Economic Minister Mohamed Saeed has said the Free Trade Agreement (FTA) between Maldives and China will not affect existing trade.
Speaking at a ceremony on Monday to announce the initiation of the FTA on January 1, Saeed said the entry of duty-free goods will not affect existing trade.
"We go and buy goods based on the quality, price and ease of access. The same will be true for trade with countries. Electronics, furniture, construction materials, and so on, consumers buy the goods of their preferred quality," he said.
"So we are able to import these goods duty-free. I don't believe there is any chance of loss to the traditional markets. I don't believe anyone involved in business will believe. There is still the opportunity to buy from the traditional market."
Saeed said negotiations were ongoing to sign a Free Trade Agreement with India and the UK. A similar agreement signed with Turkey will come into force in the first quarter of 2025.
Under the first FTA in Maldives' history, 70 percent of goods imported from China will be exempt from duty. The government aims to increase it to 90 percent in the coming years.
Meanwhile, 95 percent of goods exported from the Maldives can enter China without a duty.
Saeed hoped the FTA would strengthen relations with China in the future. He noted that this will benefit the fishing industry as it allows 296 types of seafood to enter the Chinese market.
"So for the first time in Maldives' trade history, we have got an opportunity to grow in the world's largest market," Saeed said.
Officials from the Economic Ministries of both Maldives and China attended Monday's ceremony to announce that the FTA will come into force on January 1.
