The Free Trade Agreement (FTA) between China and the Maldives is expected to boost trade between the two countries to US$1 billion, Economic Minister Mohamed Saeed has said.
The Maldives and China signed a free trade agreement in 2014 during the administration of former President Abdulla Yameen, and the FTA received parliament approval for implementation in 2017. However, the agreement has not been implemented since former President Ibrahim Mohamed Solih took office in 2018.
According to statistics by relevant agencies, trade between Maldives and China is currently worth $700 million a year.
Speaking to reporters on Wednesday, Minister Saeed said the agreement will come into force on January 1, 2025. Referring to concerns raised by some about the disadvantages of a free trade agreement with China, Minister Saeed said the benefits to Maldives once the agreement comes into effect far outweighs any potential disadvantages.
The minister highlighted the convenience of using payment systems like WeChat that would be facilitated with the implementation of the FTA. He noted that WeChat is already being used in POS at some Maldivian resorts, safaris and guesthouses, which allows Chinese tourists to make payments in their own currency.
Saeed also acknowledged concern about a clause in the FTA that prevent local businesses from compete with large Chinese companies. He assured that the provision would not be a disadvantage for local businesses.
