The Free Trade Agreement (FTA) between the Maldives and China was officially launched today.

Economic Minister Mohamed Saeed hosted the ceremony on behalf of Maldives at a ceremony held at Meerumaa Event Hall. 

China was represented by Commerce Minister Wang Wentao, the ceremony was conducted online.

The Free Trade Agreement (FTA) between China and Maldives will come into force on January 1st. 

The FTA with China was signed in December 2014 during former President Yameen administration after two years of negotiations. 

Economic Minister Mohamed Saeed, who played a key role in drafting the agreement during his previous tenure, highlighted its significance at the inauguration ceremony.

The agreement will waive duties on over 290 goods imported from China, including furniture, electronic items, and machinery. 

While the duty exemptions are expected to reduce government revenue previously earned from these imports, Minister Saeed stated that the economic benefits for Maldivians would outweigh the loss.

For example, he noted that exempting duties on furniture would provide significant financial relief to importers involved in the guest house business, while the government could still generate revenue from transportation costs and related services.

Another major advantage of the FTA is the opportunity for Maldivians to access the vast Chinese market and expand their businesses to major Chinese cities or other foreign markets.

The agreement was initially signed at the end of President Abdulla Yameen’s term. 

The next government of President Ibrahim Mohamed Solih did not implement the agreement, and the then Speaker of Parliament, Former President Nasheed, said that no independent agreement had been formulated between Maldives and China. 

Reports suggested India’s dissatisfaction with the agreement may have influenced the decision not to proceed.

President Dr. Mohamed Muizzu, who assumed office recently, has decided to move forward with implementing the FTA, citing its potential benefits for the Maldivian people and economy.