The China-Maldives Free Trade Agreement (FTA), set to take effect on January 1, 2025, promises to open new markets for Maldivian businesses in China, according to the Ministry of Economic Development and Trade.

The agreement, signed in 2014 and approved by the Maldivian Parliament in 2017, had faced delays after a change in government in 2018; however, following the election of President Dr Mohamed Muizzu in November 2023, his Administration has prioritised the implementation of the FTA, which is now poised to come into force at the start of the new year.

The Ministry has highlighted several key benefits for local businesses under the new agreement. It is expected to provide significant opportunities for small businesses, especially in creative industries and manufacturing.

Local producers will benefit from enhanced access to the Chinese market, with reduced import duties on a wide range of items such as 3D printing equipment, photography gear, and jewellery materials.

Fisheries and construction industries will also see advantages, with duty waivers for essential equipment and raw materials. The fisheries sector, in particular, stands to gain from the removal of duties on 296 types of seafood, making Maldivian exports more competitive.

In addition to goods, the FTA also opens up opportunities for Maldivian service providers to enter the Chinese market, offering their expertise in sectors such as tourism, education, and healthcare.

The implementation of the agreement is expected to have a substantial impact on the trade relationship between China and the Maldives. Government estimates suggest that the current trade volume of USD 700 million could rise to USD 1 billion as a result of the new trade terms, marking a significant boost for the local economy.