. /.   WORLD TRADE  
ORGANIZATION  WT/MIN(09)/ST/85 
2 December 2009 
 (09-6166) 
MINISTERIAL CONFERENCE 
Seventh Session Geneva, 30 November - 2 December 2009 Original:   English 
 
  
MALDIVES 
 
Statement by HE the Honourable Mr Mohamed Rasheed
 
Minister of Economic Development  
   The Maldives is going though a very critical juncture in the country's development history.  We are a country in the early stages of the democr atic transition having unde rgone significant changes 
on political, social and economic fronts. 
  The Maldives has also made significant strid es towards achieving many MDG targets.  It 
ranks first in the UN human development index in  the South Asia region with a per capita income 
above US$2912.00.  As a result, the Maldives will gr aduate from the UN list of Least Developed 
Countries in December 2010.  Despite these achieve ments, Maldives remains highly vulnerable to 
both internal and external shocks, both economically and environmentally. 
  While graduation is a healthy signal that imp lies increased economic independence, it remains 
a concern to the Maldives.  On graduation from LD C status by the end of 2010, the Maldives will no 
longer benefit from preferential arrangements for LD Cs.  This could put an end to virtually all 
Maldivian exports to its main destination market - Eu rope - due to loss of preference.  The issue is of 
fundamental importance to all of us, as highlighted in the recent Declaration of LDC Ministers in Tanzania this year.  Accordingly, I call upon the de velopment partners to recognize the necessity of 
continued market access preferences and trade-related capacity-building assistance for facilitating a smooth transition process to the graduating countries in accordan ce with UN Resolution 59/209. 
 
 Despite the challenges and difficulties, Maldiv es continues to be one of the most open and 
liberal economies.  We have been a contracting party to the GATT since 1983 and continue to support the rules-based world trading system.  Our trad e and investment policies are liberal and open. 
  The investment regime, with no performance requirements, equity holding limitations or 
currency restrictions, is one of the most liberal in  the region, and is being liberalized further.  
Domestic industry protection and restricting entry of  foreign goods have neve r been a policy objective 
of the Maldivian Government.   The Maldives is embarking on these highly am bitious but critical policy reform programmes 
at the most difficult of times.  The global financial crisis has made it hard for the Government to 
embark on these reforms at the pace we wish.  With  the impending graduation, we are equally worried 
that loss of trade preferences and technical assistan ce will make it more difficult for us to achieve 
some of the critical reforms that are necessary to consolidate the open policy regime and the new democracy. WT/MIN(09)/ST/85 
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 With our limited resources and structural wea knesses, our efforts alone will not be sufficient 
to solve the manifold problems we face.  To enab le this, we urge developed countries to meet their 
existing commitments on aid and sustainable developm ent policies, including the solution to climate 
change, in a way that is meaningful to us. 
 
 In terms of trade, sustaining the benefits of the EIF to graduating countries is needed.  Further 
the need to formulate the Aid-for-T rade package in accordance with our situations is crucial.  Such 
measures should complement (not substitute) the development promise of the Doha Round. 
 
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