11 January 2012

Mauritius-Turkey: A Trade and Economic Cooperation Framework Agreement under discussion

A two-day meeting between Mauritius and Turkey to start discussions on a Framework Agreement on Trade and Economic Cooperation opened this morning in Port Louis.

The Turkish delegation is being led by Mr Hakan Karabalik, Head of Department of the Ministry of Economy. The Mauritian side is being headed by the Secretary for Foreign Affairs, Ministry of Foreign Affairs, Regional Integration and International Trade, Mr Anand Neewoor, and comprises representatives from relevant Ministries and the private sector including the Mauritius Chamber of Commerce and Industry and MEXA.

Discussions during the meeting will also focus on preparations for the proposed visit of the Turkish Minister of Economy Mr. Zafer Caglayan, to Mauritius scheduled tentatively for end February 2012. It is proposed that the Framework Agreement be signed during the visit of the Turkish Minister.

The objective of the Framework Agreement is to enhance economic cooperation as well as foster trade between Mauritius and Turkey. It covers different areas of cooperation including Agriculture, Education, Science and Technology as well as provisions on trade facilitation and trade promotion. The Agreement will provide a platform to identify areas of investment and create greater economic synergies between both countries.

It is recalled that Mauritius and Turkey signed a Free Trade Agreement (FTA) in September 2011 and the Framework Agreement being discussed will provide the necessary platform to tap the benefits of the FTA once it enters into force.

In his opening remarks, the Secretary for Foreign Affairs, Mr Neewoor, said that economic relationship with Turkey is very important and is growing rapidly. ‘Turkey is an ascending economic power and is ranked 17th among the world’s top 20 economies. With a population of 74 million, half of which is under 29, Turkey is a strategic platform of access to Europe, Caucasus, Central Asia, the Middle East and North Africa’, he stated.

According to the SFA, last year when the two governments met in Istanbul during the signing of the FTA, they concurred that both countries should go beyond the market access dimension of the FTA and engage cooperation on a broad range of trade and economic issues. ‘It is in this context that the need for a Framework Agreement becomes relevant and our two governments have therefore agreed to work on a text that will become the Framework Agreement on Trade and Economic Cooperation’, he added.

For his part, Mr Karabalik, highlighted the importance that Turkey attaches to the FTA signed with Mauritius. In addition to the FTA, he said, and so as to develop and strengthen the trade and economic cooperation, another step to be taken is to sign an Agreement on Trade and Economic Cooperation. Mr Karabalik expressed hope that in light of the Agreement, a Joint Economic Council (JEC) will be set up at Ministerial level which shall meet upon the requests of either party, alternately in Ankara and Port Louis.

In the first ten months of 2011, the volume of trade between Mauritius and Turkey reached 43.2 million USD. During this period, Turkey’s exports increased by 117.4% that is from 16.9 million USD to 36.8 million USD. Similarly, Turkish imports rose by 21.7% from 5.2 million USD to 6.4 million USD.

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