China FTA will disrupt Maldives’ trade links: Fayyaz
Maldives Democratic Party (MDP) Chairperson and former Economic Minister, Fayyaz Ismail, expressed strong criticism of the Free Trade Agreement (FTA) between the Maldives and China, stating it would be detrimental to the country.
His remarks came during a panel discussion held by the opposition MDP leadership last night.
In contrast, President Dr. Muizzu, speaking at this year's Independence Day celebrations, announced that the Maldives-China FTA would be implemented before the end of September.
He highlighted the benefits, noting that 298 species of fisheries and 7,897 value-added goods would be exempt from duty, providing significant relief for private companies and the public.
However, Fayyaz argued that the FTA would primarily benefit China, not the Maldives.
If China takes 0 percent on exports to the Maldives and imposes a 10 percent duty on imports from countries like Dubai and Singapore, local businessmen would be forced to rely solely on China to import their goods
He said
He emphasized the lack of a competitive environment, as goods from other countries would be priced higher due to duties, undermining long-established trade links.
So what is happening is that slowly the trade links we have established for a long time are being shattered,
Fayyaz warned
He argued that since the Maldives is not a significant exporter of goods, the FTA's benefits would favor exporting countries.
When we make an FTA with China to export our fish, we allow thousands of Chinese goods to enter the Maldives duty-free and we lose the duty along with the trade links
Fayyaz emphasized
He also pointed out that China is a major competitor in the fish market, suggesting the FTA could negatively impact local fisheries.
The MDP has consistently opposed the FTA with China since its inception.
Fayyaz mentioned that the previous MDP government had signed a Memorandum of Understanding (MOU) with the UK to pursue an FTA, which he believes would be more beneficial for the Maldives as the UK is a major importer of Maldivian fish.
In his Independence Day address, President Dr Muizzu also expressed hope for future FTAs with the UK and India, aiming to strengthen trade relations with these key partners.
Advertisement
