EU excludes Maldives from duty exemption scheme over lack of religious freedom

Minister of Economic Development Ahmed Mohamed has said the European Union has excluded the Maldives from its Generalised System of Preference (GSP) Plus scheme, which allows developing country exporters to pay lower duties on their exports to the EU.

Economic Minister Ahmed Mohamed said the EU has refused to include the Maldives in its GSP Plus scheme citing reservations put forth by the Maldivian government on certain treaties and conventions on the right to exercise freedom of religion in the Maldives.

Speaking at a press conference in Velaanaage today, Ahmed Mohamed said 22 EU countries were in favour of denying the scheme.

“These issues are very technical and have numerous issues. One of the biggest factors they weigh in determining the eligibility of the GSP Plus scheme is how much a country complies and implements the 27 conventions signed and acceded by the country. Maldives has acceded to these 27 conventions,” Economic Minister Ahmed Mohamed said.

He said the EU has informed the government of their decision to reject the Maldives’ GSP Plus application.

“Today we’re forced to tell you, because of this, it is very likely that the Maldives be denied the GSP Plus scheme for (the lack of) religious freedom, because they think it is an issue. It will not be untrue now to say that we wont get it. European Union has communicated this in writing, that they intend to reject Maldives’ application for the GSP Plus scheme,” Economic Minister said.

GSP is a facility granted to developing countries by certain developed countries, allowing exporters from beneficiary countries to pay lower duties on their exports to the EU, granting them vital access to EU markets.

Maldivian fish exporters are likely to suffer the most when the GSP Plus scheme expires by the end of the year.

The government and exporters are trying to find new markets for the products, said the Minister, with some companies having already commenced fish exports to the U.S. and China. Companies are also trying to penetrate the Russian market, the Economic Minister said.