Maldives and Türkiye sign trade agreement; tariff reductions on over 100 fish exports

Maldives and Türkiye signed a landmark preferential trade agreement (PTA) on Monday, one that affords the Maldives significant tariff reductions on over 100 fish exports.

A preferential trade area or a preferential trade agreement is a trading bloc that gives preferential access to certain products from the participating countries. This is done by reducing tariffs but not by abolishing them completely.

Negotiations on the PTA has commenced following President Dr. Mohamed Muizzu’s official visit to Türkiye in November last year.

The agreement was signed by Maldivian Economic Minister Mohamed Saeed and Turkish Trade Minister Ömer Bolat in Istanbul on Monday.

In a statement following the signing of the agreement, the Maldivian Economic Ministry said that the PTA will significantly enhance bilateral trade volumes between Maldives and Türkiye.

The Economic Ministry said the PTA provides considerable tariff concessions for the Maldivian fisheries sector, enabling fish exporters to access and expand their operations in the Turkish market.

The ministry added that it also allows Maldivian consumers and businesses will benefit from access to Turkish products at “significantly lower prices.”

In a separate post on X, Saeed said that exports from the Maldives will now enjoy significant tariff reductions on over 100 items, including zero tariff on several fish and fish products to the Turkish market of over 85 million people.

Today we signed the historic PTA between????????????????. Exports from Maldives will now enjoy significant tariff reductions on over 100 items including “0”tariff to several fish&fish products to the????????mrkt of over85m ppl.This was made possible by HEP Dr @MMuizzu during official visit in 2023 https://t.co/PW6D5wowWo pic.twitter.com/MDJVJRR7rJ

— Mohamed Saeed (@em_saeed) November 4, 2024

However, neither he, nor the Economic Ministry provided any specifics regarding the terms of PTA.

President Muizzu travelled to Türkiye in his first official visit to a foreign state upon assuming office in November last year.

The Economic Ministry said the PTA materializes one of the primary objectives discussed during President Muizzu’s meetings with Turkish President Recep Tayyip Erdoğan, where both leaders committed to strengthening bilateral economic cooperation.

The ministry said that agreement solidifies the new chapter of renewed commercial relations between Maldives and Türkiye under the leadership of President Muizzu, and opens up new opportunities for Maldivian exporters.