China-Maldives FTA offers no benefit to Maldives or India: Former President Nasheed
Former Maldivian President Mohamed Nasheed has expressed concerns over the recently implemented China-Maldives Free Trade Agreement (FTA), suggesting it may not benefit the Maldives or its neighboring countries, particularly India.
In an exclusive interview with an Indian newspaper "ANI", Nasheed shared his apprehensions regarding the FTA, which came into effect in January this year.
I don't think this free trade agreement is beneficial to either Maldives or our neighbors, specifically India,
he stated.
Nasheed highlighted his concerns about the trade imbalance between the Maldives and China, noting that while the Maldives exports very few products to China, it imports a significant amount from the Asian giant.
This disparity, he argued, could lead to increased outflows and a loss of government revenue due to reduced tariffs on Chinese goods.
Most importantly, the trade balance doesn't give us an advantage to have a free trade agreement with China; we do not export much to China but we import a lot, so we are losing government revenue as well,
he explained.
He also expressed hope that the Maldivian government would engage in discussions with India to address these concerns, emphasizing the importance of maintaining strong relations with neighboring countries.
The China-Maldives FTA has been a topic of debate since its signing in December 2017 during former President Abdulla Yameen's administration.
The previous administration under President Ibrahim Mohamed Solih had stalled the implementation of the FTA, citing concerns over its potential economic impact but it came into effect during current administration in January of this year.
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