The Maldives said on Saturday that India has initiated efforts to conclude a free trade agreement between the two countries and discussions are ongoing on how to achieve it. “They (India) want a free trade agreement with the Maldives in addition to SAFTA (South Asian Free Trade Agreement),” Mohamed Saeed, Minister of Economic Development and Trade, said at a press conference in Male. Saeed said the President of the Maldives has offered this opportunity to all countries, adding that the government intends to enter into agreements with as many countries as possible to facilitate trade activities.
India’s reports of efforts to conclude a free trade agreement with the Maldives come in the background of a diplomatic dispute between the two countries since November last year, when President Muizzu, known for his pro-China leanings, took the oath of office.
Within hours of taking the oath, he demanded the withdrawal of Indian military personnel from his country. Earlier this month, the last Indian military personnel were replaced by civilians.
India-Maldives trade agreement
Meanwhile, the India-Maldives Trade Agreement of 1981 provides for the export of crucial goods. India-Maldives bilateral trade, growing from humble beginnings, crossed the USD 300 million mark for the first time in 2021 and crossed the USD 500 million mark again in 2022, according to data from the Indian High Commission. Even without a free trade agreement, India has offered concessions for several products to the Maldives – the news portal Edition.mv quotes the minister’s statement.
Another news portal Sun.mv reported that despite revealing India’s proposal for a free trade agreement, Saeed did not reveal further information about the high-level meeting between him and Munu Mahawar, Indian High Commissioner to the Maldives. According to the report, the two discussed further strengthening the two nations’ cooperation ties in many areas.
Describing the existing agreements, the portal reported that the Maldives concluded a free trade agreement with China during the government of former president Abdulla Yameen Abdul Gayoom, but his successor, former president Ibrahim Mohamed Solih, criticized the agreement and did not honor it.
The Maldives-China Free Trade Agreement has breathed fresh life after Muizzu took over as President of the Maldives in November 2023, Sun.mv said, adding: “The sitting president said the agreement is a symbol of the robust relationship between the Maldives and China, and his the administration is ready to continue honoring the agreement.
(With the participation of the agency)
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