The Maldives and China have reported steady progress in bilateral trade following the implementation of their Free Trade Agreement (FTA), with goods worth MVR 1.9 million imported into the Maldives so far. The agreement, which officially came into effect on 1 January, aims to strengthen economic ties between the two nations by reducing trade barriers and encouraging greater commercial exchange.
Figures released by the Maldives Customs Service detail imports made during the first two weeks of the agreement. These include nine air shipments valued at MVR 882,381 and three sea shipments amounting to MVR 1.04 million. Under the FTA, 70% of goods imported from China are exempt from customs duties, providing a significant incentive for trade.
The Maldives-China Free Trade Agreement was initially signed on 7 December 2017 during the administration of former President Abdulla Yameen. However, the agreement faced delays spanning seven years before the current administration chose to implement it in 2024, paving the way for enhanced trade relations.
Economic projections suggest that the benefits of the FTA will grow over time. The Ministry of Economic Development anticipates that within five years, 90% of Chinese imports will be duty-free. Maldivian exports will also benefit, with 95% of goods shipped to China expected to enjoy duty exemptions under the agreement.
The implementation of the FTA marks a turning point in Maldives-China relations, fostering closer economic ties and facilitating increased trade flow between the two nations.
