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# [INDIAN OCEAN] EU-OI Services EPA: A Historic Deal for 4 Island Nations — Réunion Left Out
- URL: https://businessoi.media/en/ocean-indien-ape-elargi-aux-services-lue-lie-4-pays-de-loi-dans-un-accord-historique-la-reunion-sinterroge-en/
- Published: 2026-08-25T13:45:55.000Z
- Updated: 2026-08-25T13:45:55.000Z
- Description: Concluded on June 10, 2026, the expanded EU Economic Partnership Agreement with the Comoros, Madagascar, Mauritius and Seychelles now covers services and digital trade — a first in sub-Saharan Africa. Réunion is excluded and raising the alarm.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Madagascar, Seychelles, Comores, La Réunion, Économie, Investissement, Clôture, #en

**Concluded on June 10, 2026, the expanded Economic Partnership Agreement (EPA) between the European Union and four Indian Ocean nations — the Comoros, Madagascar, Mauritius and the Seychelles — is reshaping regional trade. Hailed as a milestone, the deal also raises urgent questions for Réunion, left outside the preferential framework.**

## A New-Generation Trade Deal

This is no ordinary trade agreement. The EPA signed in June 2026 has been described as the "first modern and comprehensive free-trade agreement in sub-Saharan Africa." It goes far beyond the interim EPA of 2012, now covering services, investment, digital trade and sectoral cooperation.

For the four signatory states, access to the EU single market expands dramatically. Malagasy, Mauritian, Comorian and Seychellois companies will be able to export services — finance, tourism, digital, logistics — to the EU under preferential conditions. The agreement also remains open to accession by other Eastern and Southern African states, potentially broadening its continental reach.

## Réunion: The Great Absentee

The enthusiasm in four island capitals masks a regional fault line. Réunion, as a French overseas department and full EU territory, is excluded from the preferential ACP-side mechanism — a paradox that creates a potentially serious competitive asymmetry.

The Communist Party of Réunion (PCR) has sounded the alarm: key sectors — IT, accounting, banking, communications — could face relocations to Madagascar, where "workforce competence rivals Réunion's while wages are substantially lower." Groups already operating on both sides of the Mozambique Channel — GBH, U, Leader Price — could consolidate back-office functions in Madagascar, reducing Réunion to a "consumer market" rather than a productive hub.

## What Comes Next

The parties have committed to "taking the necessary steps toward signature and entry into force of the agreement as soon as possible." Once ratified, this EPA could transform Madagascar and Mauritius into regional platforms for services exports to Europe. The open-accession clause could further amplify the zone's weight in global trade flows.

## Why It Matters

For investors in the Indian Ocean region, this EPA is a game-changer. The four signatory nations gain preferential access to a market of 450 million European consumers — unprecedented in scope. Digital trade and cross-border investment are secured by a solid legal framework, a strong signal for capital seeking a foothold in the Indian Ocean. In Réunion, the debate on integration or compensation has not yet begun. It urgently needs to.

*Sources: EEAS/European Union, Témoignages.re, Zinfos974, Africa News Agency (June 2026).*