The China-Maldives Free Trade Agreement (FTA) is set to come into effect on January 1, 2025, signaling a new chapter in the strategic partnership between the two nations. This milestone was announced during a special ceremony attended in person by Maldives Minister of Economic Development and Trade Mohamed Saeed and virtually by China’s Minister of Commerce Wang Wentao.
The FTA, initially signed in 2014 and approved by the Maldivian Parliament in 2017, faced years of delays following a 2018 change in government. President Dr. Mohamed Muizzu, who assumed office in November 2023, prioritized its implementation, underscoring his administration’s commitment to fostering closer ties with China and advancing economic collaboration.
Economic Minister Saeed outlined the FTA’s far-reaching benefits, such as lower prices on Chinese imports, broader export opportunities for Maldivian businesses, and expanded access to China’s vast market. He noted that professionals in fields like law, architecture, and healthcare, as well as self-employed entrepreneurs, would gain new avenues to engage with China. “This agreement gives us the chance to achieve unprecedented growth in trade with the world’s largest market,” Saeed remarked.
The FTA’s zero-tariff provision for fish exports is expected to significantly boost the Maldives' fisheries sector, a vital part of the nation’s economy. Chinese Minister Wang Wentao expressed confidence in the FTA’s potential to enhance economic and diplomatic ties between the two countries.
The agreement is anticipated to lower the cost of consumer goods in the Maldives, while increasing trade volumes from the current $700 million annually to an estimated $1 billion. This growth is expected to drive overall economic expansion and create job opportunities across multiple sectors.
As the China-Maldives FTA takes effect, it is set to reshape bilateral trade relations, unlocking mutual economic benefits and strengthening the partnership between the two nations.
Bd-pratidin English/ Jisan
