The dynamics of trade have changed in recent years which is evident from the fact that China, the leader in textiles and apparel, suffered a decline in its apparel and textile exports to Mauritius after both countries signed the Free Trade Agreement.
Free trade agreements are always beneficial for countries enjoying a competitive advantage in a particular sector. The signing countries grant each other concessions not available to other countries. The free trade agreement between the two countries came into effect on January 1, 2021.
In the first half of 2020, China exported home textiles worth $10.85 million to Mauritius which declined appreciably to .
72 million in the first half of 2022. There was a regular decline in textile exports after the signing of the FTA. In 2020 the annual textile exports were 19.112 million which declined to $15.30 million in 2021. In the first 10 months of 2022 China exported home textiles worth .
552 million and if the present trend continues the exports again would be well below the 2020 level but may touch the level achieved in 2021.
The decline in apparel exports from China was sharper. In the first six months of 2020, its apparel exports to Mauritius were $4.83 million which nosedived to $2.52 million during the same period of 2022. The shipments in the second half of 2020 were $4.53 million which declined to .
07 million in the last six months of 2021.
The data for the second half of 2022 is not available but in the first half, the exports were only $2.519 million. Experts are at loss to find out the reason for this decline. One reason could be that China has become a costlier supplier than Bangladesh and Vietnam, its close competitors.
