The China-Maldives Free Trade Agreement (FTA) will cement the place occupied by locals in Maldives’ fisheries industry, the Minister of Economic Development and Trade, Mohamed Saeed has said.
The Minister made the statement at a ceremony held to announce the FTA coming into force on 1 January.
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.
Under the FTA, Maldives’ fish exports to China will enjoy duty exemption, opening a host of business and trade opportunities for both nations.
However, as the FTA works as a two-way street, concerns remain whether smaller Maldivian firms will be able to compete with the much larger Chinese firms, especially in the fisheries industry.
During the ceremony, Minister Saeed moved quickly to reassure locals insisting that despite the FTA, China will not enjoy special privileges to monopolise Maldives’ fisheries industry.
The Minister repeatedly assured locals that the FTA will not be a threat to their place in the industry.
"This free trade agreement will fully protect the place of the people of Maldives in our fisheries industry. What is the benefit, the joy and the opportunity? We are getting the opportunity to export all the fish and seafood we can catch to the world's largest market without any tariffs,” he explained.
Speaking during the ceremony, China’s Minister of Commerce, Wang Wentao said the FTA will enhance existing friendly relations between Maldives and China.
"The Maldives-China Free Trade Agreement will create many opportunities for trade and investment between the two countries. Maldives will be able to export most of its fish and handicraft products to China with zero percent tariff. And with this agreement, Chinese electrical appliances and furniture can also be imported to the Maldives without any tariffs,” Wentao said.
With the Maldives-China Free Trade Agreement, 296 different items of seafood will be exempt from customs duty when exported to China. Maldivian businesses will also have the opportunity to provide value added service to meet World Trade Organisation (WTO) standards to imported seafood products and to re-export it to China.
Such a provision has not been made available to other Chinese FTA partners, according to Minister Saeed.