The implementation of the China-Maldives Free Trade Agreement (FTA) is set to boost re-export opportunities for fishery sector products, according to the Ministry of Fisheries and Ocean Resources.
This agreement marks a significant milestone in the economic relations between China and the Maldives. The FTA, signed in 2014 and approved by the Maldivian Parliament in 2017, had its implementation suspended following a change in administration in 2018. President Dr Mohamed Muizzu, who assumed office in November 2023, and his administration have been working diligently to bring the FTA into effect. As of 1 January, the agreement is now fully operational.
The FTA enables all fishery products processed and produced in the Maldives to be exported to China at a zero-rate tariff, according to the ministry. This measure is projected to significantly boost the export potential of Maldivian seafood, which continues to be the nation's largest export commodity. Duty exemptions will be applied to 296 categories of seafood, including sea cucumber, salted fish, grouper, mariculture products, skipjack tuna, and yellowfin tuna.
The fisheries ministry anticipates that the FTA will also increase investment in the Maldives' fisheries sector. The agreement is set to enhance trade and investment, thereby creating new opportunities for collaboration between the two countries. The GDP contribution of the fisheries sector is expected to rise, providing direct benefits to fishermen and furthering the Maldives' economic diversification and growth, according to the fisheries ministry.
Minister of Economic Development and Trade Mohamed Saeed highlighted the unique opportunities provided by the FTA, stating, "Maldivian sea cucumber, salted fish, grouper, other mariculture products, and skipjack tuna and yellowfin tuna are available in the Maldives. However, prawns and lobsters are not available at an industrial scale and are primarily imported for the resort market.
"All these seafood types can be imported and value-added in accordance with WTO [World Trade Organization] standards. These value-added products can then be exported to China by any Maldivian citizen at a zero-percent duty. This is a unique opportunity that China has not extended to any other country."
The fisheries ministry also underscored that the FTA paves the way for the expansion of re-export opportunities. Chinese companies will now be able to acquire seafood and seafood products from the Maldives, further boosting trade relations between the two nations, it said. The fisheries industry will benefit from duty waivers on equipment required for these sectors, the ministry added.
The FTA is expected to significantly boost Maldivian exports to China, with government estimates indicating that current trade volumes, which surpass USD 700 million annually, could rise to USD 1 billion with the FTA's implementation. This agreement not only promotes trade but also strengthens the economic ties between China and the Maldives.