A free trade agreement (FTA) between two countries plays an important role when it comes to reducing or eliminating tariffs, quotas, and other trade barriers. This would be a major step forward for the Maldives.
Economic Ministry
In recent months, the Maldives has been forging increasingly robust ties with Turkey, marking a significant shift in diplomatic relations between the two nations. This burgeoning alliance started with an official visit to Turkey by President Dr. Mohamed Muizz, who assumed office in late 2023. His pivotal visit to Turkey following his ascension to the presidency laid the foundation for the strengthening of bilateral relations between the Maldives and Turkey. Since then, these diplomatic connections have steadily flourished, shaping a new chapter in the strategic partnership between the two countries.
In addition to the Maldives recently acquiring two military drones from Turkey in order to surveillance the Exclusive Economic Zone (EEZ), the Maldives has also started a discussion with the Turkish Government regarding a free trade agreement between both nations. A free trade agreement (FTA) between two countries plays an important role when it comes to reducing or eliminating tariffs, quotas, and other trade barriers. This would be a major step forward for the Maldives.
For a small island nation such as the Maldives, which is heavily reliant on imports, a free-trade agreement such as the one currently being discussed could pose several benefits. In addition to lowering the cost of imported goods to retailers as well as consumers by eliminating tariffs, an FTA can also diversify the economy and reduce dependence on a limited range of export products, enhancing resilience to external shocks.
The discussion of a free trade agreement between both nations is just one of the many efforts that are being put into strengthening the ties between the Maldives and Turkey since the President’s official visit. Although further details regarding the goods that are going to be included in the agreement have not yet been disclosed, there is positive hope for the FTA as the President had previously revealed that Turkey will be importing sample foods into the Maldives.
