The free trade agreement signed between China and Maldives will open doors for expanding Maldivian businesses, says Economic Minister Mohamed Saeed.
During an interview on Raajje Miadhu program on TVM, Minister Saeed said that the biggest challenge for expanding Maldivian businesses is the difficulty in borrowing loans. ‘Hence, with the free trade agreement, more banks will open up in Maldives making it easier for businesses to borrow loans.’, said Minister Saeed.
He also said that this agreement will create an inflow of money to Maldivian banks from larger foreign banks which then can be lent to businesses. It will let also let foreign banks to directly lend money to businesses at a cheaper rate.
Minister Saeed also said that this agreement is a great opportunity for better exports. He said that the free trade agreement with China is a chance to import seafood from other countries and then export it to China.
“The total customs tariff line in China is approximately 6000 where 298 items comprise of seafood. Out of that, we got the chance to export 296 items at zero percent now.”
said Minister Saeed.
In response to the critics, Minister Saeed said that they are ‘outdate products’ and the failure for those politicians to take this chance before is not a reason to forgo this opportunity now.
The free trade agreement between China and Maldives was passed by the Parliament last week.