The Cabinet has given its approval to make a free trade agreement between Maldives and China.
The announcement was made during a press conference held at President’s Office this Wednesday afternoon.
Speaking at the press conference, Minister of Economic Development, Mohamed Saeed said the government started discussions for a free trade agreement with China in 2014, after Maldives graduated from a least developed country to a developing country in 2011 – to cope with challenges facing Maldivian economy after imposition of duty on fish products exported from Maldives.
“This resulted in challenges for exporters of fish products. The imposition of duty resulted in an increase in export expenses. To find a solution to this, President [Abdulla] Yameen [Abdul Gayoom] made the decision to arrange for fish to be exported at the lowest price possible,” said Saeed.
Saeed said the most viable solution the government found was to make a free trade agreement. He said the Maldivian government held discussions to establish a free trade agreement with a number of foreign governments.
Saeed said the most benefit from the decision made by the Cabinet for a free trade agreement with China would be reaped by local fishermen. He said the free trade agreement will also boost the Maldivian tourism industry.
Minister Saeed said the free trade agreement did not contain much conditional stipulations for Maldives as the Chinese government understood the Maldivian economy was small in size. He said it would be the first time for a free trade agreement to be made between a country with such a large economy as China and a country with such a small economy as Maldives.
Saeed said the Maldivian government was open to free trade agreements with more countries, and added that countries such as Japan has given the go-ahead for negotiations. Seven rounds of negotiations have been held between Maldives and China for a free trade agreement since 2014. The deal has now been sent to the National Security Committee of People’s Majlis for evaluation.