WT/TPR/M/332/Add.1  
7 June 2016  
(16-3048)  Page: 1/37  
Trade Policy Review Body 
21 and 23 March 2016 Original: English/anglais/inglés  
 
  TRADE POLICY REVIEW 
MALDIVES  
MINUTES OF THE MEETING 
Addendum 
Chairperson: Ms. Irene Young (Hong Kong, China) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by Maldives.1 
 
 
Organe d'examen des politiques commerciales 
21 et 23 mars 2016 
EXAMEN DES POLITIQUES COMMERCIALES 
MALDIVES  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Présidente: Mme Irene Young (Hong Kong, Chine) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Maldives.1 
 
 
Órgano de Examen de las Políticas Comerciales 
21 y 23 de marzo de 2016 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
MALDIVAS  
ACTA DE LA REUNIÓN 
Addendum 
Presidenta: Sra. Irene Young (Hong Kong, China) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por 
Maldivas.1 
                                               
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/332/Add.1 
 
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  TABLE OF CONTENTS  
CHINA ......................................................................................................................... ..... 3 
CANADA ........................................................................................................................ ... 7 
BRAZIL ........................................................................................................................... 10  
UNITED STATES ............................................................................................................. 13  
EUROPEAN UNION ......................................................................................................... 19  
AUSTRALIA .................................................................................................................... 26 
THAILAND ......................................................................................................................  31 
CHINESE TAIPEI ............................................................................................................ 36  
 
 
 
 WT/TPR/M/332/Add.1 
 
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  CHINA 
Part I.  Questions based on Report  by the Secretariat (WT/TPR/S/332) 
Page 26, Para 2.27 
2.27. Maldives continues to operate a liberal foreign investment regime, as reflected by its top 
ranking in the region's FDI inflows as a shar e of GDP (5%) and its diverse spectrum of 
contributors. However, during the review period, its position in terms of ease of doing business 
dropped significantly, seemingly due to the intr oduction of the BPT and the GST in 2011 (Section 
3.4.2).  The Government acknowledges the importance and contribution of foreign investment to 
economic development and job creation, and permits foreign investment in virtually all sectors of the economy (see below). It intends to pursue an ambitious reform agenda in several areas, including business and property registration, access to credit (e.g. secured transactions), the 
protection of minority shareholders, trade logistics, the resolution of commercial disputes, and the 
insolvency regime. The authorities are keen to develop new labour-intensive sectors, such as off-port shipping services, information technology, and financial services, in order to reduce 
dependence on tourism (Section 1.1). A more favourable business climate has the potential to 
boost competitiveness and improve firms' growth and productivity. 
Question 1 ： 
Please elaborate on the specific measures of Maldives to attract foreign investment. 
The Government of Maldives has been taking steps in three specific areas to attract foreign 
investments.  
Firstly, work is underway to put in place a modern and conducive business and investment 
environment in the country, through a comprehensive law reform agenda especially focused on business and investment related laws.  
Secondly, efforts are being made through the newly established National Trade Facilitation 
Committee, Chaired by the Minister of Economic De velopment, to streamline business processes in 
all government trade and investment related agencies, with a view to minimize the ‘red-tape’ 
facing businesses and investments operating in the Maldives.  
Finally, the Government of Maldives has initiated a more structured marketing and promotion 
campaign of Maldives, as an investment destination, though a series of Maldives Investment Forums, the first of which was concluded in April 2014 in Singapore. The second edition of the MIF 
was successfully concluded in Beijing, China in 201 5 and the preparations for the third edition of 
the MIF to be hosted in Mumbai, India in September 2016 are underway. 
MIF is the premier investment promotion event of the Government of Maldives, and each year the 
forum is held at a different country, showcasing  investment opportunities in the Maldives and 
facilitating B2B meetings between Maldivian en terprises and businesses around the globe. 
To promote mega investments into the country, a Special Economic Zones (SEZ) Law was passed 
through the Parliament in 2014. The SEZ Law provides a direct avenue to approach the 
Government on investments in lieu of USD 150 millio n and addresses the strategic priorities of the 
Government.  
The Law provides attractive tax and non-tax incentives for the SEZ Developer as well as the 
Investors granted licenses under the SEZ law. 
Furthermore, the Government is continuously working on making the doing business environment 
of the country more attractive. Revisions to th e Companies Act and Foreign Investment Act are 
underway which will address existing difficulties in the doing business environment as well as 
making the investment framework more secure and comfortable for foreign investors.  WT/TPR/M/332/Add.1 
 
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  Page 27, Para 2.30 
2.30. Several changes were made to the investment approval and registration procedures. Under 
the Business Registration Act (No. 18/2014), as from 2014 all foreign investments have been registered by MED's Business Registration Section.  Prior to registration, all foreign investment 
applications and related documentation (e.g. authorizations from agencies in charge of the 
investment activity) must be submitted to the MED's Business Registration Section and then forwarded to a review committee for approval.  The standard processing time is 3 working days; 
however, a maximum of 10-14 days may be requ ired for cases where further clarification is 
needed. All applications approved by the review committee, except for those in tourism that are dealt with by the relevant agency due to its sectoral specificity, receive a foreign investment approval letter and a draft foreign investment ag reement (FIA) requiring the submission of the 
necessary documents for registration in Maldives.  All applicants, except those who engage in the 
tourism sector, are required to pay an administrative fee of US$2,000 to the Maldives Inland Revenue Authority prior to signing their FIA. The application for registering a company or 
partnership is processed within two days. Once the registration certificate is issued and the FIA is 
entered into force, the company may commence business in accordance with the applicable laws and regulations. No data on the approval or rejection of foreign investment applications were 
available with the authorities. 
Question 2 ： 
Please explain why foreign investments are subject to approval twice for access to Maldives. 
Foreign investments are not subject to approval  twice. The Foreign Investment Law requires 
investments to obtain an approval from the Ministry of Economic Development and to enter into a 
Foreign Investment Agreement with the Ministry in cases, where the investment is in an area 
outside of tourism, while tourism related foreign investments are required to enter into a foreign 
investment agreement with the Ministry of Tourism. 
Please refer below for the detailed step-by-step procedure: 
Step 1: Submission of the Foreign Investment  Application to the Ministry of Economic 
Development 
 Foreign Investment Application Form is available from the Ministry’s website; 
www.trade.gov.mv. 
 Walk-in meetings are available for all foreign investors who may wish to discuss their 
investment proposal prior to submitting an application.  
 
Step 2: Decision on the Foreig n Investment applications   
 A decision on the foreign investment application will be made by the Ministry of Economic 
Development in consultation with relevant government agency and in accordance with the 
criteria specified in the Business Registration Act. 
 The standard processing time is 3 working days. However, in cases where relevant line 
Ministries need to review the applications further, it may take 10-14 days for a decision on the application. 
 
Step 3: Register a business vehicle  
 Once a foreign investment application is granted the investor must register a legal vehicle 
through which the investment will be carried out in the Maldives. The options available 
under the current legal regime for foreign inve stments include Limited Liability Companies, 
Partnership, or Re-registration of a company, which has been duly incorporated in another 
jurisdiction.  
 Application forms for registering as a legal vehicle are available from the Ministry’s website.  
 
Step 4: Sign the Foreign Investment Agreement 
 Upon registering as a business vehicle, a Foreign Investment Agreement between the 
Investor and the Ministry of Economic Develo pment will be signed. This Agreement outlines 
all the Terms and Conditions related to carrying out the specific business in the Maldives. For 
tourism related investments the Foreign Investment Agreement need not be signed with the 
Ministry of Tourism.  WT/TPR/M/332/Add.1 
 
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Step 5: Obtain licenses and permits 
 Depending on the sector / type of business acti vity that is approved for foreign investment, 
an operating license or permit may need to  b e  o b t a i n e d  b e f o r e  c o m m e n c i n g  o p e r a t i o n s .  
However, this additional licensing requirement applies to both foreign and domestic 
investments, in regulated sectors such as fi nancial services, fisheries, telecommunications 
etc. 
Page 27, Para 2.31 
2.31. All incentives apply equally to foreign and domestic investments and depend on the scale of 
the investment. For example, investments in exce ss of US$2 million are allowed duty-free imports 
of machinery, capital goods, and construction materials for two or three years (new investment), 
while for expansion of existing investment, the duties may be waived for a maximum of three 
years (investment value from US$2 million to US$25 million), five years (investment value from US$25 million to US$50 million) and seven years (investment value from US$50 million to US$75 
million) (Section 3.2.4.4). Under the Special Economic Zones Act No. 24/2014, new tax incentives 
were introduced to encourage investment in several activities (Section 3.4.2.3). Investors are also permitted to employ foreigners where suitably skilled Maldivians are not available. 
Question 3 ： 
In the Special Economic Zones, new tax incentives were introduced. Are there any tax incentive 
policies for foreign investments in other areas of Maldives? 
Foreign investments in the Maldives are governed under 2 main regimes: 
Normal regime for Foreign Investment s under the Foreign Investment Law 
 Incentives on duty exemption may be facilitat ed on a case by case basis, depending on 
the nature of the investment and will be decided at the point of  investment approval 
 Exemption from the generally applicable Business Profit Tax may be granted to foreign 
investment on a case by case basis, depend ing on the nature of investments and will be 
decided at the point of investment approval. 
Special Economic Zones 
 Exemption from Business Profit Tax, Goods and Services Tax, Withholding Tax 
 Exemption from import duty for capital goods 
 Flexibility to employ foreign labor 
 Option of acquiring freehold land by register ed companies in Maldives with at least 50% 
local shareholding 
It is also to be noted that the Foreign Investment Law gives government the flexibility to grant 
incentives to investments in various sectors or activities depending on their strategic significance to the country and the scope of the investment. 
Part II.  Questions based on Policy Statement by Maldives (WT/TPR/G/332) 
Page 22, Para 5.22 & 5.23 
5.22. In line with Government's agenda to deliver key pieces of infrastructure through or in 
partnership with local and foreign private investors, a Special Economic Zones (SEZ) Law was 
introduced in September 2014.  WT/TPR/M/332/Add.1 
 
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  5.23. The SEZ Law grants special tax and non-tax incentives for large-scale investment projects of 
above US$150 Million, complying with strategic objectives of the Government as outlined in the Law. The strategic priorities as outlined in the SEZ Law include: 
Question 4 ： 
The SEZ Law provides for the relevant tax and non-tax incentives. Please elaborate on the non-tax 
incentives policies. 
Investments allowed under the SEZ regime ca n enjoy the following non-tax incentives: 
 Provisions for SEZ residency for those parties who purchase property within SEZ project 
zones 
 Provision of expedited business registration and licensing arrangements through a one-
stop-shop arrangement 
 Provision for land ownership for foreign companies with at least 50% local shareholding 
 Flexibility in employment of foreign labour WT/TPR/M/332/Add.1 
 
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  CANADA 
Report by the Secretariat (WT/TPR/S/332) 
Part 2. Main trade laws and transparency : Legislation, paragraph 2.14, page 22: 
It is noted that The Consolidated Laws of Maldives, a recent initiative by the Attorney General, 
containing all Maldives' statutes translated into English, and a platform with bi-lingual search 
capabilities, Lexis Maldives , are expected to be completed by the end of 2016. 
1. Is the Maldives on target to complete the translation and bi-lingual search capabilities of Lexis 
Maldives by end of 2016? 
 The Government of Maldives is going to launch th e online website by the end of 2016, with at least 
the existing translations of the laws. 
Part 2. Trade and investment regime: Bila teral agreements, paragraph 2.25, page 25: 
It is noted on 8 September 2015, a Memorandum of Understanding on Launching the Negotiation 
of the China-Maldives FTA (free trade agreement) was signed. At the time of the previous Review, 
Maldives was negotiating FTAs with Sri Lanka and Qatar but no update was available with the 
authorities in the context of the current TPR.  
2. Can the Maldives elaborate on a time frame to  negotiate and conclude a Free Trade Agreement 
with China? 
 Discussions are ongoing at the moment. We have completed two rounds of negotiations. The third round will be held in May this year. Both governments are aiming to conclude the negotiations 
before end of 2016.  
3. Can the Maldives provide an update on whether FTA negotiations with Sri Lanka and Qatar will 
resume in 2016?  
 
Maldives at the moment is focusing on concluding the FTA with China. No progress has been made on the FTA with Sri Lanka or Qatar.  
Part 3. Trade policies and practices by meas ure: Introduction, paragraph 3.7, page 30: 
It is noted the passing of a Copyright and Related Rights Act in 2010 has been a major 
development in the protection of intellectual prop erty rights (IPRs), and the preparation of draft 
legislation on patents, industrial designs, trademarks and geographical indications is underway.  
4. Does the Maldives have a timeframe of when the dr aft legislation on patents, industrial designs, 
trade markets and geographical indications will be submitted to Parliament? 
 
With Assistance from WIPO, Trademark and geographical Indication bill is now drafted and we are 
in the consultation process with stakeholders before sending the bills to the parliament.  
The bills are expected to be submitted to the parl iament in the third quarter of this year. After 
Trademark and GI bills are sent to the parliament, we will commence our work on Industrial 
Design and Patent bills. 
Part 3. Measures directly affecting import s: Registration, documentation, and customs 
clearance, paragraph 16, page 31: 
It is noted the Maldives is a member of the World Customs Organization and is expected to accede 
to the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention) in June 2016.  WT/TPR/M/332/Add.1 
 
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  5. Could the Maldives confirm the timeframe of June 2016 to accede to the International 
Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention)? 
 
Maldives Customs Service has already completed gap-analysis and identified the areas where 
amendments to regulations are required. Customs will send the request to begin the ratification 
process to AG Office this month. The date for ratification will depend upon the endorsement from 
Parliament. 
Part 3. Trade Policies and Practices by Me asure: Government procurement: paragraph 
3.91, page 45 
It is noted that the Maldives is not a party to the WTO Agreement on Government Procurement, or 
an observer to its Committee.   
6. Does the Maldives have any intention to accede to or become an observer of the WTO’s Revised 
Agreement on Government Procurement?  
 
Currently there are no considerations from the Go vernment of Maldives (GoM) to accede to the 
WTO Agreement on Government Procurement or become an observer. 
Existing regulation on government procurement are built on the principles of transparency, 
accountability, fairness, competition and efficiency. The regulation encourages private sector participation in government procurement, and has provisions to open procurement to foreign suppliers of goods and services for contracts above specified thresholds.  
Part 4. Trade policies by Sector: Policy, legislative and institutional framework, 
Paragraph 4.8, page 52: 
It is noted the Maldives continues to lack a comprehensive fisheries management policy. Under the 
assistance of the Japanese International Cooper ation Agency (JICA), at end-October 2015, the 
Ministry of Fisheries and Agriculture (previously Ministry of Fisheries, Agriculture and Marine 
Resources) (MoFA), which remains responsible for regulating the sector and formulating policy, 
was in the process of preparing a fisheries master plan. Despite a fairly comprehensive draft 
Fisheries Bill circulated in 2004 and withdrawn from the Parliament due to some concerns, the sector's regulatory framework remains relatively unchanged. 
7. Is the Maldives considering options to develop and implement a comprehensive fisheries 
management policy, or implement a new piece of fisheries legislation? 
 Maldives has had a comprehensive fisheries management policy based on the sustainability 
principles for decades. It is widely acknowledged th at the tuna fishery in the Maldives is one of the 
best managed fisheries in the world and our commitment to sustainable to fishing practices is second to none. Purse seine and gill nets are not used to harvest fish in the Maldives, further 
endorsing the sustainable fisheries management policy of the government of the Maldives. 
Moreover, subsidies are against the government policy and no subsidies are now paid out to the fishermen, thus ensuring that the true cost of fisheries is realized by the fishermen.  
Maldives pole and line skipjack tuna fishery essent ially harvests fish one-by-one and there is zero 
by catch in the fishery. Skipjack tuna and Yellow fin tuna caught on pole and line has also been 
certified by the Marine Stewardship Council further proving its sustainable nature. All offshore fishing vessels are required to obtain a fishing licen se to undertake fishing. It is also a requirement 
by law for all licensed fishing vessels to be tracked via a vessel monitoring system.  
Fisheries data has been collected through various means in the Maldives since 1970s. A full-
fledged catch log book based data collection system is now in place to collect fisheries statistics. In 
this regard the fisheries catch and effort data series from Maldives pole and line skipjack tuna 
fishery was used by the Indian Ocean Tuna Commi ssion (IOTC) to undertake the first ever stock 
assessment of skipjack tuna for the Indian Ocean.  WT/TPR/M/332/Add.1 
 
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  At present several projects are underway to formulate fisheries management plans for offshore 
fisheries resources. The management plans will be based on the best scientific evidence and will be 
based on the principles of ecosystem approach for fisheries management (EAFM).  
To modernise fisheries management a new fisheries bill has been drafted with the assistance of 
Food and Agriculture Organization. It is believed the new bill will be tabled in the parliament in the 
second quarter of this year after stakeholder consul tations. Maldives also scores high in terms of 
compliance at IOTC as the majority of the releva nt resolutions of IOTC are fully implemented by 
the Maldives. 
Part 4. Trade policies by sector: (4) Energy, Paragraph 4.28, page 57: It is noted the Maldives' 2010 energy policy obje ctives consisted of: providing access to an 
affordable and reliable supply of electricity; achieving carbon neutrality in the energy sector by 
2020; promoting energy conservation and effici ency; increasing national energy security; 
promoting renewable energy technologies, strength ening the management capacity of the energy 
sector; adopting an appropriate pricing policy; ensuring customer protection; and enhancing the 
quality of energy services. The energy strategic action plan for 2016-2018 is being formulated and 
several of the key priorities are expected to remain the same; it was expected to be published in April 2016. 
8. Does the Maldives have an update on the publication of its energy strategic action plan for 
2014–2017? 
 The energy strategic action plan is under revision and will be published in April 2016. 
We are currently in the process of consulting with stakeholders and only minor changes are 
expected from this consultation process. 
9. Can the Maldives elaborate on its target to achi eve carbon neutrality in the energy sector by 
2020?   
 As Maldives does not have any proven energy reso urces which can be utilized to meet base load of 
electricity, achieving carbon neutrality on energy  sector by 2020 will not be possible. Currently 
Maldives is working on maximizing production of  energy from locally available renewable energy 
sources. According to studies, potential renewable energy sources in Maldives are limited to solar, 
wind and municipal solid waste (MSW) to energy.  
Given the intermittent nature of the wind, solar an d quantity of MSW available and funds, it will be 
possible to install renewable energy sources at least up to 30% of day time peak load in all inhabited islands by 2018.  WT/TPR/M/332/Add.1 
 
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  BRAZIL 
TRADE POLICY REVIEW - REPORT BY THE SECRETARIAT 
4.2.2 Agriculture 
4.2.2.4 Border measures 
4.22.  Staple foods, such as ordinary rice, flou r and sugar, are imported mainly through the 
majority government-owned enterprise State Trading Organization (STO) and are sold at government-controlled prices which according to the authorities are necessary to keep inflation 
rates low and to ensure access to food by the most vulnerable populations […] No further 
information was available on STO's exclusive im port or distribution rights, its procurement 
methods, pricing, or traded values/volumes since 2009. 
Question 1: 
Could Maldives please give further information on the business practices of the State Trading 
Organization (STO), including on its procurement methods and how the company determines the amount of goods it purchases and supplies to the public? 
Due to the geography of the country, the population is disbursed across 200 islands, and the 
challenges to ensure food and energy security is significant.  In addressing to the challenges, all 
Government’s in the review period has engaged State Trading Organization (STO), to play a 
facilitative role in ensuring food security. As  such, STO has been actively involved in the 
importation and distribution of the staple f oods across the country, including the far flung, 
dispersed population residing on small islands. 
There are no exclusive rights or monopolies to ST O to import and distribute any goods including 
staples. Private traders are allowed to import, distribute and trade in staples.   
Following are the 3 Staple products which are procured by STO:  
 IR-64 Parboiled Non-Basmati Rice  
 Refined Crystal White Sugar  
 Wheat Flour  
The above three staples are mainly imported by ST O. However, private parties if they so desires 
can import these items. The fact that these thr ee staples are provided at a subsidized rate, the 
logistics involved in storing and distribution may discourage the private sector in venturing into the supply of these items. 
However, do note that Basmati rice and any other item not subjected to a controlled price are 
being imported by the private sector. 
Below are the step by step procedures regarding procurement 
 Request for Tender  
 Draw up tender documents 
 Advertise and invite Tenders 
 Registration 
 Finance Department to collect payment and confirm receipt payment of Bid documents 
 Send bid documents to parties 
 Clarification of queries 
 Tender receipt as per the instruction in tender documents 
 Tender opening and checking for initial responsiveness 
 Tender checked for substantial responsiveness and preliminary evaluation done 
 Preliminary evaluation sent to tender committee for final evaluation and decision 
 Send award notification to the supplier 
 Receipt of performance guarantee during specific time  
 Sign contract  WT/TPR/M/332/Add.1 
 
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   Preliminary evaluation sent to tender committee for final evaluation and decision 
 Send award notification to the supplier 
 Receipt of performance guarantee during specific time  
 Sign contract  
Staple products, namely par-boiled non-basmati rice, flour and sugar are procured through 
open tenders and purchase amounts are determined based on the sales movement of previous months.  
TRADE POLICY REVIEW - REPORT BY MALDIVES 
3.3. With the graduation of the country from the LDC group, and with the gradual erosion of 
previously accorded preferential trade arrangemen ts, the Government of Maldives has intensified 
efforts to engage with its bilateral partners. The main driver of these initiatives is to improve 
market access for its limited export products, find new avenues to increase the productive capacity 
of the country in tradable goods and to widen the scope of services trade beyond the current 
tourism services. 
Question 2: 
Could Maldives further elaborate on the goal of widening the scope of its service trade beyond 
tourism? Are there specific sectors which the Government considers as priorities?  
Tourism is the backbone of the economy and acco unts for a greater percentage of the country’s 
GDP.  Maldives would like to encourage investments in all business areas that will contribute to its 
economic development, that will not endanger the fragile environment of the country or go against 
the Islamic principles of the nation. 
Areas where the Maldivian government is seeking investments are in finance, banking and 
insurance related fields, specifically development financing, investments in the logistics, health 
provision and information and communication technology.  
We are also seeking investments in the field of education, including higher education; in renewable 
energy; investments in infrastructure development such as ports, airports, both domestic and international; investments and collaboration in mari-culture and aqua culture; and real estate 
development among others. 
To attract large scale investments to the country, a Special Economic Zones Act was created. A 
special economic zones office has been established to facilitate and assist in the formation, monitoring, evaluation and regulation of investments in the SEZ’s.  
3.7 Sanitary and Phytosanitary (SPS) Measures 
3.49.  In the absence of a national law or regulation , the country uses codex guidelines to ensure 
food safety within the country. Maldives is a signatory to Codex Alimentarius Commission and 
Maldives Food and Drug Authority (MFDA) acts as the focal point for the Commission. MFDA is 
currently drafting a Food Bill. 
Question 3: 
Could Maldives provide details on the objectives an d scope of the Food Bill currently being drafted? 
Are there expected impacts of this new legislation in terms of trade? 
Objectives:  The purpose of this Bill is to ensure safe and wholesome food, to promote health, quality of the 
goods consumed and address consumer concerns along the all processes involved in the full value 
chain.   
 WT/TPR/M/332/Add.1 
 
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  Please note below the main provisions addressed in the food bill: 
 Ensuring basic safety requirements of food it ems, including imports, exports as well as 
products traded in the domestic market 
 Establishment of a food authority with the authority to develop technical standards and 
regulations ensuring the quality and safety of food items. 
 Establishment of a food advisory board, consisting of all stakeholders involved 
 Establishing responsibilities for operators of food related businesses 
 Provisions for penalizing parties that commit offenses under the law 
The Government’s objective from the food bill is to promote safe and responsible trading in food 
related items. 
The Food bill is adopting Codex standards and the regulations will also follow codex standards. The 
regulations will stipulate the absolute minimum requ irements for health safety and quality and will 
follow the same codex standards. 
Question 4: 
Could Maldives provide information on the selection criteria for participating in infrastructure 
projects, such as anti-flood barriers, breakwaters and land reclamation projects? Are there specific 
requirements or restrictions to foreign companies? 
All foreign contracting companies are eligible to register in “Harbour construction works” (HCOI), 
without further limitation or registrations.  
International best practice and procurement methods are followed and highest international 
standards will be adopted. All procurements are carried out as per the procurement guidelines and 
adhere to strict rules and regulations. 
All foreign investors applying have to submit a foreign direct investment application form to 
Ministry of Economic Development. 
 WT/TPR/M/332/Add.1 
 
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  UNITED STATES 
Maldives Trade Policy Review - Questions re lated to the Government Report (Doc # 
WT/TPR/G/332) 
 
1) Page 14, Paragraph 3.51: 
 
a. Does the Maldives recognize that in cases where urgent problems of health protection 
arise or threaten to arise, a Member country should immediately notify other Members 
of any “emergency provisions” enacted that may affect trade, as stipulated in Article 7, and Annex B of the SPS Agreement? 
 
The Focal point of INFOSAN (The International Food  Safety Authorities Network) and RASFF (Rapid 
Alert System for Food and Feed) is the Maldives Food and Drug Authority and issues related to 
food safety are being communicated through these channels.  
 
MFDA has been issuing health related alerts as it arises under the above-mentioned frameworks and will continue to meet the notification requirements. 
 
2) Page 15, Paragraph 3.63: 
 
a. In regards to the draft Animal Health Bill and the draft Fisheries and Aquatic Animal 
Health Bill, please describe the scope, intentions, and main provisions of the measures? 
 The Animal Health bill and the Fisheries and Aquati c Animal Health bill aim to prevent the entry, 
establishment and spread of animal diseases; to  protect and promote animal health; to promote 
animal production; to control the movement of animals and animal related items into, from and within the Maldives; and ensure the safe and humane movement of animals to, from and within 
the Maldives. 
 The purpose of these bills is to prevent the introd uction and spread of animal diseases, to improve 
the animal health status and to reduce animal health hazards.  
 
The bills also aim to improve animal production systems to guarantee a sustainable supply of quality livestock and livestock products to domestic and export markets. 
 
The Government’s objective from the bills is to promote safe and responsible trading in animals and related items. These objectives contribute to  national socio-economic development, including 
the strengthening of food security, promotio n of investment and the protection of the 
environment.  
b. Should the measures have potential trade impacts, does the Maldives intend to notify 
the draft bills to the WTO SPS Committee and other relevant WTO Committees prior to 
its adoption and implementation?   
 
The Government intends to submit the draft bills  to the SPS committee prior to its adoption and 
implementation.   
 
c. If so, please provide a timeline for when the draft measures will be notified to the WTO 
and available for public comment? 
 
The Government intends to submit the draft bills  to the SPS committee prior to its adoption and 
implementation.   WT/TPR/M/332/Add.1 
 
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  Maldives Trade Policy Review - Questions related to the Secretariat’s Report (Doc # 
WT/TPR/S/332) 
 
1) Page 24, Paragraph 2.19:  
 
a. Please clarify whether the Maldives have a plan to train personnel in WTO transparency 
procedures and, furthermore, a plan that  would promote knowledge retention through 
institutional restructuring or shifts in personnel?  
 Maldives is keen to tap the assistance from WTO to train personnel in transparency procedures.  
However, we also wish to inform that staff retentio n in public service is an issue that is being faced 
across the government, and the Ministry of Economic Development has always been active in capitalizing on all training opportunities that becomes available through international institutions 
including WTO. 
 
b. Please provide the details on the types of ex ternal capacity building activities does the 
Maldives envision to support WTO notification and transparency procedures, if any?  
 The Government of Maldives has sent a request in 2015 to the WTO Secretariat requesting technical assistance and capacity building support in the area of notification and transparency 
procedures. 
 Maldives will endeavor to fulfill its WTO obligatio ns and we appeal developed member states and 
the Secretariat to extend capacity building support on WTO matters.  
 2) Page 24, Paragraph 2.21: 
 
a. The Secretariat says that Maldives has neither accepted the WTO Trade Facilitation 
Agreement (TFA) nor requested technical assistance in the compliance-related area of the Agreement yet; as of end-October 2015, the preparation of the notification of TFA 
provisions to be implemented immediately upon its entry-into-force and the work for 
launching the process of its ratification were underway. Please provide the current status of domestic ratification of the TFA? 
 
The Government has conducted a self-assessment of  the requirements under the Trade Facilitation 
Agreement, and identified the gaps and classified the provisions according to Category A, B and C. 
The Government is in an advanced stage of discussion regarding domestic ratification of TFA and 
envisages the process to be complete by the end of 2016.  Upon domestic ratification, specific requests for technical assistance will be communicated with 
WTO. 
 3) Page 31, Paragraph 3.2.2: 
 
a. The Secretariat’s report states that “When the declared value is rejected, the authorities 
adjust the value using reference prices (which are based on historical information). The 
importer may accept the raised value, submit additional documentation, or request a re-
assessment. The authorities indicated that, in most cases, the importer submits additional documentation.”  Please describe how the steps for valuation and the use of reference prices are consistent with th e WTO Agreement on Customs Valuation? 
 
The current practice is as follows:  
If Customs has doubts as to the truth or accuracy of the price declared for the imported goods, the 
importer is consulted to obtain further explanation/reason/evidence to establish the facts of the transaction.  
 
Customs valuation database with reference prices is used as a risk assessment tool. The mere fact the declared price being lower than the previously  declared values shown in database does not 
automatically subject to rejection of declared value. In cases where further submission of evidence WT/TPR/M/332/Add.1 
 
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  by importer leads to establish the truth and accuracy of declared value, Customs accepts the 
declared value as the Customs value.   However, in the absence of a response by the importer or inability for importer to produce valid 
reason/evidence, the transaction value is rejected and alternative methods are followed. In such 
cases the reason for rejection is communicated to importer. If Importer is not satisfied with the decision, an appeal can be submitted to Valuation Committee. 
 
This practice is in compliance with Article 17 of  WTO Valuation Agreement and Decision 6.1 of the 
WTO Committee on Customs Valuation.   
4) Page 35, Paragraph 3.33:  
 
a. The Secretariat sates “It is not possible to accurately compare bound tariff rates with 
applied tariff rates as the respective tariff schedules are in different nomenclatures: 
applied tariffs are in HS12 while bound tariffs are still in HS07.” Is the Government of Maldives working to unify the nomenclatures so that WTO and its members are 
accurately informed and have an opportunity to properly examine the tariff schedule?  
 Government acknowledges that the bound tari ffs and effective tariffs are in different 
nomenclatures, and is working to provide a unified tariff schedule to the WTO at the earliest.  
 
5) Page 35, Paragraph 3.33:  
 
a. The Secretariat states “Applied rates appear to exceed bound rates on 323 lines, 
compared to 218 lines at the time of the previous TPR.” Does the Government of Maldives plan to follow its WTO commitment and lower the tariff on these 323 lines in 
the near future?  
 Government acknowledges the increase in  tariff lines beyond the bound rates. 
 
We also wish to inform that import duty tariff has historically been one of the main sources of 
government revenue. However, effective from 2008,  the Government has been working towards a 
more progressive tax system and thereby trying to reduce the dependence of tariff revenue in 
total government revenue. 
 The government is working on plans to streamline revenue and during this process, efforts will be 
put in place to bring compliance of the country’s tariff schedule within WTO bound rates. 
 6) Page 38, Paragraph 3.51:  
 
a. The Secretariat’s Report states that “Maldives has never notified to the WTO any state-
trading activity within the meaning of Arti cle XVII:4(a) of the GATT 1994.”  This is a 
biennial notification requirement of all WTO Members.  Please identify when Maldives 
expects to make its required notification. 
 Maldives will be making the notification on state trading activities before the end of the year. 
 
We also wish to reiterate the need for training of  public service officials on WTO notification and 
compliance procedures.  
7) Page 41, Paragraph 3.68:  
 
a. In regards to the draft food bill currently und er review by the Attorney General, please 
describe the scope, intentions, and main provisions of the measure? 
 Scope :  
 
This bill applies to all food items including drin king water, imported products, exported products, 
domestically produced items, as well as meth ods used in food preparation, storage, and 
distribution. 
 WT/TPR/M/332/Add.1 
 
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  Objectives:  
 The purpose of this Bill is to ensure safe and wholesome food, to promote health, quality of the goods consumed and address consumer concerns along the all processes involved in the full value 
chain.   
 Please note below the main provisions addressed in the food bill: 
 Ensuring basic safety requirements of food items, including imports, exports as well as 
products traded in the domestic market 
 Establishment of a food authority with the authority to develop technical standards and 
regulations ensuring the quality and safety of food items. 
 Establishment of a food advisory board, consisting of all stakeholders involved 
 Establishing responsibilities for operators of food related businesses 
 Provisions for penalizing parties that commit offenses under the law 
 
The Government’s objective from the food bill is to promote safe and responsible trading in food 
related items. 
 
The Food bill is adopting Codex standards and the regulations will also follow codex standards. The regulations will stipulate the absolute minimum requ irements for health safety and quality and will 
follow the same codex standards. 
 
b. Should the measure have potential trade impa cts, please identify when the Maldives 
intend to notify the draft food bill to the WTO SPS Committee and other relevant WTO 
Committees prior to its adoption and implementation? 
 The Government intends to issue the necessary notification to WTO SPS Committee. 
 
c. Please also provide a timeline for when the draft measure will be notified to the WTO 
and available for public comment? 
 
The Government will work towards notification of the bill to WTO by the end of the year. 
 8) Page 45 Paragraph 3.4.4: 
 
a. The Secretariat’s Report states that “In November 2015, the Government launched a 
Rf50 million loan scheme for MSMEs, in accord ance with the provision of the SME Act. 
About 40% of the resources are to be earmarked for projects promoting women's 
participation, youth entrepreneurship, import substitution, or exports.”  Please provide additional details on the projects promoting import substitution and exports in the context of Maldives’ obligations under Article 3 of the SCM Agreement. 
 
A main objective of the loan scheme is to assist  small and medium enterprises in their business 
endeavors. The government acknowledges the cent ral role that SMEs play in overall economic 
development and welfare of the country. 
 For the mentioned scheme which was launched in  November 2015, the application deadline 
expired on 31
st January 2016. Government is currently in the evaluation stages of the proposals 
that were submitted and as such it is difficult to provide details on the specific project proposals at current time.   
The Government would like to note that the loan schemes are meant to provide affordable 
financing schemes for small enterprises that are not able to tap into the domestic banking sector considering the high collateral and interest rate requirements.  
 
9) Page 45, Paragraph 3.91: 
 
a. The Secretariat says Maldives is not a party to the WTO Agreement on Government 
Procurement, or an observer to its Committee. Is Maldives considering becoming a party to the Agreement on Government Procurement? 
 WT/TPR/M/332/Add.1 
 
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  Existing regulation on government procurement are built on the principles of transparency, 
accountability, fairness, competition and efficiency. The regulations encourage private sector participation in government procurement, and also have provisions to open procurement to foreign suppliers of goods and services for contracts above specified thresholds.  
 
Maldives is not at the moment considering becoming a party to the Agreement on Government Procurement. 
 
10)  Page 46, Paragraph 3.93:   
 
a. The Secretariat says services remain by far the largest sector of the economy 
(accounting for more than 80 percent of GD P and over 90 percent of total goods and 
services exports) with tourism being the largest activity and the largest generator of government revenue.  Has Maldives considered enhancing their trade in services by 
participating the in the Trade in Services Agreement (TiSA), which will encompass state-
of-the-art trade rules aimed at promoting fair and open trade across the full spectrum of service sectors and support the development of strong, transparent, and effective 
regulatory policies? 
 The Government pursues a very liberal regime fo r investments covered under trade in services. 
 
The Government recognizes the need to diversify its economy and is open to consider 
commitments under WTO Trade in Services. In fact, the Government is already engaged in discussions for opening up the country’s services sector under the South Asian Trade in Services 
agreement and also in discussion with China to conclude a Free Trade Agreement that covers both 
trade in goods and services.  
These are positive steps that the Government  has taken towards binding commitments under 
trade in services, and the Government views participation in WTO TiSA arrangement positively.   11) Page 48, Paragraph 3.108 
 
a. The Secretariat’s report notes that the Maldives is a non-signatory to the treaties 
administered by the World Intellectual Property Organization, and notes that Maldives 
has “indicated that the country would join once the national legislation is in place.”  
Please provide an update on the status of thes e efforts.  Is there currently a timeline for 
introducing the legislation necessary for joining the WIPO treaties?   
 
With Assistance from WIPO, Trademark and Geographical Indication bill had been drafted and the Government is currently engaged in stakeholder discussions to further refine the Bill prior to submission to the Parliament. The bills are planned for submission to the Parliament in the third 
quarter of this year.  
 Work is also underway for drafting an Industrial Design and Patents bill.  
 
12) Page 48-49, Paragraph 3.115 
 
a. The Secretariat’s report notes that the Maldives passed the Copyright and Related Rights 
Act of 2010 during the review period.  Could you please describe the enforcement mechanisms available to copyright owners under this legislation? 
 
The enforcement mechanisms facilitated under the law are as follows:  
 
1. An aggrieved party can bring a civil suit to claim for damages and to request the 
court for an order to confiscate or to discard of reproduced goods. 
2. A criminal suit can be brought against accused, where a fine can be imposed on 
him, ranging from 50,000 rufiyaa to 300,000 rufiyaa. This fine can be doubled in 
case of repetitive offence within 5 years. 
 
It is also to be noted that a comprehensive regulation has been developed and passed under the Copyrights Act, which provides details on enforcement procedures. 
 WT/TPR/M/332/Add.1 
 
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13) Page 49, Paragraph 3.116 
 
a. The Secretariat’s report notes that the legislation provides for the establishment of a 
collective society, but that it has not yet been established.  Please provide an update on 
the status of these efforts.  Is there currently a timeline for finalizing the draft Collective Management Organization Regulation? 
 
A draft regulation on Collective Management Organization is in existence.   The Government is committed to expedite the en dorsement of the regulation and operationalize 
the formation and functioning of a Collective Management Organization. 
 14) Page 56, Paragraph 4.22:  
 
a. The Secretariat sates “Staple foods, such as ordinary rice, flour and sugar, are imported 
mainly through the majority government-owned enterprise State Trading Organization 
(STO) and are sold at government-controlled prices which according to the authorities 
are necessary to keep inflation rates low and to ensure access to food by the most vulnerable populations.” Please clarify: 
 
 What constitutes staple foods?  
 Staple foods are considered as: 
 
1) Parboiled Non – Basmati Rice  2) Flour  
3) Sugar    
 
 What were FY2015 average government-controlled prices for the products labeled as 
“staple food”?  
 
Controlled Prices of staple food vary from island  to island depending on the transportation cost. 
The controlled prices of staple food in the Capital are as follows:  
 
1 Kg Rice – MVR 4.35 1 Kg Flour- MVR 3.35 
1 Kg Sugar- MVR 4.35 
 
The Island councils will declare controlled prices of stable food in the other islands with the approval from Ministry of Economic Development. 
 
Transportation cost is added to the controlled Price of staples in the capital to arrive at the controlled price applicable to the islands outside th e capital. Island Councils are required to make a 
public announcement if the controlled prices are amended.   
 
 What is the procurement, pricing, an d distribution mechanism of STO?  
 
Staples products are procured through internationa l Open Tenders pursuant to international best 
practices.   
STO has 13 warehouses across the Maldives. Out of these 13 warehouses, 4 warehouses are 
located in Kulhudhufishi, Thinadhoo, Addu and Fuvahmulah (the main population centers in the north and south of the country.   
 
 What were the traded values and volume of staple food by STO? 
 
The most recent figures are provided below: 
 2015 total value 155,953,160.00 MVR 2015 total Quantity 1,350,887 bags  WT/TPR/M/332/Add.1 
 
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  EUROPEAN UNION 
WT/TPR/S/332 
 
Para 2.19, page 24. Transparency. "Despite being a longstanding beneficiary of TRTA from the 
WTO and other organizations, the state of play of  Maldives' WTO notifications and observance of 
tariff bindings commitments has remained vi rtually unchanged since the last Review." 
 
EU Question N°1 : Could the government provide information on the actions being taken or 
planned to ensure that Maldives ' obligations  of notification in the WTO are fulfilled? 
 We acknowledge the support Maldives have received under Trade Related Technical Assistance to 
build national capacity on trade and WTO matters . However, limited capacity coupled with high 
staff turnover makes it difficult to retain trained staff and this is a key challenge for the government in meeting its key WTO obligations.  
 
In order to address Maldives obligation under the WTO, we have recruited a National Trade Policy Consultant under the Enhanced Integrated Framework program, tasked with the mandate to 
identify and assist the government in implementing various obligations under WTO agreement, 
including timely notification.    The Government of Maldives has sent a request in 2015 to the WTO Secretariat for technical 
assistance and capacity building support in the area of notification.  
 Maldives will endeavour to fulfil its WTO obligations and we appeal developed member states and 
the Secretariat to extend capacity building support on WTO matters.  
 Para 2.21, page 24 . Multilateral agreements. " Maldives has neither accepted the WTO Trade 
Facilitation Agreement (TFA) nor requested technical assistance in the compliance-related area of 
the Agreement yet; as of end-October 2015, the prep aration of the notification of TFA provisions 
to be implemented immediately upon its entry-into-force and the work for launching the process of its ratification were underway."  
 
EU Question N°2 : Could the government provide more details, including a timeframe for the 
ratification of the Trade Facilitation Agreement? The EU would be pleased to get more information 
on the government's intentions regarding the notification of its Category A, B and C commitments. 
 Maldives Customs Service has conducted a self-assessment to assess readiness in complying with 
WTO Trade Facilitation Agreement, identified the gaps and classified provisions according to 
Category A, B and C commitments.   The Government of Maldives will shortly initiate the ratification process for the TFA as per the 
provisions contained in our Constitution and woul d endeavour to complete the process by the end 
of 2016.  
The categorization done by Maldives Customs Servic es is to be reviewed and endorsed at national 
level by the National Trade Facilitation Committee that was established in September 2015. On completion of this domestic procedure, the Go vernment will notify its Category A, B and C 
commitments. We expect to complete this formality and notify the WTO secretariat within the next 
three months.   Para 2.25, page 25 . Bilateral agreements. The Secretariat reports that the " Maldives has 
signed a Memorandum of Understanding with China on 8 September 2015 to negotiate a free trade 
agreement and that a first meeting was scheduled for November 2015".  
 
EU Question N°3 : Could the government clarify whether, following the signature of the 
Memorandum of Understanding with China, the nego tiations for a China-Maldives FTA have already 
started? Even if negotiations have not yet started, could the government give more information on 
the timeframe under consideration for the start of the negotiations and on the potential scope of 
the agreement? In particular, would it cover only trade in goods or would it also cover trade in services? Could the government clarify whether the parties would intend to negotiate some "WTO 
plus rules", such as for exampl e investment or competition? WT/TPR/M/332/Add.1 
 
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  Since the signing of the MOU, two rounds of nego tiations have been completed under the China-
Maldives FTA negotiations. The third round will be held in Maldives in May this year. Both 
Governments are aiming to conclude the negotiations before end of 2016.   
The scope of the agreement under consideration includes trade in goods, trade in services, 
investments and technical cooperation. The intention for both parties is to negotiate a WTO Plus agreement and to achieve high level of liberalization both in trade in goods and services.  
 
Page 26 para 2.64 on GSP. " Maldives continued to receive preferential tariff treatment as a 
developing country under the GSP schemes of Aust ralia, Belarus, Iceland, Japan, Kazakhstan, New 
Zealand, Norway (LDC treatment), Russian Federati on, Switzerland, Turkey, and the United States 
(as from 1 January 2010)".  
 EU Question N°4 : Could the government report on the impact of the preferences granted by 
Australia, Belarus, Iceland, Kazakhstan, New Ze aland, Norway, Russia, Switzerland, Turkey and 
Canada, China and Japan, in particular the exte nt to which those preferences have helped the 
export of products from the Maldives to these countries over the last four years? Could the 
government give details, when relevant, as to the impact of the Maldives' graduation and 'exit' 
from the schemes previously granted?   Maldives merchandise export is only fish and fishery products, primarily consisting of tuna. The 
tuna that we export are caught using the pole and line, sustainable fishery method. This method is 
proven to be the most environmentally friendly me thod of fishing practised in the world, though 
more costly compared to netting and other forms of  fisheries, placing Maldives at a competitively 
disadvantage position compared to its competitors.  
 Considering the high production costs involved in maintaining a managed sustainable fishery 
industry, Maldives has traditionally directed its fish exports to markets that fetch a premium price.  
  Prior to graduation, a large proportion of our exports went to EU, a market where we were getting the best possible price to the product. With the preference enjoyed under the EU GSP –EBA terms, 
at its peak the market share of Maldives fish exports to EU reached to a high of 46% in 2012. With 
preference erosion the market share has experien ced a gradual decline and stood at 39% at the 
end of June 2015. With the erosion of the GSP, Maldives tuna products are now facing an MFN 
tariff rate between 12-24% putting Maldives at a competitive disadvantage compared to 
competing countries enjoying GSP concessions in th e EU market. Maldives also lost all preference 
enjoyed for its fish exports in other export markets including Japan and China.  
 
Due to preference erosion in EU market, Maldives  has been seeking and stepping up efforts to 
access other export destinations for its fish export s and included countries such as the USA, China 
and the Middle East. Efforts are being pursued by the Government to access markets that continue 
to accord preferences to developing countries. In this regard, with the reinstatement of Maldives to 
US GSP scheme in 2010, export volumes to US markets have considerably increased year-on-year post re-instatement to US GSP scheme. Positive growth is also noted in the Swiss market in the 
recent years.  
 While we may be enjoying trade preferences from other markets as stated in the report, our 
limited catch and production of fishery based products, which are both consumed locally with the 
balance exported, our fishery products have only been exported to a limited number of markets that have granted trade preferences for Maldives.  
Page 29 Tariffs 
The Secretariat and the Government reports point to the unilateral liberalization of tariffs that led to an average applied tariff rate that dropped from 21.4% in 2008 to 13.9% in 2015 and to an 
elimination of tariffs of about 31% of the tariff lines, which the EU welcomes. The EU appreciates 
that most of the Maldives' tariff lines are bound (94.9%). Nevertheless, the tariff regime now seems to be more complex with 12 ad valorem rate s and one specific duty rate applied to 7 lines 
(compared to previously 10 ad valorem rates and one specific duty on six lines). Furthermore, 
Secretariat reports in paragraph 3.24, page 32, that the applied tariff schedule seems to be subject to frequent reviews.  WT/TPR/M/332/Add.1 
 
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  EU Question N°5:  Could the government provide information on its intentions, if any, to further 
reform its tariff regime? If the answer is yes, would the government take into consideration the need for traders to benefit of a more predictable and if possible simple regime?   
Government’s reliance on import duty as a revenue measure has significantly declined since the 
last TPR and the current Government has embarked on a pro-active policy agenda to strengthen trade facilitation measures and improve the doing business environment.  
 
In this context, the Government will review its tariff regime and initiate work to further streamline the tariff structure. Reforms to tariff structure, however, will be implemented after considering the 
country’s fiscal situation.  
 
Since the last TPR, the government has brought changes to the MFN tariff structure in 4 separate amendments brought to Export Import Act. These amendments were brought in 2012, 2013 and 
2014.  
 The Government would like to note that it is through these amendments that duty was eliminated 
for a large proportion of the tariff lines. Hence, the Government considers the tariff structure 
reviews implemented from 2012-2014, though frequent, enabled Maldives to adopt a more liberal trading environment compared to the past review period and thereby have extended substantial benefits to the traders.   
 
The Government acknowledges that the revisions brought to the tariff structure during the review period resulted in a marginal increase in the co mplexity of the tariff structure.  However, the 
Government would like to note that the increase in  additional two ad valorem rates to the tariff 
structure are associated with changes in government policy to discourage import of environmentally harmful products (namely plastic products and passenger vehicles considering the 
limited land space in the country) into the country as a means to further preserve the fragile eco-
system. The specific duty is levied only on cigare tte sticks and increase of number of lines from 6 
to 7 is due to creating a separate tariff line for an imported cigarette brand for national statistical purpose.      
 
The government place great importance to provide a predictable trading environment to its traders. On this note, the Government would like to state that for majority of the tariff lines 
brought to zero rate in the 2012 amendments, the applied MFN rates for those tariff lines have 
remained intact in the subsequent reviews. Upwa rd revisions to the tariff rates are considered 
mainly on environment and health grounds.  
 
Para 3.33, page 35 . According to the Secretariat's report, the state of observance of tariff 
binding commitments has not improved since the last review. In fact the number of lines where applied tariffs exceed bound rates have increase d from 218 lines to 323 lines. Furthermore, the ad 
valorem equivalents for some of the recently introduced specific duties seem to exceed the bound 
rate. The Government acknowledges this situation in its report (para 3.29). 
EU QuestionN°6 : Could the government provide information on the concrete actions it is taking 
or intends to take to bring all its applied tariff in line with its bound rates? 
 
The government will commence a comprehensive review of the Export Import Act in 2016.   
The review work will be carried out to align the domestic laws governing export and imports with 
its international commitments as a WTO member stat e. Scope of the review will include areas such 
as bringing the applied tariff lines in line with the bound rates and streamlining licensing regime governing import and export of general merchandise and controlled goods.    WT/TPR/M/332/Add.1 
 
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  Para 3.46, page 38 Systematic import licensing 
According to the report, there has been no change to Maldives' import licensing regime, which 
continues to apply to all imports, including those of items for personal use. Businesses and 
individuals are required to obtain an import licence  in order to engage in the import (or export) of 
goods.  
EU Question  N°7: Could the government clarify which are the procedures to be followed by 
business to obtain an import licence? Could also the government report whether it intends to 
submit an annual notification, in accordance with Art. 7.3 of the Import Licensing Agreement, in the near future? More generally, what type of measures is the government considering to improve the business climate (for example as measured in World Bank's Doing Business Index)? 
To import goods into Maldives, under the current  Export Import Law, business and individuals 
require an import license. To obtain the license, an application for import license has to be 
submitted to and obtained from the Ministry of Ec onomic Development. The license is issued on a 
renewable basis for a maximum of 12 months for any value of imported goods. License from the 
Ministry is usually issued on the same day of app lication. To facilitate the importers, Ministry also 
has delegated the issuance of the import licence to Maldives Customs Service.  
 
The Government is working towards strengthening its notification capacity and will make every 
effort to submit notifications in accordance with Article 7.3 of the Agreement on Import Licensing.  The multi-stakeholder National Trade Facilitation Committee (TFC) established in Sept 2015 and 
chaired by the Minister of Economic Developmen t has been mandated to implement reforms to 
improve the doing business environment. As part of  the work program of the TFC, the Government 
has already initiated discussion with relevant public and private sector stakeholders to simplify and 
streamline the documentary requirements related to export and import processes. This review will 
look at easing the import and export documentary requirements for general merchandise goods and streamlining documentary requirements for controlled goods such as alcohol and pork 
products, chemicals, etc. The work of the TFC is progressing according to a set timetable and 
criteria under the direct supervision and oversight of Minister of Economic Development.    The committee is working specifically on seve n thematic areas to streamline the business 
environment. Namely; starting a business, registering property, getting credit, protecting 
investors, trading across borders, enforc ing contracts and resolving insolvency.  
 
The Government has also prioritized implementation of a National Single Window (NSW) project 
for trade facilitation to improve the cross border tr ading environment. In support of this national 
project, business process of relevant stakeholder agencies are being currently assessed with a 
view of formulating and adopting improved proc ess flows under a NSW. The Government is also 
currently working with ADB to develop a full road map and formulate a project proposal for a NSW.   
Through the EIF programme, support is currently be ing provided to Maldives Customs Services to 
migrate its goods clearance system to ASYCUDA Wo rld which will enable the Government to fully 
automate the Customs goods clearance process.  
 
Para 3.16 page 31.  Accession to the International Convention on the Simplification and 
Harmonisation of Custom Procedures 
EU Question  N°8: Could the government confirm its intention to ratify the International 
convention on the simplification and Harmonisation of Custom Procedures? 
Maldives Customs Service (MCS) has completed th e gap-analysis and identified the areas where 
amendments to the regulation are required.  MCS will send the request to begin the ratification process to AG Office during this month. The 
date for ratification will depend on when the endorsement from Parliament can be obtained.  
 
Paras 3.50 and 3.51 page 38. " The STO remains the main state-tr ading entity involved in the 
importation of goods (e.g. food, manufactures, hydr ocarbons) and trade in services (e.g. insurance WT/TPR/M/332/Add.1 
 
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  and tourism). Its main function is to ensure suffi cient domestic supplies of staple food products, 
such as rice, flour and sugar, at prices determined by the Government, which then subsidizes the difference between such price and the cost of impo rts (Sections 3.4.8 and 4.2.2.4). Although there 
is no restriction on private parties engaging in th e import of these products, they are not eligible 
for government subsidies and tend to engage only  in the importation of premium range segments 
of these products. In 2014, the STO's imports of these items amounted to Rf 30.6 million, 
representing 19% of its total imports. The STO comp etes with the private sector in the importation 
of a wide range of other products and the pr ovision of services; wholesale and retail trade 
represent the largest part of its turnover. It re mains committed to being a profitable entity. No 
further information was available on the STO's exclusive import or distribution rights, its procurement methods, pricing, or traded values/volumes since 2009. 3.51. Maldives has never 
notified to the WTO any state-trading activity within the meaning of Article XVII:4(a) of the GATT 
1994, due apparently to the capacity limitations of the authorities."  
 
EU Question N°9 : Could the government give more information regarding the mandate and the 
interventions of STO on the markets where the private sector competes? Could the government 
give details on the sectors (if pertinent) where STO would have exclusive rights to operate? 
The State Trading Organization currently does not enjoy or have been granted any exclusive rights 
to operate in any of the sectors. 
 
As a publicly listed company, the operations of the company are governed by the corporate governance code and ensure its operations are prof itable in order to deliver shareholder value.   
 
Being an import dependent country, with substantia l logistical challenges to ensure delivery of 
essential items to the populations residing in re mote islands, the Government as the majority 
shareholder of the STO, utilizes the company as a vehicle to ensure food and energy security in 
the country. STO also plays a catalytic role in ensuring stable prices of essential commodities in 
the market during periods of unusually high demand, such as the month of Ramadan and other festive periods. 
 
When import volumes of staple food and fuel ar e excluded from the total import value of STO, 
total volume of the rest of the imports by STO are considerably lower compared to other private 
wholesale and retail importers evidencing stiff competition despite the Government stake in STO. 
 
While government’s stake in STO is considerable, the government is weary of potential negative 
market distortions from the presence of STO in the market for key commodities. It is however, 
noteworthy to state that previously enjoyed benefi ts by STO and other SOE’s including provision of 
land at non-market rates, are being gradually revised to make way for a level playing field for market players. 
 
Page 55 section 4.22.3 Agriculture. Domestic measures. The WTO Secretariat refers to the 
latest Domestic Support notification which dates back to 2000 covering the 1995 -1998 period.  
EU Question N°10 : When does the government intend to notify domestic support for Agriculture 
for the period 1998-2014? When does the government intend to notify the new reformed agricultural policy as described on page 55 of the Report? 
The WTO Secretariat's report refers to 2011, where input subsidies totalling Rf 31.9 million were 
disbursed to 10,112 farmers. 
The domestic support measures provided on Agri culture for the period 1998 to 2014 and the newly 
reformed agricultural policy as well as any new developments in agricultural policy will be notified 
to WTO by the end of the year. 
 The Government seeks capacity building support to strengthen its notification capacity and general awareness on WTO Agreement on Subsidies and Countervailing Measures.  
 
The Government also would like to note that the input subsidy distributed by the Government in 2011 is a negligible amount with each farmer receiving an amount of USD 205 per head. 
 WT/TPR/M/332/Add.1 
 
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  During the reporting period, agricultural exports from the Maldives to the rest of the World are 
almost non-existent and volume of agricultural imports from rest of the World has not declined over the reporting period. Import volumes have rather increased except for a few tropical crop varieties.  
 
The input subsidies in 2011 were provided to farmers mainly for developmental purpose to increase food production capacity as a means to increase food security and nutrition intake at 
island level.  
 The current government effective from 2014, has di scontinued distribution of such marginal input 
based subsidies provided to farmers. A market based insurance scheme was introduced in 2014 for 
farmers under the national social protection scheme, providing coverage for income loss incurred 
by farmers from natural disasters.  
 
EU Question N°11 : Can the government detail the amount granted as input subsidies to which 
type of input it is given, and indicate the amount per type of input? 
The Government has provided inputs subsidies to farmers to purchase fertilizers, seeds and 
purchase of small scale processing equipment.   
The subsidy amount provided was not tied to a particular input but a per head maximum was 
specified not exceeding a value of MVR 4000 (USD 260). 
 
Para 3.111-3.117, page 48-49 . The EU welcomes that the Maldives have passed the Copyright 
and Related Rights Act and that a draft trademark bill and industrial property bill are in preparation. 
EU Question N°12 : Could the government indicate whether and when it plans to adopt the trade 
mark bill and the industrial property bill? Could the government inform if there are any 
considerations regarding the introduction of legislation to protect Geographical Indications?  
With assistance from WIPO, Trademark and Geographical Indication bill has been drafted and the 
translation to local language has been recently concluded. We are currently in the consultation 
process with the stakeholders including the opportunity for public comments.  The two bills will be forwarded to the Attorney General’s Office by the end of March 2016 for 
submission to the Parliament. Upon submission of the Trademark and GI bill to the parliament, the 
Government will commence work on drafting Industrial Design and Patent bills. 
 
WT/TPR/G/332 
 
Para 4.14-4.15, page 18 . Industry Diversification  
 The Government mentions that it has formulated a National Economic Diversification Strategy. 
 
EU Question  N°13:  Could the government provide more details on this strategy and on the 
sectors/new activities that would be developed? Would these sectors be assisted by the 
government? 
 The diversification strategy was formulated in 2013 to lay out the vision, strategies and targets to 
widen the country’s economic base. 
 Maldivian economy currently depends on tourism and fisheries. As evidenced in many of the 
reports and recommendations of various multilateral organizations, there is a clear need to 
broaden and expand our economy. The diversificatio n strategy has identified potential sectors that 
Maldives could rely or concentrate to achieve a mo re diversified economy taking into consideration 
the advantages and challenges being faced by the country as a dispersedly populated, low lying 
island nation with a small and narrowly based economy. 
 WT/TPR/M/332/Add.1 
 
- 25 - 
 
  The diversification strategy highlights opportunities in new industries and further product 
diversification with already well- established sectors such as tourism and fishery sector. 
 The strategy also highlights opportunities in whol esale and retail trade, specifically targeting the 
increasing number of tourists coming to the country through establishment of boutique shops and 
high end retail brands,    
Development in health and educational services, including higher education, especially taking 
advantage of the renowned Maldivian tourism product is also highlighted as potential areas that may be further developed. These include proposals for the setup of a world class training facilities in hospitality education and development of necessary facilities for medical tourism, which present 
significant market potential, but is at present loosely tapped in the Maldives. 
 In the fisheries sector, value addition, greater exploitation of our vast Exclusive Economic Zone 
and development of aquaculture and mariculture are highlighted as potential areas that may be 
further strengthened. .  
Development of financial sector, broadening the construction and real estate sector, development 
of light manufacturing, development of agriculture catering to the tourist market are noted as potential sectors.  
Government policies are increasingly designed to support the diversification strategy and it must 
be noted that key pieces of legislations including the SEZ law ratified in 2014, lays down the foundation for investments in many of the areas iden tified in the National Diversification Strategy. 
 
Para 5.2, page 20 and Secretariat report (paras 3.50 on State trading and paras 3.102-
3.105, page 47) 
The Secretariat's report points to a widespread involvement of the Government in the Maldivian 
economy with close to 100 state-owned enterprises operating in several sectors. These enterprises 
often receive subsidies in different forms from the Government. This situation could be seen as representing a risk of crowding out private investment in the Maldivian economy. At the same time, the Government recognises the central role of the private sector in the country's development efforts. 
EU Question N°14 : Could the Government provide information on how it sees its role in the 
economy in the near and medium term (for example if there are any privatization plans)? 
As highlighted in the Government of Maldives Report, while there are close to a 100 enterprises 
with state involvement, only around a quarter of these represent state-owned enterprises with 
substantial share holdings or control. Many of the remaining enterprises with state involvement 
are created as Special Purpose Vehicles, with the private sector parties to facilitate the development of the tourism industry and public infrastructure.   
The government is committed to make the private sector the main engine of growth for the 
economy. Over the medium term the government s eeks to enhance the role of the private sector 
in line with their capacity, with the state focusing on the role of regulating and facilitating the 
development of the private sector.  
 It is in this spirit that the Government ratified the Law on Privatization, Corporatization, Monitoring 
and Evaluation of Government Businesses (3/2013) . A Privatization and Corporatization Board is 
established under the law, with the mandate to identify the government companies to be privatized and corporatized, to be implemented upon approval of the President of Maldives, 
inter alia.  WT/TPR/M/332/Add.1 
 
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  AUSTRALIA 
Questions on Report produced by the Secretariat 
 
1. ECONOMIC ENVIRONMENT 
1.2 Recent Economic Developments  
 Page 14, paragraph 1.10 
 
Question 1 
 Would Maldives consider adopting a medium term budget framework to help improve resource 
allocation and predictability of spending? If so, when is it likely to be adopted?  
 Ministry of Finance and Treasury (MoFT), with Th e World Bank support is currently engaged in the 
"Public Finance Management (PFM) Systems Strength ening Project". Under this project, MoFT is 
undertaking the first steps towards a Medium Term Budget Framework (MTBF) with a Medium Term Fiscal Framework (MTFF). The MoFT expects to complete the MTFF by mid-2016, to be able 
to utilize the MTFF for the 2017 budget preparations. 
 1.4 Main Structural Policy Developments and Challenges   
Page 15, paragraph 1.17 
 Question 2 
 ADB noted in its 2015 Economic Outlook that debt sustainability is a risk because of the Maldives's plans to scale up public capital investment. How will Maldives manage this risk?  
 
The infrastructure scale up is essential to address major infrastructure bottlenecks, expand and diversify the economy and improve the quality of lif e of the people. The risks in debt financing of 
these projects are minimized by seeking financing on  long term loans on the best terms available. 
The government believes that over the medium to long term, the capital investment scale up 
would add significantly to economic growth, which should in turn increase the capacity of the 
economy to service this debt. 
 
2. TRADE AND INVESTMENT REGIME 2.6 Trade Agreements and Arrangements  
 
Page 24, paragraph 2.18  Question 3 
 Of the 738 cases of corruption investigated in 2014, how many were prosecuted?   
According to the records 32 cases were forwarded to Prosecutor General’s Office for prosecution by 
the Anti-Corruption Commission in 2014. Of these, 2 cases were prosecuted in the respective courts in 2014. 
 
2.7 Foreign Investment Regime   Page 26, paragraph 2.27 
 
Question 4 
 
What specific reforms will be introduced to improve the ease of doing business in Maldives?  
[According to World Bank 2015 Doing Business data, in 2015 Maldives ranked 137th out of 189 
economies in ease of trading across borders].  
 
Amendment to Companies Act which is due to be submitted to the Parliament during the coming 
months will address the bulk of issues identified in the Doing Business Assessments. We anticipate implementing the requirements by the second half of this year.  WT/TPR/M/332/Add.1 
 
- 27 - 
 
   
Under the guidance of the Trade Facilitation Commi ttee, the government is also streamlining the 
documentation procedures in order to ease doing business. We are also working on a national single window in Maldives with the assistance of the Asian Development Bank. 
 
Page 28, paragraph 2.33  
Question 5 
 
Has the Maldives considered introducing personal or corporate income tax in Maldives? If so, when would Maldives be looking at introducing it?  
 
Since 2011, a Business Profit Tax (BPT) has been le vied on the profits of all businesses carried out 
in Maldives. Companies, partnerships, individuals and all persons who are resident or carrying out 
business in Maldives are subject to the BPT. A green tax is also levied at a flat rate of USD 6 per 
tourist per day.  
Currently there is no form of personal income tax in the Maldives. 
 Page 27, paragraph 2.29  
Question 6 
 
What is the rationale for excluding foreign investme nt from any kind of retail trade? Are there any 
plans to liberalise this restriction in line with the recent developments permitting foreigners to 
engage in professional services and wholesale trade?  
Retail Trade sector in the Maldives is dominated by local companies including a major portion of 
Small to Medium Sized Companies. Therefore, the government continues to uphold the restriction 
applied under the Business Registration Act.  
However, global retail businesses and regional retail businesses can venture into Maldivian market 
under the levy provided in the Business Registration  Regulations, by categorising such businesses 
as franchise arrangements adhering to certain quality and standards in their products/services 
offered. 
 3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Introduction 
 Page 28, paragraph 3.50  
Question 7 
 
Are there plans to reform laws and regulation s on state owned enterprises in Maldives?  
 
It is quite recently that The Law on Privatizatio n, Corporatization, Monitoring and Evaluation of 
Government Businesses (3/2013) was passed by the Peoples Majlis.  Currently there are no plans 
to amend this law. In addition, all State Owned Enterprises (SOEs) are subject to and regulated 
under the Companies Act.   There are no regulations regarding SOEs. The Privatization and Corporatization Board (PCB) 
encourages all SOEs (listed and unlisted) to follow the Corporate Governance Code for listed 
companies.  
3.2 Measures Directly Affecting Imports 
 Page 30, paragraph 3.13 
 
Question 8 
 When will Maldives operationalise the Single Window for trade facilitation?  WT/TPR/M/332/Add.1 
 
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  The work required for the implementation of NSW is an ongoing process and it is expected to be 
completed within 18 months.  Page 32, paragraph 3.24 
 
Question 9 
 
When will tariff lines (including those currently inactive) be made available online to improve 
transparency and accountability?   All tariff lines including inactive lines are available for publication. (Please note that all active tariff 
lines have been published in the Customs website) 
 Page 35, paragraph 3.33 
 
Question 10 
 
Welcome advice on the need for maintaining tariffs on meat products. Are there plans to reduce 
these tariffs over time?  All meat products except pork and pork products are now at 0%. At the moment, there are no 
plans to reduce the duty on pork products. 
 3.4 Measures Affecting Production and Trade  
 
Page 41, paragraph 3.68  
Question 11 
 
When will the draft food bill, submitted to th e Attorney General in June 2014 for review be 
enacted?  
 
Maldives Food and Drug Authority are currently wo rking with the legal and policy team of Ministry 
of Health to incorporate comments and additional  chapters recommended by Attorney General's 
Office to the draft Food Bill.  
 Final draft Food Bill will be sent back to Attorney  General’s office by the end of May 2016 and it is 
expected that the bill will be submitted to parliament this year. 
 Page 45, paragraph 3.91  
Question 12 
 
Does Maldives propose to accede to the WTO Agreement on Government Procurement? 
 
Existing regulation on government procurement is built on the principles of transparency, accountability, fairness, competition and efficiency. The regulations encourage private sector 
participation in government procurement, and also have provisions to open procurement to foreign 
suppliers of goods and services for contracts above specified thresholds.  Page 47, paragraph 3.101 
 
Question 13 
 
Have any exemptions to local staff requirements under the Special Economic Zones Act been 
granted and how are sector-specific quotas for foreign employees determined?  
The Government introduced the Special Economic Zones Law in 2014 and is currently working on 
bringing on-board, strategic priority projec ts for the country through the framework. 
 The Law provides the flexibility to developers to employ expatriate staff in technical and 
supervisory positions up to 10% with no specific limitations on staff employed in lower categories. WT/TPR/M/332/Add.1 
 
- 29 - 
 
  Furthermore, the Law also gives flexibility for developers, should there be a requirement to employ 
technical and supervisory staff beyond the 10% thre shold mentioned, after specific approvals from 
the Board of Investments.  
Page 47, paragraph 3.98 
 Question 14 
 Is Maldives proposing to introduce an independent and transparent mechanism for appealing tender outcomes? If so, what would be ke y features of this appeals process?  
 
There are currently no independent appeals mechanisms  in place .The current practice is to appeal 
tender outcomes at the Ministry of Finance and Tr easury (MoFT), as the designated adjudicator on 
tender matters. Upon deliberation by MoFT, th e party may pursue further appeals through the 
legal system. In addition, a party may appeal to the independent Anti-Corruption Commission on 
tender matters, at any stage of the tender process.   
The current Public Finance Regulation (PFR) and the forthcoming PFR stipulates the formation of 
an Independent Review Committee (IRC) which would be responsible for adjudication on appeals of tender outcomes. Work is currently under  progress on setting up this mechanism. 
 
Page 48, paragraph 3.106 
 Question 15 
 When will Maldives introduce regulations and laws to promote competition?   
Ministry of Economic Development is currently working on drafting a comprehensive Competition 
Bill.  4. TRADE POLICIES BY SECTOR 
4.5 Services 
 Pages 71-72, Paragraphs 4.82-4.84 
 
Question 16 
 
Australia notes the important role of air transport in the Maldives' economy. Could the Maldives 
please outline the opportunities for foreign firms wishing to provide services related to air transport, such as airport operations consultancy services and ground handling?  
Investment opportunities are opened for foreign investors in the following areas; 
a) Domestic airport development and domestic airport operations 
b) Airline ventures 
 
Page 73, paragraph 4.86  
Question 17 
 
Is there any update on the status of the passenger  rights bill to implement ICAO core principles? 
 
The Passenger Rights Bill is still at the drafting stage. 
 WT/TPR/M/332/Add.1 
 
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  Report prepared by the Maldives  
 
2. OVERVIEW OF THE ECONOMY  
2.3 Financial Sector and Monetary Development  
 
Page 7, paragraph 2.26  
Question 18 
 
Could the Maldives outline the accreditation process for foreign financial services suppliers seeking to provide Islamic Banking services in the Maldives? Which bodies are responsible for issuing any 
necessary accreditation, and are the requirements for the accreditation process available on-line? 
 There is no accreditation requirement involved in  the licensing process. The process for applying 
for a financial institution licence is available online on MMA’s website. 
 Page 7, paragraphs 2.29-2.31 
 
Question 19 
 Does the Maldives Government have specific plans to increase foreign investment in financial 
services? Could the Maldives please provide further detail on opportunities for foreign investors 
and services suppliers in this sector?  
Since November 2013, a specific focus has been put in place to promote access to finance for 
Maldivian Businesses. Banks, Insurance Companies and Non-bank Financial Institutions are regulated by the Maldives Monetary Authority. 
 
The Capital Market Development Authority (CMDA) is responsible for the development and regulation of Capital Markets in the Maldives.  
CMDA has initiated dialogue with both Mauritius and Sri Lanka to enable Maldivian Businesses to 
access finance from these markets. As a result, Colombo Stock Exchange and Stock Exchange of Mauritius have given approval for Maldivian Companies to raise dollar denominated funds from 
both markets. Currently, CMDA is working with Maldives Stock Exchange and potential issuers to 
tap into these new opportunities in terms of raising finance.  CMDA has recently announced a regulatory fram ework for Investment Funds, enabling Fund 
Managers, Custodians and Venture Capital funds to apply for registration and licenses in the 
Maldives.   Investment Advisers, Brokers, Custodians, Credit  Rating Agencies and Fund Management licenses 
can be obtained by both locals and foreigners.    
 Special Economic Zones Law provides an array of incentives targeting the development of an 
Offshore Finance Center in the Maldives, catering for both Shariah compliant products and 
conventional products.   
Furthermore, the Maldives Monetary Authority (Central Bank) has a view to bring in financial 
institutions of good calibre that can cater to the needs of the economy and help broaden the financial sector.  
 WT/TPR/M/332/Add.1 
 
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  THAILAND 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
2. TRADE AND INVESTMENT REGIME 
 
Page 28 (paragraph 2.32) 
 
Question 1:  Please clarify what are the priority sector s comprised of and is waste energy included 
in renewable energy?  Our priority sectors include real estate, logistics,  transport, finance and banking, ICT, renewable 
energy, water and sanitation, waste management, coastal protection, environment and climate 
change.  
Waste to energy is included as a form of renewable energy. Already some pilot projects have been 
initiated. In this regard, small scale waste energy facility is proposed to be built in Addu City and 
R. Vandhoo. 
 
Question 2: Please clarify about foreign investment mentioned in this paragraph. Is 100% foreign 
ownership allowed, or must it be a joint venture? Please be specific.  
The Business Registration Act, the Foreign Investment Act and the Special Economic Zones Act 
govern the foreign investment framework of the country.  
Under the above laws, 100% foreign ownership is allowed while Joint Ventures are also welcomed. 
 3. TRADE POLICIES AND PRACTICES BY MEASURE  
 
Page 48 (paragraph 3.106) 
 Question 3:  With Maldives' intention to formulate a competition law, please provide details 
regarding which actions should be defined as restriction of fair competition. Moreover, does the bill 
impose any penalty to these actions? Regarding which actions should be defined as restriction of fair competition.  
 
The purpose of the bill is to ensure micro, sma ll and medium sized enterprises have an equitable 
opportunity to participate in the economy, expand opportunities for citizens for participation in 
world markets, ensure and strengthen the conduct of fair trade and business practices and provide 
consumers with competitive prices and product choices. 
 
The bill states that, every person commits an offense who, with a competitor of that person with 
respect to a product, conspires agrees or arranges to:  
i. To fix, maintain increase or control the price for the supply of the product 
ii. Allocate sales, territories, customers or markets for the production or supply of 
the product 
iii. Fix , maintain, control, prevent, lessen or eliminate the production or supply of 
the product 
iv. Or otherwise restrain or injure competition unduly 
 The bill states what are illegal practices, unfai r discriminations towards consumers, false and 
misleading representations, refusal to supply, refusal to deal, bid rigging, mergers clauses and 
clauses on price maintenance. 
 The bill does have a chapter on enforcement, remedies and penalties. 
 
Page 48 (paragraph 3.4.9) 
 
Question 4: According to the report, Maldives enacts only Copyright and Relates Rights Act. 
However there is no legislation that protects other intellectual property rights, such as Patent and Trademark. In the case where there is an infringe ment of other intellectual property rights, such WT/TPR/M/332/Add.1 
 
- 32 - 
 
  as Patent and Trademark in Maldives, How does th e Government of Maldives suppress an action of 
infringement?  
1. Trademark – Trademarks continue to be registered at the Ministry of Economic 
Development under Regulations enacted for the purpose in 2008 (Div). Section 2.4 of 
the aforesaid Regulations prohibits the use of a registered trademark except by its 
registered owner. The Regulation does not clearly provide for actions to be taken by the 
Ministry against infringing parties. However, registration of a trademark gives rise to a 
proprietary right which can be enforced in the courts.  
 
2. There is a Trademark/Marks Bill and a bill on Geographical Indications which has 
completed the drafting stage and will be sent to Parliament soon after being subject to 
legal vetting and review.  
 
Page 31 (paragraph 3.18) 
 
Question 5:  The paragraph states that “When the declared value is rejected, the authorities 
adjust the value using reference prices (which are based on historical information)”. Please clarify 
how the mentioned sentence is in compliance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994.  
"If Customs has doubts as to the truth or accuracy of the price declared for the imported goods, 
the importer is consulted to obtain further explanation/reason/evidence to establish the facts of the transaction. Customs valuation database with reference prices is used as a risk assessment 
tool. The mere fact the declared price being lowe r than the previously declared values shown in 
database does not automatically subject to reject ion of declared value. In cases where further 
submission of evidence by importer leads to estab lishing the truth and accuracy of declared value, 
Customs accepts the declared value as the Customs value.  
 However, in the absence of a response by the importer or inability for importer to produce valid reason/evidence, the transaction value is rejected and alternative methods are followed. In such 
cases the reason for rejection is communicated to importer. If importer is not satisfied with the 
decision, an appeal can be submitted to Valuation Committee.  
This practice is in compliance with Article 17 of  WTO Valuation Agreement and Decision 6.1 of the 
WTO Committee on Customs Valuation."  
Page 32 (Page 32 (Page 32 (paragraph 3.22) 
 
Question 6:  Please clarify why Maldives has not submitted notifications on its legislation nor 
replied to the checklist of issues as required by Article 22 Part IV of the GATT Valuation Agreement 
which indicated that “Each Member shall inform the Committee of any changes in its laws and 
regulations relevant to this Agreement and in th e administration of such laws and regulations.” 
 
We acknowledge the support Maldives have received to build national capacity on trade and WTO 
matters. However, limited capacity coupled with hi gh staff turnover makes it difficult to retain 
trained staff and this is a key a challenge for th e government in meeting its key WTO obligations.  
 
In order to address Maldives obligation under the WTO, we have recruited a national trade policy consultant under the Enhanced Integrated Framework program, tasked with the mandate to identify and assist the government in implementing various obligations under WTO agreement, 
including timely notification.   
 The Government of Maldives has sent a request in 2015 to the WTO Secretariat requesting 
technical assistance and capacity building support in the area of notification.  
 Maldives will endeavor to fulfill its WTO obligatio ns and we appeal developed member states and 
the Secretariat to extend capacity building support on WTO matters. 
 WT/TPR/M/332/Add.1 
 
- 33 - 
 
  4. TRADE POLICIES BY SECTOR  
 
Page 57 (paragraph 4.21) 
 
The report that “For 52 tariff lines the MFN applie d rate stands at 50% and for one tariff line the 
MFN applied rate equals 35% while all are bound at 30%”  
Question 7:  Please provide the rationale to why applied MFN rates exceed the bound rates? 
 Ministry of Economic Development is working with Maldives Customs Services to make the necessary amendments to the Export Import legislation to ensure that the applied MFN rate does 
not exceed the bound rates. 
 Question 8:  What are the agricultural products that Maldives’ applied tariff rates exceed the 
bound rates? 
 Except dangerous live animals, the agricultural products that exceed the bound rates are those 
products that contain pork and alcohol. 
 Question 9:  Does Maldives have any plan to bring these tariff rates into conformity with WTO 
rules? 
 
The government will commence a comprehensive re view of the Export Import Act in 2016. The 
review work will be carried out to align the domestic laws governing export and imports with its 
international commitments as a WTO member state. Scope of the review will include areas such as 
bringing the applied tariff lines in line with the bound rates and streamlining the licensing regime governing import and export of general merchandise and controlled goods.  
 
Page 58 (paragraph 4.22)  
 
Question 10: Since Maldives’ State Trading Organization (STO) mainly imported ordinary rice, 
flour and sugar and sold at government-controlle d prices, please provide information on how the 
implementation of STO complies with Article 17 of GATT 1994.  
Rice, flour and sugar are sold at subsidized rates by the State Trading Organization. Private parties 
are allowed to import and sell these items in th e market. There is no monopoly granted for the 
state enterprises to import and sell these items. 
 
Due to distributional challenges, economies of scale that is required and the lack of ware hosing space have been hindrances faced by the private sector in engaging in the sale of these items at a wider scale. 
 
The government is at the moment reviewing all subsidies being granted in order to ensure that the subsidies are targeted to the most vulnerable people in the country. 
 
Page 63 (paragraph 4.47) 
 
The paragraph states that "if the lessee of an island or land for the development of a tourist resort or a party requesting to develop a tourist resort on an island or land fulfils certain ownership-
related conditions  and is a public company registered in Maldives , the land or island shall be 
leased for a period of 99 years."  Question 11: Please clarify what are certain ownership-related conditions? 
 
1. If the leaseholder is an entity or an individu al, following conditions must be fulfilled in order 
to extend 99 years lease period; 
a. All dues or any payments (rent or  fines) deferred should be settled 
b.  Should the lease period is extended up to 50 years (ie: the leaseholder must pay 
lease extension fees) 
c. Lease extension fee of USD 5,000,000 should be paid in full 
2. If the leaseholder is a public company; 
a. The Company should be registered in the Maldives WT/TPR/M/332/Add.1 
 
- 34 - 
 
  b. The Company’s objective must include development and operating of tourist resorts 
c. 55% of shares must be sold to the public 
 Question 12: For a public company registered in Maldives, is this company allowed for 100% 
foreign ownership or is it a joint venture? (if it is a JV, how many shares is a foreign investor 
allowed to hold?  
Tourism law requires that, 55% of shares should be sold to public. 
 QUESTION REGARDING THE REPORT BY THE GOVERNMENT  
2.  TRADE POLICY DEVELOPMENTS (2011-15) 
 Page 5 (paragraph 2.15)  
 Question 13  It is stated in the paragraph 2.15 that “The 2016 budget has proposed the highest 
Public Sector Investment Program (PSIP)…” Which sectors does Maldives promote in the 
aforementioned program? 
 The proposed PSIP scale up for 2016 will focus pr imarily on infrastructure development, with 
major projects focusing on the area of transportation, particularly the upgrading of Ibrahim Nasir 
International Airport  and the construction of the Male’-Hulhule’ Bridge. 
 Looking at the overall distribution of the PS IP budget, the largest allocations are for the 
development of ports and harbors, land reclamation and road development, water and sanitation 
and housing.  
Page 10 (paragraph 3.14)  
 
Question 14  The paragraph states that “ MOU on promoting construction of Male'-Hulhule'-Bridge 
Project between Ministry of Commerce of China an d Ministry of Economic Development was signed 
on 15 September 2014.” Please provide details regarding Maldives’ policy on this project so that 
we could have more information for Thai investors who are interested in investing in Maldives.  
The Male'-Hulhule' bridge is a central part of the urbanization policy of the government. It 
addresses two of the major constraints faced by th e current population distribution of Maldives; 
namely the overcrowding in the capital Male and the dispersion of small populations across many 
islands.  
 The Male'-Hulhule bridge would help develop the greater Male’ area as an urban center that would encourage the voluntary resettlement of the dispersed population and at the same time relieve the 
population pressures on Male'. 
 Page 24 (paragraph 5.31)  
 Question 15 Public Private Partnership (PPP) is an important mechanism for government agencies 
to strengthen economic and social development th rough the binding of private sector expertise, 
sharing of risks and provision of additional source s of funding. Does the government of Maldives 
have any policies or strategic measures to support the essential PPP projects?  The Government of Maldives (GoM) recognizes the importance of Public Private Partnership (PPP) 
mechanisms to strengthen economic and social development by engaging the private sector in 
leveraging financial resources and sharing risks.   
The government has over the years encouraged PPP through various mechanisms, including, 
among others, the establishment of Joint Ventures (JVs) between the government and private investors for strategic projects such as infrastructure development. 
 
The Special Economic Zones Act introduced in 2014  provides a legal framework that is supportive 
of the large scale infrastructure projects which Go vernment recognizes as potential projects which 
can be successfully delivered through PPPs. 
 WT/TPR/M/332/Add.1 
 
- 35 - 
 
  Page 28 (paragraph 6.24)  
 
It is described in this paragraph that Maldives has a number of new initiatives including “convening of annual investment forum to increase interaction and engagement with global investor 
community” and “creating a more transparent and predictable investment climate by initiating 
discussion with bi-lateral trade partners to sign  investment protection and promotion agreements 
and avoidance of double taxation agreements.” 
 
Question 16 Please specify industries/sectors of new initiatives. 
 In 2015 a Double Taxation Avoidance Committee, was formed under the Ministry of Finance and 
Treasury to formulate policies and procedures regarding the formation of Double Taxation 
Avoidance agreements, with representatives from Ministry of Finance and Treasury, Ministry of 
Foreign Affairs, Maldives Inland Revenue Author ity, Ministry of Economic Development and the 
Attorney General’s Office.  
 While there are no bilateral double tax avoidance (DTA) agreement currently in place, work is 
ongoing on a number of DTA initiatives.  
 Maldives is a signatory to the South Asian Association for Regional Cooperation (SAARC) “Limited Multilateral Agreement on Avoidance of Double Taxation and Mutual Assistance in Tax Matters” of 
2005. In addition, reciprocal arrangements have been made with 16 countries on exemptions to 
the Business Profit Tax, for non-resident owner or charterer of a ships or aircrafts.  
The "Maldives Investment Forum – MIF" initiative which was introduced in 2014 is being carried 
out annually, with the 3
rd edition planned for 2016 in India. MIF intends to showcase government 
promoted projects as well as private sector proj ects which are open for FDI, while creating a 
platform for local investors to interact and network with foreign businesses and investors. 
Strategic priority projects which have been opened up through MIF include: 
 Thilafushi Port Development Project 
Ibrahim Nasir International Airport Development Project 
Ihavan Integrated Project Hulhumale Development Project 
Development of an Integrated Sports Complex in Male 
 Question 17 : With regard to creating a more transparent and predictable investment climate, 
please specify the policy and regulation on this matter especially with bilateral trade partners. 
 The Government has been proactive in approaching major trading partners to enter into Double Taxation Avoidance and Investment Protection and Promotion Agreements, with a view to  assure 
investors of these countries of security of investments. 
 Furthermore, the Special Economic Zones Act includes within it, internationally competitive 
provisions on investment security, expropriation and dispute settlement. 
 WT/TPR/M/332/Add.1 
 
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  CHINESE TAIPEI 
PART II: REGARDING THE GOVERNMENT REPORT (WT/TPR/G/332) 
 
3. Trade Policy and Performance 
3.3 Regional Trade Agreement  
P. 10 (Para3.2) 
 Maldives has been an active member of the South Asian Agreement on Regional Cooperation 
(SAARC) and its trade liberalizatio n initiative, South Asian Free Tr ade Agreement (SAFTA) since its 
inception…  Question:  
1. As part of the efforts to promote regional economic integration, India is interested in 
launching the SAFTA+N initiative. What is Maldives’ view on this approach? Does the Government of Maldives support this effort?  
 
Maldives will always welcome and encourages regional economic integration efforts within the SAARC region.  
 
6. Graduation of the Maldives as a developing country 6.6 Future Outlook  
P. 29 (Para 6.5) 
 In addition, the future oriented policies of the government seeks to strengthen our bilateral trade 
relations, through FTA’s as a mean to provide enhanced market access for Maldivian products in 
the global market place.  
Question:  
2. What are priority partners, conditions and scope of the proposed free trade agreements by 
Government of Maldives?  
 
Maldives would like to engage with all partners who are desirous of engaging in strengthening 
bilateral economic relations.  
3. What is the situation of wealth distribution and income inequalities in your country? 
 The household income and expenditure survey done in 2010 indicates that the poverty rate under 
the international poverty line of USD 1.25 for the entire republic was 8%, for capital Male’ it was 
7% and for the Atolls it was 8%.   At international poverty line of USD 2 per day, the poverty line for the republic was 24%, for the 
capital Male’ it was 19% and for the Atolls it was 27%. 
 The Gini Coefficient for the republic was 0.37, for the capital Male’ it was 0.38 and for the atolls it 
was 0.36. 
 A new household income and expenditure surv ey is being carried out at the moment. 
 
4. Please elaborate your concrete measures to tackle this issue. 
 Maldives is a very open economy, and always welcomes foreign direct investments into the 
country. Attracting FDI, providing optimum policy and statutory environment for doing business in 
Maldives and FDI acting as one of th e fundamental force driving the country. 
 
The government also provides assistance to develop SME’s and especially development of SME's in 
the atolls through training and creating awareness, empowering women and youth to engage in entrepreneurship and in support services. 
 WT/TPR/M/332/Add.1 
 
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  Since access to finance has been a hindrance to SME's, the Government is working with donor 
agencies to fill this financing gap facing SME’ s. Furthermore, 50 Maldivian Rufiyaa million is 
budgeted every year for the provision of concessionary loans to SME’s.  
The loans provided through donor financing, 40% is targeted to women and youth of the 
population. Under the government SME loan scheme, a bonus 10 percentage points are granted if the majority of the business is owned by women or youth. 
 
We are also focusing the loans on start-up businesses with the aim of encouraging entrepreneurship in the country.   
The focus on increasing FDI, on development of SME’s in the country and the work being done to 
facilitate access to finance would create entrepreneurships, increase job opportunities, increase the wellbeing of the populations and thus assist in alleviating inequalities. 
 
 
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