Maldives and India in Talks for New Free Trade Agreement

The Maldives is in the midst of negotiations with India to establish a new Free Trade Agreement (FTA), according to Minister of Economic Development and Trade, Mohamed Saeed. This potential agreement aims to enhance bilateral trade and complement the existing South Asian Free Trade Agreement (SAFTA).
During a recent press conference, Saeed announced that discussions initiated by India could lead to a bilateral trade agreement that would offer the Maldives significant economic opportunities. "India is keen on establishing an FTA with the Maldives, complementing SAFTA. The President has extended this opportunity to all interested nations," Saeed stated.
The proposed FTA with India is expected to build on previous concessions offered to the Maldives on various products, potentially lowering tariffs and boosting trade efficiency. Saeed highlighted the government's broader ambition to secure trade agreements with multiple countries to facilitate smoother trade operations and enhance the economic landscape of the Maldives.
In addition to the potential agreement with India, President Dr. Mohamed Muizzu’s recent visit to Turkey has resulted in a preliminary agreement to establish an FTA with Turkey. Saeed mentioned that although a few more meetings are needed to finalize this agreement, it is expected to significantly benefit Maldivian exporters, particularly in the fish products sector. "Currently, high tariffs are imposed on imports, including yellowfin and skipjack tuna. Significant changes are expected in these areas," Saeed noted.
Efforts are being made to reduce tariffs on exports to zero percent, which would provide a substantial boost to Maldivian exporters and enhance their competitiveness in international markets. The potential reduction in tariffs is a key aspect of the ongoing negotiations and is seen as a critical step towards achieving greater economic integration with key trading partners.
Furthermore, Saeed emphasized the government's intention to enhance trade relations under the existing FTA with the UK, particularly focusing on the financial sector. This move is part of a broader strategy to diversify the Maldives' trade portfolio and strengthen economic ties with multiple nations.
The Maldives' proactive approach to establishing and enhancing FTAs reflects a strategic effort to bolster the nation's economy through improved trade relations and reduced trade barriers. The potential agreements with India and Turkey, along with the enhancement of the existing FTA with the UK, signify a forward-looking trade policy aimed at fostering economic growth and development.
As the negotiations progress, the Maldivian government remains optimistic about the positive impact these agreements will have on the nation's economy, particularly in terms of increasing export opportunities and reducing tariffs. These efforts align with the broader vision of creating a more robust and dynamic economic environment in the Maldives.