On 10 June 2026, the European Union finalised a modernised Economic Partnership Agreement (EPA) with four Indian Ocean island states: Madagascar, Comoros, Mauritius and Seychelles. The text, pending internal ratification procedures, marks a pivotal shift in EU-Indian Ocean trade relations since the original EPA was signed in 2009.
An Agreement That Goes Far Beyond Goods Trade
The modernised EPA covers five structural areas. On services and investment, it enhances legal certainty for both European and local businesses, guaranteeing non-discriminatory treatment. It opens public procurement markets on transparent terms and establishes clear rules for digital trade, including the elimination of customs duties on electronic transmissions.
Intellectual property protection is significantly strengthened: 135 European geographical indications — wines, cheeses, regional produce — will benefit from legal protection in the four signatory countries, which should facilitate imports of European premium products into the region. In return, local producers gain better protection for their own appellations.
A €9.7 Billion Trade Partnership
Trade between the EU and these four countries totalled €9.7 billion in 2024: €5.2 billion in European imports from the region and €4.5 billion in exports to it. The EU accounts for 24% of these island economies' goods trade and 33% of their services trade — a commercial dependency that gives this agreement considerable strategic weight.
Sustainability commitments are a new feature compared to the 2009 EPA: the text includes binding clauses on labour rights, environmental standards and gender equality, with monitoring mechanisms. These provisions reflect the evolution of Brussels' trade doctrine, which now links market access to compliance with social norms.
Ratification Still Required
The agreement concluded in June 2026 still requires internal ratification procedures in each signatory country, as well as approval by the European Parliament. Critics have raised concerns in the region — Réunion MEP Younous Omarjee highlighted risks of competition for producers in EU Overseas Territories not party to the deal — but the governments of all four island states have broadly welcomed the text.
Why This Matters
For Madagascar, Comoros, Mauritius and Seychelles, this modernised EPA is more than a trade deal: it is a strategic alignment signal with European standards, capable of attracting foreign direct investment and enhancing regional credibility. In a world of restructuring global supply chains, securing a stable trade framework with the world's largest economic bloc represents a major competitive advantage for the Indian Ocean.