China-Maldives FTA takes effect, vast majority of products to enjoy zero tariffs

(ECNS) -- The China-Maldives Free Trade Agreement (FTA) came into effect on Wednesday, eliminating tariffs on over 95 percent of products traded between the two countries.

Under the agreement, most of China's industrial exports to the Maldives, including ships, electrical equipment, furniture, and agricultural products, will qualify for zero tariffs. Similarly, the Maldives will benefit from duty-free access for key exports such as aquatic products, nuts, wooden decorations, and more.

Shandong Province, a hub of trade with the Maldives, is set to benefit from the FTA. Wisdom, a local electrical equipment manufacturer, has successfully penetrated the Maldivian market in recent years. The company said that nearly 10 million yuan (about $1.37 million) worth of products were exported to the Maldives in 2024.

“The implementation of the FTA will improve the competitiveness of our exports,” said Zhao Zhengcong, an engineer of Wisdom.

The company is in talks with Maldivian partners to expand cooperation, leveraging the FTA’s tariff reduction policies. It expects its annual exports to the Maldives to grow by about 20 percent in 2025, Zhao said.

According to Bi Haijun, an official from Qingdao Customs, industries in Shandong such as plastic, steel products and automobile parts are also expected to benefit significantly from the FTA. In the first year after the agreement came into effect, Shandong’s exports to the Maldives can enjoy tax reduction or exemption of about eight million yuan, Bi said.