Muizzu Changes Tune? Maldives President Expresses Hope for FTA with India

Maldives President Dr Mohamed Muizzu has expressed hope for signing a free trade agreement (FTA) with India, according to Adhadhu of Male. Male has signed a trade agreement with Beijing that will come into effect in September. The Maldives president has expressed hope for signing such an agreement with India as well, the report said.

Speaking at an official ceremony to mark the 59th anniversary of independence, President Muizzu said that apart from China, efforts were underway to conclude free trade agreements with India, Turkey and the United Kingdom.

Muizzu said the implementation of the free trade agreement with China will result in the removal of tariffs on a total of 7,897 items in nine sectors, including 298 fisheries products. He said that once the free trade agreement comes into effect, import duty will not be charged on the export of these products from the Maldives to China.

The President said that after signing the free trade agreement with Turkey, tariff concessions will be granted on 53 items exported from the Maldives, while some items will be free from any tariffs.

“The government is also working on currency swap agreements with China and India to help local businesses,” Muizzu said, according to Adhadhu. This would pave the way for easing the dollar shortage and ensuring economic sovereignty, he said.

Muizzu also spoke about “Loan restructuring and debt management,” especially in light of the bilateral financial relations with India and China. He acknowledged the “significant contributions of China and India in assisting the Maldives’ debt repayment efforts.”

India has deferred a $50 million loan and provided food quota for the next two years. China has given the green light to defer loans from Exim Bank for various development projects for the next five years, without paying interest during this period.

Under President Muizzu, who came to power in November last year, India’s relations with the Maldives have deteriorated rapidly. Muizzu came to power on the back of his “India Out” campaign and soon after taking power, he pressed for the repatriation of Indian military personnel from his country, demanding it.

Muizzu thanked India for…

In a separate development, the Maldives resumed use of a Dornier aircraft and two helicopters donated by India for medical evacuation after the two countries reached an agreement to repatriate Indian military personnel operating three air platforms in the archipelago.

President Muizzu, known for his pro-China stance, thanked India for allowing the resumption of medical evacuation services involving Indian civil aviation personnel. The Dornier aircraft and helicopters were previously operated by Indian military personnel and were stopped soon after President Muizzu took oath in November last year.

New Delhi vs Men on Trade Deal

Earlier this year, Maldives Minister of Economic Development and Trade Mohamed Saeed indicated that India had taken steps to conclude a free trade agreement between the two countries. However, New Delhi rejected the claim, saying it had not made any proposal for a free trade agreement to the Maldives and that it was ready to consider if the island nation expressed interest in such a pact.

“The Indian government has not made any concrete proposal for a bilateral FTA with the Maldives,” said Ministry of External Affairs (MEA) spokesman Randhir Jaiswal. “If the Maldives government shows interest in an FTA with India, we will give due consideration to it,” he said.

The Maldivian minister said India wants a free trade agreement with the Maldives, in addition to the South Asian Free Trade Agreement (SAFTA). The Maldivian president has offered this opportunity to all countries, Saeed said, adding that the government aims to conclude such agreements with as many countries as possible to facilitate trade activities.

(With agency guidance)