On Saturday, the Maldives announced that Bharat has started discussions to create a Free Trade Agreement (FTA) between the two nations. The Maldives’ Minister of Economic Development and Trade, Mohamed Saeed, confirmed the news during a press conference, stating that deliberations are ongoing.
Bharat’s initiative comes in addition to the existing South Asian Free Trade Agreement (SAFTA). Minister Saeed highlighted that the Maldives President is open to forming trade agreements with as many countries as possible to facilitate easier trade activities.
The move by Bharat to seek an FTA with the Maldives is set against a backdrop of recent diplomatic tensions between the two countries The tensions began in November of the previous year when President Muizzu, who has a reputation for being pro-China, was sworn into office.
Shortly after taking his oath, President Muizzu demanded the withdrawal of Bharatiya military personnel from the Maldives. This request was fulfilled earlier this month when the last of the Bharatiya military personnel were replaced by civilians.
Historically, Bharat and the Maldives have shared a trade agreement since 1981, which allows for the export of essential commodities. Bilateral trade between the two nations has seen significant growth, surpassing USD 300 million for the first time in 2021 and further crossing the USD 500 million mark in 2022. Despite the absence of an FTA, Bharat has already provided trade concessions on several products to the Maldives.
Minister Saeed, quoted by news portal Edition.mv, noted Bharat’s existing concessions but did not disclose details about his high-level meeting with Indian High Commissioner to the Maldives, Munu Mahawar.
According to Sun.mv, their meeting focused on strengthening cooperation in various areas, although specific information about the FTA discussions was not revealed.
The relationship between the Maldives and China also plays a significant role in this context. The Maldives had previously entered into an FTA with China during the administration of former President Abdulla Yameen Abdul Gayoom. However, the succeeding President, Ibrahim Mohamed Solih, criticized and did not honor this agreement.
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With President Muizzu’s recent election, the Maldives-China FTA has regained importance. President Muizzu has expressed his commitment to honoring the agreement, viewing it as a symbol of strong relations between the Maldives and China.
The ongoing efforts by Bharat to establish an FTA with the Maldives reflect the complex geopolitical dynamics in the region. As discussions continue, the outcome could significantly impact trade and diplomatic relations between the two countries.
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