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# [INDIAN OCEAN] EU-ESA EPA: first modern trade deal covering services — Réunion left out
- URL: https://businessoi.media/en/ocean-indien-ape-ue-afoa-premier-accord-commercial-moderne-integrant-les-services-la-reunion-reste-sur-le-banc-en/
- Published: 2026-09-01T08:44:07.000Z
- Updated: 2026-09-01T08:44:07.000Z
- Description: Signed on 10 June 2026 in Mauritius, the EU-ESA EPA is sub-Saharan Africa's first modern trade deal covering goods, services and digital commerce. Réunion, excluded from negotiations, now faces the risk of service-sector relocation.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Madagascar, Comores, Seychelles, Investissement, Flash de mi-journée, #en

**On 10 June 2026, the European Union concluded a groundbreaking Economic Partnership Agreement (EPA) with Comoros, Madagascar, Mauritius and Seychelles — the first modern free trade agreement in sub-Saharan Africa to cover not only goods, but also services, investment, digital trade and sectoral cooperation. A regional milestone — but one that leaves Réunion on the sidelines.**

## A historic deal for the region

Signed in Mauritius, this modernised EPA goes far beyond the traditional trade framework. It now covers trade in goods and services, investment, the digital economy and sectoral cooperation — an architecture described by EU external action services as "the first modern free trade agreement in sub-Saharan Africa."

The four signatory countries — Comoros, Madagascar, Mauritius and Seychelles — gain improved access to the European single market while retaining protective mechanisms to support local industrialisation. The agreement is also open to accession by other members of the ESA (Eastern and Southern Africa) configuration.

## Réunion: excluded from the table

The exclusion of Réunion — and Mayotte — from the negotiations has sparked controversy. European Parliament Vice-President Younous Omarjee condemned the sidelining, pointing to real economic risks for the island.

The most exposed sectors are those most easily relocated: IT, accounting, administrative processing and financial services. Madagascar offers a young, qualified workforce at wage levels far below Réunion's. Groups already present on the island — GBH, U, Leader Price — are said to have anticipated this shift by expanding operations in Madagascar.

Agricultural producers are also concerned: the opening of trade flows raises questions about competition from neighbouring countries whose structural costs are significantly lower.

## Why it matters

This new EPA reshapes the economic geography of the Indian Ocean. For Mauritius, Madagascar, Seychelles and Comoros, it opens an acceleration lane for exchanges with Europe, particularly in digital and financial services. For Réunion, it is a warning signal: the island risks seeing part of its services economy migrate to neighbouring territories that now benefit from a preferential framework with the EU. Réunion's decision-makers would be well advised to act before the agreement is ratified and enters into force.

*Sources: EU External Action Service (EEAS), Outre-mer La 1ère, Zinfos974, Africa News Agency, Temoignages.re, Mongabay.*