By The China-Maldives Free Trade Agreement (FTA), set to come into effect on January 1, promises to bring significant economic benefits, including reduced prices for Chinese imports and enhanced opportunities for Maldivian businesses to access the Chinese market.
Signed in 2017 and approved by the Maldivian parliament, the FTA had faced delays due to changes in government. However, under the leadership of President Mohamed Muizzu, renewed efforts have successfully paved the way for its implementation.
The Ministry of Economic Development and Trade emphasized that the agreement would have far-reaching advantages for the Maldivian economy. Key benefits include lower costs for consumer goods imported from China, increased availability of products in the local market, and the elimination of duties on various imports related to the fishing and construction sectors.
The agreement also focuses on fostering economic growth through cooperation in areas such as human resource development and research. It provides a platform for Maldivian professionals in fields like healthcare, law, and architecture to expand their services to China. Additionally, self-employed individuals and local entrepreneurs will gain opportunities to export products and create new jobs.
“The Economic and Technical Cooperation Chapter of the agreement will help develop skills and capacity in various sectors, enabling Maldivians to compete on a global scale,” the ministry stated.
For businesses, the FTA facilitates investment promotions between the two countries, aimed at increasing Chinese investments in the Maldives. Trade between nations currently stands at $700 million, with expectations of reaching $1 billion after the agreement takes effect.
The government anticipates that the FTA will not only stimulate the private sector but also lead to a broader economic transformation. For the public, the reduction in the cost of imports and the availability of diverse goods will improve living standards.
As the January 1 implementation date approaches, excitement grows among businesses and consumers alike, signaling a new chapter in Maldives-China economic relations.