China and Maldives Free Trade Agreement on Jeopardy

Maldives
Maldives (photo: Pixabay)
By Faith MagbanuaNovember 20th, 2018

The free trade agreement between China and Maldives has received quite a reputation since it was signed and now, the Maldives government is considering of pulling out of the deal.

According to Maldives' new government, they are considering of pulling out of the free trade agreement with China.

"The free trade agreement is very one-sided... the numbers don't match," ex-president Mohamed Nasheed told news sources on Monday, November 19, 2018.

The Maldives' parliament would not favor the law required for the trade deal to come into force, he added.

The remarks come days after Nasheed's ally, Ibrahim Mohamed Solih, became the Maldives' new president.

Nasheed - a senior advisor to President Solih - was barred from contesting the September elections.

However, there has been no immediate response from China regarding the latest comments, but a week ago, the Chinese embassy in the capital city Male rejected a statement by Nasheed in which he said his country risked falling into a debt trap with Beijing.

The previous president, Abdulla Yameen, preferred close ties with China and signed the free trade agreement during a visit to Beijing last December.

China and Chinese companies have invested hundreds of millions of dollars in numerous infrastructure projects in the Indian Ocean nation, known for its luxury resorts and coral islands.

Nonetheless, Nasheed's comments are seen as the latest sign of a repercussion against Beijing in the Maldives.

What makes Maldives special

The Indian-Ocean archipelago is among a number of small countries where China has invested billions of dollars building highways and ports as part of its Belt and Road Initiative, to promote trade between Asia and the rest of the world.

Nasheed also stated that China and Chinese companies have taken over a number of islands in the Maldives on leases ranging from 50 to 100 years.

"If any of these investments (in the islands) are not commercial then we must review it... Nothing was made public in the last five years," the former president said.

Nasheed prefers close ties with India, which has been trying to regain its influence in the Maldives.

The Indian prime minister, Narendra Modi, was among the guests who attended the swearing-in of President Solih in Male on Saturday.

In addition, Solih is also expected to make his first state visit to India next month.

 

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