The Minister of Economic Development and Trade, Mohamed Saeed, has stated that China will extend special priority to the Maldives even in the event of a global crisis, owing to the Free Trade Agreement (FTA) signed between the two nations.

Speaking at Ahaa Ministerial Forum, a joint initiative by the President's Office and Public Service Media (PSM) allowing public questioning of Government Ministers, Minister Saeed highlighted the numerous benefits of the agreement. He explained that China, as the world’s largest market, presents an invaluable opportunity for a small nation like the Maldives to expand its economic prospects. He noted that it would not be in the country’s best interest to forgo such an opportunity.

Minister Saeed emphasised that China has become the Maldives' primary tourism market, particularly in the post-pandemic era. While tourism between the two countries continues to flourish even without the FTA, he pointed out that the agreement ensures that China views the Maldives from a special perspective in trade matters, including tourism. He added that travel between the two countries would remain uninterrupted even if global travel opportunities became limited.

The Minister also remarked that the FTA enhances the Maldives’ visibility on the global stage, reinforcing its position as a key travel and trade destination.

A key advantage of the agreement, according to Saeed, is the preferential treatment granted to Maldivian seafood exports. He revealed that all seafood products exported from the Maldives to China would be exempt from duty, a benefit that even extends to seafood not native to the Maldives. He stated that up to 296 types of seafood can now be exported to China at zero per cent duty, describing it as an incredible economic opportunity.

He further explained that seafood such as salmon, crabs, and prawns, which are imported into the Maldives, can also be re-exported to China at a profit.

He stressed that no other country in the world enjoys such an opportunity and that the agreement allows the Maldives to benefit from price adjustments when exporting seafood to China.

Saeed also pointed out that China can now import a significant volume of goods into the Maldives without incurring duties. He noted that prior to the agreement, import duties on construction materials ranged between 5% and 10%, but these charges have now been eliminated.

The Free Trade Agreement between China and the Maldives was initially signed in 2017; however, its implementation was stalled for five years due to a policy decision made by the previous administration. The current Government, led by President Dr Mohamed Muizzu, has revived the agreement, with full implementation commencing in January this year.