The Maldives–China Free Trade Agreement has completed its first year in force, with early implementation efforts centred largely on fisheries exports and regulatory alignment rather than broad-based trade expansion.
The agreement, which came into effect on 1 January last year, is the only Free Trade Agreement currently operational for the Maldives. It was positioned as a tool to reduce tariffs, expand market access and deepen economic ties between the two countries.
Over the past year, thirteen Maldivian companies have completed registration with China’s General Administration of Customs, enabling them to export fish products directly to the Chinese market. This administrative step is necessary for access to China and marks a procedural milestone for firms seeking to diversify export destinations.
The fisheries sector appears to be the first area where the agreement is being operationalised. Officials have indicated that the FTA framework could support a shift from exporting unprocessed fish at lower margins to carrying out more processing locally before export. If realised at scale, such a transition would increase domestic value retention. However, data detailing changes in export volumes, pricing or market share during the first year have not yet been publicly released.
On the import side, the agreement provides for tariff reductions on selected goods from China. The extent to which this has translated into lower consumer prices or reduced input costs for businesses remains unclear, as price movements are influenced by shipping costs, exchange rates and domestic market dynamics.
China is already one of the Maldives’ largest trading partners, particularly in imports. The broader economic impact of the FTA will therefore depend on whether it materially alters export capacity and investment flows rather than simply formalising existing trade patterns.
The government has described the agreement as part of a wider effort to diversify the economy and strengthen trade resilience. One year into implementation, the clearest developments relate to export registration in fisheries, while the longer-term structural effects on trade balances, industrial capacity and employment will require more time and transparent data to assess.
