The Minister of Economic Development, Transport and Trade, Mohamed Saeed has announced that formal negotiations on a free trade agreement (FTA) between Maldives and India have officially commenced.
The first meeting was held on Monday, marking a significant milestone in the bilateral trade relations between the two neighbouring countries.
The Terms of Reference (TOR) for the agreement were signed in March this year, establishing the framework that defines the scope and rules of the business agreement before a full pact is reached. The initial agreement to commence talks on the FTA was signed during Indian Prime Minister Narendra Modi's official visit to Maldives last year.
Speaking at a press conference at the President's Office, Minister Saeed expressed optimism about the negotiations, stating that both countries are committed to completing the process as quickly as possible.
"Our target is to complete the agreement soon. Experts from Maldives will work extensively with the Ministry alongside government officials and private sector representatives," he said.
The Minister highlighted that Maldives has consistently sought concessions for Maldivian products through such agreements, emphasising that these arrangements create valuable opportunities for the country's businesses.
He noted that companies will receive various concessions, including duty exemptions, citing the existing agreement with China as an example—under which Maldivian businessmen can now sell their goods on the Alibaba online platform.
According to Minister Saeed, the agreement with India will enable Maldives to access one of the world's largest consumer markets.
Currently, the Maldives-China FTA is underway, having come into effect in January 2025. Additionally, Maldives has signed a preferential trade agreement with Turkiye, with both countries currently working on its implementation before it enters into force.