China-Maldives Free Trade Agreement: A New Era of Economic Engagement

The China-Maldives Free Trade Agreement (CMFTA) marks a key advancement in bilateral economic relations, lowering tariffs and enhancing market access for both nations. Effective now, it promises to boost trade volumes and create business opportunities. This followed its signing in 2014 and suspension after a regime change in 2018.

The China-Maldives Free Trade Agreement (CMFTA) has been described as a 'significant milestone' in strengthening economic ties between the two countries, according to recent media reports.

Implemented on Wednesday, the CMFTA is set to bolster trade, increase export capabilities, and provide new business opportunities in Maldives and China, as confirmed by the Maldives' Ministry of Economic Development and Trade.

The agreement comprises key areas such as goods and services trade, investment protection, and deeper economic cooperation. It is expected to substantially raise current trade levels from USD 700 million annually to potentially USD 1 billion.

(With inputs from agencies.)