The time for self-gratification is over. The prime minister, Paul Bérenger, appeared unusually worried about the economic situation of the country, Saturday last. While he has always expressed his satisfaction with his government’s achievements at the past meetings between the public and private sectors, this time he did not try to gloss over the challenges ahead. “The last edition of this meeting was held three months ago. Unfortunately, the economic situation has got dramatically worse within these last three months. There are many challenges to be taken up ahead.” The private sector joined the government in saying that this is an unprecedented situation.

There are indeed reasons to be worried about the future. The three pillars of the economy are under threat – each in a different way and at a different level. All stakeholders have emphasised the fact that “courage, discipline and imagination” will have to be the keywords to emerge from the crisis.

Sugar is the most urgent issue as Mauritius’ preferential access to European market is threatened by two main problems. European Union (EU) commissioner Fischler’s proposal to decrease by 37% the export sugar prices has been reinforced by the ruling from the World Trade Organisation (WTO) sugar panel. The EU has been declared guilty of unfair competition in the sugar trade after a complaint by three major world sugar producers – Australia, Brazil and Thailand.

Although the panel does not question the preferential agreement of the African Carribean and Pacific (ACP) countries – of which Mauritius is a member – this ruling could “add salt to other reforms such as Fischler’s”. The WTO has asked the EU to review its sugar regime; this review could well harm the ACP preferential access even more.

The government is however clear about one thing : a price fall is inevitable. There must be ways of reducing the proposed decrease as well as absorbing the impact of the reform on Mauritius. The prime minister thinks that not only should the lobbying and international campaign go on, but all stakeholders in Mauritius should also join forces to find solutions.

For the government, the strategic plan for sugar is ongoing. It is now time to deal with unfinished business and implement an accelerated action plan. A high-powered joint-committee chaired by the deputy prime minister will work on this problem because “the recent events concerning sugar sector on an international level question the very survival of the sugar sector in Mauritius,” the prime minister pointed out.

Another cause for concern is the textile industry. The recent lay-offs at Floréal Knitwear have shown how tough the situation is getting. Although job losses are not as numerous as last year, the situation remains worrying. With the fact that Mauritius has not benefited from the third country fabric agreement through the AGOA, some foreign companies have already left and others are preparing to do so.

The only sector that looked somewhat more hopeful now seems to be joining the others with a very low growth rate since the beginning of the year. The government and the private sector are however quite optimistic concerning the future of tourism. “The industry has strong foundations. But we will have to take the appropriate measures to assure its viability.”

There is thus an urgent need to increase the number of tourist arrivals to fill the hotels opening by the end of the year. A solution to air access is expected in the near future. The major advance is said to be the new dialogue between Air Mauritius and the Association of Hotel and Restaurant Owners of Mauritius. Now that more information is exchanged, solutions should be found more quickly. Likewise, the mismatch between airline and hotel tariffs is starting to get better. The situation is expected to improve very soon and tourism should become a stronger pillar of the economy.

In addition to this, emerging sectors like Information and Communication Technologies or the Seafood hub carry hopes for the future. As far as the situation allows, the meeting ended on a more positive note. All stakeholders, particularly the president of the JEC, Ariff Currimjee, made it clear that the population should stick together and remain confident about their country’s future. “The country already experienced such difficulties some thirty years ago. We succeeded in finding a way out of the crisis. Today, our economy is more mature and there is absolutely no reason not to get through it.”

<I>“Now that more information is exchanged, solutions should be found more quickly. Likewise, the mismatch between airline and hotel tariffs is starting to get better.”</I>