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Maldives, China FTA trade reaches MVR 1.9m in 2 weeks

Customs officials released figures for the first two weeks of trade under the agreement, showing a steady flow of goods from China to the Maldives.

21 January 2025

The Maldives and China have seen progress in their bilateral trade under the Free Trade Agreement (FTA), with goods worth MVR 1.9 million imported so far, according to the Maldives Customs Service.

The FTA, which officially took effect on January 1, is aimed at fostering closer economic ties between the two nations by reducing trade barriers.

Customs officials on Monday released figures for the first two weeks of trade under the agreement, showing a steady flow of goods from China to the Maldives. The imports, totaling MVR 1.9 million, include:

  • Nine air shipments valued at MVR 882,381.

  • Three sea shipments amounting to MVR 1.04 million.

The FTA allows for 70% of goods imported under the agreement to be exempt from customs duties.

The Maldives-China Free Trade Agreement was initially signed on December 7, 2017, during the presidency of Abdulla Yameen.

However, the agreement faced delays in implementation, with the government taking seven years to bring it into action. It was only in 2024 that the current administration decided to implement the FTA, setting the stage for enhanced trade relations between the two countries.

Maldives’ economic ministry has projected that 90% of goods imported from China will be duty-free over the next five years. Furthermore, the agreement is set to benefit Maldives' exports, as 95% of Maldivian products heading to China will also enjoy duty exemptions.

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