Minister of Economic Development and Trade Mohamed Saeed has disclosed that the China-Maldives Free Trade Agreement (FTA) is set to take effect on January 1, 2025. He made the statement during a press conference held at the President’s Office.
The FTA was initially signed in 2014 and approved by the Maldivian parliament in 2017. However, its implementation was postponed following a change in government in 2018. President Dr. Mohamed Muizzu has since initiated the steps required to bring the agreement into force.
Minister Saeed emphasized that the FTA will offer significant benefits to the Maldives, including enhanced opportunities for exporting various goods and providing additional services. Currently, trade between the Maldives and China is valued at USD 45 million, but the government projects that this figure will rise to USD 1 billion once the agreement is in effect.
The Maldives has also signed a Memorandum of Understanding (MoU) with the People's Bank of China (PBOC) on September 13, aiming to establish a framework for current account transactions and direct investments in their respective currencies. The government is confident that the MoU will play a pivotal role in reducing the dependency on dollars and appreciate the Maldivian currency, Rufiyaa (MVR). It further disclosed the plans of President Dr. Muizzu to reach similar agreements with other countries as well.