The Free Trade Agreement (FTA) between the Maldives and China, which came into effect on 1 January, is poised to deliver significant benefits to the Maldivian people, Ambassador of China to the Maldives, Kong Xianhua has said.
In an exclusive interview with PSM News, Ambassador Kong highlighted the enormous opportunity for Maldivian fish and seafood products in the vast Chinese market.
Before the FTA, Maldivian products were not widely seen in China, despite China being a major importer of seafood. However, Ambassador Kong said the agreement has already increased demand for Maldivian products, which are now establishing a brand presence in the Chinese market.
"Business relationships are being established between the Maldivian and Chinese people. We will see a significant impact in the near future," he noted.
The Ambassador stated that the Chinese market would greatly benefit the people of the Maldives in the coming years and predicted the most significant impact would be visible within one to two years. He confirmed he is working closely with the Ministry of Economic Development and Trade to promote Maldivian products in China.
A key provision of the FTA is the elimination of tariffs on over 90 percent of Maldivian products, including nearly all fish and seafood, providing duty-free access to the Chinese market. This was a major focus for President Dr. Mohamed Muizzu, who pushed for the activation of the agreement after years of delays.
In addition to boosting fisheries exports, the FTA is expected to facilitate exports and re-exports, creating new businesses and job opportunities in the Maldives. The Maldivian government anticipates the agreement will expand the processing and export of Maldivian fisheries and other goods.
Access to China's large market of over 1.4 billion people is expected to accelerate the growth of Maldivian businesses and its economy. The Maldivian administration projects the FTA could boost the annual bilateral trade volume from approximately USD 700 million to USD 1 billion.
The agreement also includes provisions for investment protection and facilitation, potentially attracting Chinese investment into Maldivian industries like marine product processing and aquaculture. It also provides opportunities for Maldivian service providers and entrepreneurs to expand into the Chinese market.