China Maldives Free Trade Agreement Pdf
Surprisingly, the Minister of Finance stated that he was not aware of any operational free trade agreements. The Minister stated that, although a free trade agreement has been signed, it will not enter into force until after the necessary legislation. It is the “responsibility of Parliament.” Citing Article 165 of the agreement, Nasheed said there was “no free trade agreement between the Maldives and China.” “We will not pursue the free trade agreement with China. It will not be voted on in Parliament,” said Nasheed, a member of the ruling Maldives Democratic Party. A year later, Ibrahim Mohamed Solih was elected the new president of the Maldives, which almost ended the surprisingly close relations between the Maldives and China. In 2018, Nasheed, a former president and current speaker of Parliament, said it was a mistake to sign the free trade agreement. “The trade imbalance between China and the Maldives is such that no one would think of a free trade agreement between these parties. China doesn`t buy anything from us. It`s a single-use contract. Maldives for not pursuing the free trade agreement with China For the Maldives, an island economy heavily dependent on tourism, the choice of openness seems to be the most obvious. By opening up its economy to the rest of the world, the Maldives will be able to better integrate trade flows between China, the African coasts, India and the new port of Gwadar in Pakistan.
“The free trade agreement between China and the Maldives was pointed overnight by Parliament on the strict instructions of President Yaameen. It has never gone through the entire parliamentary process and no Member has seen the agreement in its entirest way. The free trade agreement is “void ab initio,” as you might say! said Ali Azim, MP for Medhu Henvairu constituency. Since 2011, the Maldives has not been considered by the United Nations as one of the least developed countries, which is why the European Union, its main trading partner, has been applying higher tariffs on products in the Maldives since 2014. A new free trade agreement with China will allow Malé to increase its fish exports to the booming Chinese market. On December 7, 2017, China and the Maldives signed a free trade agreement. During his official visit to China, Maldives President Abdulla Yameen Abdul Gayoom promised to promote the Belt and Road initiative. Since 2014, the Maldives has expressed its willingness to join this development project. China is multiplying free trade agreements. After signing agreements with Australia and South Korea in 2015, and then with Georgia this year, Beijing continues to commit to free trade. A new agreement is expected to be signed with Sri Lanka in the coming months, another important state of the new Maritime Silk Road.
By signing a free trade agreement, the Maldives could secure its position as an important node on new Silk Roads. The Maldives Parliament then ratified the treaty in less than an hour without debate amid massive protests from the opposition party at the time. However, Parliament has yet to pass the law that will implement the Zero Law Agreement with China. The free trade agreement with China will also allow the Maldives to see the price of its imports fall. Some opposition leaders in the Maldives oppose the treaty and fear that the treaty could threaten local industry and benefit China too much. However, reducing tariffs on Chinese imports will also increase the purchasing power of local consumers. This free trade agreement shows that the new Silk Roads are not limited to new infrastructure and that only the removal of all customs barriers and the promotion of trade can be fully achieved. The maldives-China free trade agreement was the first bilateral free trade agreement signed by the island state with a foreign country.
According to China`s FTA network, the agreement is expected to improve the well-being of businesses and people in both countries. With regard to trade in goods, goods duty-free and their import amount from both parties each account for almost 96%.