The Maldives and China formally finalized the Maldives-China Free Trade Agreement (FTA) during a signing ceremony on December 30, 2024, with the agreement set to take effect on January 1, 2025.
The ceremony was attended in person by Maldives Minister of Economic Development and Trade Mohamed Saeed, while Chinese Commerce Minister Wang Wentao and other officials participated virtually.
Originally signed in 2014 and ratified by Parliament in 2017, the agreement’s implementation was delayed following a government change in 2018. Efforts to operationalize the pact resumed under the leadership of President Dr. Mohamed Muizzu.
The FTA aims to bolster economic ties between the two nations. Minister Saeed highlighted its expected benefits, including reduced import costs, greater market access for Maldivian businesses, and opportunities for professional services such as legal, architectural, and healthcare sectors to enter the Chinese market. Self-employed individuals will also be able to directly export their products.
Minister Wang noted the agreement’s role in strengthening bilateral relations, emphasizing zero-tariff provisions for Maldivian fish exports to China. The agreement is expected to lower prices for consumers and increase product variety in the Maldives.
Currently, trade between the two countries stands at USD 700 million and is projected to grow to USD 1 billion following the agreement’s implementation.
