The European Union has finalised a modernised Economic Partnership Agreement (EPA) with four Indian Ocean island states: Madagascar, Comoros, Mauritius and the Seychelles. This "new generation" agreement goes far beyond simple market access: it integrates unprecedented chapters on services, investment, sustainable development and intellectual property rights.
A commercial turning point for four islands
The deal, the result of years of negotiations between the EU and the ESA (Eastern and Southern Africa) group, expands on the trade commitments of first-generation EPAs. It opens new prospects for Mauritian exporters in financial services, for Malagasy textiles, for Seychellois tourism, and offers the Comoros an incentive framework to attract European foreign direct investment.
Réunion excluded: the Omarjee controversy
The agreement has triggered a sharp reaction from MEP Younous Omarjee, Vice-President of the European Parliament and Réunion's representative: "Réunion and Mayotte have been deliberately kept out of the negotiations, even though they are geographically at the heart of the Indian Ocean. This is an economic and political aberration." This exclusion deprives Réunion-based businesses of the direct benefits of the new tariff framework, while their Mauritian, Malagasy and Seychellois counterparts will benefit in full.
Why it matters
For regional decision-makers, this modernised EPA represents formal recognition by Brussels of the economic potential of the Indian Ocean island arc. It creates a stable regulatory framework for European investors wishing to establish a presence in the region — a powerful signal at a time when Asia and the Gulf states are actively courting these same markets. Effective implementation, particularly the investment and sustainability chapters, will determine the real value of this agreement over the next five years.
Sources: linfo.re, la1ere.franceinfo.fr, outremers360.com, Africa News Agency (October 2026)