Exports to China remain stagnant
The CMFTA was aimed at boosting trade and increasing exports from Maldives to China
People are shopping for seafood in Yantai, China, on February 4, 2024.
Although the government stated that the Free Trade Agreement (FTA) signed between the governments of China and Maldives would boost trade between the two countries and increase exports from Maldives to China, statistics show that the outcome is yet to materialize.
According to the latest statistics publicized by Maldives Customs Service in July, China is still not among the top countries to which Maldives exports goods.
Customs has revealed that in May, 50 percent of goods exported from Maldives were sent to Thailand. The United Kingdom was second, while Mauritius was the third largest export destination. Vietnam was fourth, and Germany was the fifth largest export destination.
As such, 50 percent of the goods exported from the Maldives went to Thailand, worth MVR 89 million, 20 percent of the goods exported from the Maldives went to the United Kingdom, worth MVR 36 million, seven percent of the goods exported from the Maldives went to Mauritius, worth MVR 13 million, six percent of the goods exported from the Maldives went to Vietnam, worth MVR 11 million, three percent of the goods exported from the Maldives went to Germany, worth MVR four million.
In May, almost all exports from Maldives were fish products. The highest revenue was generated from frozen skipjack tuna, amounting to MVR 107 million.
In a statement released by the government regarding the China-Maldives Free Trade Agreement (CMFTA), which came into effect from January 2025, it was stated that the objective of the CMFTA is to increase trade volume, boost exports, enhance productivity, remove trade barriers, and create new opportunities for businesses in Maldives and China. It was also highlighted that under the CMFTA, both countries would benefit from tariff reductions and improved market access.
The agreement was said to provide Maldivian exporters, especially in the fisheries sector, with the opportunity to export all types of fish products duty-free to the large market of Chinese customers from the day the CMFTA implementation began. However, Customs statistics reveal that no desirable results have yet been seen in the Maldivian export sector as a result of the agreement.
In May, while Maldives imported food items worth MVR 906 million, it is noted that the highest expenditure was on importing food products.
The second highest expenditure was on importing petroleum products, amounting to MVR 709 million.
