Concluded on June 10, 2026, the Enhanced Economic Partnership Agreement (EPA) between the European Union and four Indian Ocean island states — Comoros, Madagascar, Mauritius and Seychelles — is described as "the first modern and comprehensive EU free trade agreement with Sub-Saharan African partners". A deal covering €9.7 billion in annual trade and rewriting the rules of engagement for operators across the region.
€9.7 billion in trade to consolidate
In 2024, trade between the EU and the four islands totalled €9.7 billion: €5.2 billion in EU imports and €4.5 billion in exports. The structure is distinctive: 58% of the total comes from services — tourism, financial services, transport — and 42% from goods. The EU is already the islands' top trading partner, accounting for 24% of their goods trade and 33% of services.
What the agreement changes in practice
Beyond reduced tariffs on goods, the enhanced EPA covers areas previously absent from classic ACP-EU trade agreements:
- Digital trade: a permanent ban on customs duties on electronic transmissions and data localisation requirements — a key win for Mauritius's digital economy and the regional fintech sector;
- Public procurement: gradual opening to operators from all four states;
- Agriculture, fisheries and aquaculture: improved access to European markets for tuna, vanilla and seafood exporters;
- Intellectual property: recognition of geographical indications, notably for regional rums and artisanal products.
A strong signal for investors
The agreement provides "greater legal certainty for businesses" — Brussels' way of saying the rules of the game are now predictable over the long term. For an investor weighing a base in Mauritius, Madagascar or Seychelles, this is an additional argument: access to the 450-million-consumer EU single market now comes with a solid contractual framework.
Why it matters
For the 36 million inhabitants of the four islands, this agreement is significant. It is a lever for economic diversification in a difficult post-Covid context, and opens concrete opportunities in digital, fisheries and services. The next step will be turning the signature into tangible gains: ratification and effective implementation are the next milestones to watch.
Source: European Commission — DG Trade, June 10, 2026