Maldives Initiates Discussions with India on Free Trade Agreement
Male: The Maldives announced on Saturday that India has commenced efforts to establish a Free Trade Agreement (FTA) between the two nations, with ongoing deliberations aimed at achieving this goal.
Minister of Economic Development and Trade Mohamed Saeed stated during a press conference that India has expressed interest in pursuing an FTA with Maldives, in addition to their participation in SAFTA (South Asian Free Trade Agreement).
President of Maldives has extended this opportunity to all countries, Saeed added, emphasizing the government’s objective to enter into agreements with multiple nations to facilitate smoother trade activities.
India’s reported pursuit of an FTA with Maldives occurs amidst a diplomatic dispute between the two countries since November last year, following President Muizzu’s inauguration known for his pro-China stance. This period saw his demand for the withdrawal of Indian military personnel, which was completed earlier this month, replaced by civilians.
Meanwhile, the 1981 India-Maldives trade agreement initially enabled the export of essential commodities. According to records from the Indian High Commission, bilateral trade between India and Maldives surpassed USD 300 million in 2021, further exceeding USD 500 million in 2022.
Despite the absence of an FTA, India has offered trade concessions on various products to Maldives, as reported by news portal Edition.mv, citing the minister.
Another news outlet, Sun.mv, reported that Minister Saeed did not disclose further details following India’s proposal for the FTA during his recent high-level meeting with Indian High Commissioner to Maldives Munu Mahawar. The discussion focused on enhancing cooperative ties across multiple sectors between both nations.
Reflecting on past agreements, the portal noted Maldives’ previous FTA with China during former President Abdulla Yameen Abdul Gayoom’s tenure, which was criticized by his successor, former President Ibrahim Mohamed Solih, and subsequently not honored.
The Maldives-China FTA regained momentum under President Muizzu’s administration, starting in November 2023, with the incumbent president affirming its significance as a symbol of robust relations between Maldives and China, and commitment to honoring the agreement, as reported by Sun.mv.
