexit in the EU
1. Context referendum
Brexit is the withdrawal of the United June 2016 ▪ David Cameron resigns as Prime
Minister and is replaced by Teresa
Kingdom (UK) from the European Union May
(EU), which was triggered through a
referendum held on 23 June 2016 in which ▪ UK Government triggers Article 50
March 2017 ▪ UK expected to leave the EU in March
51.9 % of those voting supported leaving the 2019
EU. As a result, the UK Government invoked
Article 50 of the Treaty on European Union ▪ Following a snap election, the PM
June 2017 loses her parliamentary majority
to start the process. While initially the UK’s ▪ Brexit negotiations begin
exit was planned for 29 March 2019,
subsequent events, which included further ▪ UK Government publishes White
July 2018
Paper on future UK/EU relationship
negotiations with the EU and internal
governmental dissonances, led to the ▪ EU Council and UK agree on Political
November
deadline being extended to 31 October 2019. Declaration and Withdrawal
2018
Agreement (WA)
As at date, there are several scenarios for
▪ Brexit debates start in UK Parliament
Brexit that are still possible. Each of the January ▪ The Withdrawal Agreement is
outcomes of the ongoing negotiations bring 2019 rejected by a vote of 432 to 202 in the
with them threats to the rest of the world, House of Common
including Mauritius for which the UK remains ▪ MPs reject Theresa May's Withdrawal
one of the most important economic Agreement again by a majority of 149.
partners, especially with regards to exports, ▪ MPs vote against a no-deal Brexit and
tourism and investment. March 2019 to delay Brexit
▪ EU leaders agree to extend until 12
In this paper, the EDB analyses the different April if WA is not approved
scenarios of Brexit and reviews the vast ▪ MPs reject the WA a third time
literature that has been built on its potential ▪ Exit day extended from 12 April to 31
April 2019
impact on the UK itself and on the EU. Based October
on these, the EDB estimates the threats to May 2019 ▪ Teresa May resigns
the different sectors of economic activity in
Mauritius that the most probable Brexit ▪ Boris Johnson becomes Prime
July 2019
Minister
scenarios entail.
31 October ▪ UK to leave the EU
The paper also aims at identifying 2019
opportunities that could, following more
advanced consideration and scrutiny,
represent significant potential gains for Brexit timeline
Mauritius in terms of tapping new export
On 10 April 2019, the European Council
markets, widen the domestic production
granted an extension to the Article 50
base and attract investors and global players
period to 31 October 2019, or the first day
in the services sector, including in financial
of the month after that in which the
services.
Withdrawal Agreement is passed,
whichever comes first. However, on 24

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 Implications of Brexit for Mauritius (Draft)

May 2019, Theresa May announced that she will resign as Conservative Party leader, effective 7
June, following a failure to pass her Brexit plans through parliament. Following this, and
leadership elections within the Conservative Party, Boris Johnson became Prime Minister of the
United Kingdom.

trade
EU budget

divergence
Regulatory
jurisdiction
movement

payments

backstop
customs
barriers

deals
Free

New
ECJ

Irish
UK
Options EU’s position

Remain ✓

Common market ?
2.0

Labour’s plan 

EEA/EFTA ?

Customs Union ?

Withdrawal ✓
agreement (May)

No deal ✓

Red means "doesn't apply," blue means "applies," lighter shades indicate ambiguity.
The new Prime Minister’s position is to deliver Brexit on or before 31 October, even if this results
in a ‘no-deal’ situation. Currently, the above scenarios are possible, with ‘Remain’ and Labour’s
plan being the least probable of outcomes. So far, ‘No deal’ appears to be the most likely
endgame.

2. Economic impact of Brexit on both the UK and EU to each other is

UK and EU
Since Brexit is effectively the removal of
frictionless economic relationship between
two parties, the default economic outcomes
suggest losses on both sides. With Brexit,
higher barriers to trade, reduced capital
flows, and limited labour mobility will affect
output and jobs not only in the UK but also in
the remaining 27 EU member states. UK has
strong economic relationship with the EU
representing up to 13 % of EU trade in goods
and services, 52 % of bilateral financial
flows, strong supply chain and increasing
volume of migrants flowing both ways.
Likewise, the EU is equally deep-rooted in
the UK economy.
Depending on the agreement between UK
and EU after Brexit, imports and exports of
expected to contract. Lower trade is likely to
lower output and productivity leading to a
permanent contraction of both the UK and
the EU GDP. Lower output will imply lower
employment, consumption and investment
which will further enhance the GDP
contraction. There are various studies
evaluating the economic effects of Brexit on
the economy and most found a negative
effect on GDP of both the EU and UK.
There are various studies done on the effects
of Brexit and most studies, apart one, found
that UK GDP will contract. The extent of the
contraction depends on the deal that UK will
strike with the EU following Brexit. In a no
deal Brexit, the estimated UK GDP effect
ranges from -0.5% to -9.5% with most
studies averaging around 3%. Few studies
focused on the effect of Brexit on the EU.

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 Implications of Brexit for Mauritius (Draft)

The IMF found that in the case of a hard Brexit, the EU-27 real output will be lower by 1.5% and
employment by 0.7 % in the long run.
Brexit is also expected to cause a currency depreciation for both the UK and the EU following the
contraction in the economy and the associated uncertainties with Brexit. The Pound Sterling has
already depreciated by almost 18% since the Brexit vote mainly as a result of speculation. While
it is not expected that the pound will crash by the same extent following the implementation of
Brexit, most studies argue that the pound will fall further 5% to 10%.

3. Brexit and Mauritius 3.1. Existing economic relations

For Mauritius, the direct effects from Brexit is
likely to be limited with the Economic
Partnership Agreement between ESA and
the UK (the ESA-UK EPA) already signed,
maintaining the effects of the ESA-EU EPA
in a bilateral context. This commits the UK in
providing immediate duty-free and quota-
free access to goods from ESA states.
Nonetheless, there are certain indirect
impacts that can affect the Mauritian
economy. The following possible threats
have already been identified:
▪ The forecasted fall in UK GDP, and
possibly in other EU members with
strong economic linkages with the UK will
affect Mauritian export of goods
▪ Trade in services, especially in the
ICT/BPO sector and tourism can
encounter a fall in demand
▪ Depreciation of the GBP, and potentially
the Euro, is likely to further accentuate
the fall in demand for local goods and
services
▪ FDI may be affected, although it should
be noted that inflows of capital from the
UK have been modest and highly volatile
in recent years.
The trend and magnitude of these threats are
analyzed in greater detail in this section.
between Mauritius and the UK
Despite recent strategies adopted to
explore new markets, such as
negotiations with India through the
CECPA and with China through an FTA,
Mauritius still maintains close economic
ties with the UK, which represents a
significant source of FDI, export
proceeds and tourist arrivals. Trade
relations today are guaranteed through
an Interim Economic Partnership
Agreement (iEPA) between the ESA,
which includes Mauritius and the EU,
which includes the UK.
The interim EPA was signed in Mauritius
on 29 August 2009 between the
European Commission and four ESA
countries (Mauritius, Madagascar,
Seychelles and Zimbabwe). The
agreement entered into force on 14 May
2012. Under the agreement, the four
ESA states are benefiting from duty free
access for all products with the exception
of sugar and rice which have a
transitional period until September 2015.
The ESA countries are currently involved
in the negotiations of a full EPA which
would include Trade in goods, Trade in
services, Competition policy, Intellectual
property rights and Trade facilitation,
amongst others.

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 Implications of Brexit for Mauritius (Draft)

Meanwhile, as mentioned above, Mauritius has already secured equal terms for Market Access
of goods with the UK in the event of Brexit.
3.1.1. Exchange rate movements
Exchange rate movements play a significant role in defining the magnitude of our economic
relations with the UK, especially for trade in goods and services, including tourism.

54.00

52.00

50.00

48.00

46.00

44.00

42.00

40.00
January 2016

Brexit referendum

January 2017

January 2018

January 2019

August 2019
Since January 2016 to now, the Pound has traded at an average of MUR 45.80. However, the
exchange rate was not homogenous all along, as a marked depreciation of the Pound can be
noticed all along, with a sharp drop in its value just after the Brexit vote. As a contrast, from
January 2016 to 23 June 2016, the date of the referendum, the MUR/GBP rate was at MUR 51.05
on average. Post referendum, the rate fell to MUR 45.00 on average.
In fact, the Pound registered a depreciation of 7.2 % on the next day of the referendum vis-à-vis
the Rupee, with the fall rising to 11.9 % by the 11th day. To now, the Pound has depreciated by
17.6 % against the Rupee.

3.1.2. Trade in goods

Trade in goods represents the backbone of the relationship of Mauritius with the UK, which
remains one of the most important markets for Mauritian products. In 2018, Mauritius exported
MUR 7.6 billion worth of products to the UK, which represented 11.3 % of total exports and 25.2
% of exports towards the EU. It is to be noted that both in absolute and relative terms, exports of
Mauritian products towards the UK have been declining.

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 Implications of Brexit for Mauritius (Draft)

Export of goods from Mauritius

120,000
100,000
80,000
60,000
40,000
20,000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
World (excl. EU) 36,082 36,674 41,073 43,502 53,681 60,390 50,195 44,821 44,945
EU (excl. UK) 25,908 25,684 26,298 28,365 27,495 25,500 27,910 26,841 22,551
United Kingdom 13,373 12,644 12,497 11,935 10,903 10,696 9,382 8,469 7,614

United Kingdom EU (excl. UK) World (excl. EU)

From the figure above, since 2015, total exports, i.e., including Europe and the UK, have been
going down after a moderate pick-up following the financial crisis of 2009-10. Exports to Europe
and to the UK have been continuously on a downward trend however. For instance, in 2010,
exports to the UK amounted to MUR 13.4 billion, and this figure has gradually fallen to MUR 7.6
billion only by 2018. The fall in exports to the rest of Europe has been less drastic, from MUR 25.9
billion in 2010 to MUR 22.6 billion in 2018, although this is mitigated by a few years of increase
immediately post the crisis.

Share of UK Exports (%)

34.0 33.0 32.2
29.6 28.4 29.6
25.2 24.0 25.2
21.6 20.3 18.5 16.6
13.4 12.5 12.0 11.8 11.3

2010 2011 2012 2013 2014 2015 2016 2017 2018

United Kingdom/ World UK/ EU

It should be noted that over the years, the UK market has represented an ever-decreasing share
of our total exports, which can explain to a large extent our decreasing total exports. However,
the decrease in total exports has been less drastic than the fall in exports to the UK market, which
can also explain that we have been less and less dependent on the UK market and that
diversification towards new markets has had some progress. The yearly changes in exports is
compared in the following figure, showing how, with the exception of 2015 and 2018, the fall has
been more pronounced for the UK than elsewhere.

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 Implications of Brexit for Mauritius (Draft)

Export growth rate (%)

12.95
8.04 6.67 5.81
3.88 3.03
0.59 1.22

2011 2012 2013 2014 2015 2016 2017 2018

-1.90
-2.43 -1.16 -4.50 -4.72
-5.45 -5.73 -5.31 -5.81
-8.65 -9.06 -8.25
-9.73 -10.10
-12.28
-14.57

All countries Europe United Kingdom

While our exports have managed to rebound from the double dip recession, a lasting and
irreversible effect has been noted in the UK market. In fact, the decline from 2010 to 2015 has
been around 20.1 %, while from 2015 to 2018, the fall has been around 29.0 %, with the fall in
UK exports accelerating post referendum and depreciation of the UK Pound.
A breakdown of Mauritius exports to the UK shows that the decline concerns mainly the largest
category which are ‘Articles of apparel and clothing accessories, knitted or crocheted’, at the 2
HS level, with a decrease in exports value from USD 172.4 million in 2014 to USD 91.1 million in
2018. The second highest exports to the UK are ‘Preparations of meat, of fish or of crustaceans,
molluscs or other aquatic invertebrates’, which following a slight dip from 2014 to 2016, has picked
up again in the last two years. ‘Not knitted or crocheted apparels and clothing’ have picked up
during the same period and has stabilized. ‘Sugar and sugar confectionery’ maintained a general
downward trend, although more moderated than the average.

Export of goods to UK breakdown (USD '000)

200000

150000

100000

50000

0
2014 2015 2016 2017 2018

Articles of apparel and clothing accessories, knitted or crocheted

Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates
Articles of apparel and clothing accessories, not knitted or crocheted
Sugars and sugar confectionery
Others

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 Implications of Brexit for Mauritius (Draft)

It should be noted that the top 4 exports at the HS-2 level represent 90.4 % of total exports from
Mauritius to the UK, indicating low diversification. The top 15 exports represent 99.4 %, which
demonstrates a lack of diversification of our exports to the UK.

Mauritius-UK trade balance (MUR MN)

13,373
12,644 12,497 11,935
10,903 10,696
9,382
8,469
7,614

3,811 4,262
3,403 3,230 3,561 3,678 3,595
2,992 3,048

2010 2011 2012 2013 2014 2015 2016 2017 2018

Imports Exports

While Mauritius is still a net exporter to the UK, an upward trend has been noted in terms of
imports from the UK. The positive trade balance has shrunk from MUR 10.4 billion in 2010 to
MUR 3.4 billion in 2018. Major imports from the UK include Vehicles; Beverages, spirits and
vinegar; mineral fuels, mineral oils and products of their distillation; bituminous substances;
Machinery, mechanical appliances, nuclear reactors, boilers; pharmaceutical products and
electrical machineries.

3.1.3. Investment
Foreign Direct Investment from the UK has been haphazard over the last few years. On average,
since 2006, MUR 2.4 billion have been received annually from the UK in several sectors activity,
mainly in real estate and ICT.

FDI from UK (MUR MN)

5,000
4,000
3,000
2,000
1,000
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

In 2018, inflows of MUR 955 million were registered, compared to MUR 4.4 billion in 2017. The
volatility is noted throughout and suggests that FDI is principally project specific and has little
correlation with exogenous factors.

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 Implications of Brexit for Mauritius (Draft)

3.1.4. Tourist arrivals

Tourist arrivals from UK have maintained an upward trend although the rate of growth has
diminished recently. The %age increase was lower at 1.4% compared to the previous increase of
5.6%.
It should be noted however, that the trend in tourist arrivals from the UK is closely linked to the
global trend, with a correlation of more than 0.95.

United Kingdom All Countries

1,341,8601,399,408
1,306,873
149,807 151,913 1,173,891
141,904 1,065,030
129,754 993,106
934,827 964,642 965,441
115,326
97,548 98,017
88,182 87,648

2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018

2016 2017 2018

Tourist Expenditure Tourist Expenditure Tourist Expenditure (MUR
Arrivals (MUR Bn) Arrivals (MUR Billion) Arrivals BN) (estimates)
United Kingdom 141,904 6.9 149,807 7.1 151,913 7.61
All countries 1,275,227 56 1,341,860 60 1,399,408 64
% Increase in Arrivals 5.60% 1.40%
% of UK Tourists out of 11.10% 11.20% 10.90%
Total Number of
Tourists
% expenditure 12.30% 11.80% 11.90%
1/ Provisional estimates (Subject to revision)

Globally, the World Travel and Tourism Council (WTTC) anticipates that UK expenditure abroad
will decrease significantly (-4.2 %), as the drop in the value of the Pound will continue to impact
UK citizens’ spending power and their propensity to holiday abroad.

3.2. Threats to Mauritius

Given our strong economic linkages with the UK and the EU, Brexit is likely to affect the Mauritian
economy. In a do-nothing scenario whereby Mauritius does not react and maintain the existing
bilateral trade agreements with UK and the EU, Brexit will impact on our economy via two main
mechanisms – the GDP effect and the Exchange rate effect.
The GDP effect emanates from the contraction in GDP of both the EU and the UK. Lower GDP
implies lower income, employment and production, and as a result the UK and EU import demand
from Mauritius and the rest of the world will fall. As a result, Mauritian exports to both the UK and
the EU will fall. The exchange rate effect is a function of the resulting depreciation of the British
Pound and Euro as a result of Brexit. The depreciation will make Mauritian exports more
expensive to the UK and EU causing a contraction in exports.

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 Implications of Brexit for Mauritius (Draft)

The GDP and exchange rate effect will not only affect traditional exports but will also have an
effect on tourist arrivals from the UK and EU. The UK and EU are important markets for our
tourism industry and Brexit will have non-trivial repercussions on the tourism industry.
FDI flows from EU and UK are also likely to be affected from Brexit. However, given that the
current FDI flows from the UK and EU are very small and lumpy, any effect is likely to be trivial.
We built an econometric model for export supply and tourism demand in order to estimate the
GDP and exchange rate effects of Brexit on exports and tourist arrivals.

3.2.1 Exports Effect

We estimate an export demand function for the UK which is given as
𝐶𝑃𝐼𝑢𝑘
𝐸𝑥𝑝𝑜𝑟𝑡𝑢𝑘 = 𝛼 + 𝛽1 𝐺𝐷𝑃𝑢𝑘 + 𝛽2 𝐸𝑅𝑢𝑘 + 𝛽3 ⁄𝐶𝑃𝐼 +𝜀
𝑚𝑟𝑢

We use trade, GDP, exchange rate and CPI data for the years 1980 to 2018 to estimate the above
model which is given below.
𝐶𝑃𝐼𝑢𝑘
𝐸𝑥𝑝𝑜𝑟𝑡𝑢𝑘 = −0.02 + 1.8𝐺𝐷𝑃𝑢𝑘 + 0.28𝐸𝑅𝑢𝑘 + 0.39 ⁄𝐶𝑃𝐼 +𝜀
𝑚𝑟𝑢

The 𝛽′𝑠 in the above model represent the change export elasticity. For example, an estimated 𝛽1
of 1.8 implies that export to the UK will contract by 1.8% if UK GDP contracts by 1%. Similarly,
the exchange rate elasticity of 0.28 shows that if the Mauritian rupees appreciates (exchange rate
falls) by 1%, export to the UK will fall by 0.28%.
Using the estimated equation and we can estimate the reduction in export to the UK as follows:

% change in % change in % change in Total change in

% change in ER
GDP export export export

UK -0.5 to -9.5% -0.8% to -17.1% -5% to -10% -1.4% to -2.8% -2.2 to -19.9%

EU -0.2 to -1.5% -0.36% to -2.7% -0% to -5% 0% to -1.4% -0.36 to -4.1%

3.2.1 Tourism Effect

We have also estimated an econometric model for tourist expenditure in Mauritius. Given that we
don’t have long time series data on tourism expenditure by country of origin, we have estimated
a model of total expenditure. The model specification is similar to the above export demand
function and is given as
𝐶𝑃𝐼𝑎𝑙𝑙
𝑇𝑜𝑢𝑟𝑖𝑠𝑡𝑎𝑙𝑙 = 𝛼 + 𝛽1 𝐺𝐷𝑃𝑎𝑙𝑙 + 𝛽2 𝐸𝑅𝑎𝑙𝑙 + 𝛽3 ⁄𝐶𝑃𝐼 +𝜀
𝑚𝑟𝑢

Touristall represents total tourism expenditure in Mauritius and GDPall captures a weighted GDP
of all the main origin countries1. Similarly, ERall and CPIall represents a weighted average of the
exchange rate and CPI of all main origin countries, respectively. Using data from 1983 to 2018,
the final econometric estimation of the model is given as

1 GDPall is proxied using the GDP of OECD countries.

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 Implications of Brexit for Mauritius (Draft)

𝐶𝑃𝐼𝑎𝑙𝑙
𝑇𝑜𝑢𝑟𝑖𝑠𝑡𝑎𝑙𝑙 = 0.004 + 4.87𝐺𝐷𝑃𝑎𝑙𝑙 + 0.34𝐸𝑅𝑎𝑙𝑙 + 0.038 ⁄𝐶𝑃𝐼 +𝜀
𝑚𝑟𝑢

Note that the effect of the CPI ratio is not significant despite having the right positive sign. The
coefficients of both GDP and exchange rate is positive and significant. Based on the above
econometric model, the predicted effect of a hard Brexit on tourism expenditure can be estimated
as follows:

Total %
% change in % change in
% change in % change in change in
expenditure in expenditure
UK/EU GDP UK/EU ER expenditure
Mauritius in Mauritius
in Mauritius
-2.4% to - -4.1% to -
UK -0.5 to -9.5% -5% to -10% -1.7% to -3.4%
46.2% 49.6%
-0.97% to -
EU -0.2 to -1.5% -0% to -5% 0% to -1.7% -0.97% to -9%
7.3%

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 Implications of Brexit for Mauritius (Draft)

4. Opportunities

4.1. Trade in goods

As mentioned previously, Brexit would still
guarantee preferential access for Mauritian
products under the same terms and
conditions as before under the UK-ESA
Agreement which has already been signed.
The following analyses the different
opportunities that might arise under a Brexit
scenario but with different facets:
▪ Trade opportunities with UK
▪ Trade opportunities with EU
It should be pointed out that the advantages,
arising mainly from the imposition of tariffs on
the flow of goods between the UK and EU,
come with certain caveats. A pound
depreciation may offset the tariffs imposed.
Additionally, there are still certain transport
costs that are not insignificant from exports
towards the EU and UK from Mauritius.
The analysis considers 3 main parameters to
assess the trade potential which are the tariff
rate that will be applicable in the case of a no
deal Brexit, the demand for the products from
EU to UK or vice versa, and the supply
capacity of Mauritius (proxied by total
exports). The figures are normalized and
consolidated to obtain a standardized score.
A higher score implies higher potential.
Trade opportunities with UK
Currently, total exports to the UK from
Mauritius amounts to some USD 227.8
million, principally Textile, Sugar and Tuna.
While the depreciation of the Pound and the
expected contraction in UK GDP is likely to
have adverse effects on this figure, a no-deal
Brexit provides some opportunities for
Mauritian exporters,
In the case of a no deal Brexit, UK will be
trading with the EU on WTO terms which will
lead the UK Government to impose duty on
13% of its sensitive tariff lines including
sugar, fish and automobiles to the EU.

A situation like this could benefit Mauritius, particularly for the following:
EU exports Total Mauritius
Tariff
HS Description to UK (USD exports (USD Score
rate
000) 000)
Prepared or preserved fish; caviar and caviar
1604 substitutes prepared from fish eggs 24% 1,032,472 287,764 99.3

6109 T-shirts, singlets and other vests; knitted or crocheted 12% 2,690,268 144,434 98.2
Suits, ensembles, jackets, blazers, trousers, bib and
brace overalls, breeches and shorts (other than
6203 swimwear); men's or boys' (not knitted or crocheted) 12% 2,125,867 113,555 94.0
Cane or beet sugar and chemically pure sucrose, in
1701 solid form 50% 415,221 143,466 89.0
Suits, ensembles, jackets, dresses, skirts, divided
skirts, trousers, bib and brace overalls, breeches and
shorts (other than swimwear); women's or girls' (not
6204 knitted or crocheted) 12% 3,799,688 54,523 82.0
Jerseys, pullovers, cardigans, waistcoats and similar
6110 articles; knitted or crocheted 12% 3,186,804 44,918 76.4

6205 Shirts; men's or boys' (not knitted or crocheted) 12% 781,425 138,050 66.2

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 Implications of Brexit for Mauritius (Draft)

Ethyl alcohol, undenatured; of an alcoholic strength by

volume of 80% vol. or higher; ethyl alcohol and other
2207 spirits, denatured, of any strength 50% 423,008 18,742 46.2

0303 Fish; frozen, excluding fish fillets and other fish meat 15% 190,495 117,110 45.0

6105 Shirts; men's or boys', knitted or crocheted 12% 555,129 32,720 34.0

6302 Bed linen, table linen, toilet linen and kitchen linen 9% 1,039,094 1,556 30.4
Slips, petticoats, briefs, panties, nightdresses,
pyjamas, negligees, bathrobes, dressing gowns and
6108 similar articles; women's or girls', knitted or crocheted 12% 716,595 1,503 29.5
Suits, ensembles, jackets, blazers, trousers, bib and
brace overalls, breeches, shorts (not swimwear);
6103 men's or boys', knitted or crocheted 12% 574,753 9,758 29.4
Track suits, swimwear and other garments (not knitted
6211 or crocheted) 12% 559,406 570 27.5
Underpants, briefs, nightshirts, pyjamas, bathrobes,
dressing gowns and similar articles; men's or boys',
6107 knitted or crocheted 12% 396,952 1,879 26.1

A complete list of products with relative
export potential (at 4 HS Level) on the UK
Market is at Annex 1
For instance, on Sugar, the UK proposes to
impose a duty of 419 euros per ton on special
sugar and 150 euros per ton on white sugar.
Over the last five years, UK has imported
some 0.5 million tons white sugar annually
from the EU continent. Consequently,
Mauritius will have a competitive edge over
EU suppliers as well as other countries which
have not concluded a deal with the UK in
case of a no deal Brexit.
It is expected that a hard Brexit would create
a surplus in the EU Sugar market in the short
run and would deter EU production in the
medium and long run. The EU producers
seem to have become less ambitious (in
terms of production), and they have reduced
the area under beet cultivation by some 8%
over the last 2 years (compared with a 18%
increase in 2017). Consequently, in the
medium and long run, there is a possibility to
increase our exports to the EU as well.
As regards preserved tuna, the UK proposes
to impose a duty of 24% on imports from the
EU. Currently, the EU (mainly Spain) is
supplying around 13 940 tons of tuna on the
UK Market. Mauritius stands to gain in a
disorderly exit as we already have a well-
established and renowned market for
preserved tuna in the UK. Similarly, for
garments, the UK will impose a duty of 12%
on EU suppliers and Mauritian operators
would benefit from a margin of preference.
With respect to Rum, the UK imports around
22 000 ton of rum. 76% of the market is
being supplied by the EU -27 (Germany,
Netherlands, France and Italy). UK will
impose a duty of (0.6 EUR/% vol/hl+3.2
EUR/hl). There is a high potential for
Mauritius to increase its export which
currently amounts to an average of 50 tons.

Trade opportunities with EU

Opportunities for trade is not limited to those with the UK. A no-deal Brexit will result in tariffs
being imposed by the EU on UK exports as well, which similar to the situation with the UK, lead
to competitive gains for Mauritian exports as UK products into the EU will be subject to tariffs.

13
 Implications of Brexit for Mauritius (Draft)

Annex 2 summarises UK exports that will be subject to tariffs following a no-deal scenario. A
comparison is also included, comparing the value of current exports to the EU from the UK and
total exports from Mauritius as well. It appears that for certain products, both Mauritius and UK
have markets in the rest of the EU, and the tariffs that may be imposed will provide some
advantage to Mauritian products. The main products identified, based on tariffs that will be
applicable and the current imports of the EU from the UK and Mauritius are:
UK to EU Mauritius
Average Value total exports
HS Description tariff (USD 000) (USD 000) Score
Women's or girls' suits, ensembles, jackets,
6204 blazers, dresses, skirts, divided skirts, trousers 14% 1,110,023 54,523 100.0
T-shirts, singlets and other vests, knitted or
6109 crocheted 13% 719,047 144,434 100.0
Jerseys, pullovers, cardigans, waistcoats and
6110 similar articles, knitted or crocheted (excluding ... 13% 797,550 44,918 100.0
Men's or boys' suits, ensembles, jackets, blazers,
6203 trousers, bib and brace overalls, breeches ... 14% 531,827 113,555 100.0
Women's or girls' suits, ensembles, jackets,
6104 blazers, dresses, skirts, divided skirts, trousers, ... 14% 451,703 32,455 99.9
Articles for the conveyance or packaging of
3923 goods, of plastics; stoppers, lids, caps and other . 8% 1,022,501 36,601 99.9
Cane or beet sugar and chemically pure sucrose,
1701 in solid form 48% 57,383 143,466 99.7
Men's or boys' shirts (excluding knitted or
6205 crocheted, nightshirts, singlets and other vests) 13% 198,167 138,050 99.7
Men's or boys' shirts, knitted or crocheted
6105 (excluding nightshirts, T-shirts, singlets and ... 13% 128,292 32,720 97.8

2106 Food preparations, n.e.s. 15% 1,121,068 606 96.2

Footwear with outer soles of rubber, plastics,
6404 leather or composition leather and uppers of ... 20% 574,040 2,017 91.3
Fish fillets and other fish meat, whether or not
0304 minced, fresh, chilled or frozen 14% 34,177 17,197 87.7
Waters, incl. mineral waters and aerated waters,
2202 containing added sugar or other sweetening ... 15% 455,424 2,154 84.5
Beauty or make-up preparations and preparations
3304 for the care of the skin, incl. sunscreen or ... 7% 1,121,751 8,598 84.0
Footwear with outer soles and uppers of rubber or
6402 plastics (excluding waterproof footwear of ... 20% 220,250 4,200 82.2

More detailed lists, at the 4-HS level, can be
found in the annex.
For textile and garments, ‘Women's or girls'
suits, ensembles, jackets, blazers, dresses,
skirts, divided skirts, trousers’, ‘Men's or
boys' suits, ensembles, jackets, blazers,
trousers, bib and brace overalls, breeches’,
‘Jerseys, pullovers, cardigans, waistcoats
and similar articles, knitted or crocheted’,
‘Men's or boys' shirts’ and ‘Men's or boys'
shirts, knitted or crocheted’ all provide
significant opportunities. The tariff rates that
will be imposed range from 13-14 % and
given that Mauritius already has an
established market in several European
countries, firms can leverage on this acquis
to capture the market of UK exports.
For cane and beet sugar, it is expected that
the average tariff that will be imposed on UK
exports into the EU will amount to around
47.5 %. This would represent a significant
additional cost on sugar from UK. The
opportunities for Mauritius are significant, as
a tariff rate would not be offset by the
depreciation in the Pound. Currently, the
export value of cane and beet sugar to the

14
 Implications of Brexit for Mauritius (Draft)

EU amounts to USD 57.4 million, while right development framework for our SEZs in
Mauritian exports are already at USD 25.4 Africa.
million.
Offering the right incentives to local
The analysis is based on the products that entrepreneurs to move up the value chain
we are currently exporting to the UK and the and to attract new players in the SEZs may
EU. There are certain products such as provide additional opportunities to Mauritius
automobiles and spare parts, products made to venture in new areas hat will bring more
of plastics, cosmetic, sugar confectionary returns to the country.
amongst other which will be subject to high
tariffs and can provide good opportunities for
potential exporters.
Our constraints in terms of unavailability of
labour, land and finance to develop these
products can be circumvented through a

In addition to the passporting right, the

4.2. Financial services
benefits that have attracted the financial
institution to the UK in the first place are not
The exit of the UK from EU is expected to
advantages that Mauritius can readily
have major impact on its financial market,
provide to these financial institutions. Such
speculating that UK-based financial
benefits include:
institutions may not be in a position to offer
its services within in EU under their UK Strong business environment
license post-Brexit. If the system of
• A well-established corporate and
European passporting of licenses is
commercial legal system, based on
discontinued without another appropriate
English common law
arrangement in place, UK-based financial
• The UK attracts an internationally mobile,
institutions will be classified as third-country
diverse and highly skilled workforce
financial institutions and will not be permitted
• Attractive location for senior executives
to offer their services to clients in the EU
and their families, with high quality
without having obtained a license from a
housing, schools and leisure activities
supervisory authority within the EU.
• Open market and diversified economy
Obtaining a license can be burdensome and
with a long and successful history of
the financial institutions operating within the
international trade
UK may decide to leave the UK.
• A strong international business
community
Will the fact that financial institutions will be
• The UK is a familiar gateway into the rest
leaving the UK represent an opportunity for
of Europe
Mauritius in terms of attracting them. The
• Excellent transport links with the rest of
chances are very slim. First, as mentioned
Europe and internationally
above, the institution is likely to move to other
• Top class environment for research and
EU countries where they can still benefit from
development work
the passporting rights. The FSC has signed,
• Leading global financial centre
in April 2018, an MOU with the UK Financial
• Access to capital through the UK markets
Conduct Authority to facilitate cross border
operations. • Central time zone

15
 Implications of Brexit for Mauritius (Draft)

The UK tax regime

• Lowest corporate tax rate in the G20 at 19%, reducing to 17% from 1 April 2020
• A truly territorial regime for companies – with a focus on taxing profits from UK activities,
achieved through an exemption for foreign dividends and foreign branches and well
understood controlled foreign company rules
• A substantial shareholdings regime which allows for the tax-free sale of shares by a UK
company
• Patent Box regime gives a tax rate of 10% on profits from the development and exploitation
of patents
• Significant research and development relief with ‘above the line’ credits giving tax and ETR
benefit
• Flexible profit and loss offset (via group loss relief surrenders)
• Established and BEPS-compliant interest deductibility regime
• An extensive tax treaty network giving reduced withholding on interest, royalties and dividends
received. No withholding taxes on dividends paid under domestic law
• Internationally well respected and robust tax authority with dedicated relationship managers
• Accelerated clearance process, via the Inward Investment Support team
• Flexible customs duty and VAT regulations
• Relatively low social security costs in relation to other European regimes
Mauritius is able to better some of the tax advantages like corporation tax but will be unable to
better or even match the other pull factors that the UK is offering. There are certain opportunities
that can be tapped in the following segments however:
• Development Finance institutions (DFI)
The City of London has been a hub for a number of DFIs and impactful investors, like the
European Investment Bank, the German Development Bank, and other impactful investors like
European sovereign wealth funds. The CDC, through the support of the DFID, has also been
following some Sovereign Wealth Funds like the Norfund to achieve sustainable poverty
alleviation in poor countries. The City has also been home to a number of structures of such
investments. However, after the Brexit, some SWFs may choose other jurisdictions to either
relocate their active management (which could be other European cities and financial centres like
Frankfurt or Luxembourg) and domicile their funds. The latter function may well be Mauritius,
because Mauritius has adhered to all the prerequisites of the EU and is already home to a number
of such structuring of investments.
• Family offices
Similarly, EU’s family offices may chose other jurisdictions to relocate, and Mauritius has an
advantage from both a wealth management perspective (since our trusts laws are similar to those
of the UK, and these instruments are used by family offices for holding global assets and estate
planning) and active management and structuring (through our overseas family office schemes
and GBCs respectively).

16
 Implications of Brexit for Mauritius (Draft)

4.3. Silver economy However, countries which are popular

retirement destinations making up the top 10
Generally, it is found that British pensioners
favourite destinations for UK retirees,
are willing to retire abroad in places with
including Australia, Canada and New
better weather than the UK, the prospect of
Zealand do not have these arrangements in
a better lifestyle and cheaper living costs.
place, meaning the UK state pension will not
Currently, there are more than 190,000
increase, and potential retirees will be forced
British citizens who have retired in the EU,
to reconsider their decisions. The practical
especially in Spain, France, Portugal and
implications to benefit from the healthcare
Italy.
reimbursements will also include lengthier
However, a recent survey by Canada Life of administrative processes and other technical
over-50s, who are yet to retire and would barriers to the movement of British nationals
consider moving abroad, showed that residing abroad.
apprehensions over Brexit have made nearly
In addition, the depreciation of the pound
half (45%) of those who are planning to retire
sterling is likely to affect incomes in certain
abroad reconsider if they should do so.
areas more than in others, and where the
One of the reasons is healthcare. Currently, costs of living are already high, British
pensioners can get treatment reimbursed by pensioners will have difficulties in making
the NHS under an EU-wide set of reciprocal ends meet.
agreements. As part of the Brexit
In this optic, Mauritius can position itself a
negotiations, reciprocal social security
retirement destination. Warm weather, a
agreements have been included in the
good quality of life, an efficient healthcare
withdrawal agreement, and even if there is
system, existing schemes such as the Senior
the event of a no deal, the UK has stated it
Living Scheme and the Occupation Permit
would preserve the up rating of the state
for retirees, make Mauritius an attractive
pension. Countries in the EU, as well as
alternative for British pensioners. Private
many others, have reciprocal social security
healthcare is relatively cheaper, and
agreements with the UK, which means the
Government can negotiate with the UK
State Pension will increase each year in the
Government for reciprocal agreements
same way as retirees living in the UK.
concerning reimbursement by the NHS and
on State Pension.

17
 Implications of Brexit for Mauritius (Draft)

ANNEX 1 EU EXPORTS TO THE UK- POTENTIAL FOR M AURITIUS

Tariff EU exports to UK Total Mauritius Score
HS Description rate (USD 000) exports (USD 000)
Prepared or preserved fish; caviar and caviar substitutes prepared from fish
1604 eggs 24% 1,032,472 287,764 99.3
6109 T-shirts, singlets and other vests; knitted or crocheted 12% 2,690,268 144,434 98.2
Suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches
6203 and shorts (other than swimwear); men's or boys' (not knitted or crocheted) 12% 2,125,867 113,555 94.0
1701 Cane or beet sugar and chemically pure sucrose, in solid form 50% 415,221 143,466 89.0
Suits, ensembles, jackets, dresses, skirts, divided skirts, trousers, bib and
brace overalls, breeches and shorts (other than swimwear); women's or girls'
6204 (not knitted or crocheted) 12% 3,799,688 54,523 82.0
Jerseys, pullovers, cardigans, waistcoats and similar articles; knitted or
6110 crocheted 12% 3,186,804 44,918 76.4
6205 Shirts; men's or boys' (not knitted or crocheted) 12% 781,425 138,050 66.2
Ethyl alcohol, undenatured; of an alcoholic strength by volume of 80% vol. or
2207 higher; ethyl alcohol and other spirits, denatured, of any strength 50% 423,008 18,742 46.2
303 Fish; frozen, excluding fish fillets and other fish meat 15% 190,495 117,110 45.0
6105 Shirts; men's or boys', knitted or crocheted 12% 555,129 32,720 34.0
6302 Bed linen, table linen, toilet linen and kitchen linen 9% 1,039,094 1,556 30.4
Slips, petticoats, briefs, panties, nightdresses, pyjamas, negligees, bathrobes,
6108 dressing gowns and similar articles; women's or girls', knitted or crocheted 12% 716,595 1,503 29.5
Suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches,
6103 shorts (not swimwear); men's or boys', knitted or crocheted 12% 574,753 9,758 29.4
6211 Track suits, swimwear and other garments (not knitted or crocheted) 12% 559,406 570 27.5
Underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and
6107 similar articles; men's or boys', knitted or crocheted 12% 396,952 1,879 26.1
Tableware, kitchenware, other household articles and hygienic or toilet
3924 articles, of plastics 7% 690,761 892 24.8
Brassieres, girdles, corsets, braces, suspenders, garters and similar articles
6212 and parts thereof; whether or not knitted or crocheted 7% 575,103 1,253 24.1
Articles of apparel and clothing accessories, of leather or of composition
4203 leather 8% 381,042 3,999 23.9
Singlets and other vests, slips, petticoats, briefs, panties, nightdresses,
pyjamas, negligees, bathrobes, dressing gowns and similar articles; women's
6208 or girls' (not knitted or crocheted) 12% 147,947 390 23.7
Ethyl alcohol, undenatured; of an alcoholic strength by volume of less than
2208 80% volume; spirits, liqueurs and other spirituous beverages 1,119,851 5,334 22.9
905 Vanilla 6% 13,658 31,350 22.5
Table, kitchen, other household articles and parts, of iron or steel; iron or steel
wool; pot scourers and scouring or polishing pads, gloves and the like, of iron
7323 or steel 3% 456,218 82 21.8
7325 Iron or steel; cast articles 2% 238,892 - 20.6

18
 Implications of Brexit for Mauritius (Draft)

ANNEX 2 UK EXPORTS TO EU- POTENTIAL FOR MAURITIUS

Average UK to EU Value Mauritius total
HS Description tariff (USD 000) exports (USD 000) Score
Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts,
6204 divided skirts, trousers, ... 14% 1,110,023 54,523 100.0

6109 T-shirts, singlets and other vests, knitted or crocheted 13% 719,047 144,434 100.0
Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted
6110 or crocheted (excluding ... 13% 797,550 44,918 100.0
Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and
6203 brace overalls, breeches ... 14% 531,827 113,555 100.0
Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts,
6104 divided skirts, trousers, ... 14% 451,703 32,455 99.9
Articles for the conveyance or packaging of goods, of plastics;
3923 stoppers, lids, caps and other ... 8% 1,022,501 36,601 99.9

1701 Cane or beet sugar and chemically pure sucrose, in solid form 48% 57,383 143,466 99.7
Men's or boys' shirts (excluding knitted or crocheted, nightshirts,
6205 singlets and other vests) 13% 198,167 138,050 99.7
Men's or boys' shirts, knitted or crocheted (excluding nightshirts, T-
6105 shirts, singlets and ... 13% 128,292 32,720 97.8

2106 Food preparations, n.e.s. 15% 1,121,068 606 96.2

Footwear with outer soles of rubber, plastics, leather or composition
6404 leather and uppers of ... 20% 574,040 2,017 91.3
Fish fillets and other fish meat, whether or not minced, fresh, chilled or
0304 frozen 14% 34,177 17,197 87.7
Waters, incl. mineral waters and aerated waters, containing added
2202 sugar or other sweetening ... 15% 455,424 2,154 84.5
Beauty or make-up preparations and preparations for the care of the
3304 skin, incl. sunscreen or ... 7% 1,121,751 8,598 84.0
Footwear with outer soles and uppers of rubber or plastics (excluding
6402 waterproof footwear of ... 20% 220,250 4,200 82.2
Special garments for professional, sporting or other purposes, n.e.s.,
6114 knitted or crocheted 14% 114,077 9,704 81.7

2203 Beer made from malt 24% 284,215 1,674 80.4

Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and
6103 brace overalls, breeches ... 14% 83,742 9,758 80.2
Women's or girls' blouses, shirts and shirt-blouses (excluding knitted
6206 or crocheted and vests) 14% 233,326 5,375 79.8
Trunks, suitcases, vanity cases, executive-cases, briefcases, school
4202 satchels, spectacle cases, ... 8% 522,868 10,833 77.7

19
 Implications of Brexit for Mauritius (Draft)

Cartons, boxes, cases, bags and other packing containers, of paper,

4819 paperboard, cellulose wadding ... 12% 346,721 3,762 76.8
Women's or girls' blouses, shirts and shirt-blouses, knitted or
6106 crocheted (excluding T-shirts ... 14% 69,682 6,945 74.3
Parts and accessories for tractors, motor vehicles for the transport of
8708 ten or more persons, ... 6% 2,163,131 285 73.4
Plates, sheets, film, foil and strip, of plastics, reinforced, laminated,
3921 supported or similarly ... 21% 190,524 395 72.3
Tricycles, scooters, pedal cars and similar wheeled toys; dolls'
9503 carriages; dolls; other toys; ... 8% 770,403 1,514 71.9

1704 Sugar confectionery not containing cocoa, incl. white chocolate 17% 211,915 494 71.9
Organic surface-active agents (excluding soap); surface-active
3402 preparations, washing preparations, ... 7% 826,276 4,684 71.0

1806 Chocolate and other food preparations containing cocoa 12% 382,190 30 69.8
Motor cars and other motor vehicles principally designed for the
8703 transport of persons, incl. ... 12% 325,980 837 69.2
Diagnostic or laboratory reagents on a backing, prepared diagnostic or
3822 laboratory reagents ... 8% 826,710 934 67.6
Footwear with outer soles of rubber, plastics, leather or composition
6403 leather and uppers of ... 8% 584,733 3,365 67.4
Tracksuits, ski suits, swimwear and other garments, n.e.s. (excluding
6211 knitted or crocheted) 14% 147,434 570 64.7
Bread, pastry, cakes, biscuits and other bakers' wares, whether or not
1905 containing cocoa; communion ... 7% 793,414 1,893 64.6

6112 Track-suits, ski-suits and swimwear, knitted or crocheted 13% 101,922 2,211 62.6
Soups and broths and preparations therefor; food preparations
2104 consisting of finely homogenised ... 18% 43,080 3 62.4

905 Vanilla 6% 1,704 31,350 62.3

Fruits, nuts and other edible parts of plants, prepared or preserved,
2008 whether or not containing ... 17% 37,561 107 61.7
Articles of plastics and articles of other materials of heading 3901 to
3926 3914, n.e.s. 6% 931,991 1,071 61.5

2309 Preparations of a kind used in animal feeding 8% 421,855 4,889 60.9

Women's or girls' overcoats, car coats, capes, cloaks, anoraks, incl.
6102 ski jackets, windcheaters, ... 14% 71,149 575 60.7
Men's or boys' overcoats, car coats, capes, cloaks, anoraks, incl. ski
6201 jackets, windcheaters, ... 14% 46,120 915 60.1
Women's or girls' overcoats, car coats, capes, cloaks, anoraks, incl.
6202 ski jackets, windcheaters, ... 14% 51,358 705 59.9

20
 Implications of Brexit for Mauritius (Draft)

Men's or boys' underpants, briefs, nightshirts, pyjamas, bathrobes,

6107 dressing gowns and similar ... 13% 35,151 1,879 59.6
Babies' garments and clothing accessories, knitted or crocheted
6111 (excluding hats) 11% 72,981 3,312 59.4

4821 Paper or paperboard labels of all kinds, whether or not printed 10% 134,599 3,653 58.7

2105 Ice cream and other edible ice, whether or not containing cocoa 12% 143,563 13 58.5
Women's or girls' slips, petticoats, briefs, panties, nightdresses,
6108 pyjamas, négligés, bathrobes, ... 13% 25,214 1,503 58.2
Paints and varnishes, incl. enamels and lacquers, based on synthetic
3208 polymers or chemically ... 10% 265,045 459 58.1
Tableware, kitchenware, other household articles and toilet articles, of
6911 porcelain or china ... 14% 55,827 142 58.0
Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried,
306 salted or in brine, ... 12% 69,851 1,027 57.6
Extracts, essences and concentrates, of coffee, tea or maté and
2101 preparations with a basis of ... 11% 216,636 65 57.1
Pantyhose, tights, stockings, socks and other hosiery, incl. graduated
6115 compression hosiery ... 12% 71,407 529 56.0
Automatic data-processing machines and units thereof; magnetic or
8471 optical readers, machines ... 3% 2,723,586 2,221 55.8
Malt extract; food preparations of flour, groats, meal, starch or malt
1901 extract, not containing ... 11% 141,953 144 55.6
Plates, sheets and strip, of aluminium, of a thickness of > 0,2 mm
7606 (excluding expanded plates, ... 10% 207,024 192 55.0
Toilet paper and similar paper, cellulose wadding or webs of cellulose
4818 fibres, of a kind used ... 11% 128,844 399 55.0
Articles of jewellery and parts thereof, of precious metal or of metal
7113 clad with precious metal ... 4% 979,588 9,914 54.7
Cut flowers and flower buds of a kind suitable for bouquets or for
603 ornamental purposes, fresh, ... 12% 24,894 956 54.6
Other sugars, incl. chemically pure lactose, maltose, glucose and
1702 fructose, in solid form; ... 13% 18,420 10 53.6
Floor coverings of plastics, whether or not self-adhesive, in rolls or in
3918 the form of tiles; ... 10% 146,990 209 53.5
Woven fabrics of synthetic filament yarn, incl. monofilament of >= 67
5407 decitex and with a cross ... 11% 69,493 784 53.5
Other vegetables prepared or preserved otherwise than by vinegar or
2005 acetic acid, not frozen ... 12% 36,918 16 53.3
Perfumes and toilet waters (excluding aftershave lotions, personal
3303 deodorants and hair lotions) 7% 435,831 2,800 51.8
Paints and varnishes, incl. enamels and lacquers, based on synthetic
3209 polymers or chemically ... 10% 110,760 351 51.1

21
 Implications of Brexit for Mauritius (Draft)

Tableware, kitchenware, other household articles and toilet articles, of

3924 plastics (excluding ... 8% 219,121 892 50.2
Medicaments consisting of mixed or unmixed products for therapeutic
3004 or prophylactic uses, put ... 0% 7,894,772 28,033 50.2
Synthetic organic colouring matter, whether or not chemically defined;
3204 preparations based on ... 10% 46,429 869 49.3
Parts suitable for use solely or principally with internal combustion
8409 piston engine of heading ... 5% 932,531 272 49.3
Glass fibres, incl. glass wool, and articles thereof (excluding mineral
7019 wools and articles ... 10% 109,415 358 49.2

6307 Made-up articles of textile materials, incl. dress patterns, n.e.s. 9% 137,520 235 48.8
Salts, incl. table salt and denatured salt, and pure sodium chloride,
2501 whether or not in aqueous ... 10% 59,374 80 48.4
Paints and varnishes, incl. enamels, lacquers and distempers
3210 (excluding those based on synthetic ... 10% 17,112 790 47.9
Parts and accessories (other than covers, carrying cases and the like)
8473 suitable for use solely ... 4% 937,940 3,362 47.9
Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes,
3919 of plastics, whether ... 7% 369,950 300 47.5
Tubes, pipes and hoses, and fittings therefor, e.g. joints, elbows,
3917 flanges, of plastics 7% 199,524 2,867 47.5

3925 Builders' ware of plastics, n.e.s. 8% 170,149 318 47.1

Brooms, brushes, incl. brushes constituting parts of machines,
9603 appliances or vehicles, hand-operated ... 8% 32,384 5,458 46.7

3305 Preparations for use on the hair 7% 412,196 346 46.7

Furniture and parts thereof, n.e.s. (excluding seats and medical,
9403 surgical, dental or veterinary ... 5% 588,348 934 44.3
Electrical apparatus for switching or protecting electrical circuits, or for
8536 making connections ... 5% 691,992 1,224 43.5
Structures and parts of structures "e.g., bridges and bridge-sections,
7610 towers, lattice masts, ... 7% 81,686 6,039 43.5

7604 Bars, rods and profiles, of aluminium, n.e.s. 8% 65,269 584 43.0
Articles of apparel and clothing accessories, of leather or composition
4203 leather (excluding ... 7% 66,241 3,999 42.7

7117 Imitation jewellery 8% 86,705 1,528 42.6

Instruments and appliances used in medical, surgical, dental or
9018 veterinary sciences, incl. ... 0% 1,279,676 29,914 42.5
Soap; organic surface-active products and preparations for use as
3401 soap, in the form of bars, ... 5% 283,511 4,592 42.0

22
 Implications of Brexit for Mauritius (Draft)

7326 Articles of iron or steel, n.e.s. (excluding cast articles) 5% 497,509 323 41.7
Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter
7318 pins, washers, incl. ... 6% 323,800 380 41.4
Textile fabrics impregnated, coated, covered or laminated with plastics
5903 (excluding tyre cord ... 8% 42,107 308 41.2

4011 New pneumatic tyres, of rubber 6% 367,315 220 40.9

Taps, cocks, valves and similar appliances for pipes, boiler shells,
8481 tanks, vats or the like, ... 5% 638,352 219 40.9
Tableware, kitchenware, other household articles and toilet articles, of
6912 ceramics other than ... 8% 86,287 18 40.4
Sauce and preparations therefor; mixed condiments and mixed
2103 seasonings; mustard flour and meal, ... 6% 311,230 209 40.3
Preparations for oral or dental hygiene, incl. denture fixative pastes
3306 and powders; yarn used ... 7% 210,971 188 40.3
Telephone sets, incl. telephones for cellular networks or for other
8517 wireless networks; other ... 0% 2,769,808 15,066 40.2
Casks, drums, cans, boxes and similar containers, incl. rigid or
7612 collapsible tubular containers, ... 7% 144,775 9 39.8
Lamps and lighting fittings, incl. searchlights and spotlights, and parts
9405 thereof, n.e.s; illuminated ... 6% 346,812 205 39.1

7616 Articles of aluminium, n.e.s. 7% 112,942 95 38.9

Shaving preparations, incl. pre-shave and aftershave products,
3307 personal deodorants, bath and ... 7% 145,996 599 38.9
Articles and equipment for general physical exercise, gymnastics,
9506 athletics, other sports, ... 5% 402,023 875 38.6
Brassieres, girdles, corsets, braces, suspenders, garters and similar
6212 articles and parts thereof, ... 7% 105,847 1,253 38.2
Spectacles, goggles and the like, corrective, protective or other
9004 (excluding spectacles for ... 6% 114,103 2,484 37.8
Fish, fresh or chilled (excluding fish fillets and other fish meat of
302 heading 0304) 4% 46,691 13,975 37.1
Mattress supports (excluding spring interiors for seats); articles of
9404 bedding and similar furnishing, ... 7% 35,199 367 37.0

4911 Printed matter, incl. printed pictures and photographs, n.e.s. 4% 132,681 12,021 36.9
Insecticides, rodenticides, fungicides, herbicides, anti-sprouting
3808 products and plant-growth ... 6% 170,106 428 36.8

8534 Printed circuits 6% 156,326 8 36.8

8501 Electric motors and generators (excluding generating sets) 7% 70,780 272 36.0

23
 Implications of Brexit for Mauritius (Draft)

Organic composite solvents and thinners, n.e.s.; prepared paint or

3814 varnish removers (excluding ... 7% 47,816 93 35.5
Hydraulic brake fluids and other prepared liquids for hydraulic
3819 transmission not containing ... 7% 44,686 6 35.0
Live plants incl. their roots, cuttings and slips; mushroom spawn
602 (excluding bulbs, tubers, ... 7% 36,259 5 34.8
Structures and parts of structures "e.g., bridges and bridge-sections,
7308 lock-gates, towers, ... 4% 424,052 834 34.5

7307 Tube or pipe fittings "e.g. couplings, elbows, sleeves", of iron or steel 6% 47,394 177 34.2
Shoe polish, furniture wax and floor waxes, polishes and creams for
3405 coachwork, glass or metal, ... 6% 21,243 1,468 34.1
Made-up clothing accessories and parts of garments or clothing
6217 accessories, of all types of ... 6% 20,185 331 34.0
Festival, carnival or other entertainment articles, incl. conjuring tricks
9505 and novelty jokes, ... 6% 45,870 30 34.0
Parts suitable for use solely or principally with the machinery of
8431 heading 8425 to 8430, n.e.s. 5% 188,712 138 33.7
Electric instantaneous or storage water heaters and immersion
8516 heaters; electric space-heating ... 5% 147,462 386 33.6
Electrical transformers, static converters, e.g. rectifiers, and inductors;
8504 parts thereof 3% 600,089 624 33.3

2711 Petroleum gas and other gaseous hydrocarbons 0% 606,598 24,441 33.3
Boards, panels, consoles, desks, cabinets and other bases, equipped
8537 with two or more apparatus ... 4% 334,342 1,069 33.0

8803 Parts of aircraft and spacecraft of heading 8801 or 8802, n.e.s. 0% 10,077,396 6,102 33.0
Table, kitchen or other household articles, sanitary ware, and parts
7615 thereof, of aluminium, ... 6% 17,577 195 32.8
Sanitary towels (pads) and tampons, napkins and napkin liners for
9619 babies, and similar articles, ... 5% 129,349 213 32.6
Padlocks and locks "key, combination or electrically operated", of base
8301 metal; clasps and frames ... 6% 56,838 63 32.2
Carboys, bottles, flasks, jars, pots, phials, ampoules and other
7010 containers, of glass, of a ... 5% 153,516 26 32.0
Undenatured ethyl alcohol of an alcoholic strength of < 80%; spirits,
2208 liqueurs and other spirituous ... 0% 2,620,829 5,334 32.0
Dates, figs, pineapples, avocados, guavas, mangoes and
804 mangosteens, fresh or dried 5% 20,619 2,353 31.3
Wrist-watches, pocket-watches and other watches, incl. stop-watches
9102 (excluding of precious ... 5% 69,732 689 31.3
Human blood; animal blood prepared for therapeutic, prophylactic or
3002 diagnostic uses; antisera ... 0% 1,888,137 5,812 31.1

24
 Implications of Brexit for Mauritius (Draft)

7601 Unwrought aluminium 3% 521,944 2,590 30.4

Parts suitable for use solely or principally with the apparatus of
8538 heading 8535, 8536 or 8537, ... 4% 164,838 467 30.3
Glaziers' putty, grafting putty, resin cements, caulking compounds and
3214 other mastics; painters' ... 5% 55,142 128 30.1
Footwear with outer soles of rubber or plastics, with uppers other than
6405 rubber, plastics, leather ... 5% 45,133 175 30.0

8411 Turbojets, turbopropellers and other gas turbines 0% 2,414,757 377 29.8
Diamonds, whether or not worked, but not mounted or set (excluding
7102 unmounted stones for pick-up ... 0% 176,210 79,126 29.4
Parts suitable for use solely or principally with electric motors and
8503 generators, electric ... 4% 94,544 5 28.8
Lubricant preparations, incl. cutting-oil preparations, bolt or nut release
3403 preparations, anti-rust ... 5% 48,968 107 28.7
Measuring or checking instruments, appliances and machines not
9031 elsewhere specified in chapter ... 4% 238,120 158 28.6
Centrifuges, incl. centrifugal dryers (excluding those for isotope
8421 separation); filtering or ... 2% 764,387 762 28.6
Machines and mechanical appliances having individual functions, not
8479 specified or included elsewhere ... 3% 475,810 978 28.6
Hats and other headgear, knitted or crocheted, or made up from lace,
6505 felt or other textile ... 4% 89,779 456 28.4
Builders' joinery and carpentry, of wood, incl. cellular wood panels,
4418 assembled flooring panels, ... 5% 39,351 60 28.2
Air or vacuum pumps (excluding gas compound elevators and
8414 pneumatic elevators and conveyors); ... 2% 470,019 459 27.5
Parts suitable for use solely or principally with transmission and
8529 reception apparatus for ... 4% 139,880 325 27.2
Dishwashing machines; machinery for cleaning or drying bottles or
8422 other containers; machinery ... 4% 140,528 405 27.0
Waters, incl. natural or artificial mineral waters and aerated waters, not
2201 containing added ... 4% 30,124 260 26.7
Inorganic or mineral colouring matter, n.e.s.; preparations based on
3206 inorganic or mineral colouring ... 4% 136,662 38 26.7

303 Frozen fish (excluding fish fillets and other fish meat of heading 0304) 0% 2,101 117,110 26.6
Mixtures of odoriferous substances and mixtures, incl. alcoholic
3302 solutions, based on one or ... 3% 332,254 28 26.5
Pumps for liquids, whether or not fitted with a measuring device
8413 (excluding ceramic pumps and ... 2% 447,312 436 26.4
Refrigerators, freezers and other refrigerating or freezing equipment,
8418 electric or other; heat ... 4% 40,767 344 26.4

25
 Implications of Brexit for Mauritius (Draft)

Harvesting or threshing machinery, incl. straw or fodder balers; grass

8433 or hay mowers; machines ... 4% 86,321 74 26.0
Electric accumulators, incl. separators therefor, whether or not square
8507 or rectangular; parts ... 3% 139,976 531 25.9

4016 Articles of vulcanised rubber (excluding hard rubber), n.e.s. 2% 281,081 2,099 25.8
Hydrometers, areometers and similar floating instruments,
9025 thermometers, pyrometers, barometers, ... 4% 38,617 8 25.6

3909 Amino-resins, phenolic resins and polyurethanes, in primary forms 3% 90,605 162 25.4
Undenatured ethyl alcohol of an alcoholic strength of >= 80%; ethyl
2207 alcohol and other spirits, ... 0% 272,909 18,742 25.1
Printing machinery used for printing by means of plates, cylinders and
8443 other printing components ... 0% 1,211,368 809 25.1
Electrical machines and apparatus, having individual functions, n.e.s.
8543 in chapter 85 and parts ... 2% 378,111 746 24.9
Printing ink, writing or drawing ink and other inks, whether or not
3215 concentrated or solid 3% 162,168 1,299 24.9
Machinery for sorting, screening, separating, washing, crushing,
8474 grinding, mixing or kneading ... 3% 94,641 100 24.8
Printed books, brochures and similar printed matter, whether or not in
4901 single sheets (excluding ... 0% 1,130,423 965 24.8
Engines and motors (excluding steam turbines, internal combustion
8412 piston engine, hydraulic ... 3% 96,169 25 24.8
Waste and scrap of precious metal or of metal clad with precious
7112 metal; other waste and scrap ... 0% 639,820 7,450 24.7
Seats, whether or not convertible into beds, and parts thereof, n.e.s.
9401 (excluding medical, ... 3% 177,676 232 24.5
Instruments and apparatus for measuring or checking the flow, level,
9026 pressure or other variables ... 2% 366,083 72 24.4
Platinum, incl. palladium, rhodium, iridium, osmium and ruthenium,
7110 unwrought or in semi-manufactured ... 3% 137,109 6 23.9
Apparatus based on the use of X-rays or of alpha, beta or gamma
9022 radiations, whether or not ... 2% 200,633 114 23.6
Insulated "incl. enamelled or anodised" wire, cable "incl. coaxial cable"
8544 and other insulated ... 2% 103,870 1,267 23.5
Discs, tapes, solid-state non-volatile storage devices, "smart cards"
8523 and other media for the ... 0% 806,511 248 22.7
Instruments and apparatus for physical or chemical analysis, e.g.
9027 polarimeters, refractometers, ... 1% 272,368 1,008 22.6
Pasta, whether or not cooked or stuffed with meat or other substances
1902 or otherwise prepared, ... 0% 6,780 18,313 22.2
Regulating or controlling instruments and apparatus (excluding taps,
9032 cocks and valves of heading ... 1% 213,732 119 22.1

26
 Implications of Brexit for Mauritius (Draft)

8542 Electronic integrated circuits; parts thereof 0% 673,730 17 21.9

Flours, meals and pellets, of meat or meat offal, of fish or of
2301 crustaceans, molluscs or other ... 0% 37,587 14,406 21.7
Flat-rolled products of iron or non-alloy steel, of a width >= 600 mm,
7210 hot-rolled or cold-rolled ... 2% 111,389 93 21.6
Orthopaedic appliances, incl. crutches, surgical belts and trusses;
9021 splints and other fracture ... 0% 502,130 468 21.1
Wine of fresh grapes, incl. fortified wines; grape must, partly fermented
2204 and of an actual ... 0% 342,408 959 20.3

1101 Wheat or meslin flour 0% 126,708 4,418 20.0

Newspapers, journals and periodicals, whether or not illustrated or
4902 containing advertising ... 0% 220,802 507 19.5
Paintings, e.g. oil paintings, watercolours and pastels, and drawings
9701 executed entirely by ... 0% 198,462 538 19.4
Coffee, whether or not roasted or decaffeinated; coffee husks and
901 skins; coffee substitutes ... 0% 186,874 86 19.3
Butter, incl. dehydrated butter and ghee, and other fats and oils
405 derived from milk; dairy ... 0% 140,873 3 19.0
Paper, paperboard, cellulose wadding and webs of cellulose fibres, in
4823 strips or rolls of a ... 0% 59,323 631 18.7

902 Tea, whether or not flavoured 0% 57,892 316 18.7

Uncoated paper and paperboard, of a kind used for writing, printing or
4802 other graphic purposes, ... 0% 62,141 187 18.7
Other vegetables, fresh or chilled (excluding potatoes, tomatoes,
709 alliaceous vegetables, edible ... 0% 17,103 149 18.4

27