Officials from the Maldives and China today formalised the Maldives-China Free Trade Agreement (FTA) in a ceremony held on December 30, 2024, paving the way for implementation on January 1, 2025.

The Minister of Economic Development and Trade Mohamed Saeed attended in person, while Chinese Commerce Minister Wang Wentao and officials participated virtually.

Originally signed in 2014 and approved by Parliament in 2017, the agreement's implementation was delayed following the 2018 change in government. Implementation efforts resumed after President Dr Mohamed Muizzu took office.

The pact aims to strengthen economic ties between the nations, with Minister Saeed highlighting anticipated benefits including reduced import costs and enhanced market access for Maldivian businesses. Professional services, including legal, architectural, and healthcare sectors, will gain entry to the Chinese market, whilst self-employed individuals can export their products directly.

Minister Wang emphasised the agreement's role in strengthening bilateral relations, noting zero-tariff provisions for Maldivian fish exports to China. The agreement is expected to benefit consumers through lower prices and increased product variety in the local market.

Trade between the nations currently stands at USD 700 million and is projected to reach USD 1 billion following the agreement's implementation.