China-Maldives Free Trade Agreement: Effective January 1
CargoesPi shipping news: 6 January, 2025
On January 1, 2025, the China-Maldives Free Trade Agreement (FTA) officially came into effect. Under this agreement, over 95% of products in bilateral trade between the two countries will eventually be subject to zero tariffs.
Shandong Province, one of China’s major regions for imports and exports to the Maldives, is set to benefit significantly from this agreement. In a company based in Yantai, Shandong, a batch of electrical equipment is being prepared for export to the Maldives. The company representative mentioned that the Maldives is a new market they have targeted in recent years, with nearly 10 million yuan in electrical product exports planned for 2024.
Zhao Zhengcong, Chief Engineer at Yantai Dongfang Weston Electric Co., Ltd.: "The free trade agreement has enhanced our product’s export competitiveness. We are now in talks with our Maldives clients for further cooperation and expanding our export scale. With the tariff reduction policy under the FTA, we expect our annual export value to grow by approximately 20% in 2025."
Following the agreement's implementation, Chinese exports to the Maldives will include ships, steel, furniture, ceramics, and agricultural products such as vegetables and fruits. Conversely, Maldives-origin products, such as seafood, nuts, and wooden decorations, will also benefit from preferential treatment under the agreement.
Bi Haijun, Director of the Tariff Division at Qingdao Customs: "After the China-Maldives FTA comes into effect, over 70% of Maldivian tariff categories will be immediately reduced to zero. Key industries benefiting from this include plastic products, steel, and auto parts. Based on preliminary calculations, Chinese enterprises in Shandong can expect tariff reductions totaling about 8 million yuan on exports to the Maldives in the first year following the agreement's implementation."
This free trade agreement represents a significant step in fostering stronger trade ties between China and the Maldives, creating opportunities for businesses to expand their markets and optimize their competitive edge.