The China-Maldives Free Trade Agreement (FTA), which will come into force on 1 January, will create new avenues for Maldivian businesses to market and sell their products in China, according to the Ministry of Economic Development and Trade.
The China-Maldives FTA, a treaty aimed at promoting trade and investment between the two countries, was signed in 2014 and approved by the Parliament in 2017. However, its implementation was suspended following a change in administration in 2018.
Since assuming office in November 2023, President Dr Mohamed Muizzu and his administration have been working towards implementing the FTA. According to the administration, the agreement will officially come into force on 1 January.
The Economic Ministry has highlighted that the implementation of the FTA will open many new avenues for small-sized businesses, creative businesses, and other manufacturing enterprises. Local producers, firms willing to export local products, and those interested in producing re-exportable goods will also benefit from the agreement, it said.
According to the ministry, import duties on a wide range of items and resources essential for creative industries will be waived as part of the FTA. These items include 3D printers, label printers, and photography equipment. Jewellery makers will also benefit from duty exemptions on raw materials.
The fisheries and construction industries are also set to gain from the FTA, with duty waivers on equipment required for these sectors, according to the ministry. Duties will also be waived for 296 types of seafood.
The agreement will also open opportunities for Maldivian service industry professionals to market and provide their services in China. According to the Economic Ministry, this is a significant opportunity for businesses to offer their services to a country with a population exceeding one billion.
The Economic Ministry described the implementation of the FTA as a move that will open Maldivian businesses to the international market. According to government estimates, China-Maldives trade currently surpasses USD 700 million annually. The President Dr Muizzu administration anticipates that this trade volume could rise to USD 1 billion with the implementation of the FTA.