The Free Trade Agreement (FTA) with China will expand trade between the two countries to nearly USD 1 billion a year, the government said today.
President's Office Spokesperson Heena Waleed told reporters at a press conference that transactions worth USD 700 are already carried out with China.
"There is already USD 700 million in trade between Maldives and China. However, with the current FTA and the implementation of the FTA, this trade figure will increase to USD 1 billion," she said.
Heena further noted that the local currency agreement signed with China on September 13 will benefit the Maldives.
"... We will be less dependent on the dollar for purchasing goods and it will be easier for traders and holidaymakers to carry out transactions in Maldivian Rufiyaa," she said.
President Dr. Mohamed Muizzu previously announced that the FTA will come into force in September.
"At the same time, our work with our allies will benefit individual businesses. In that regard, China's FTA, the legal process will hopefully be completed and the FTA will be implemented before the end of September," President Muizzu said on July 26.
The government also announced that efforts were underway to reach a similar FTA with India.
"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," Economic Minister Mohamed Saeed told reporters in May.
