- The UK's suspension of a 20 percent tariff on Maldivian skipjack tuna through 2028 has created a competitive local fish purchasing market.
- Private processors Horizon and Ensis, alongside state-owned MIFCO, now buy raw tuna at MVR 21-22 per kilogram, with MIFCO setting a MVR 20 floor.
- Fisheries Minister Shiyam credited President Muizzu's diplomacy for achieving the breakthrough after 14 years of failed tariff-reduction efforts.
- The UK accounts for roughly 25 percent of Maldivian fish exports and nearly 50 percent of processed tuna, worth about 18 million pounds yearly.
The elimination of import tariffs on Maldivian fish exported to the United Kingdom (UK) has established a competitive fish purchasing market in the Maldives, Fisheries Minister Ahmed Shiyam announced during a Parliament sitting.
The British government’s decision on 20 May to suspend a long-standing 20 percent tariff on skipjack tuna imports through late 2028 provides local seafood exporters with an immediate 20 percent commercial advantage. Private processors, including Horizon Fisheries and Ensis Fisheries, alongside the state-owned Maldives Industrial Fisheries Company (MIFCO), are actively competing for raw supply. This heightened market competition is driving purchasing prices up to between MVR 21 and MVR 22 per kilogram for local fishermen.
Addressing Parliament following a question from Velidhoo Constituency MP Mohamed Abbas, Minister Shiyam outlined how the policy shift directly benefits local fishing communities. He noted that private companies are currently purchasing raw tuna at MVR 21 to MVR 22 per kilogram, well above previous baselines.
MIFCO has established a strict purchasing floor, ensuring raw catch is no longer bought below MVR 20 per kilogram, with rates reaching MVR 22 per kilogram on peak days.
“Horizon Fisheries, Ensis Fisheries, and MIFCO are currently buying fish from fishermen at good prices,” Minister Shiyam stated in response to an inquiry from Keyodhoo Constituency MP Mohamed Niushad. “We all accept that a market—a real market, a competitive market—for fish has now been formed.”
The UK represents one of the most critical overseas destinations for the Maldivian fishing industry. Official customs data indicates that the British market accounts for approximately 25 percent of the nation’s total fish exports and nearly 50 percent of all higher-value, processed tuna products, bringing in roughly 18 million pounds annually. Under the temporary policy measure, the standard 20 percent tariff has been reduced to zero percent through 2028, pushing local purchasing prices up to MVR 20–22 per kilogram.
Following the Maldives’ graduation from Least Developed Country (LDC) status, local exports lost duty-free access under mechanisms such as GSP Plus, subjecting tuna shipments to a 20 percent tariff. This duty created severe competitive disadvantages against regional producers with preferential trade access.
Minister Shiyam noted that successive administrations had pursued tariff reductions for 14 years without concrete results.
“For 14 years, we have been working to reduce the taxes levied by Europe and the UK,” Shiyam told lawmakers. “As a result of efforts undertaken without genuine intent, Mr Speaker, all we ever received were signals. Not a single tariff was suspended, nor was any tariff reduced.”
The breakthrough followed extensive diplomatic engagement led by President Muizzu, who raised the tariff issue as a top priority during bilateral meetings in Great Britain. UK High Commissioner Nick Low confirmed that the decision reflects the importance the UK places on sustainable fisheries, rewarding the Maldives’ long-standing commitment to eco-friendly, one-by-one pole-and-line fishing methods. Although the UK measure applies to several nations, official statements emphasize that the Maldives stands to gain the most due to its high volume of exports to British retailers.
Despite favorable international trade conditions, Minister Shiyam highlighted limited processing and cold-storage infrastructure as the primary structural barrier to maximizing export value. The government is currently executing a major expansion program across MIFCO facilities to increase value-addition capabilities onshore.
Specifically, the administration is expanding daily canning capabilities from 50 tonnes per day (at the start of the administration) to 300 tonnes per day. Concurrently, authorities are increasing nationwide fish cold-storage reserves from 9,000 tonnes to 25,000 tonnes.
By expanding domestic processing capacity, the government aims to ensure that a higher proportion of raw catch is converted into high-value canned products, securing sustainable returns for fishermen and stabilizing the national export economy.
