India proposes Free Trade Agreement with Maldives

Minister of Economic Development and Trade Mohamed Saeed on Saturday announced Indian government's proposal for a Free Trade Agreement (FTA) between the two countries.

At the press conference held by the Ministry of Economic Development on Saturday to highlight the achievements and initiatives of the state body in the last six months, Minister Saeed said India has expressed interest for a Free Trade Agreement with the Maldives besides a SAFTA.

"President of the Maldives has extended the opportunity to the international community" Saeed commented.

Despite revealing Indian's proposal for an FTA, Saeed did not disclose further information of the high-level discussion meeting between him and the Indian High Commissioner to the Maldives Munu Mahawar.

The two had discussed on further strengthening the cooperative ties of both nations in multiple areas.

The South Asian Free Trade Area (SAFTA) is the free trade arrangement of the South Asian Association for Regional Cooperation (SAARC).

The agreement came into force in 2006, succeeding the 1993 SAARC Preferential Trading Agreement. SAFTA signatory countries are Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, Sri Lanka, and the Maldives.

Under the SAFTA agreement, export duties on Maldives fish products to India were quashed in 2022.

Earlier, during former President Abdulla Yameen Abdul Gayoom's administration, Maldives government entered into a Free Trade Agreement with China. However, Yameen's successor, former President Ibrahim Mohamed Solih had criticized the agreement and announced his administration would not honor due to its particulars.

The Maldives-China Free Trade Agreement breathed new life after Dr. Mohamed Muizzu took charge as Maldives President in November 2023. The incumbent President said the agreement was a symbol of strong relations between the Maldives and China, adding his administration was ready to continue honoring the agreement.

While India has expressed interested for an FTA with the Maldives, the relations between the two countries soured earlier after three high-ranking Maldivian officials made derogatory remarks against Indian Prime Minister Narendra Modi.

Moreover, President Dr. Muizzu has been labeled as "pro-China" in several Indian media outlets, but the Maldives head of state had later responded to the claims stating he is "pro-Maldives".