Economic minister: Maldives and India will reach a free trade agreement ‘soon’

Maldives and neighboring India will reach a free trade agreement “soon”, says Maldivian Economic Minister Mohamed Saeed.

In an interview to MMTV on Monday night, Saeed said that both Maldivian President Dr. Mohamed Muizzu and Indian Prime Minister Narendra Modi had expressed keenness in signing an FTA during the former’s state visit to India in October last year.

Saeed said that President Muizzu is keen to form trade agreements with large global markets, and added that any such agreements will be favorable to Maldivians.

He highlighted on the preferential trade agreement signed with Turkiye in November last year, and the FTA with China which took effect at the start of this year.

He said that both agreements will result in significant reductions in tariffs on Maldivian exports, with the agreement with China allowing Maldivian businesses to export 296 types of seafood products at zero tariff.

Noting Maldives’ heavy reliance on imports, Saeed said that trade agreements will reduce the country’s reliance on imports in the long run and boost its exports.

“But there is an immediate need to eliminate barriers to exporting Maldivian products to international markets,” he said.

Saaed also spoke about the dangers of Maldives’ reliance on its tourism industry. He described tourism as one of the riskiest industries, with each shock to the tourism industry posing a huge risk to the Maldivian economy.

Back in May last year, India said that Maldives had not proposed signing an FTA, but that the country would consider it if the country makes such a proposal.

The statement had come amid strained ties between Maldives and India – ties that since appear to have been mended.