The China-Maldives free trade agreement (FTA) has paved way to establish a specialized laboratory in Maldives to test imported goods.
Maldives will be enacting a "Standards and Metrology" laboratory in order to evaluate the goods and merchandise imported from China before approving them for market use. The laboratory will act as the policing unit in identifying the defunct products from the functioning ones as well as providing a quality assurance accredit before it gets passed on for general sales and merchandising.
The FTA also cites of establishing adequate outbound resource and skill enhancement workshops for locals organized and overseen by China.
China is subjected to import a total of 8,626 distinct products with a duty waive off while Maldives would export a total of 8.277 distinct products in the same manner to China.
The agreement read that from the date of FTA becoming official trade-grounds Maldives will lose income on duty around USD 4 million - which is contributed by the duty collected from goods imported from China - from "A" category goods.
While the initial year of FTA establishment Maldives is expected to lose a close approximation of USD 4 million based on government statistics while this would increase on an annual rate reaching around 7.8 million by 8th year of FTA. The loss in state revenue is expected to increase each year in inverse correlation to the increase of goods and merchandise import from China - which the state expects as a high probability scenario.
However the documents reflecting FTA between the two nations cite Maldivian travel agents will be given the go-ahead to establish offices at three different cities of China and operate their business on site. This is expected allow direct marketing to China tourist markets and allow tourists to make direct bookings to Maldives without the need of a third party.
FTA is expected to act as a positive catalyst to boost Chinese market in Maldivian tourism, they are already considered as the biggest tourist contributor to Maldives.
China-Maldives free trade agreement (FTA) is expected to open the doors of trade in 64 different fields in Maldives for China while the Asian monolith will open trade doors in 98 fields to Maldives.
The fields opened for China to establish their new markets include tax agencies, construction businesses as well as marketing and sales related companies. Additionally China is getting the first ever go-ahead in several businesses that has otherwise been restricted for foreign corporations such as hotel and restaurant ventures and liveaboard businesses.
The free trade agreement cites of opening doors for China to establish services in tourism industry such employing tourist guides, operating dive centers along with lodging and yacht marina establishment.
