The Free Trade Agreement (FTA) between the Maldives and China, which came into effect on 1 January, is expected to deliver significant economic benefits, particularly in fisheries exports, according to Chinese Ambassador to the Maldives Kong Xianhua.
In an interview with state media, the Ambassador said the agreement has already created opportunities for Maldivian products, especially fish and seafood, in the Chinese market. Prior to the FTA, Maldivian exports were limited in China despite the country being one of the world’s largest seafood importers. The duty-free access granted under the FTA has started to raise demand, giving Maldivian goods a foothold in the Chinese market.
Under the agreement, tariffs on over 90 percent of Maldivian exports, including nearly all fisheries products, have been removed. This was a key priority for President Dr Mohamed Muizzu, who moved to activate the FTA after years of delays. Officials expect the agreement to expand the export and processing of Maldivian fish while also facilitating re-exports and creating new job opportunities.
The government projects that access to China’s market of over 1.4 billion people could increase the bilateral trade volume from the current level of around USD 700 million to as much as USD 1 billion annually. Ambassador Kong noted that the most visible impact of the FTA is likely to be seen within one to two years, with closer cooperation between Maldivian and Chinese businesses already under way.
In addition to fisheries, the agreement contains provisions for investment protection and facilitation, which could encourage greater Chinese investment in Maldivian industries such as marine product processing and aquaculture. It also offers avenues for Maldivian service providers and entrepreneurs to expand into the Chinese market, broadening the scope of bilateral trade and investment.
