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Mauritius From Preferences to Global Competitiveness Report of the Aid for Trade Mission April 26, 2006  Preface In February 2006, the Government of Mauritius requested the World Bank’s technical assistance in the analysis of its reform program, a program designed to respond to a particularly adverse combination of external shocks. The Government sought the World Bank’s assistance in analyzing some of the implementation options of its program and in informing these options with experience from other countries. This report, the first step in a process, outlines the trade competitiveness challenges facing Mauritius that, if confronted and managed, will pave the way to a return to a higher growth path. After the Government develops the specific actions in its program, the Bank will work with the government in costing the specific investments necessary to implement its program of trade competitiveness, and will help in mobilizing external support as part of the international community’s effort put together a global program of Aid for Trade. The Aid for Trade mission of the World Bank that produced this report was comprised of Richard Newfarmer (leader, macro and tax regime), Paul Brenton (trade and incentive regime), Donald Mitchell (agriculture), and Julia Nielson (services and training), with statistical analysis from Mombert Hoppe and Martha Denisse Pierola. Several experts provided written contributions that form part of the report: Robert Keyfitz (macro and labor markets), Kalanidhi Subbarao (social safety nets), Richard Stern and Ken McKinsey (marginal effect tax rates), Isabel Neto and Laurent Besancon (telecommunications), Marc Juhel (ports), Noroarisoa Rabefaniraka and Charles Schlumberger (air transport), and Ann Rennie (financial sector). The team also benefited from comments from the World Bank’s country team for Mauritius, from Leora Klapper (finance) and from Victor Thuronyi (IMF). The mission is grateful for the collaboration of the Ministry