Maldives-China Free Trade Agreement comes into effect today.
Maldives-China Free Trade Agreement comes into effect today.
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 led by Maldivian Democratic Party's Ibrahim Mohamed Solih said that they wanted to amend the agreement. As such, it was never implemented during that regime.
Discussions of implementing the agreement resumed many years after signing the free trade agreement, during President Dr. Mohamed Muizzu's official visit to China in January 2024.
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.
Under the FTA:
- Over 7000 items will be exported to China, exempt from duties
- Duty exemption will apply to all fish products exported from Maldives to China. This includes fresh, chilled and frozen skipjack tuna, yellowfin tuna and grouper products as well as canned tuna, smoked tuna, salted tuna and other seafood products
- Prices of construction goods in Maldives will decrease, creating further opportunities to invest in this industry
- Duty will be exempt on nearly all construction products used in Maldives
- Chinese assistance will be provided for human resource development and research in various fields, and skills development of Maldivians.
- Investment promotions can also be held in both countries to increase investments from China
- Jobs will be created in export and re-export services
- The current five percent duty on furniture will be cancelled, making it duty free
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