If the Maldives is able to form an FTA with India, the country can get increased market access to produce as well as get lower prices of goods due to the removed barriers.
India Today
Although the Maldives is renowned for its white sandy beaches and lush greenery, the nation heavily depends on imports for a significant portion of its essential goods. Despite its relatively green image, the country relies on foreign sources for necessities such as medicine and agricultural products. This dependence is driven by the limited arable land and resources available on the islands, making self-sufficiency in these areas challenging. Consequently, the Maldives imports a large percentage of its food, pharmaceuticals, and other critical supplies to meet the needs of its population.
With this, the Maldives has managed to build close relationships with nations overtime that has allowed a reliable flow of products into the nation overtime. One such nation that the Maldives has come to form close ties with and depend on, especially for agricultural produce is its neighboring country India. Due to these close relations, the Minister of Foreign Affairs Moosa Zameer has now announced that the Maldives is set to host a Free Trade Agreement (FTA) negotiations with India soon.
Free trade agreements (FTAs) are treaties between two or more countries that facilitate the reduction or elimination of trade barriers such as tariffs, import quotas, and export restrictions. If the Maldives is able to form an FTA with India, the country can get increased market access to produce as well as get lower prices of goods due to the removed barriers.
Additionally, a free trade agreement between the Maldives and India could significantly benefit the Maldivian economy by enhancing trade opportunities and deepening economic ties with one of its largest trading partners. Additionally, the Maldives could benefit from reduced costs on imports, particularly essential goods and raw materials, which would support local industries and reduce the cost of living for its population. As a result, such an agreement would strengthen the economic partnership between the two nations and contribute to sustainable economic growth in the Maldives.
This agreement alongside other economic and trade-related agreements will facilitate trade liberalization and ease the risks of doing business in both our countries.
