Maldives-China free trade pact won't cover tobacco imports, Saeed says

Maldives will not be able to import cigarettes and tobacco products under the Free Trade Agreement (FTA) signed with China, Economic Minister Mohamed Saeed stated.

In response to a written inquiry by Galolhu North MP Mohamed Ibrahim regarding duties on tobacco and cigarette imports from China under the FTA, Saeed confirmed in a letter to parliament that such products would be subject to duties.

The minister further stated that China would apply duties on tobacco and cigarettes at the same rate as other countries.

Addressing a question on revenue from these imports, Saeed stated that the amount would depend on the proportion of tobacco and cigarettes imported from China.

Referring to Saeed’s earlier statement that commodity prices would decrease once the FTA takes effect, the MP also inquired about the expected loss of import duties in the first five years of the agreement.

In response, Saeed stated that import duties on Chinese goods would be determined based on the value of the imported items. The exact amount would be known once transactions are completed.

The Maldives-China Free Trade Agreement was signed on 7 December. It came into effect this year after a delay of seven years.