Brexit: Pravind Jugnauth reacts

The Minister of Finance and Economic Development, Honourable Pravind Jugnauth has this afternoon met with representatives of the private and public sectors on the issue of the exit of the UK from the European Union.

The meeting took note of the fact that Brexit will undoubtedly have repercussions globally and in Mauritius.
It was recalled that Article 50 of the EU Treaty provides for a transition period of 2 years for the UK to negotiate the terms and conditions of its exit. Article 50 stipulates the following:

“ the Treaties shall cease to apply to the State in question from the date of entry into force of the withdrawal agreement or, failing that, two years after the notification, unless the European Council in agreement with the member state concerned, unanimously decides to extend this period. “

The Committee noted that it would be left to the next UK Prime Minister to initiate any action to trigger Article 50. Hence, it is expected that a status quo would be maintained for at least the next three months.

Further, it was highlighted that since the transitional period of two years would only begin after the UK notification, Mauritius will thus be able to retain its current preferential market access and will continue to trade on a duty free and quota free basis during that period.

The share of our total exports to the UK has dropped from 34 percent in 2008 to 12.6 percent in 2015 stemming, inter alia, from our market diversification strategy. Mauritius exports denominated in UK Pound Sterling which was 18 percent in 2008 has declined to 6 percent in 2015.

The Committee recognised that Brexit may weaken the UK economy in the medium term with implications for some sectors of the Mauritian economy. In this context, the Joint Public-Private Sector Technical Committee agreed to pursue its assessment of Mauritius trade with the UK in various sectors with a view to identifying areas which may be vulnerable.

On the other hand, the Bank of Mauritius is keeping watch on developments in the international financial markets. Through its Communique issued today, the Bank has re-affirmed that it stands ready to take measures, if necessary, to protect the economic interest of Mauritius.

Government will continue to monitor all developments related to Brexit very closely through the inter-Ministerial Committee which has been set up by Cabinet to-day.

24 June, 2016

Posted by on Jun 25 2016. Filed under Actualités, Featured, Politique. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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