The Lopsided Nature Of The Free Trade Agreement Between Maldives And China

Holidaymakers all over the world are wishing that they could visit Maldives to experience its mesmerizing beauty, white sandy beaches and coral reefs. Visitors can also look forward to Maldives villas that offer every type of luxurious convenience that anyone could wish for including several others that might just surprise guests.

Political stability has returned to Maldives and its economy is now booming. A few months into 2019 and more than 2 million international tourists have arrived. However, Maldives is not only for tourism, it is also an attractive market for goods and services.

According to Mohamed Nasheed, chief of Maldivian Democratic Party, the new government will pull out from the free trade agreement with China because it was a mistake for a tiny nation like Maldives to strike a pact with the China that has the world’s second biggest economy. The trade imbalance between the two countries is so huge that a free agreement certainly won’t work.

The free trade agreement is a one-sided treaty because China is not buying anything from Maldives. According to the Maldives President, the nation is experiencing financial difficulty because of the huge debts to China.

Abdullah Yameen who lost the presidential election last September signed the agreement in December last year. His parliament immediately ratified the treaty in the same month in spite of the protests of the opposition. Now, the parliament will not pass the changes that are required so that a zero tariff agreement could be enforced.

Maldives is one of the small countries where China has invested billions of dollars for the construction of motorways and housings. The investment is part of the Belt and Road Initiative that will improve trade and investment flow in Asia. China is willing to work with Maldives to promote the Belt and Road Initiative and inject new impetus in the relationship.

With the return of political stability, it is expected the international visitors will flock to Maldives and enjoy the unique experiences that it can offer. Book your accommodations now at Maldives villas before they run out of rooms. Do not miss the curated experiences and recreational options that have been planned for guests.