The Minister of Economic Development and Trade, Mohamed Saeed, has announced that the free trade agreement (FTA) between the Maldives and Turkey will come into effect in the first quarter of 2025. The announcement was made during the Haftha 52 programme aired by PSM News.

The agreement, signed on 4th May 2023, aims to enhance trade relations between the two countries and foster a more conducive environment for business. Minister Saeed highlighted the advantages of the FTA, noting that it would significantly benefit local entrepreneurs by reducing duties on goods imported from Turkey.

“A lot of goods brought to the Maldives from Turkey will be duty-free, which will be a great boost for investors, resort developers, and general businesses,” Minister Saeed stated.

The trade pact, was a key topic of discussion during President Dr Mohamed Muizzu’s visit to Turkey in November 2023. In his meeting with Turkish President Recep Tayyip Erdoğan, the two leaders reaffirmed their commitment to bolstering bilateral trade.

The agreement is expected to ease fish exports to Turkey, reduce trade barriers, and expand trade opportunities for both nations. Maldivian fish exporters stand to benefit significantly, gaining better access to the Turkish market, while Maldivian businesses and consumers will have access to Turkish products at more affordable prices.

Additionally, Minister Saeed also revealed that the government is preparing to implement FTAs  China starting from 1st January 2024. The agreement with China, originally signed in 2014 and approved by Parliament in 2017, had stalled following a change in government in 2018. However, President Dr Muizzu’s administration has revived the deal.

Under the China FTA, import duties will be reduced by up to 95 per cent, offering significant cost advantages to Maldivian businesses. Minister Saeed emphasised that this move would provide a significant boost to entrepreneurs and increase trade volumes.

Currently, trade between the Maldives and China stands at USD 700 million annually, and the government anticipates this figure will rise to USD 1 billion with the implementation of the agreement.

The concurrent activation of these FTAs reflects the government’s efforts to strengthen economic ties with key partners, diversify trade opportunities, and promote a business-friendly environment in the Maldives.