China-Maldives FTA to take effect..."Both countries exempt from tariffs of more than 95%"

China removes most tariffs between the two countries and the Maldives, where a pro-China government is in power, and strengthens economic cooperation.

According to China's state-run Global Times, the Free Trade Agreement (FTA) signed by China and the Maldives government will take effect on the 1st, exempting tariffs between the two countries by more than 95%.

Earlier, Chinese Commerce Minister Wang Wentao and Maldives Minister of Economy Mohamed Saeed announced via video on December 30 last year that the FTA would take effect in the new year.

Under the signing of the FTA, most industrial products, such as ships, electrical equipment, and furniture exported from China to the Maldives, as well as agricultural products such as vegetables and fruits, will be exempted from tariffs when exporting to China.

"The entry into force of the agreement is a historic milestone in the economic and trade development of both countries," China's Ministry of Commerce said in a "China-Maldiv FTA-related situation" released on its website. "We will continue to promote the welfare of businesses and people of both countries."

"The two countries have made practical cooperation in various fields through the 'Belt and Road' (the land and sea silk road connecting China, Central Asia and Europe)," he added.

Trade between the two countries in 2023 was $760 million (about 1.1217 trillion won), up 75.8% from the previous year.

Last year, more than 240,000 Chinese tourists visited the Maldives, accounting for the largest share among foreign tourists.

The Maldives, an Indian Ocean island country, has a population of about 520,000.

FTA negotiations between the two countries began in December 2015, and the FTA was officially signed on December 7, 2017 after five working-level negotiations and one ministerial-level negotiations.

Since then, there have been attempts to neutralize the FTA due to the move to de-China, along with pointing out that it is an unfair agreement, but the FTA took effect more than nine years after the start of negotiations as the atmosphere changed after Maldives President Mohamedi Muijou took office in November 2023.