The governments of Maldives and Turkey have signed a Preferential Trade Agreement (PTA) to boost bilateral trade relations.

In a publication on Monday, the Ministry of Economic Development and Trade revealed that the signing of the PTA marks a significant milestone in the implementation of key agreements reached during President Dr. Mohamed Muizzu's first state visit to Türkiye in November 2023.

Taking to social media platform ‘X’ following the signing ceremony, Minister of Economic Development and Trade Mohamed Saeed revealed that with the signing of the historic PTA, exports from the Maldives will now enjoy significant tariff reductions on over 100 items including zero tariff on several fish products.

Saeed signed the PTA on behalf of the government of Maldives and Minister of Trade of Türkiye Professor Dr. Ömer Bolat signed on behalf of the Turkish government.

According to the ministry, the agreement materializes one of the primary objectives discussed during the Maldivian leader’s meetings with President of Türkiye Recep Tayyip Erdogan, where both leaders shed light on the significance of enhancing bilateral economic cooperation.

In addition to significantly boost bilateral trade volumes, the PTA will reduce barriers to commerce and create favorable conditions for increased bilateral trade.

As part of the PTA signed on Monday, considerable tariff concessions are available for the Maldivian fisheries sector, enabling fish exporters to access and expand their operations in the Turkish market.

It also paves the path for Maldivian consumers and businesses to benefit from access to Turkish products at significantly slashed prices.

Representing a concrete step forward in implementing the broader vision of cooperation discussed between the two presidents, the PTA revolves around areas like trade, investment, renewable energy, and higher education, further solidifying the strong partnership between both nations.

Both countries have enjoyed a strong relationship over the years, and the PTA will further strengthen these ties, paving the way for enhanced economic collaboration in the future.

The ministry has announced that the mutually agreed date for the PTA to take effect is set for the first quarter of 2025.

Some of the key products granted concession which are of interest to Maldivian exporters include fresh and chilled tuna and tuna products like yellowfin tuna, skipjack tuna and bigeye tuna, fish fillets and meat, processed fish products like dried and salted fish, fish by-products like fish meal and seafood products.

The PTA covers broad categories of products including food and beverages, fisheries products, industrial and construction materials, marine and transport equipment, machinery and equipment, household items as well as furniture.

The ministry noted that Maldivian fish exporters will have access to a new market opportunity for expanding business operations with zero-duty exports for 39 key products that previously faced tariffs of up to 60 percent, as well as major concessions for 103 additional products.

Further, the ministry highlighted that Türkiye serves as a growing source market for a wide range of consumer and industrial goods, which means the PTA would directly benefit citizens through lower prices on Turkish consumer goods and wider product choices in the local market.

In addition to this, the public can look forward to new job opportunities as the export and re-export sectors continue to expand.

The PTA grants access to Türkiye’s substantial market of over 85 million people and establishes new export channels, particularly for Maldivian seafood products.

With this agreement, small businesses can expect reduced import costs for materials, household items, and equipment, while also gaining new opportunities to export to Türkiye.

The agreement also facilitates access to Turkish machinery and technology, paving the way for potential partnerships with Turkish companies.