WT/TPR/M/332  
11 May 2016  
(16-2593)  Page: 1/33  
Trade Policy Review Body 
21 and 23 March 2016  
 
  TRADE POLICY REVIEW 
MALDIVES  
MINUTES OF THE MEETING 
Chairperson: Ms Irene Young (Hong Kong, China) 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE REPRESENTATIVE OF MALDIVES ................................... 4  
3  STATEMENT BY TH E DISCUSSANT .............................................................................. 10  
4  STATEMENTS BY MEMBERS ........................................................................................ 15  
5  REPLIES BY THE REPRESENTATIVE OF MALDIVES AND ADDITIONAL 
COMMENTS ..................................................................................................................... 26  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 33  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Maldives are reproduced in document WT/TPR/M/332/Add.1 and will be available 
online at http://www.wto.org/englis h/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/332 • Maldives 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The third Trade Policy Review of Maldives was held on 21 and 23 March 2016. The 
Chairperson, Ms. Irene Young (Hong Kong, China), welcomed the delegation of Maldives headed 
by Honourable Mr Ibrahim Yusuf Fulhu, Executive Coordinator, Ministry of Economic Development; 
the rest of the delegation from Maldives; and the discussant, H.E. Ambassador Syed Tauqir Shah 
(Pakistan). 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Maldives was contained in document WT/TPR/G/332 
and that of the WTO Secretariat in WT/TPR/S/332. 
1.3.  Questions by the following delegations had been  submitted in writing before the deadline and 
had been transmitted to the delegation of Maldives: China; Canada; Brazil; the United States and 
the European Union. The following delegations submitted written questions after the deadline: 
Australia; Thailand and Chinese Taipei. These questions had also been transmitted to the 
delegation of Maldives. 
1.4.  At the previous TPR meeting in 2009, Members had praised Maldives for its robust economic 
growth and resilience, despite the devastation caused by the 2004 tsunami. Members had welcomed the country’s political and economic reforms, but had been mindful of the risks posed by 
global warming and rising sea levels. Some Members had also raised concerns about the large 
fiscal deficit and high inflation, and had urged Maldives to implement tax reforms aimed at broadening its tax base and reducing reliance on tariffs as a source of revenue. It was encouraging to see that Maldives had been able to sustain its economic growth during the review period. 
Inflation had declined, and more tourists were coming from new markets such as China. Although 
political transition had been a challenge, the Go vernment had managed to introduce tax reforms, 
reforms to attract investment, legislative measures  to formalize the informal enterprises, as well 
as a new pension system. These major economic trends and structural reforms were useful 
background to the discussion during the meeting. 
1.5.  Members also recalled that, at the time of the previous review, Maldives had been about to 
graduate from LDC status. Graduation took place in 2011, and the transition period ended two 
years later. As a result of this, and its classification as an upper-middle-income country by the World Bank, Maldives had lost most of its preferential market access to major markets, its eligibility for LDC treatment under GSP arrang ements and WTO Agreements, and possibly some 
benefits in terms of technical and development assistance. The Chairperson thought Members 
would be interested in knowing how the country was coping with these changes. 
1.6.  Another issue highlighted at the previous review was the need for economic diversification. It 
appeared that not much had changed: Asia was still Maldives' main regional market and supplier; 
tourism was still the single largest activity and th e largest source of revenue; and marine food was 
still the main export. Not much progress had been made in the privatization of state-owned 
enterprises either, although the authorities were promoting joint ventures between these 
enterprises and private companies. The 2013  legislation regarding the governance and 
performance of SoEs was another important development worth noting. 
1.7.  With regard to trade policy, Members had encouraged Maldives to make its tariff simpler and 
reduce, if not eliminate, the gap between applied and bound MFN rates. Members were pleased to 
note that in 2011 Maldives had unilaterally eliminated tariffs for about 31.5% of its tariff lines, and that the average applied MFN tariff rate had drop ped significantly, from 21.4% (in 2008) to 13.9% 
(in 2015). Notwithstanding this remarkable liberalization effort, it seemed that certain applied MFN 
tariff rates still exceeded the bound rates. The Chairperson believed tariffs were another area that Members would like to comment on. 
1.8.  During the previous review, some Members were concerned that Maldives had not 
implemented the WTO Customs Valuation Agreement, and did not have legislation regulating intellectual property rights. Since then, good progress had been made and enabling legislation had been enacted. However, legislation governing competition, bankruptcy and insolvency was still at 
the drafting stage. That was an issue to  follow up in this review as well. WT/TPR/M/332 • Maldives 
 
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  1.9.  Indeed, many of the issues mentioned above continued to feature in Members' advance 
questions this time. In addition, Members asked about the progress that Maldives was making in its RTA negotiations and the ratification of TFA,  and whether it had plans to join the WTO GPA. 
Noting that Maldives had not been submitting no tifications in a number of areas, Members also 
asked what actions the authorities would take to improve adherence to WTO transparency 
requirements. 
1.10.  This meeting was a good opportunity for Members to discuss in greater detail issues of 
interest to them and of systemic importance to the multilateral trading system. The Chairperson 
looked forward to a fruitful exchange. WT/TPR/M/332 • Maldives 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF MALDIVES 
(HONOURABLE MR IBRAHIM YUSUF FULHU) 
2.1.  Allow me at the outset, Madam Chair, to expre ss our deep felt gratitude for presiding over 
the third Trade Policy Review of the Maldives. 
2.2.  I would like to express my sincere gratitude to the Ambassador of Pakistan Dr. Shah for 
accepting to be the discussant for Maldives.  
2.3.  I am deeply honored and privileged to represent the Government of Maldives in this 
important review exercise.  
2.4.  Since our last trade policy review, Maldives has experienced a very challenging, yet, crucial 
six years, in our development history.  
2.5.  Yet, Maldives have continued to achieve robu st growth within the region, despite a very 
challenging political environment, for the greater part, since the 2009 review.  
2.6.  Both per capita income and GDP has risen, accompanied by marked improvements in social 
indicators. 
2.7.  Average GDP growth over the review period was 4%.   
2.8.  Maldives could still be considered as a fast growing economy in South Asia, with the current 
per capita GDP standing at just over US$6,700.   
2.9.  Maldives continued to adopt a very liberal trade in investment policy over the review period 
and intends to further its liberalization, moving forward. 
2.10.  Having said that, I wish to draw your attention to the record of the meeting of the second 
trade policy review of the Maldives, where a number of inherent issues and concerns relating to 
the Maldivian economy, particularly on the area of trade and investments were highlighted by 
Members.  
2.11.  I wish to use this opportunity to report progress to date on a few of these matters. 
2.12.  Under the visionary leadership of President H. E. Abdulla Yameen Abdul Gayoom, Maldives 
has made substantial progress in laying the necessary foundations for an economic transformation. 
2.13.  The President has declared his goal of doub ling the country’s GDP per capita from the 
current US$6,700 to US$12,000 in the next 5 years.   
2.14.  In working towards realizing this vision, the administration appreciates the importance of 
addressing the structural challenges facing the Ma ldivian economy, including, but not limited to;  
 The risks associated with a narrowly based economy; 
 A ballooning budget deficits and an unsustainable public debt, 
 An un-favourable external position; 
 The continuing financial and logistical challenges of having to manage a country, with 99% 
water and 1% of land; 
 Attending to the limitation in the country trade related infrastructure, which is badly in need 
to modernization and expansion;  
 Attending to and adjusting to the global economic and trade realities as a graduated 
country; 
 Modernizing and upgrading the legal framework facing businesses and investments; and  
 Developing the necessary legislation and institutional set-up for Maldives to fully comply 
with its international obligations.  
2.15.  If you may recall, many of these structural problems in the Maldivian economy were 
highlighted by Members and discussed at length during the 2009 Trade Policy Review.  WT/TPR/M/332 • Maldives 
 
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  2.16.  Since 2009, several steps have already been taken towards addressing these issues.  
2.17.  I will try to touch upon a few of these initiatives by the Government. 
2.18.  First, in attending to the concerns and risks of continuing with a narrow economic base in 
Maldives, I note that the Government of Maldives initiated work on developing a National 
Diversification Strategy following the trade policy review of 2009. 
2.19.  The purpose of the National Diversification Strategy was to technically evaluate potential 
areas that Maldives can diversify its economy, given our resource endowments, location and other 
inherent advantages.  
2.20.  The National Diversification Strategy identified and laid out for the first time specific 
interventions towards gradually broadening the economic base and diversifying the product 
offering of already established indust ries such as tourism and fisheries. 
2.21.  I have brought a few copies of the National Diversification Strategy and will be pleased to 
share them with interested delegations at the end of today’s meeting.  
2.22.  Another concern raised by Members in our review of 2009 was the issue of fiscal 
sustainability in Maldives.  
2.23.  We have also made significant strides in moving towards fiscal consolidation and a more 
sustainable fiscal path.  
2.24.  In this regard, the Government has acted swiftly since the last TPR, in broadening and 
refining the tax base in the country. 
2.25.  I would like to note, that, since the last TPR, we have:  
 introduced and started collecting a broad-based Business Profit Tax;  
 introduced and refined a broad-based Good and Services Tax;  
 introduced a Green Tax from tourist visiting th e Maldives and pledged to specifically utilize 
the proceeds for environmental causes, primarily waste management. 
2.26.  All these interventions were designed almost immediately after the last review and were 
implemented in a very short span of just 4 years.  
2.27.  I am happy to note that the overall effect of  these changes have been very positive on 
broadening the government tax base as well as for attaining broader economic development 
objectives.  
2.28.  These changes have resulted in a significant shift in the government revenue mix. 
2.29.  Since 2011, the proportion of government revenue generated from taxes has increased 
substantially. 
2.30.  While only 46% of the government revenue was generated from taxes in 2010, more than 
70% of the revenue in 2014 was generated from taxes.  
2.31.  The implementation and the ongoing process of further refining the country’s tax regime has 
also helped reduce the Governments' dependence on tariff revenue as a major source of revenue 
for the Government. 
2.32.  The implication of this is greater flexibility for the Government in the design of its tariff 
regime, which is the major trade policy instrument of the Government.  
2.33.  On the same issue of moving towards fiscal sustainability, the Government has made some 
concrete interventions expenditure front to minimize the financial costs associated with managing 
a population spread across 200 small islands. WT/TPR/M/332 • Maldives 
 
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  2.34.  This is an inherent challenge for any Government and is imposed due to the natural 
geography of the country. 
2.35.  From a fiscal sustainability perspective, what is clear to all Governments is that it is 
practically impossible to base our development model on the current concept of providing social 
services and economic opportunities through the Government for the populations currently 
residing in over 200 islands. 
2.36.  Even today, one of the biggest expenditure items in the national budget is the allocation for 
the maintenance, upkeep and operations of social infrastructures such as schools and hospitals, at 
the island level designed for a few hundred residents in most cases.   
2.37.  Under this development model, the per capita cost  of providing basic social services such as 
schooling, health care and other basic utilities in the Maldives will probably be amongst the highest 
in the world.  
2.38.  As such, the Government has declared its intention of concentrating the bulk of the 
Government’s total capital investments on housin g and other necessary infrastructure, in already 
established population centers, such as the re gion surrounding the Capital City of Male and a 
limited number of large population clusters in the archipelago.  
2.39.  The rationale of this new policy stance is that with the provision of better social services and 
economic opportunities in the larger population centers, we would observe greater influx of people 
into these regions, helping the Government in consolidating the population into a few larger population centers where basic service provision can benefit from economies of scale. 
2.40.  The investment on connecting the capital city of Male with the main international airport and 
the adjacent island reclaimed as a residential island is a clear example which demonstrates the 
Government’s commitment to work towards population consolidation and a sustainable public expenditure model in the medium-term. 
2.41.  The land connection between the Capital city of Male and the airport island, which is 
currently underway and scheduled to be completed by mid-2018, is expected to totally change the socio-economic dynamics of the Male region. 
2.42.  The planned supplementary investments in new housing start-ups in the region and the 
ongoing and planned commercial activities in the Greater Male region are expected to create 
substantial additional employment opportunities an d are expected to draw more residents into the 
region.  
2.43.  While the impact of these interventions may not be realized overnight, these policies are 
expected to bare fruits in the medium term. 
2.44.  The expected medium term impact of these policies on the state budget is a substantially 
reduced re-current expenditure on maintenance and operations of social services in the island 
level, helping efforts to rationalize public expenditures, and moving towards a sustainable fiscal path. 
2.45.  The current Government, since taking office in November 2013, has at the outset 
recognized that the country’s ailing infrastructure is a major impediment for the development of Maldives, in particular to the realization of the Administrations’ economic transformation agenda. 
2.46.  Key trade facilitating infrastructure such as the main airport and the main port of the 
Maldives is clearly seen to be constraining its development even at current levels of economic 
activity. 
2.47.  The Government of Maldives is of the view that the main international airport and the main 
maritime gateway into Maldives needs to be expanded and modernized as a priority if the Maldives 
is to maximize the economic value from the pl anned expansion of the tourism sector and the 
expected influx of investments in Special Economic Zones, following the passage of the SEZ law.  WT/TPR/M/332 • Maldives 
 
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  2.48.  I am pleased to inform this gathering that approximately 50% of the financing requirement 
for a major project to expand and modernize the main airport international airport facility in the Maldives has been secured by the Government and the project is expected to commence implementation before the end of the second quarter of 2016.  
2.49.  Similarly, the Government has recently entered into an MOU with a renowned international 
port operator with the intention of forming a Joint Venture with the Government in a major green-field development to re-locate and operate of the main maritime gateway of the Maldives. 
2.50.  I note that the currently port facility located in Male is constrained by physical limits to its 
expansion and is a major impediment to our develo pment, due to inefficiencies and high cost of 
services.  
2.51.  Maldives was officially removed from the list of Least Developed Country (LDC’s) in 
January 2011 and the three-year smooth transitional period accorded to Maldives expired on 
31 December 2013. 
2.52.  The specific LDC benefits that Maldives received as a Least Developed Country was 
instrumental to the country's economic growth. 
2.53.  Looking at the challenges, the transition to a Middle Income Country has resulted in the 
removal of trade benefits and a gradual decline in ODA flows and technical assistance for the 
country, leading us to a new landscape and with a different set of challenges. 
2.54.  As a small island State with inherent unique vulnerabilities, Maldives believes that modalities 
for special treatment for SIDS are crucial to ensure that the country's positive development trajectory is not disrupted.  
2.55.  With the graduation of the country from the LDC group, and with the gradual erosion of 
previously accorded preferential trade arrangements, the Government of Maldives has naturally intensified its efforts to engage with bilateral trade partners. 
2.56.  The main driver of these initiatives is to improve market access for our limited export 
products, find new avenues to increase the produc tive capacity of the country in tradable goods 
and to widen the scope of services trade beyond the current tourism services. 
2.57.  I wish to highlight the achievements of Maldives in reforming its trade and investment 
related legislations and its efforts to create a more transparent and predictable trade and commercial regime.  
2.58.  The Government appreciates the role of foreign investment in the development of Maldives 
t o  d a t e  a n d  r e c o g n i z e s  t h e  i m p o r t a n c e  o f  f o r e i g n  d i r e c t  i n v e s t m e n t  a s  w e  m o v e  f o r w a r d  a s  a  
Middle Income Country. 
2.59.  As such, the investment regime of the country is continually being refined to providing a 
transparent, fair and simple environment to conduct business.  
2.60.  The Government acknowledges the central role of the private sector, particularly the small 
and medium enterprises play in the development of  the country, and recognizes the importance of 
establishing a modern legal and commercial environment for the private sector to grow. 
2.61.  It is with this view that the Government introduced to the Parliament and enacted the SME 
Law and a Law on Special Economic Zones in 2014. 
2.62.  The SME Law provided for support mechanism for SME through a network of business 
support services.  
2.63.  The Law on SEZ provided additional protection  and a relaxed operating regime along with 
significant tax and non-tax benefits to developers and investors of Special Economic Zones in the 
country. WT/TPR/M/332 • Maldives 
 
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  2.64.  The SEZ law seeks to attract private capital into the Maldives for the provision of 
infrastructure assets necessary for realizing the economic transformation goals of the Maldives.  
2.65.  On the same topic of the Government's efforts to streamline and put in place a conducive 
business environment, I would also wish to highlight that a National Trade Facilitation Committee 
comprising of senior representatives from relevant sector Ministries has been established by the 
President in 2015. 
2.66.  This Committee chaired by the Minister of Economic Development is mandated to identify 
and streamline the business processes within state institutions to facilitate freer flow of goods and 
identify and implement measures across the Stat e to improve the doing business environment. 
2.67.  I note that one of the key priorities of the Trade Facilitation Committee is to work towards 
achieving a national single window.  
2.68.  I would also wish to highlight that in view of facilitating investors, the Government for the 
first time published a doing business guide of Maldives which laid down up-to-date information on all aspects of doing business in Maldives. 
2.69.  I will be pleased to share with the interested Members copies of this 2015 publication.  
2.70.  What I have highlighted represents a summary of the achievements of the Maldives with 
respect to the various issues relating to the Maldives economy discussed in our TPR of 2009.  
2.71.  The Secretariat report of 2009 and again in 2016 notes that Maldives still have a fairly 
complex tariff regime, citing the prevalence of several exemptions as a concern. 
2.72.  Members further highlighted several other concerns including the poor record of Maldives in 
WTO notifications, Maldives not complying fully with the WTO Customs Valuation Agreement and 
the limited progress in the passage of laws on protecting intellectual property rights and the lack 
of transparency in government procurement practices.  
2.73.  With respect to concerns that Maldives maintains a complex tariff structure with several 
exemptions on the application of the MFN rates on certain tariff lines, I wish to explain the 
rationale for the prevalence of such measures.  
2.74.  As an import dependent country, where a pproximately 95% of our requirements are 
imported, the cost living for the common folk is inherently linked to the landed cost of imports.  
2.75.  F o r  t h i s  r e a s o n ,  M a l d i v e s  w i s h e s  t o  d o  a w a y  w i t h  i m p o r t  t a r i f f s  o n  m o s t  o f  t h e  i m p o r t e d  
products, except for those with environmental and public health considerations.  
2.76.  However, until and unless the currently tax regime matures, it is practically impossible for 
the Government to do away with tariffs on its entirety. 
2.77.  While I have, earlier on, noted the progress we have made in broadening the tax base, 
substantive work is required before we are able to have a fully-fledged tax system.  
2.78.  It is for this reason that we maintain tariff lines on certain categories of goods, but provide 
through law and regulations for exemptions of import tariffs for products that are imported for starting up economic activities that generate employment and other multipliers.  
2.79.  Having said that, I would like to highlight that even today approximately 34% of our tariff 
lines are subjected to a 0% duty rate. 
2.80.  The tariff lines subjected to zero duty are for essential goods such as food, medicine, 
construction materials such as cement, sand and wood, fertilizers, garments, domestic electrical 
appliances, environmentally friendly goods and machinery and vehicles that run on renewable 
energy.  WT/TPR/M/332 • Maldives 
 
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  2.81.  On the concerns raised by Members about Maldives failing to comply fully with the WTO 
Customs Valuation Agreement and the limited progress in the area of protecting intellectual property rights in the Maldives, I wish to note that since the 2009 review, we have enacted the Customs Act providing for full implementation  of the WTO Customs Valuation Agreement. 
2.82.  We have also enacted the Copyrights and Rela ted Rights Act and will be forwarding the 
Trade Marks and Geographic Indications Bill to the Attorney General’s Office for submission to the Parliament before the end of the second quarter of 2016. 
2.83.  I note that the translation work of the two bills which were pending at the time of compiling 
the Secretariat report for this review is now complete. 
2.84.  In concluding my opening statement, I wish to re-assure other Member States present here 
on the commitment of Maldives to the multilateral trading system and that we will continue to 
implement measures to meet our obligations under the WTO agreements as a graduated country. 
2.85.  Finally, I would like to request the WTO Membership to take due consideration of the fact 
that graduated countries, such as the Maldives, qu alify for graduation by merely meeting certain 
benchmarks in development indication, but our vulnerabilities remain intact and we face a very 
challenging global environment as a graduated country,   
2.86.  I therefore seek the support and understanding of the WTO Secretariat and of the 
Membership in helping graduated countries, continue to benefit from established support structure 
in place as we move forward with our development priorities.  
2.87.  Let me once again thank Madam Chair, our discussant and the distinguished delegations and 
request clarifications from Members regarding our trade policy for the past six years in this review 
exercise. Thank you. WT/TPR/M/332 • Maldives 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  I wish to extend a warm welcome to the Maldives delegation headed by his Excellency 
Mr Ibrahim Yusuf Fulhu, Executive Coordinato r, Ministry of Economic Development.  
3.2.  Special thanks and appreciation to the Secretar iat for their thorough and dedicated work for 
this TPR. 
Macroeconomic situation 3.3.  Maldives, a chain of 26 coral atolls located in the Indian Ocean, is an archipelago consisting of 
1,190 islands, of which only 16% are inhabited. Another 100 islands are used as resorts and 14 as 
sites for industrial plants. Maldives total surface area is 298 sq km and its population is estimated to be at 393'253. Maldives is one of the smallest countries in Asia and the Pacific by population and land area.  
3.4.  Maldives geographical location proves to be both a potential and a challenge to its economy 
and growth. Maldives is an important tourism destination, and this sector has greatly contributed to sustain the growth of Maldives economy during the period under review despite global economic 
downturn. Real GDP went up from 4.7% in 2013 to 6.5% in 2014 and remained strong at 5% in 
2015, resulting in a drop in inflation and unemployment rates. Tourism has been the main driver of growth, but exclusive reliance on tourism,  exposed the economy to greater volatility. 
3.5.  Maldives geographical location remains a challenge for its economy: its remoteness limits 
access and competitiveness with international markets, its size limits the opportunities to develop further its industry, and its location in the middle of Indian Ocean makes it more vulnerable to the effects of climate changes (namely raising sea level, tsunamis, and depletion of fish stocks). 
3.6.  Against this backdrop, the pattern of Maldives economy’s growth relied heavily on services 
accounting for 72.8% of GDP. Agriculture, which is  constrained by a dearth of arable land have 
played a minor role in the economy. Agriculture’s share of GDP (which includes mainly fisheries) 
has been only around 2% of GDP. The garments industry had been the only major manufacturing 
activity in the country, at just under 5% of GDP. Trade consists of exports of marine food and imports comprise of manufactured products, inputs for the apparel industry, food and fuels. Since 
the last review in 2009, trade has increased from US$1.04 billion in 2009 to US$2.1 billion in 
2014, out of which exports increased from US$76.7 million in 2009 to US$144.8 million in 2014, and imports increased from US$966.1 million in 2009 to US$1,992.7 million in 2014. 
3.7.  Trade in services is dominated by tourism and its related activities. In 2014, the share of 
travel and tourism in Maldives total GDP was 74% , and it has 62% share in employment. Tourists 
visiting Maldives went up from 655,852 in 2009 to 1,125,202 in 2013. 
Government responses to further develop the economy 
3.8.  Commendably, the Government took some bold steps since the last TPR, by introducing and 
adopting the following reforms and measures:  
a. Goods and Services Tax (an indirect tax levied at 6%) and Business Profit Tax (a direct tax 
levied at 15%) were introduced under BPT and GST Act of 2014. These taxes were part of 
measures to prevent the vulnerability of Government revenues to external shocks.  
b. New investment incentives for activities in special economic zones (SEZs). Under the Special 
Economic Zones Act of 2014 there are several incentives available to developers and firms 
to operate in such special economic zones: exemption from import duty, Business Profit Tax, 
Goods and Services Tax, withholding tax, taxes on purchase of land or flexible rules to bring or recruit expats for employment. 
c. Legislative measures for the formalization of informal enterprises, under the Business 
Registration Act of 2014, there are tax incentives tied to formal registration of Companies. This is a targeted programme to encourage the formalization of informal economy that plays 
important role in job creation and opportunities for livelihood. WT/TPR/M/332 • Maldives 
 
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  d. New pension scheme that is extended to the private sector, self-employed and foreign 
workers. The success of this new scheme will, however, require allowable investment opportunities, since 85% are invested in short-term Government securities.  
e. Fiscal responsibility Act of 2013, an impo rtant monetary policy step adopted by the 
Government to halt the financing of fiscal deficit by adopting specific measures and rules. 
The objective of this Act is to have the Government Budget in surplus by the end of 2017.  
f. The adoption of a stabilized exchange rate regime following the IMF recommendation since 
April 2011, the rufiyaa is allowed to fluctuate within a band of 20% on either side of central 
parity of US$12.85 per dollar.  
Trade pattern 3.9.  Commendably, the openness of Maldives economy to international trade and its integration 
into the world economy continue to be reflected in its increasing trade (in goods and services) 
ratio to GDP. The ratio increased from 193.9% in 2011 to 198.6% in 2014. Exports doubled to US$161.6 million, and services' contribution to the increase in GDP ratio was largely due to the 
increased travel receipts.  
3.10.  The patterns of Maldives' trade both imports and exports remain similar to last review. Main 
exports consist of marine food, while imports consist of manufactured products, intermediate items 
for the apparel industry, food and fuels. Major trading partners are Asian countries and the 
European Union. Since the last review, however, the share of the European Union as an export destination went down from 42.5% in 2009 to 37% in 2014. The United States became an export destination with 9.0% share in 2014, while no substantial share was registered in 2009.  
3.11.  Major suppliers of Maldives market remain the United Arab Emirates, followed by the 
European Union and Malaysia. China has started to gain substantial share as a supplier of Maldives' market, in 2014 it doubled its share to 5.3% since the last review. 
Trade related challenges facing Maldives 
3.12.  The sustained growth of Maldives' economy is, however, facing some challenges. Let me 
point out particularly to the foreign investment that has greatly contributed to the growth of the 
economy. The openness of Maldives economy has resulted in high rates of foreign investment as 
compared to some of the Asian countries. This has contributed to the sizable growth in Maldives’ tourism sector, leaving only a small percentage of investment in other sectors despite generous offers and stimulus packages.  
3.13.  Some challenges are, however, likely to limit foreign investments, such as the connectivity 
issue between the different atolls, the lack of adeq uate transport infrastructure, not only road, but 
also maritime transport. The limited availability of skilled human resources to which the 
Government response has been to massively invest in education.  
3.14.  The high cost and limited access to finance hampers also the investment climate: 
insufficient competition in the market, and high cost of borrowing. 
3.15.  The diversification of Maldives' exports is a real challenge to the economy since current 
manufacturing sector is small and offers a limited scope for structural transformation.  
State involvement in the Economy 3.16.  Since the last review, State involvement in different sectors of Maldives' economy still 
remains prevalent. State plays an important role in different sectors like Agriculture, Energy, 
Communication, and Tourism facilities. Nearly 100 partially or fully owned State companies are operating in different sectors of the economy. 
3.17.  But the Government has signaled its intention to enhance the role of private sector. The 
State Business Privatization Act (2013) will govern all future privatization and corporatization efforts by the Government. A Privatization and Corporatization Board is to be established under WT/TPR/M/332 • Maldives 
 
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  the Act, tasked with planning, implementing, administering and monitoring the Government’s 
privatization and corporatization efforts. The Government has launched a programme to establish public-private partnerships in service provision and privatization of selected state-owned enterprises. 
Graduation  
3.18.  In 2011, Maldives graduated from being an LDC to an upper middle income country. The 
graduation of Maldives out of LDC catego ry has inbuilt challenge for its trade. 
3.19.  This graduation has implications for Maldives' economy mainly loosing benefits from 
preferential access to major markets such as the European Union, Canada and China, as well as eligibility for technical assistance.  
Major challenge: climate change  
3.20.  The projected effects of climate change is a serious threat for Maldivian communities. 
Maldives is particularly vulnerable to projected adverse consequences of climate change: sea-level rise, increases in sea surface temperature, ocean acidification, and frequency/intensity of droughts 
and storms. 
3.21.  Stresses on coral reefs, which include an increase in sea surface temperature are also a 
concern since Maldives economy (in particular fisheries and tourism) is heavily reliant on the 
proper functioning and survival of the coral reef system – which also provides a natural defense for 
the coastline. Atoll ecosystems, coral reefs, islands, lagoons and diverse aquatic species are the lifeline of Maldives. The biodiversity of atoll ecosystems underpins at least 71% of national employment, 89% of gross domestic product and 98% of exports. These ecosystems are under 
increasing threat from human and climate change impacts.  
Tariffs 3.22.  The review in 2009 highlighted the heavy reliance of the economy on import taxes as 
sources of revenues, the complex structure of tariffs, the rate of bound tariffs, and the 
15.7 percentage point gap between bound and applied MFN tariffs. 
3.23.  In 2010, the tax reform has resulted in the drop of the simple average applied MFN tariff 
from 21.4% in 2008 to 10.9% in 2013. Tariffs were liberalized mostly in agricultural products 
representing 74.1% of duty-free lines.  
3.24.  Based on the 2015 tariff schedule, 94.9% of tariff lines are bound while 442 lines remain 
unbound, these are related to fish and fish products and motor vehicle parts. However, some 
tariffs rates still appear to exceed its bound rate s. Additionally, some transparency issue seems to 
relate to the availability of on-line tariffs by Maldives Customs. Only active tariffs are reported while inactive tariffs (around 2'238 tariff lines) were not reported.  
3.25.  During the period under review, tax revenues increased nearly fourfold, and the contribution 
of import duties to total Government tax revenues have declined. In 2014, import duties accounted for 16.5% of total tax revenue, while in 2009 and 2010 they were two thirds of total tax 
revenues.  
Intellectual property laws  3.26.  At the review in 2009, the lack of intellectual property laws was highlighted. Commendably, 
in 2010, a Copyright and related rights Act has been introduced and the preparation of draft 
legislation on patents, industrial designs, trademarks and geographical indications is underway.  
WTO notifications 3.27.  The review in 2009 indicated that Maldives has a low record of WTO notifications which 
during the period under review has not seen any notable changes. Maldives is encouraged to WT/TPR/M/332 • Maldives 
 
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  improve its notifications to WTO since it is an  important element of transparency mechanism 
leading to trade predictability.  
Regional trade  3.28.  Since last review, Maldives participation in any regional trade agreements remains limited 
and unchanged. Maldives is a member of SAFTA (South Asian Free Trade Area) and has only one 
operational bilateral trade agreement with India.   
Energy 
3.29.  It is important to highlight in this review the status of the energy sector since it plays a vital 
role in the development and growth of the economy. Maldives relies on fossil fuel for its energy and uses mainly diesel as its primarily source of energy, 31% of total imports of Maldives are 
petroleum based fuels. Diesel accounted for more  than 80% of energy supply, followed by LPG 
(Liquefied Petroleum Gas) Kerosene, and Jet Avia tion. Maldives is not having any indigenous 
resources of petroleum, gas, or coal, and the typography of the terrain does not give the opportunity to exploit hydropower as source of energy. 
3.30.  Electricity is the main energy used. However, its tariffs are among the highest in South 
Asia; and despite being subsidized, access to electricity as a source of energy is still limited. 
3.31.  This high dependence on fuel imports makes the economy vulnerable to risks resulting from 
fuel prices fluctuations or global oil shocks. United Nations Regional Energy Programme ranks the 
Maldives as the most vulnerable to oil price variations among 24 countries in Asia and the Pacific.  
3.32.  Against this backdrop, Maldives' Government has developed strategies to promote the use 
of renewable energy and achieve energy efficiencies and carbon neutrality. 
Trade facilitation 
3.33.  In 2014, World Bank Logistics Performances Index ranked Maldives at 82 out of 
160 countries, well ahead of many Members with similar level of development.  
3.34.  In 2016, the World Bank ranking of Maldives fo r ease of doing business stands at 128 out of 
189 economies – the World Bank criterion include: starting a business, dealing with construction permits, getting electricity, registering a property, getting credit, protecting minority investors, 
paying taxes, trading across borders, enforcing co ntracts, and resolving insolvency. It has come 
down three places from 2015 ranking, but stil l ahead of many economies in SAARC region. 
3.35.  Commendably, Maldives introduced improvements in its trade facilitation procedures: a fast 
channel clearance for imports. There are also strong signals such as the launch of internal process 
to ratify the WTO Trade Facilitation Agreement and the establishment of  Trade Facilitation 
Committee. Maldives' Authorities are working towards the development of a single window for trade facilitation. 
E-Commerce  
3.36.  I would like to point out at this review the opportunity for Maldives to further develop its 
Services through e-commerce. Statistics from the Communications Authority of Maldives indicated 
the important increase in use of broadband Internet: while in 2010 subscriptions were only 
494'351, they were 665'818 in 2014. Today, new Information Communication Technologies are driving opportunities in various sectors. The de velopment of e-commerce not only on business-to-
consumer but also on business-to-business basis and may contribute to the economic 
diversification strategy.  
Role of gender in the economy 3.37.  I would like to highlight the important steps achieved in gender gap issue in Maldives. 
Maldives has made significant progress to advance gender equality in recent years. Gender gaps in WT/TPR/M/332 • Maldives 
 
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  education have shown a marked decline. Gender inequality has been reduced in literacy rates, 
enrollment, and attainments at primary, secondary, and tertiary levels.  
3.38.  Challenges remain, however, in the areas of women’s political, economic, and social 
empowerment. While women’s labour force participation rate has gone up to 59% in the past few 
years, the labour force participation rate of women in Maldives stands high as compared to other 
SAARC countries.  
3.39.  In 2015, the World Economic forum ranked Maldives at the 113 position out of 145 
countries for its Global Gender Gap Index with a score of 0.6. The country ranks above the 
regional average across all sub-indexes except for political empowerment. 
3.40.  To conclude my statement, I am happy to note that Maldives' economy has the potential to 
sustain its growth by exploiting its potential for renewable energy (solar and wind), by developing 
its Services' sectors by linking it closely to tourism, and by also developing its un-inhabited islands 
for tourism and other economic activities. 
3.41.  I wish Maldives a very successful TPR. WT/TPR/M/332 • Maldives 
 
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  4  STATEMENTS BY MEMBERS 
CHINA 4.1.  Six years have passed since the last review of Maldives in 2009. The economic growth of 
Maldives has performed quite well, with an annual growth of 5.92% and peaking at 8.7% in 2011. 
We are glad to see that many positive changes have taken place during the review period. The 
Government of Maldives has continued to pursue trade and trade-related structural reforms, including the introduction of the goods and services tax and the business profit tax, new 
investment incentives for activities in special economic zones (SEZs), etc. Moreover, it is rarely 
seen that the foreign investment regime remains at such a liberalized level within an island country: 100% foreign ownership is permitted in all sectors only except for longline fisheries (since 2010) and retail trade. However, Maldives' economy remains vulnerable to exogenous risks such 
as fluctuating energy prices and protracted slow growth. We encourage Maldives to further 
undertake macroeconomic policy and trade policy reforms to improve its economic resilience and diversification. 
4.2.  Coming to the multilateral front, Maldives has fulfilled its international commitment in a 
positive manner. We are pleased to see, although tariff remains a predominant source for government revenue, the Maldives Government chose to reduce its tariff from 21.4% in 2008 to 
13.9% in 2015. Trade benefits from the introduction of a fast import clearance, and we hope 
Maldives could ratify the WTO Agreement on Trade Facilitation as quickly as possible. As an original Member of the WTO and a former GATT contracting party, Maldives is fully committed to the multilateral trading system. We look forward to working with Maldives and other Members 
towards a successful multilateral conclusion of the Doha Round in accordance with its existing 
mandate and architecture. 
4.3.  Bilateral economic ties between China and Maldives continue to deepen and widen, 
encouraged by the intensive high-level visits an d comprehensive cooperation in the recent years. 
According to China's statistics, bilateral trade volume in 2015 gained a year-on-year increase of 65.5% and the accumulated investment from China to Maldives was US$2.37 million by the end of 
last year. As indicated in the Secretariat report, more and more Chinese tourists tend to choose 
Maldives as one of their first options, which helped its recovery from the global economic crisis. Two countries signed the MOU to launch the FTA Negotiations last September, which is a truly added value for our two economies. We are confident that our bilateral economic ties will be lifted 
to a new high level. 
4.4.  We have raised some questions about Maldives' trade policy, covering the areas of foreign 
direct investment, tax and non-tax incentives. We appreciate the Maldives' delegation for their 
responses to our questions which we will study carefully. 
CANADA 4.5.  The Maldives is a country that has considerable economic potential, with strength in tourism 
and potential strength in infrastructure. We recognize the continuing efforts of the Maldives to 
promote economic growth. 
4.6.  In particular, I applaud the green energy effo rts undertaken in earnest since 2009 that focus 
on the generation of renewable energy to become less dependent on fossil fuels. We take note of 
the Maldives’ plan to become carbon neutral by  2020 and are encouraged by its determination to 
achieve this goal in response to the challenge of climate change. 
4.7.  We also welcome the Invest Maldives initiative, the recent ratification of the Special Economic 
Zones Bill by your Parliament with its focus on facilitating the delivery of key infrastructure and 
development projects, and more generally efforts to promote the development of new sectors and industries as steps intended to achieve a higher income, resilient, and inclusive economy. 
4.8.  Indeed, the 2014 and 2015 Maldives Investment Forums held in Singapore and Beijing signal 
the Maldives’ growing interest in prioritizing economic ties and cooperation with partner countries and, importantly, in increasing FDI inflows. WT/TPR/M/332 • Maldives 
 
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  4.9.  But the Maldives’ heavy reliance on tourism and imports make it vulnerable to internal and 
external shocks. Further, the political instability referenced in the Secretariat's report has no doubt complicated efforts to boost inbound tourism. High transportation costs present an additional challenge that is difficult to avoid in a country of over 1,100 small islands. In the face of these 
challenges, we urge the Maldives to embrace reforms that are necessary to raise potential 
economic growth, increase efficiencies in the ec onomy, foster competitiveness, and improve the 
investment climate.  
4.10.  In this regard, we have inquired about the reforms that you are making to the protection of 
intellectual property rights and your commitment to accede to the Revised Kyoto Convention on Customs Procedures. In our view, implementation  of this Convention as well as the Trade 
Facilitation Agreement would make important contributions to enhancing the efficiency of the 
Maldives’ international trade. We hope that impl ementing these treaties are prioritized among the 
economic reforms that you are considering. 
4.11.  We have also taken note of the comments in the Secretariat's report on the Maldives’ poor 
record of WTO notifications and observance of tariff binding commitments. In particular, we are 
troubled by the fact that the report indicates that the state of observance of tariff binding 
commitments has not improved compared to the time  of the last TPR. We take comfort, however, 
in the Maldives' commitment in its report to comply with its obligations. 
4.12.  In sum, while the Maldives has undertaken and implemented some constructive measures 
since its first review, there is much more to be done. As the Secretariat’s report concludes, further reforms are needed to enable it to meet its economic and welfare objectives. As a fellow 
Commonwealth Member, allow us to suggest that the Maldives look to the economic framework 
that the WTO provides for its Members, the advice and perspectives of the Secretariat, the discussant and WTO Members in this review, and to the values that are reflected in the 
Commonwealth Charter as it seeks to achieve growth and resilience to external shocks alongside 
greater political stability. 
BRAZIL 
4.13.  It is a matter of satisfaction for Brazil to participate in this TPR. Maldives has been an active 
voice in the international community, especially with regards to the needs of small island development States, including those related to environmental sustainability and the challenges related to climate change. 
4.14.  Brazil commends Maldives for registering an overall record of positive economic growth, 
despite the impacts of the global crisis on intern ational trade and tourism, reflecting the country's 
capacity to take advantage of its integration into the world economy and the immense potential of 
its tourism sector. Since its last TPR, Maldives registered robust GDP growth – growing above the 
world average in most years. Notably, GDP per capita grew by almost 20% from 2009 to 2014. 
4.15.  As a result, Maldives has graduated from Least Developed Country status in 2011. Brazil 
wholeheartedly congratulates the Government of Ma ldives for this achievement, which translates 
into better standards of living and expanded opportunities for its population. 
4.16.  Nonetheless, there is still a lot to be done  to effectively promote social, economic and 
environmental gains in the pursuit of sustainabl e development. In this sense, Brazil commends 
Maldives for its commitment to ensure that the country doesn’t backtrack from recent 
development gains and to keep pursuing reforms and policies to reduce poverty and inequalities; 
to create jobs, especially for the youth; and to reduce the country`s vulnerabilities, including 
through the diversification of its economy and trading partners. 
4.17.  Despite the distance between Brazil and Maldives, there have some been positive 
developments in our bilateral trade. Brazilian exports to the Maldives increased by about 40% 
from 2009 to 2014, and Brazil is the third most  important trade partner of Maldives in the 
Americas. Our exports are highly concentrated on meat and processed meat. However, there is potential for increasing trade flows in regional jets, which could support increased connectivity throughout the country, and in services sectors such as construction and public works. WT/TPR/M/332 • Maldives 
 
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  4.18.  Maldivian exports to Brazil concern basically travel and hospitality services. The number of 
Brazilian tourists visiting Maldives more than tripled from 2009 to 2014, averaging annual increases of 20-30%. The fact that an increasing number of Brazilians are crossing the globe to enjoy the natural beauties of Maldives is a strong sign of the attractiveness of its tourism sector 
and of the idyll that people from all over the world can find in the country. 
4.19.  Brazil has submitted a couple of questions to the Government of Maldives and we are very 
grateful for the replies. They provide a better insight into the Maldivian development strategy and 
trade policies and will serve as useful inputs to further enhance bilateral ties. Let me conclude by 
thanking once again the Government of the Maldives and the Secretariat for the effort they have put in the reports and by whishing Maldives a very successful Trade Policy Review. 
UNITED
 STATES 
4.20.  Much has transpired since Maldives’ 2009 TPR, both globally and domestically. The United 
States appreciates the Secretariat’s and the Government’s work in documenting the changes that have taken place since Maldives’ second TPR. We compliment you for providing WTO Members with 
a more complete picture of Maldivian policies affect ing trade, and we look forward to learning more 
about them during the next several days. We would also like to thank the Ambassador of Pakistan for acting as discussant and for providing his insights to ensure a meaningful context for this 
review. 
4.21.  Since the 2009 TPR, the Maldives has continued to chart a course towards economic 
liberalization. Maldives has a small, yet growing market that is statutorily receptive to foreign investment and trade in goods and services, and despite political challenges, the Maldives have 
experience a sustained, albeit irregular and rela tively slower, growth rate. Economic turbulence 
over the past five years has negatively affected most of the world economy, and Maldives is no exception. Nonetheless, many of the economic  liberalization programmes the Government has 
worked on – or plans to undertake – will have a lasting impact on Maldives’ future economic 
growth.   
4.22.  However, real and growing concerns about the status of democracy and rule of law in 
Maldives may act as a deterrent towards additional investment in the market. In addition, this 
beautiful island nation also faces challenges with high degrees of youth unemployment and religious extremism. A path that allows everyone – including vulnerable populations of migrant workers - to exercise their human rights and that  protects labor rights and fundamental freedoms 
will facilitate our cooperation on important mutual interests, including countering violent 
extremism, addressing environmental concerns, an d ensuring security in the Indian Ocean.   
4.23.  Maldives’ continued commitment to diversification is key to the nation’s economic growth 
and development. We recognize the challenges that Maldives will continue to face as it makes the 
transition along the road to economic prosperity. The Maldives remains eligible for our Generalized System of Preferences (GSP) programme and we st and ready to assist in providing additional 
information to Maldivian businesses about how to take advantage of our GSP program.  
4.24.  In 2014 the United States and Maldives held our first Trade and Investment Framework 
Agreement Council, or TIFA, meeting in Male. This inaugural TIFA identified several areas for cooperation to increase external trade and invest m e n t ;  w e  l o o k  f o r w a r d  t o  f u t u r e  m e e t i n g s  t o  
advance cooperation under the appropriate circumstances. 
4.25.  The United States remains mindful of Maldives’ efforts to upgrade its trade policy regime as 
characterized in the Government’s report for this meeting. Specifically, we commend the 
Government’s efforts to reduce its dependence on import duties as the primary revenue generator. 
A broad-base taxation system in conjunction with plans to develop a financial market will establish 
a diverse portfolio of revenue-generating schemes that will boost government earnings and help 
achieve poverty-alleviation.   
4.26.  Services remain by far the largest sector of  the economy (accounting for more than 80% of 
GDP and over 90% of total goods and services expo rts) with tourism being the largest activity and 
the largest generator of government revenue. We ho pe that Maldives can contribute to efforts to 
reduce barriers to global services trade. WT/TPR/M/332 • Maldives 
 
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  4.27.  We are also aware of the Government’s ongoing efforts to improve transparency in 
government procurement, to introduce quality control mechanisms on exports, and to develop laws to protect intellectual property rights. The United States stands ready to work with Maldives as your  
4.28.  The Government develops IP laws to ensure that they are TRIPs-consistent. As part of the 
TPR process, the United States has submitted questions to the Maldives regarding actions such as these in an effort to help the Maldives pursue  economic advancement, and we look forward to 
considering your responses. We also join others in urging the Maldives to ratify the Trade 
Facilitation Agreement as soon as possible, an attribute that our companies increasingly consider as they contemplate investment decisions. 
4.29.  The United States acknowledges the tests facing the Maldives because of its island-nation 
topography. Because of its low elevation, the Mald ives is among the most vulnerable countries in 
the world to rising sea levels which have the potential to disrupt significantly the Maldivian economy and way of life, and we applaud your Government’s efforts to address these concerns. 
EUROPEAN
 UNION 
4.30.  For much of the last three decades, Maldives has, despite the challenges that being a small 
island State represent, been a development success story. Maldives is now classified by the World 
Bank as an upper middle income country. The EU  welcomes these achievements. Maldives' rich 
and varied marine resources have played a vital role in shaping its development. Nature-based tourism and fishing have been the main drivers of  its economic growth and employment. However, 
this narrow economic base makes Maldives vulnerable to external shocks and to the risk of 
unsustainable use of natural resources. In that respect, the EU is interested in hearing more from 
the delegation on Maldives' strategy for diversification. 
4.31.  Regarding trade, Maldives can be commended for having adopted a new customs legislation 
implementing the WTO Agreement on Customs Valu ation. Moreover, we understand that Maldives 
has started the process of ratification of the Trad e Facilitation Agreement and we would be grateful 
to have more details on the fi nalization of the process.  
4.32.  Despite these positive achievements, important barriers to trade remain. The business 
climate could be further improved. Economic operators look for transparency, consultation, the application of the rule of law.  
4.33.  Transparency is a fundamental principle embedd ed in the WTO rule book. Like others, the 
EU regrets to note that Maldives has not improved  its record since the last TPR in 2009 despite the 
recommendations of this Body and the assistance provided. We hope that Maldives will use this review to update the Members on the actions planne d to remedy this situation. The EU also notes 
that Maldives did not opt for the alternative review timeframe which would have enabled the 
Members to receive the replies to their advanc ed questions before this meeting and enhance 
interaction and transparency. 
4.34.  As to our bilateral trade relationship, the EU remains Maldives' biggest export market taking 
43% of its total exports to the world. The pref erential access Maldives enjoyed under the EU's 
Generalized System of Preferences (GSP) and in particular duty free and quota free access under 
the Everything But Arms (EBA) regime, certainly contributed to these results. Despite Maldives’ 
graduation from the LDC status, the EU remains an accessible and open market as demonstrated 
by EU imports that grew by 38% in 2015 compared to 2014. 
4.35.  The EU has submitted a number of questions in writing and would like to seize the 
opportunity of this meeting to raise some issues of concern regarding, in particular, tariffs and 
import licensing. While the EU welcomes the steps taken by Maldives to liberalize its tariffs, the EU notes that the authorities continue to maintain a number of applied tariffs above the country's 
bound rates. In addition, there seems to be a practice of quite frequent changes to applied tariffs 
that is noted by the Secretariat and which creates uncertainty. Maldives continues to operate an import licensing system, which is not very transparent and not trade-friendly. The situation of overdue notifications is also applicable for import licensing. WT/TPR/M/332 • Maldives 
 
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  4.36.  In conclusion, the EU is looking forward to studying the responses by Maldives to our 
advance questions and would like to wish Maldives a successful trade policy review.   
AUSTRALIA 4.37.  Australia and Maldives share strong bilateral relations in areas including climate change 
cooperation, education, security and developm ent cooperation and through the Commonwealth. 
Our positive people-to-people ties have their foundation in the high number of Maldivians who study in Australia, many of whom return to Maldives to take up important roles in the government 
and private sectors. 
4.38.  Australia’s lived experience is that the road to a stronger economy and increased prosperity 
lies in structural economic reforms and the ability to attract foreign investment.  
4.39.  Australia welcomes Maldives efforts to promote trade openness, particularly through 
unilateral tariff reductions introduced in 2010. 
4.40.  However, Australia is concerned that high trade barriers in some sectors – particularly meat 
– continue to be an obstacle to increased trade. Further reductions to trade and investment 
barriers remain critical to improving Maldives’ long-term competiveness and growth. 
4.41.  We encourage Maldives to continue with other necessary reforms – in particular to make it 
easier for new investors to enter and operate in Maldives.  
4.42.  These include improving permit and licensing processes, addressing delays for processing 
and clearing goods, and smoother visa and entry procedures. 
4.43.  Australia commends Maldives progress on tax reform – through the establishment of an 
independent body for tax administration and streamlining the goods and services tax and the 
business profit tax.  
4.44.  Australia encourages Maldives to continue its efforts to broaden the tax base and improve 
tax administration. 
4.45.  We encourage Maldives to progress its domestic approval processes to allow it to accept the 
WTO Agreement on Trade Facilitation in a timely manner, and to notify its Category A commitments. The Agreement on Trade Facilitation when implemented will deliver practical 
measures to strengthen global trade and economic growth, bringing substantial development and 
job creation benefits for WTO Members including Maldives. 
4.46.  Finally, Australia notes the strong nexus between political stability and sustainable economic 
growth. Australia encourages Maldives to focus on promoting the rule of law, increasing 
participatory policy making, achieving fiscal sustainability and strengthening all institutions which 
underpin economic growth and prosperity. 
4.47.  For this review, Australia has submitted a number of written questions relating to Maldives’s 
trade and investment regime. We look forward to Maldives’s response to these questions. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.48.  My delegation would like to congratulate Maldives for their successfully maintaining robust 
economic growth for decades. Especially, during  the review period (2009-2014), Maldives’ real 
GDP has grown at an average annual rate of 4%. This is really a significant achievement for a small economy with limited resources. 
4.49.  We have just submitted our written questions at the end of last week, and we look forward 
to receiving the responses in the near future. WT/TPR/M/332 • Maldives 
 
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  KINGDOM  OF SAUDI  ARABIA 
4.50.  Despite its small open economy largely driven by tourism and fishery industries and its 
limited resources, Maldives has enjoyed consiste ntly high economic growth over the two past 
decades. The Trade Policy Review reports prepared by Maldives and the Secretariat reveal the 
sustained economic growth, which has shown an overall strong performance in recent years and a 
rapid recovery due to its ability to attract tourism from new and emerging markets.  
4.51.  In 2011, Maldives graduated from least-developed-country (LDC) status and was classified 
as an upper-middle-income country by the World Bank.  
4.52.  Maldives is to be commended for its great efforts to improve its trade policy and further 
open its economy through legal, institutional and structural reforms for trade and investment. These reforms include customs valuation, public health, taxation, copyright and related rights, 
tourism, financial services, and trade facilitation. 
4.53.  The Kingdom of Saudi Arabia and the Republic of Maldives share an increasing commercial 
and trade exchange while expanding and enhancing investment between the two countries. The 
Saudi Fund for Development is financing some development projects in the Republic of Maldives. 
Maldives is becoming one of the famous destinations for Saudi tourists. The two countries aim to fortify their bilateral cooperation in several fields including foreign affairs, defense, construction, 
tourism, commerce, investment, education, and health. 
INDIA 4.54.  India and Maldives are bound by the Indian Ocean waters, and enjoy friendly relations 
underpinned by strong cultural, economic and people to people linkages. Today, India’s 
partnership with Maldives is multi-dimensional, marked by regular contacts at all levels. Trade and 
economic cooperation constitutes an important pillar of our expanding ties with Maldives. India-Maldives trade relations are governed by th e Trade Agreement of 1981 as well as within the 
framework of South Asian Free Trade Agreement (SAFTA). Our trade (about US$200 million in 
2015) and investment ties with Maldives have been growing in recent years. A number of Indian firms have invested in Maldives in diverse sectors such as health, education, tourism, and 
infrastructure. India is a close development partne r of Maldives. Capacity building, training, skill 
development are key components of India’s development cooperation with Maldives. Recently, the Government of India supported technology adopti on programme in education sector in Maldives, 
which trained around five thousand Maldivian teachers and youth across islands in computer skills 
over a two year period. We look forward to buil ding on these initiatives and are committed to 
harnessing the full potential of trade, economic and development partnership with Maldives for mutual benefit. 
4.55.  Maldives has maintained positive economic growth since 2010 notwithstanding hesitant 
recovery and uncertain global economic environment, particularly in Europe, which has impacted the tourism sector in Maldives and its overall growth trajectory. Maldives has an outward oriented 
and an open international trade regime as is ev ident from the trade-GDP ratio, which has been 
increasing and was about 200% in 2014. Maldives’ trade policy framework has undergone significant changes in certain areas since its last TPR in 2009. Besides unilateral tariff liberalization, as part of the ongoing structural re forms, new legislations have been passed in areas 
such as trade facilitation, customs, taxation, ec onomic zones, telecommunications and intellectual 
property rights protection. 
4.56.  At the same time, Maldives continues to remain vulnerable to challenges – both internal and 
external, including small size of its economy, dependence on a few sectors such as tourism and 
fisheries, the susceptibility to natural disasters, fiscal constraints, slow economic growth in its major markets, and fluctuations in energy prices, all of which have the potential to constrain its 
economic growth prospects. The graduation of Mald ives from the LDC status has also led to loss in 
preferential market access and the level of fina ncial and developmental assistance. India fully 
understands the need of Maldives for continuous support from its partners during its transition to a middle income country. We encourage Maldives to continue with the reform process to strengthen 
its resilience to these challenges and to establish a favourable investment climate for international 
investments to further its economic growth. Finally, we wish Maldives every success in its national WT/TPR/M/332 • Maldives 
 
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  efforts for achieving steady economic growth  and sustainable development and to gain 
meaningfully from its integration into the global economy and ensuring prosperity and higher living standards for its peoples.  
MAURITIUS 
4.57.  My delegation wishes to commend Maldives for its sustained economic growth and its 
significant progress with respect to MDGs achievin g 5 of the 8 goals despite political turbulences. 
We are comforted that the Government has taken the necessary steps to restore normalcy in 
economic and political life and calibrate its efforts towards improvements of the socio-economic 
conditions of its citizens. 
4.58.  Maldives is a prized tourist destination. We welcome the initiatives of the Government to 
diversify the economic base including the esta blishment of the necessary public and social 
infrastructure with a view to bolster enhanced in vestment. We also laud the economic reforms that 
the Government has embarked upon and wish to see them bring fruition. 
4.59.  Maldives and Mauritius are both SIDS and MICS. We fully understand the challenges faced 
by Maldives by its sheer vulnerability to ex ternal factors including exogenous shocks. The 
graduation of Maldives from and LDC status to MIC further exacerbate the situation with restricted or no access to concessional financing and flexibilities that it erstwhile enjoyed in its LDC status. 
The delegation has been consistently arguing in various fora for special consideration been given 
to the specific situation of SIDS, more so as MI CS, which are left to fe nd their own destinies. 
4.60.  Maldives and Mauritius have been cooperating in a number of fields and we can share our 
best practices in other areas such as financial services sector, trade facilitation namely as the 
Single Window System and ease of doing business where we have gained some competitive edges. 
4.61.  Given our vast ocean resources, we see room for deepened cooperation including joint 
venture opportunities in fisheries for more value creation through the Regional Rules of Origin 
mechanism. 
ARGENTINA 4.62.  Argentina notes with interest the development of the Maldivian economy and trade. The 
country has faced considerable economic and social challenges, and has achieved sustained 
economic growth in the context of a process of modernization of its democratic institutions and 
political reform and consolidation. 
4.63.  The progress Maldives has made in liberalizing its economy and making its trade policy more 
transparent is remarkable. The same applies to its tourism sector and the efforts to reduce 
inflation and unemployment. 
4.64.  As regards the legal and institutional framework for trade and investment, there has been 
progress towards enhancing transparency, and specific measures have been taken to attract 
foreign investment. 
4.65.  In 2011, Maldives graduated in the World Bank classification from least developed country 
to upper-middle income country. This involved a reorientation of its trade, in particular the 
fisheries sector, which is of particular importance to its economy. 
4.66.  Argentina encourages Maldives to continue its economic and trade reforms in order to be 
able to tackle the structural challenges ahead and to attain the objectives set forth in its 
2013-2017 Manifesto. 
SINGAPORE 4.67.  Singapore shares significant trade linkages with Maldives, ranking as one of Maldives’ top 
import sources. We are particularly impressed by Maldives’ graduation from Least-Developed WT/TPR/M/332 • Maldives 
 
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  Country (LDC) status since its last TPR in 2009.1 This is testament to the sound economic 
fundamentals that Maldives has put in place, and manifested through the strong showing of its economy, which recorded a Real GDP Growth Rate of around 7.6% in 2015, and a Nominal GDP per capita of almost US$9,000 that year, up from around US$7,000 in 2011. While graduation in 
itself has also brought about its fair share of challenges, we believe Maldives is more than capable 
of rising up to these challenges with its progressive, future-oriented policies laid out in its Government report. 
4.68.  Maldives’ unilateral liberalization of MFN tariffs undertaken in 2011 has resulted in tariffs 
being eliminated on 31.5% of tariff lines. This is a positive development, given the impact of tariff liberalization on trade promotion, reduction of the cost of goods in the domestic market, and spurring the growth of higher-value activities , including those of the Services sector which 
dominate the Maldivian economy. However, we also note with concern that Maldives has, in the 
same period, raised tariffs on some products, an d continued to apply MFN tariffs in excess of its 
bound rates. We call upon Maldives to bring its tariff regime into conformity with its WTO 
commitments as soon as possible.  
4.69.  Singapore also notes with interest the emphasis Maldives has placed in developing its 
Renewable Energy Sector. We encourage Maldives to consider participating in the Environmental 
Goods Agreement (EGA) negotiations, which aims to  contribute to green growth and sustainable 
development through the liberalization of tariffs on Environmental Goods, including those in the Renewable Energy sector. 
4.70.  Finally, Singapore urges Maldives to speedily ratify the WTO Trade Facilitation Agreement, 
and to accept the Protocol amending the TRIPS Ag reement. Once in force, these agreements will 
greatly benefit trade-dependent small developing members including Maldives. We also strongly urge Maldives to adhere to its notification obligations, as transparency is an essential pre-requisite 
to a predictable, rules-based trading system. 
PAKISTAN 4.71.  This is the third Trade Policy Review of Maldives and it is hearty to note the sustained 
growth of Maldives economy since the last review.   
4.72.  Despite the challenges arising from its geographical location and size, Maldives' Government 
has undertaken several reforms leading to such growth. 
4.73.  Reforms have been undertaken in fiscal and monetary policies, such as tax reforms to 
improve revenue collection. Furthermore, the Government’s commitment to further fiscal 
consolidation and reform of public financial management for longer-term fiscal sustainability and greater macroeconomic stability by enacting the Fiscal Responsibility Act of 2013 needs to be 
appreciated. 
4.74.  Being an open economy, Maldives continues to attract Foreign Direct Investment, and 
commendably, introduced new incentives for activities in special zones (SEZs). Under Special 
Economic Zones Act 24/2014 there are several incentives available to developers and firms to 
operate in such special economic zones such as exemption of import duty, Business Profit Tax, 
Goods and Services Tax, withholding tax, taxes on purchase of land or flexible rules to bring or recruit expats for employment. 
4.75.  The well devised and targeted measures and reforms have resulted in curbing price inflation 
and in reducing the unemployment rate. 
4.76.  Foreign trade indicators have been improving si nce the last review in 2009. Trade went from 
US$1.04 billion in 2009 to US$2.1 billi on in 2014. Even if imports still dominate trade, exports 
registered a considerable increase, going up from US$76.7 million in 2009 to US$144.8 million.  
                                               
1 Maldives graduated from LDC status on 1 January 2011, and its last TPR was in October 2009. WT/TPR/M/332 • Maldives 
 
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  4.77.  On the bilateral trade between Pakistan and Maldives, the potential of trade is not fully 
exploited, Pakistan supplies rice and cement to Maldives. The balance of trade is tilted in favour of Pakistan since there are no substantial exports from Maldives to Pakistan.  
4.78.  We feel that a special mention has to be made regarding the Commendable efforts made by 
the Government to further develop the use of renewable energy and to achieve its carbon free 
objectives.  
4.79.  We strongly encourage and support Maldives to carry on its reforms to achieve economic 
growth since Maldives, as well as other small island economies, face unique challenges in 
achieving and sustaining economic growth. Because of its vulnerability to economic and climatic shocks, it is especially important for Maldives to develop and to pursue such policies which help it to maintain stability and build resiliency to such shocks. 
JAPAN 
4.80.  First and foremost, we would like to emphasize that the Maldives is Japan's important 
partner in this region. In this regard, the first visit of the President of the Maldives in 2014 is still 
fresh in our minds. On that occasion, Japan and the Maldives discussed various topics for a new 
stage of cooperation. Furthermore, we newly esta blished the embassy in Male this year. We are 
confident that the presidential visit and the estab lishment of our embassy will reinforce our strong 
ties based on our long history of friendship. 
4.81.  In regard to economics, Japan continues to be one of the largest trade partners for the 
Maldives especially in terms of the amount of its exports to Japan, as well as one of the country's 
largest donors. 
4.82.  Japan has historically focused on the Maldives' geographic location on sea lanes between the 
Middle East and Asia, but that is not the only reason why Japan has continued to place great 
importance on our relationship with the Maldives. We, the Maldives and Japan, share similar 
challenges including natural disasters and climat e change, and are keen to address these issues. 
4.83.  It is our strong hope to maintain and further develop the strong ties between us. 
4.84.  First of all, Japan congratulates the Maldives on its graduation from the LDC status and its 
classification as an upper-middle-income country. In fact, the Maldives has performed well since 
its last review despite the impact of long lasting slow growth in its major markets. 
4.85.  We believe that the recent remarkable econom ic growth has been led by the government's 
well-organized economic management. 
4.86.  However, Japan has also paid attention to the Maldives' industrial structure as a factor in its 
economic growth. Needless to say, the main contribution to its economy has come from the tourism sector. According to the Secretariat report, nearly 30% of its GDP has been generated by 
this sector, which means that the Maldives' economy is highly vulnerable to external shocks. 
4.87.  For Maldives with its limited amount of natural resources as well its scarce available land for 
agriculture, it is essentially important to keep its economy open in order to make their economy 
more resilient. Japan commends the Maldives' continuous efforts to maintain and further 
strengthen openness in regard to trade, foreign in vestment and other economic activities. In this 
context, Japan has paid close attention to country's implementation of its National Development Strategy. 
4.88.  The Maldives, as an original Member of the WTO, has been actively engaging in the WTO 
activities. Among others, the Maldives has made efforts for years to identify and address its challenges through receiving capacity building activities and technical assistance. During the 
review period, two national activities on customs valuation and SPS and TBT were organized in the 
Maldives. We commend this initiative and, through similar initiatives, hope for the Maldives to be better integrated into the multilateral trading system. WT/TPR/M/332 • Maldives 
 
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  4.89.  The Maldives could also benefit from the other WTO agreements and negotiations. According 
to the Secretariat report, the Government of the Maldives established the Trade Facilitation Committee with a view to facilitating trade and ease of doing business. However, so far the Maldives has not ratified the agreement. The country has not yet made any notifications either. 
4.90.  We understand that the preparation of the notification is under way, but we encourage the 
Maldives to complete internal procedures as soon as possible. We believe the Maldives can truly benefit from the TF Agreement. 
4.91.  Japan also encourages the Maldives to give serious consideration to joining other WTO 
agreements and negotiations. For example, as on e of the world's most vulnerable countries to 
climate change, even among low-lying small island states, the Maldives has the potential to become an important leader in the EGA negotiat ions. Other agreements, namely the ITA and the 
GPA, could also be bene ficial to the Maldives. 
4.92.  In terms of FTAs, if anything, it seems that the Maldives has not yet actively participated in 
FTA negotiations. Japan has not heard any updates about the negotiations with Sri Lanka and 
Qatar that were announced during the last TPR. One thing we would like to mention about FTAs is 
that, in the last year, Japan saw some announcements noting that the Maldives and China had launched FTA negotiations. Japan hopes that future FTAs of the Maldives will be fully consistent 
with the WTO rules, and benefit the multilateral trading system. 
4.93.  In conclusion, I would like to express our strong wish to continue cooperation between the 
Maldives and Japan. 
BENIN 
4.94.  The Maldivian economy has been marked by strong growth in the financial sectors, 
particularly banking and insurance, and in tourism and fisheries products. In view of the country's 
vulnerability to external shocks, diversification of its financial sector is a priority. 
4.95.  In the trade area, the preferential benefits previously accorded to Maldives under 
preferential agreements have been eroded. The delegation of Benin congratulates Maldives for 
having adopted far reaching trade policies to guarantee market access for its exports, in particular 
fish and other fisheries products, and to encourage domestic consumption. 
4.96.  Maldives participates in the multilateral trading system while at the same time maintaining a 
strategy involving the prioritization of bilateral an d regional trade agreements to offset the impact 
of graduating from the LDC category and th e erosion of preferences, thereby entailed. 
4.97.  The delegation of Benin wishes to take this opportunity to urge WTO Members and the 
international community as a whole to support the Maldives' economic and social development efforts, including adaptation to climate change in the difficult island environment it has to contend 
with. 
4.98.  The delegation of Benin also urges Maldives' partners to give due consideration to the needs 
and concerns of this country which is among the developing countries that have graduated from 
the LDC category and are experiencing problems in  the transitional phase – and to help develop 
security nets to ensure that it does not regress. 
SRI
 LANKA 
4.99.  My delegation commends the important steps taken by the Government of Maldives in the 
recent past to face global economic challenges. We believe that the results of these measures are 
emerging to show their impact on respective area s. My delegation noted with great interest the 
graduation of Maldives from LDC stat us to an upper-middle income country. 
4.100.  Maldives is a close neighbouring country which Sri Lanka enjoys historical bilateral 
relations. Building on close geo-political bases, economic ties between the two countries have grown steadily over the years and expanded into several spears including trade, tourism and 
investment. Our cooperation in the tourism sector is remarkable as many large private companies WT/TPR/M/332 • Maldives 
 
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  in Sri Lanka have established close collaborations with Maldivian tourism industry and contributed 
to the growth of the industry. As members of the South Asian Association for Regional Cooperation (SAARC) and South Asian Free Trade Area (SAFTA), Sri Lanka and Maldives work very closely to 
achieve our development objectives. 
4.101.  My delegation welcomes Maldives' continued commitment to the multilateral trading 
system.  WT/TPR/M/332 • Maldives 
 
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  5  REPLIES BY THE REPRESENTATIVE OF MALDIVES AND ADDITIONAL COMMENTS 
CHAIRPERSON 5.1.  Before I move on to the formal proceedings, I would like to invite you to remember all the 
victims of the bombing attacks in Brussels yesterday. Such acts of terrorism have to be 
condemned and I wish colleagues from Belgium an d from the European Union to know that my 
thoughts are with you and your people. 
HONOURABLE
 MR IBRAHIM  YUSUF  FULHU 
5.2.  The Government of Maldives appreciates the in terest shown by the WTO Membership to this 
third Trade Policy Review of the Maldives. 
5.3.  We believe that this exercise has been a very useful and transparent exercise for the 
Membership and has helped Members appreciate the challenges facing Maldives as a graduated 
country. 
5.4.  For the Government of Maldives, this review has been most useful and will certainly guide our 
future work programme as we continue with  our liberal trade and investment regime. 
5.5.  We take this opportunity to thank the discussa nt, H.E. Dr. Syed Tauqir Shah, Ambassador of 
Pakistan to the WTO, and the Members who made very constructive interventions and provided 
their guidance and suggestions. 
5.6.  We take your comments and valued suggestions very seriously and will consider them in the 
design of our future trade and economic policies. 
5.7.  We also hope that we have been able to provide all Members with an update on what we 
have been able to achieve since our last trade policy review.  
ECONOMIC ENVIRONMENT AND TRADE POLICY REGIME 
Economic challenges 5.8.  We took note of the issues highlighted by the Members on the challenges facing the Maldives' 
economy, notably the continuing narrow economic base, the ongoing concern about our fiscal 
position and the potential adverse impacts from climate change on the sustenance of the Maldivian economy. 
5.9.  As highlighted in our opening statement, we are confident that the ongoing efforts to 
diversify our economy will bear fruits in the medium term. 
5.10.  We are confident to report back to you with substantial progress on diversification of our 
economy, substantiated by facts when we return for the fourth trade policy review in 6 years’ 
time.  
5.11.  We are well aware of the threats of climate change on Maldives. 
5.12.  We note that the Government is actively engaged with the international community in 
implementing adaptation measures to mitigate negative impacts from climate change. 
5.13.  We are particularly thankful to the international community for the support provided for the 
Maldives in this area. 
5.14.  Members also noted the importance of fiscal consolidation and we are happy to report the 
Governments’ strong intention to continue with the efforts to refine our tax system to enhance 
revenue base and the ongoing efforts to manage government expenditure, with a view to consolidate our fiscal position on a more sustainable path. WT/TPR/M/332 • Maldives 
 
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  5.15.  We have demonstrated what can be achieved in broadening our tax system in a very short 
span of 4 years. We are confident to bringing additional reforms in this important area. 
Regulatory framework/transparency 5.16.  As noted in our opening statement, reasonable progress has been made with respect to 
improving our regulatory framework with the pass age of several important pieces of legislation 
related to trade and investments.  
5.17.  We note the concerns of many delegations on th e poor record of Maldives in the notification 
to the WTO under the various WTO Agreements.  
5.18.  We commit to the Membership that we will make sure that arrangements are put in place to 
ensure timely notification of domestic development to the WTO as per the agreements. 
5.19.  However, we note that despite our engagement in the TRTA, our capacity in this specific 
area is still very limited. 
5.20.  We request the guidance from the WTO Secretariat in obtaining the necessary technical 
assistance and support in our capacity build ing requirements through the existing WTO 
arrangements. 
5.21.  I would also wish to request support from other delegations present here today in capacity 
building in this area in all our trade related agencies. 
RTAs and preferences 
5.22.  With respect to regional trade agreements, as you know Maldives is a member of SAFTA and 
we have been actively engaged with our regional tr ading partners in liberalizing trade in goods and 
services in the region.  
5.23.  While in the SAFTA negotiations progress has been achieved in terms of tariff liberalization, 
we would like to note that the intended benefits under the SAFTA are not being realized due to prevailing non trade barriers. 
5.24.  We would like to clarify to the delegation of Canada through written questions and to the 
delegation of Japan who requested updates on th e status of the discussions between Maldives and 
the Governments of Qatar and Sri Lanka.  
5.25.  I would like to inform you that the discussion with both the Governments was on concluding 
an economic cooperation agreement, not FTA’s. 
5.26.  I note that the economic cooperation agreement with the Government of Qatar and the 
Government of Maldives was signed in 2013, an d the proposed Economic cooperation agreement 
with Sri Lanka is pending execution. 
5.27.  We would also like to respond to the queries made by the delegations of Canada and Japan 
on the status and expected timeline and scope for the proposed FTA between the Government of 
Maldives and the Government of China.  
5.28.  As noted in our opening remarks, we have entered into the negotiations with China on a 
possible FTA and we have been moving swiftly and we expect to conclude the FTA towards the end 
of the year 2016.  
5.29.  We assure you that the proposed FTA will be consistent with WTO rules and will complement 
the multilateral trading arrangements. WT/TPR/M/332 • Maldives 
 
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  Foreign investment  
5.30.  With respect to the foreign investment regime, as briefed in our opening statement, we 
intend to maintain the current open stance on foreign investments.  
5.31.  We would also like to inform the Members that the Government is working on amending the 
existing foreign investment law so as to provide additional protection to investors. 
5.32.  With respect to providing a more conducive environment for foreign investments, we would 
also like to highlight the keen interest of the Government of Maldives to enter into bilateral 
Investment Promotion and Protection Agreements as well as Double Taxation Avoidance 
agreements with our key trade partners. 
TRADE POLICIES 5.33.  With respect to specific trade policies and practices, we would like to assure Members on the 
Government’s commitment to push ahead with developing WTO consistent regulations and 
practices in the Maldives. 
Customs clearance and valuation 
5.34.  Many of the delegations highlighted concerns with respect to Maldives not fully complying 
with the WTO Customs Valuation Agreement in our last review of 2009. 
5.35.  I note that the customs procedures are being rationalized and simplified with special 
emphasis being placed on expediting this pr ocess through the National Trade Facilitation 
Committee. 
5.36.  We are particularly happy to note that the recent passage of the Customs Law has facilitated 
the full implementation of the WTO Customs Valuation Agreement. 
5.37.  We took note of the recommendation by several delegations including Australia, Singapore, 
China, Canada and the European Union to speed up the domestic procedures to ratify the WTO 
Trade Facilitation Agreement. 
5.38.  We are pleased to inform the Membership that the Government is working on completing 
the domestic approvals to ratify the TFA and will shortly be communicating to the Secretariat our assessment of our preparedness to implement the Agreement. 
Tariffs and binding commitments 
5.39.  With respect to the concerns raised by some delegations about Maldives not complying with 
our commitments on the tariff bindings, we take serious note of the concerns. 
5.40.  We will take these concerns and will work on addressing them in the proposed revisions to 
our Export-Import Act, which the Government is currently in the process of submitting to the 
Parliament. 
5.41.  We also take note of the concerns raised by some of the delegations on the various 
exemptions that are in place with respect to import duty and the concerns about the tariff 
structure being subject to frequent reviews. 
5.42.  We appreciate the concerns raised and wish to  inform the respective delegations that the 
concerns raised will be avoided in future as our reliance on import duty as the main means of 
government revenue is expected to further decline as we bring sweeping changes to our tax regime, the details of which was shared with you in our opening statement.  WT/TPR/M/332 • Maldives 
 
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  Import licensing 
5.43.  We have been simplifying the import licensin g requirements since the last review and the 
process of simplifying the regime along with  other trade clearance procedures are being 
conducted, overseen by the National Trade Facilitation Committee. 
Standards, SPS and technical regulations 
5.44.  Standards and SPS is the weakest link in our Government structure as we work our way to 
be a more active player in international trade.   
5.45.  While the Food Act is still pending submission to the Parliament, we expect to include the 
proposed revisions to the draft bill from the Attorney Generals’ Office and re-submit the Bill to the AGO by end of April 2016.  
5.46.  Once again, Maldives is keen to explore possibi lities of assistance from Members' countries 
in the area of SPS and TBT.  
Government procurement 5.47.  Government procurement, particularly contracts on large infrastructure projects are 
governed by the Public Finance Act and are typi cally awarded through an international tender 
process. 
5.48.  We take note of the suggestions from Members on making the government procurement 
processes more transparent and will make every e ffort to further streamline the processes in this 
direction. 
Production assistance 5.49.  The Government provides production assistance  to small and medium enterprises in fishery 
and agriculture sectors through concessional loans and limited number of nominal subsidies, 
targeted primarily for supporting livelihoods of fisherman and farmers.  
5.50.  The Government's assistance is also targeted towards small and medium enterprises who 
are seeking to internationalize their products and venture into export markets. 
5.51.  The Government is keen to support identified  products to cater to export market and 
intends to design schemes to provide support in this front.  
State enterprises 
5.52.  Enterprises with State involvement continue to play an important role in the Maldives, 
particularly in utilities such as telecom, water and electricity provision and to a significant extent in the provisions of staple food.  
5.53.  While the Government policy is to engage the private sector in all sectors of the economy, 
efforts are being made to provide a level playing field for both private and public sector. 
Intellectual property rights 
5.54.  With respect to the ongoing efforts to promote the protection of intellectual property rights, 
we are pleased to note that the draft bill on Trade Marks and the draft bill on Geographical 
Indication have been released for public consultation, which will be submitted to the AGO for 
submission to the Parliament. 
SECTORAL POLICIES  5.55.  With respect to sectoral policies, as noted in my opening statement, we are keen to work 
along with the recommendations of the National Diversification Strategy where specific WT/TPR/M/332 • Maldives 
 
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  interventions have been identified for all sectors, with the view to increase the sectors contribution 
to the GDP and our exports, thereby broadening our economic base. 
5.56.  As such, I am happy to report the progress made so far in terms of laying the necessary 
softer foundations for us to  move in this direction. 
5.57.  We believe that for Maldives to reduce its dependence on a few established sectors, we 
ought to have policies and a legal framework which encourages investments in other potential sectors. 
5.58.  We are of the firm belief that the SEZ law enacted in 2014 sets the stage for our drive to 
diversify the economy. 
Agriculture and fisheries 5.59.  To date, agriculture remains largely a domestic industry with no exports. 
5.60.  However, even today, the agricultural sector is able to cater to our domestic demand for 
many types of fruits and vegetables. 
5.61.  Any additional output from the sector has the potential to be exported, either in raw or 
processed form to the regional markets. 
5.62.  To complement the traditional production methods in the sector, we have witnessed 
specialized investments in the sector taking shape in Maldives, largely driven by the private sector 
and taking advantage of the modern production technologies. 
5.63.  We have every confidence that these investment s will develop quickly into viable high value 
export oriented enterprises which will be able to meaningfully engage in international trade. 
5.64.  The Government, through its existing mechanis ms, has been supporting these businesses in 
branding and packaging their products so as to help them internationalize.  
5.65.  Fisheries have been the only visible export from the Maldives to date. 
5.66.  The Government encourages value addition in the sector and is keen to increase our export 
value through additional investments in fish processing activities. 
Energy 5.67.  Inefficiencies in the energy sector, manifested through high cost of energy, is acting as a 
major impediment to our growth. 
5.68.  The Government has embarked on a drive to transform the energy mix, to increase the 
proportion of renewable energy in our total energy requirements. 
5.69.  We note that the renewable energy programme along with regulatory changes to encourage 
private sector to invest in renewable energy will take us a long way in changing our energy mix. 
Services 5.70.  Services sector, driven by tourism, continues to be the main economic sector for the 
Maldives.  
5.71.  Maldives already provides a very liberal services regime and is keen to further opening up 
the sector.  
5.72.  We, however, note that the limitations in the domestic regulatory regime as a major 
constraints for further commitments from the Maldives. WT/TPR/M/332 • Maldives 
 
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  CONCLUSION 
5.73.  In conclusion, I wish to highlight that the Mald ives will continue its efforts to comply with 
the rules of the multilateral trading system. 
5.74.  We would, however, like to stress the importance of continuing the WTO’s and other donor 
support to graduated countries like the Maldives in  terms of capacity building especially in areas 
that we have performed poorly over the review period.  
5.75.  We are making reference to concerns raised by many delegations to the poor record of 
Maldives on notifications relating to various WTO Agreements. 
5.76.  We also note that in order to us to fully comply with technical requirements in the WTO 
arrangements in areas such as SPS and TBT, we  a r e  v e r y  k e e n  t o  h e a r  f r o m  d e l e g a t i o n s  o n  
potential areas of bilateral cooperation and support that can be rendered to Maldives. 
5.77.  Once again, I wish to extend and my delegations’ sincere appreciation to Madam Chair for 
presiding over this review, the discussant, H.E Dr Syed Tauqir Shah, Ambassador of Pakistan to the WTO, and the WTO Secretariat for the fine arrangements and the close guidance provided to 
us in preparing for this review. 
5.78.  Finally, I wish to extend our sincere thanks to all the delegations for your attendance and 
the very valued contributions that you have made to make this third Trade Policy Review of the 
Maldives a success. 
DISCUSSANT 5.79.  At the outset, I wish to thank his Excellency Mr Ibrahim Yusuf Fulhu, Executive Coordinator, 
Ministry of Economic Development, who lead the Maldives delegation at this third policy review, for 
his statement today. I also would like to thank all the delegations that participated in this review 
and to specially thank the Secretariat for their hard work throughout this exercise. 
5.80.  Members acknowledged Maldives' efforts to su stain its growth despite many challenges 
facing its economy and the country itself. Members acknowledged the vulnerability of Maldives to 
exogenous shocks mainly the energy prices vola tility, any changes affecting the tourism sector, 
and the effects of climate changes. Members noted that the graduation of Maldives to a Middle 
Income Country, though being a positive sign  has affected Maldives trade and economy. 
5.81.  Members welcomed the reforms undertaken since the last review in 2009, to cite few of 
them: the enactment of Fiscal responsibility Act, Tariffs liberalization, the privatization reforms, the Copyright and related rights Act. 
5.82.  Against this backdrop, Members encouraged Ma ldives to carry on the path of reforms 
already undertaken, to consider exploring opportunities of regional trade integration, to consider joining international trade agreements giving opportunities to contribute to facilitate trade, 
procurement transparency as well as to protect its environment.  
5.83.  Members expressed their encouragement to see the ratification of the Trade Facilitation 
Agreement on a fast track since Maldives has already established the National Trade Facilitation 
Committee.  
5.84.  Members expressed their wish to see notable changes in the record of Maldives WTO 
notifications. Maldives is therefore encouraged to seek for technical assistance from the WTO 
Secretariat to improve its record of notifications and build its domestic capacity. 
5.85.  Excellency Mr Fulhu, on behalf of your Government you mentioned at this review the 
challenges faced by your country, the significant reforms that were undertaken since the last review, and the remaining challenges that are still ahead of your country. I note with pleasure that 
Maldives' Government is turning some of these challenges into opportunities, and you particularly 
pointed out to the national diversification strategy as well as the efforts put forward to facilitate trade with the publication of a guide for doing business in Maldives. WT/TPR/M/332 • Maldives 
 
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  5.86.  Let me conclude my statement by saying that Maldives has the potential to sustain its 
growth, the country is already on the right track with the initiated reforms and the strong political desire to move ahead with the reform agenda. 
BARBADOS 
5.87.  Despite the challenges of the global economic downturn, a negative economic outlook of the 
country’s main trading partners and structural impediments the Maldivian economy has performed credibly over the review period. My delegation therefore joins others in applauding the 
Government of the Maldives on its achievements. We note that though falling short of its pre-crisis 
levels of GDP growth, an increase in revenues from tourism and structural reforms have resulted in a positive economic turnaround, which saw GDP gr owth over the review period peak at 8.7% in 
2011, compared to a decline of 5.3% in 2009. 
5.88.  We are also encouraged by the IMF’s forecast of further expansions of 5% and 3.9% of GDP 
in 2015 and 2016 respectively, as the implementation  of fiscal adjustments contained in the 2015 
Budget take effect. 
5.89.  The Maldives is an open, small island developing State characterized by vulnerability to 
external shocks, narrow production base, diseconomi es of scale, dependence on international trade 
and susceptibility to natural disasters. Its narrow economic base as well as the strong linkage 
between imports from international markets and its main export sectors of tourism and fisheries 
has emphasised the critical role that trade plays in small island States like the Maldives. We therefore commend the Maldivian Government on the development of its National Development 
Strategy (2015–18) and its commitment to further tr ade and economic liberalization as a means of 
promoting private-sector investment and development, particularly in its main revenue generating 
sectors of tourism and fisheries sectors. The ac hievement of these objectives in line with its 
development objectives and with the necessary poli cy space, remain pivotal to reducing poverty 
and ensuring better living conditions for the Maldivian people. 
5.90.  The loss in preferential market access in traditional markets, coupled with its narrow 
production base, has made it necessary for countries to diversify away from a mono-sector 
economy. In this regard, we commend the Maldives on the development of its National Economic 
Diversification Strategy which serves as a key pillar in its economic reform, and which has identified a number of sectors for "growth and expansion". We wish the Government of the Maldives well in achieving its goals of industry diversification; the integration of small and medium 
enterprises into new and existing industries; and increasing the engagement with the private 
sector in the delivery of the strategic infrastructure projects which will bolster diversification and economic transformation.  
5.91.  The Maldives’ graduation from least developed country status in 2011, is worthy of 
particular applause. This achievement was no doubt the result of sound macroeconomic and fiscal policies. We, however, note the challenges that the Maldives has faced since graduation, especially 
in light of its classification as an upper-middle income country. We consider it to be vital to stress 
t h a t  i t  h a s  b e e n  r e c o g n i z e d  t h a t  p e r  c a p i t a  i n c o m e  i s  n o t  a n  a d e q u a t e  m e a s u r e  o f  e c o n o m i c  development and therefore necessitates that a more inclusive set of indices, which also takes into account the vulnerability of a country, must to be developed. It is also crucial that small vulnerable 
economies, like the Maldives, be allowed the fl exibilities required to formulate and implement 
trade policies and national development policies in accordance with our developmental needs. Such measures will enable small economies to continue to successfully pursue their trade 
liberalization, economic reform and developmental objectives.  
5.92.  The relationship between Barbados and the Maldives here in Geneva can be characterized as 
cordial and friendly, as we work towards our shared objectives on issues related to Small Island 
Developing States (SIDS). In this connection, Barbados looks forward to our continued work with 
the Maldives in the pursuit of these shared goals. WT/TPR/M/332 • Maldives 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  This third Trade Policy Review of the Maldives has enabled us to understand better recent 
developments in its trade policies and the challenges it faces. Our discussion has clearly benefited from the contributions made by the head of the Maldives delegation Mr Ibrahim Yusuf Fulhu 
(Executive Coordinator, Ministry of Economic De velopment), our discussant H.E. Dr. Syed Tauqir 
Shah (Permanent Representative of Pakistan),  and all those Members who had asked questions 
and offered comments.  
6.2.  Many Members praised Maldives' robust and sustained economic growth, as well as its foreign 
investment regime which was very liberal except for the fisheries and retail sectors. Members also acknowledged Maldives' efforts in undertaking various structural reforms, which had resulted, for instance, in the introduction of more broad-based taxes to reduce reliance on import duties as the 
main source of government revenue; and also in the enactment of legislation which would allow 
special economic zones to provide greater fiscal incentives for traders and investors.  
6.3.  Members acknowledged that these achievements were remarkable in their own right; indeed 
they were even more remarkable when seen in the light of all the exogenous and endogenous 
challenges that Maldives had to overcome. They no ted that these were challenges that related not 
only to global climate change, and worldwide economic trends such as fluctuations in energy 
prices, but also to the country's small size an d topography, its limited natural resources, its 
political transition, its heavy reliance on tourism and fisheries, and dependence on import. Having graduated from least-developed country status and being classified now as an upper-middle income country meant that Maldives had to make extra efforts to cope with the loss of preferential 
treatment and assistance as well. Against this background, Members encouraged Maldives to press 
ahead with reforms which could help strengthen the rule of law, improve its economic resilience, diversify its export markets and sectors, attract more business and investment, and enhance the 
efficiency and competitiveness of its economy.  
6.4.  Amidst all the changes and uncertainties, Maldives remains fully committed to the multilateral 
trading system. Noting that transparency is a fundamental WTO principle and a pre-requisite for a 
predictable rules-based trading system, several Memb ers reiterated their call for Maldives to fully 
comply with WTO notification requirements. Some Members also encouraged Maldives to join plurilateral agreements such as the Inform ation Technology Agreement and Government 
Procurement Agreement. And recognizing Maldiv es' efforts to develop renewable energy and 
become carbon neutral by 2020, some Members suggested that Maldives participate in the 
Environmental Goods Agreement negotiations to promote trade in this area. 
6.5.  Regarding specific trade measures, many Members commended Maldives for its unilateral 
tariff liberalization, but at the same time expressed concern about the increase in certain import 
duties and the persistent application of MFN tariffs in excess of bound rates. Members were pleased to see the introduction of a fast import clearance channel and legislation implementing the 
WTO Agreement on Customs Valuation. Some urged the authorities to do more, by promptly 
ratifying the Agreement on Trade Facilitation, acceding to the Revised Kyoto Convention, and improving its import licensing procedures. Some Members also welcomed Maldives' action to strengthen its intellectual property rights regime, and encouraged it to accept the Protocol of 
Amendment to the TRIPS Agreement. 
6.6.  The above are key issues that had emerged in our discussion. In a month's time, Members 
should receive from Maldives its replies to the outstanding questions, which will then mark the 
successful conclusion of this TPR. It is hoped that  the delegation will bring home useful food for 
thought, which can help Maldives further develop its trade and economic policies, so that come the next TPR, Maldives can showcase the further progress it has made in achieving its sustainable 
development goals and better integrating itself into the world economy. 
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