Maldives-China free trade agreement to come into effect on Wednesday

The Maldives-China free trade agreement will come to effect on Wednesday, 1st January 2025.

The enactment of the agreement was announced during a meeting today between China's Commerce Minister Wang Wentao and Maldives' Economic Minister Mohamed Saeed.

The Free Trade Agreement was signed in December 2014 during former President Abdullah Yameen's visit to China.

The agreement was approved by the PPM/MDA coalition majority in November 2017. However, the administration changed and the following government said that they wanted to amend the agreement. As such, it was never implemented during that regime.

Announcing that the agreement will come into force next Wednesday, Chinese Commerce Minister Wang Wentao said China and Maldives have always had long and close economic ties and that mutual economic ties have strengthened significantly in recent years.

The minister said both countries have made all necessary preparations for the agreement.

He said the agreement would bring many benefits to the Maldivian people. These include duty being waived on fish exported out of Maldives to China. Chinese electronics and furniture can also be easily imported into Maldives, he said.

The Commerce Minister said the agreement would take China and Maldives' relations to a new level.

At the ceremony, Minister Saeed said the agreement will benefit private individuals, local businesses and the economy of the country as a whole. The agreement will also facilitate the export of local products to the Chinese market, which will also increase employment opportunities, he said.

Discussions of implementing the agreement resumed many years after signing the free trade agreement, during President Dr. Mohamed Muizzu's official visit to China.

The China-Maldives free trade agreement is the first of its kind agreement made by Maldives with a foreign country.

The Maldivian government previously said that the agreement will increase trade between China and Maldives to USD 1 billion from the current USD 700 million.