The Preferential Trade Agreement (PTA) between the Maldives and Türkiye will reduce investment costs for the Maldivian food industry when acquiring equipment and other resources, the Ministry of Economic Development, Transport and Trade has said.
Under the PTA, which came into effect on 1 August, more than 400 categories of goods can now be imported from Türkiye to the Maldives.
The Preferential Trade Agreement with Türkiye was implemented after nine months of negotiations and consultations with stakeholders from different industries. Under the agreement, 404 categories of goods can be imported from Türkiye to the Maldives duty-free.
Businesses operating in the food sector are among those expected to benefit from the agreement. Speaking on PSM's Raajje Miadhu programme, State Minister for Economic Development and Trade, Hussain Zamir, said businesses operating cafés and restaurants were consulted during negotiations on the agreement.
State Minister Zamir said the consultations identified Türkiye as a country that manufactures machinery required by businesses in the sector.
He noted that equipment and other products required by cafés and restaurants had previously been subject to import duties of between 10 and 20 per cent in the Maldives. Under the new arrangement, duties on these items will be fully waived, providing direct benefits to businesses.
State Minister Zamir said the agreement will allow restaurant operators, as well as businesses operating restaurants in guesthouses and resorts, to import essential equipment from Türkiye without paying import duty.
He said existing restaurant businesses will be able to replace equipment or import new machinery from Türkiye at a lower cost. Those seeking to establish new restaurants will also be able to source the machinery they need from Türkiye, while equipment used in restaurant services can be imported at zero tariff.
State Minister Zamir said Türkiye uses modern technology across a range of industries and produces quality products that can be used for extended periods. He said businesses in the sector will therefore have greater access to such products.
This includes reducing the cost for existing businesses seeking to replace equipment, as well as the cost of acquiring equipment for those looking to enter the industry for the first time, State Minister Zamir said.
In addition to the food sector, the Ministry said duty exemptions on various goods required by the Maldives' agriculture and fisheries industries, as well as the creative industry, will also provide benefits to the public.