The government has announced that the China-Maldives Free Trade Agreement (FTA) will officially come into force on 1 January.
The announcement was made at a special ceremony attended by Chinese Minister of Commerce Wang Wentao and Maldives Minister of Economic Development and Trade Mohamed Saeed. While the Maldives’ officials were present in person, China’s Commerce Minister and officials attended the ceremony virtually.
The Maldives and China signed the FTA in 2014. Although the Maldives Parliament approved the FTA in 2017, the change of government in 2018 delayed its implementation. However, after President Dr Mohamed Muizzu assumed Office in November 2023, he initiated the necessary efforts to implement the agreement.
The government said that the China-Maldives FTA will bring significant benefits to the Maldives. Economic Minister Saeed highlighted that the FTA will reduce the price of Chinese imports to the Maldives and enable Maldivian businesses to take advantage of business opportunities available in China. More business opportunities will be facilitated for Maldivians in the future as a result of the FTA, he said.
“We will now get the opportunity to make unprecedented progress in advancing trade with the world’s largest market,” the Minister said.
According to the government, the FTA will allow local professionals working in technical sectors, such as lawyers, architects and health care providers working to expand their services to the Chinese market. Additionally, self-employed entrepreneurs will also get the opportunity to export goods to the Chinese market. While employment opportunities are also expected to increase, these factors will lead to an overall growth of the Maldivian economy.
Speaking at the ceremony, China’s Commerce Minister Wang Wentao expressed optimism that the FTA would strengthen relations between both countries. He noted that both countries have fulfilled the necessary requirements for the FTA’s implementation.
“This agreement will enable zero-tariff fish exports to China. It will enhance and strengthen relationships,” he said.
The China-Maldives FTA is expected to bring numerous benefits to the general public. The government said the FTA allows for lower prices of consumer goods imported to the Maldives, providing access to a wider variety of products.
The government said China-Maldives trade is currently valued at USD 700 million. With the FTA coming into force, this figure is estimated to increase to USD 1 billion.