Minister of Economic Development and Trade Mohamed Saeed confirmed that duties will be imposed on tobacco products imported from China.

Minister Saeed provided this information in a written response to Galolhu North Constituency Parliament Member Ibrahim Mohamed (Kudu), who had asked whether tobacco products could enter duty-free under the China-Maldives Free Trade Agreement (FTA) and how this might affect import duty revenue.

In his response, Minister Saeed affirmed that Chinese tobacco imports would remain subject to duties. He assured that tobacco products are not included among items designated for reduced or zero duties under the FTA.

The Minister explained that revenue from duties on Chinese tobacco products would depend on import volumes.

The China-Maldives FTA, initially signed in 2017, was revived by President Dr Mohamed Muizzu's Government after five years of delay, with implementation beginning January 2025.

The FTA provides significant benefits including duty-free export of 296 types of seafood to China and elimination of import duties on construction materials. Government estimates project trade volume could increase from USD 700 million to USD 1 billion.

Minister Saeed noted that China has become the Maldives' primary tourism market, with the FTA ensuring preferential trade status even during global crises while opening new opportunities for Maldivian businesses in tourism, education, healthcare, and manufacturing sectors.

Since taking effect, the agreement has opened export opportunities for Maldivians. According to the Economic Ministry, the deal allows for various seafood products to be imported to the Maldives, value-added, and then exported to China.

The agreement also permits duty-free importation of goods needed for key Maldivian industries.