Concluded on June 10, 2026, between the European Union and four Indian Ocean Commission states — Comoros, Madagascar, Mauritius and Seychelles — the services-extended EPA is being hailed as the first comprehensive sub-Saharan trade agreement to integrate services, investment and digital commerce. But in Réunion, a French territory excluded from the negotiations, alarm bells are ringing.
An unprecedented agreement for the Indian Ocean
Concluded in Mauritius, the deal deepens the interim Economic Partnership Agreement launched in 2012. It now covers: goods trade, services, investment, digital commerce and sectoral cooperation. The parties committed to taking "the necessary steps for signature and entry into force as soon as possible." The agreement remains open to accession by other East and Southern African states.
According to the joint statement, the accord is "comprehensive, forward-looking and mutually beneficial", aiming to strengthen trade relations, improve supply chain resilience and support sustainable development.
Sectors covered — and the relocation risk
The extension to services is a landmark step. Target sectors include accounting, IT, administrative processing, financial and legal services — activities that the Communist Party of Réunion (PCR) describes as "among the most easily relocatable." Madagascar's price competitiveness, with a skilled, young workforce paid well below the French minimum wage, represents a structural advantage that is difficult for Réunion-based businesses to counter.
Groups such as GBH, U and Leader Price already have a stronger Madagascar footprint than their Réunion operations, which could accelerate business transfers.
Réunion: the great absentee
The island of Réunion, a European Union territory, was not party to the negotiations. The PCR decries "the silence of MEPs and the absence of French state protection for local interests." The party proposes integrating Réunion into the agreement, leveraging its complementary expertise in healthcare, renewable energy and education.
Why it matters
This EPA is drawing a new commercial architecture for the region: Indian Ocean islands gaining broader access to the European market without European social constraints on one side; Réunion at risk of direct competition from its neighbours for skilled jobs on the other. The stakes go beyond trade: they are political and social. Regional integration in the Indian Ocean is advancing — but its benefits must be shared equitably across all territories involved.