Maldives' Claim of Proposed Free Trade Agreement with India Disputed by Indian Officials

Recent statements by Maldivian Economic Minister Mohamed Saeed regarding a proposed Free Trade Agreement (FTA) with India have been refuted by Indian External Affairs Minister Randhir Jaiswal. Discrepancies in claims have arisen, raising questions about the status of bilateral trade negotiations between the two nations.
At a press briefing on Thursday, Minister Jaiswal clarified that India has not formally proposed a new FTA with the Maldives. He addressed reports circulating in the media and emphasized that while India is open to considering such an agreement, no specific proposal has been made by the Indian government.
"If the government of Maldives expresses interest in having an FTA with India, we will give it due consideration," Minister Jaiswal stated, highlighting the importance of official communication in bilateral trade discussions.
The clarification comes in response to assertions made by Minister Saeed last week, where he claimed that efforts were underway to establish an FTA between the Maldives and India. According to Saeed, India had initiated discussions and expressed a desire for a separate FTA with the Maldives, in addition to the existing South Asian Free Trade Agreement (SAFTA).
"In my recent talks with India, they expressed their wish to have a free trade agreement with Maldives separately, in addition to SAFTA. The President wants to have that opportunity with all countries," Minister Saeed stated, highlighting the government's commitment to exploring new trade partnerships.
However, the discrepancy between the statements made by the two ministers raises questions about the status and nature of bilateral trade negotiations between the Maldives and India. While Minister Saeed's remarks suggested active discussions and India's proactive stance on the matter, Minister Jaiswal's clarification indicates a more cautious approach from the Indian government's side.
The South Asian Free Trade Agreement (SAFTA), signed in 2004, aimed to promote economic empowerment and facilitate trade among South Asian countries. While the Maldives is a signatory to SAFTA, it does not have individual FTAs with countries in the region.
As discussions unfold and clarifications are sought, it remains to be seen how the Maldives and India will proceed with their trade relations. Official communication and expressions of interest from both sides will likely play a crucial role in determining the direction and scope of any potential free trade agreement between the two nations.
In conclusion, while the prospect of a Free Trade Agreement between the Maldives and India has been a topic of discussion, discrepancies in statements from government officials highlight the need for clarity and official communication in bilateral trade negotiations. As both countries navigate their trade relations, transparent dialogue and mutual understanding will be essential in forging stronger economic ties for the benefit of both nations.