WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/TPR/M/221/Add.1 
7 December 2009 
 (09-6256) 
Trade Policy Review Body 
26 and 28 October 2009 Original: English/ 
 anglais/  inglés 
 
 
TRADE POLICY REVIEW 
MALDIVES 
Record of Meeting
 
Addendum  
Chairperson:  H.E. Mr. István Major (Hungary) 
 
 This document contains the advance written questions, and replies provided by the Maldives.1 
__________________________________________________________________________________ 
Organe d'examen des politiques commerciales 
26 et 28 octobre 2009  
EXAMEN DES POLITIQUES COMMERCIALES 
MALDIVES 
Compte rendu de la réunion
 
Addendum  
Président:  H.E. M. István Major (Hongrie) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par les Maldives.1 
__________________________________________________________________________________ 
Órgano de Examen de las Políticas Comerciales 
26 y 28 de octubre de 2009 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
MALDIVAS 
Acta de la reunión  
Addendum  
Presidente:  Excmo. Sr. István Major  (Hungría) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por las Maldivas.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/221/Add.1 
 Page 3 
 
 
  REPLIES PROVIDED BY THE MALDIVES 
 
BRAZIL  
 
III. TRADE POLICY AND PERFORMANCE 
 
(2) Law on Export and Import and Law on Prohibited Imports 
 
Paragraphs 63 and 64  
Question
: 
In paragraphs 63 and 64, the Report mentions some of the amendments to the export-import law that 
the Government of Maldives has proposed, as part of the efforts to reduce the dependence on import 
revenue.  Moreover, it is stated that environm ental objectives are one of the three broad policy 
considerations that are to be addr essed by those proposed amendments.  
 
Could Maldives further elaborate on how the amendments to the export-import law can contribute to address environmental objectives? 
 
Answer:
 
After the amendments to the Law on import - expor t (Law 31/79) were made, the bill was submitted to 
the Parliament early this year.  With the chang es proposed by the Parliament a revised bill will be 
submitted by mid 2010.  The amendments include tariff reductions for carbon - friendly goods to 
achieve environmental objectives including investments and the use of green technology. 
 The Government is committed to introducing a comprehensive tax regime to enhance and to 
strengthen the public finance and expenditure as we ll as to reduce the dependency on tariffs for 
government revenue.  
  
JAPAN
 
 I. ECONOMIC ENVIRONMENT 
 
(1) I
NTRODUCTION  
 
(Question 1: page 1, paragraph 3) 
The Secretariat's report suggests the introduction of  a broad-based value-added tax on consumption 
and the expedited implementation of the implemen tation of the business-profits tax, to generate 
sufficient revenues against rising level of public debt.  
 Please inform us the prospect for the tax or governme nt revenue reform, to c ope with public debt.  
 
Answer
: 
The Government is committed to introducing a comprehensive tax regime to enhance and to 
strengthen the public finance and expenditure as we ll as to reduce the dependency on tariffs for 
government revenue.  Business profit tax and tax administration bills have been submitted to 
Parliament.  The bills would enable government br oaden the tax base.  A bill on the General Sales 
Tax (GST) for the tourism sector is drafted.  A bill to introduce broader GST and income tax are 
being preapared.   WT/TPR/M/221/Add.1 
Page 4  
 
  To expand the revenue base, the Government has co mmenced a program of pr ivatization of SOEs.  
These measures will lessen the burden on the loss ma king public enterprises.  The structural changes 
outlined would help to improve the public de bt issues in the medium to long term.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
(ii) Tariffs  
 (Question 2: page 20, paragraph 15, 16) 
The Secretariat's report describes the structure of the tariffs are 'unduly complex'. 
 Japan would like Maldives to explain the Governme nt's view on the current tariffs structure and 
whether it has any plans to reform  the present tariffs structure.  
 
Answer:
 
The current tariff structure consists of 11 differen t tariff rates including a specific duty for a single 
item.  The tariff rates are published widely and is available on the website of the Maldives Customs 
Service. 
 The existing tariff structure has been used only for revenue purposes in the absence of a direct 
taxation system.  The Government intends to broader the tax regime.  The various tax legislation 
proposed will lead to the rationalization of the tariff structure in the medium term. 
 
IV. TRADE POLICIES BY SECTOR   
(5) S
ERVICES  
 (iv) Transport  
 
(Question 3: page 43, paragraph 56) 
The Secretariat's report points out the congestion of  Male Commercial Harbour and the high operating 
costs due to the absence of container-handlin g cranes and a yard management system.  
 Japan would like Maldives to provide information on whether Maldives has any plans to develop port 
facilities; and if it has, to provide the project's outlines and schedules. 
 
Answer:
  
The Government recognizes the congestion of the Male' Commercial Harbour and the difficulties 
faced in facilitating the movement of goods.  Th is has also lead to higher domestic prices.  
 In addition to the limited physical space and infrastr ucture, financial constraints have all contributed 
to the worsening of the port conditions in Male'.   Government has opened up existing regional ports 
in North and South to handle international cargo to relieve the congestion problems.  The 
Government also intends to take advantage of the st rategic location of the Maldives by developing a 
transshipment port though FDI. 
 
  WT/TPR/M/221/Add.1 
 Page 5 
 
 
  EC 
 I.  ECONOMIC ENVIRONMENT  (3) 
MACROECONOMIC POLICIES AND DEVELOPMENTS  
 
(i) Fiscal policy 
 WTO Secretariat's Report, page 6, para. 12  
The report states that the new Government has presen ted the Taxation on Business Profit Bill which is 
expected to be implemented in 2010.   1. Could Maldives elaborate further on the content of this Bill?  
 
Answer:
 
The objectives of the Bill on Business Profit Ta x include widening the revenue base as well as 
introducing a better system of tax admistraion.  Under the proposed Busi ness Profit Tax bill, tax 
would be levied on the profit of all the business in Maldives.   The bill outlines various tax bands, the modes of pay ment, on filing tax returns, penalties, appeals and 
objections and the exemptions  
(4) K
EY STRUCTURAL POLICY CHALLENGES  
 
(i) Privatisation and SOEs 
 
WTO Secretariat's Report, page 6, para. 16  
2. Could Maldives explain its plans to reinvigorate the 1999 privatization program? 
 
Answer:
 
The new administration, since taking office in  November 2008, has embarked on a comprehensive 
privatization program.  The Government has identified 18 government owned or controlled 
enterprises to be privatized und er various forms of Public Privat e Partnership (PPP) arrangements. 
 
The program aims to reduce government's direct in volvement in the economy through divestment of 
SOEs such as airports, shipping, and utility com panies.  The Government, with technical assistance 
from IFC and other multilateral agencies, is seeking  suitable partners.  Some of the privatization 
transactions are expected to be realized by early 2010.  (6) D
EVELOPMENTS IN TRADE  
 
WTO Secretariat's Report, page 9, chart I.1 
The chart clearly shows that Maldives' exports are concentrated in marine food, corresponding to 
more than 98% of total exports in 2008, and representing a significant increase since 2003. 
 3. How does Maldives envisage diversifying its ec onomy?  Could Maldives specify its plans? 
 
 
 WT/TPR/M/221/Add.1 
Page 6  
 
  Answer: 
 
The Government plans to diversifiy the economy away from the two traditional sectors of tourism and 
fisheries through creation of new industries and services.  Introduction of new products such  as water sports, adventure travels, boutique guest houses, and 
cultural and health tourism and tourism real est ate development are considered in the tourism 
industry while aquaculture and new methods of fi sh harvesting will be introduce in the fishing 
industry.   Both sectors will be re-oriented to  become research based.  In add ition, agricultural will be further 
expanded as a means to increase food secur ity using capital intensive methods. 
 To diversify the economy, we need to broaden our  export base and favorable measures such as a 
more flexible rules of origin from the pref erence granting countries would be welcome. 
 
We continue to get trade preferences from c ooperative members.  We are appreciative of the 
assistance and welcome the support of our development partners. 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 (5) T
RADE AGREEMENTS AND ARRANGEMENTS  
(ii) Regional agreements 
 WTO Secretariat's Report, page 15, para. 17  
4. Could Maldives confirm whether customs tariffs  have actually been reduced to 30% by 
January 2008 as laid down in the SAFTA commitments?  
 
Answer
: 
Maldives is following the Tariff Liberalization Pr ogram of SAFTA including the specified reductions 
under the SAFTA Agreement. 
 5. Could Maldives share with WTO Members its experience regarding the implementation of 
SAFTA provisions, and the benefits  derived from this Agreement? 
 
Answer:
 
Maldives is granted favorable market access to the larger members of SAARC.  Further Maldives 
benefits from favorable rules of origin.  Unde r the SAFTA Agreement, Maldives would continue to 
receive the benefits designated for LDCs  under SAFTA even after graduation. 
 (iii) Bilateral agreements 
 WTO Secretariat's Report, page 15, para. 18 
 
The report notes that Maldives has one operational b ilateral trade agreement with India, although it 
does not provide any tariff preference in either di rection.  However, it does allow the Maldives to 
import certain products from Indi a, although the export of which is otherwise not permitted.  
 
6. Could Maldives clarify the commitments unde rtaken by the India-Maldives bilateral 
agreement?  Where can WTO Members find relevant information online?   
  WT/TPR/M/221/Add.1 
 Page 7 
 
 
  Answer:   
The bilateral agreement between  Maldives and India is a non-reciprocal arrangement.  The 
Agreement makes provisions to promote the developmen t of trade and economic relations between the 
two counries.  It facilitate Maldives to import essentail commodities in specified quantities from India 
even if such items fall under the restricted export category in India.  Goods imported under this 
category include construction materials such as river sand and essentail food items.  A copy of the 
agreeement is available from Ministry of Econom ic Development website (http://www.trade.gov.mv/  
international.trade/ ). 
 
7. What are the overall benefits derived from the im plementation of this b ilateral agreement with 
India? 
 
Answer:  
Maldives benefit from acess to essential food and co struction related items even during major supply 
shortages from India and other markets.  
 
8. Could Maldives explain whether the importation of river sand, eggs, potatoes and onions from 
India was banned prior to the implementation of the bilateral agreement, and if so under what 
grounds?   
Answer:
 
The agreement allows Maldives to import certai n goods on a mutually agreed quota system, as 
Maldives continues to rely on the Indian market for some essentail commod ities.  This allows 
Maldives to ensure a consistent  supply of essential commodities. 
 
9. Why is the exportation of the above-menti oned products to India not permitted? 
 Answer:
  
The question is not relevant to Maldives.  
The report indicates that the Maldives and China signed letters agreeing to enter into a non-reciprocal 
zero tariff agreement in September 2005.  
 
10. Could Maldives confirm when this agreement has entered into force, and whether all 
Maldives' exports to China enter duty free? 
 
Answer:
  
The agreement on non-reciprocal preferential tariff t reatment accorded to Maldives by China was 
entered into force on 1 February 2009.  Under the th is Agreement, Government of China grants duty 
free access to 278 products from Maldives. 
 
Additionally, the Maldives is negotia ting FTAs with Sri Lanka and Qatar. 
 
11. Could the Maldives explain the objective, scope and main provisions envisaged to be 
negotiated under these two FTAs?  
 
Answer:  
Qatar:  The Government of the State of Qata r has proposed a framework "Agreement on Economic, 
Commcercial and Technical Cooperation" and "Agreement for the Reciprocal Promotion and 
Protection of Investments" between the two counrties.  
 WT/TPR/M/221/Add.1 
Page 8  
 
  The objective of the proposed Agreem ent is to strengthen the ties of friendship, enhance and develop 
commercial exchange, economic and technical coopera tion relations between the parties on the basis 
of mutual and common interests and benefits.  Under the provisions, the parties shall encourage the export and import of industrial and agricultural 
products, as well as raw materials of indigenous  origin and animal wealth except those products 
banned by the local import and export regulations. 
 
Sri Lanka:  A draft Free Trade Agreement was subm itted by the Government of Sri Lanka in early 
2004 with the proposed objective to create favorable conditions for greater trade and investment of 
one state in the territory of the other.  The sc ope of the Agreement includes Tariff, Para-tariffs, 
non-tariff measures and standards. 
 
12. When did respective negotiations start and wh en are they expected to be concluded? 
 
Answer:
 
Since the initial proposal, no further negotiations  were held either with Sri Lanka or Qatar. 
 
III.  TRADE POLICIES AND PRACTICES BY MEASURES 
 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
 
(i) Procedures, documentation and registration 
 
WTO Secretariat's Report, page 19, para.9 
 It is noted that goods can be imported by any pe rson or entity for commercial or business purposes, 
provided they hold a general import license issued  by the Ministry of Economic Development. 
13. Could Maldives confirm whether the import license is linked to the importer or to the 
imported product?  
 
Answer:
 
Import licenses are issued to the importer of goods.  The license provided is a permission to be an 
importer.   14. Could Maldives explain the procedure for appli cation and issuance of a given import licence, 
and its timeframe? 
 Answer:
   
Please refer to the notification to G/LIC/N/3/MD V/1 of 15 April 2002 under Article 7.3 of the 
Agreement on Import Licensing Procedures.  Th e licence can be obtained less than an hour of 
submission over the counter.  
WTO Secretariat's Report, page 19, para.11  
The report indicates that approximately 25-30% of consignments are physically inspected. 
 15. Does Maldives consider limiting physical inspec tions using a risk-based assessment in order 
to facilitate trade?  
 
   WT/TPR/M/221/Add.1 
 Page 9 
 
 
  Answer.  
The Government has plans to use non-intrusive mod ern scanning technology to inspect the incoming 
goods at the border to reduce physical inspection.  Th e plan consists of an integrated Customs Border 
Security System and has been submitted to  National Planning Council for approval.  
 
(ii) Tariffs 
WTO Secretariat's Report, page 20, para.16 
The report indicates that the applied MFN tariff ra tes exceeded the bound rates on 218 lines in 2008, a 
decision which the authorities justified on religious and environmental grounds. 
16. Could Maldives confirm when it envisages bringing  down the tariff rates to the level of bound 
rates? 
 
Answer:  
After passage of the proposed export-import bill, tari ff rates will be amended.  Tariff rates exceeding 
the bound rates in some lines are imposed on re ligious and environmental goods.  Some lines have 
higher rates, as due to the absen ce of a tax system, there is no other way to achieve the environmental 
and religious goals other than to have high duty rates.  Further, the Government considers the 
measure as the least trade restrictive.  WTO Secretariat's Report, page 19, 22, para. 10, 19 
 Customs has still not implemented WTO commitme nts (including use of transaction value), and 
continues to rely on minimum prices for the purpo se of levying tariffs.  Furthermore, Valuation 
officers check all invoices against the valuation da tabase.  The Maldives Customs Service (MCS) has 
a Price Analysis Program, which collects the da ta on invoices, for reference and analysis.  
Approximately 20% of the invoice prices on verified  invoices are "uplifted", and adjusted according 
to the database price.  Once the goods have been approved and valued, Customs issues the importer 
with a MCS-endorsed commercial invoice, which sti pulates the dutiable value (according to the MCS) 
of the goods on which the import duties are levied.  The report notes that Customs relies currently on prices of identical or similar goods based on c.i.f. (cost, insurance, and freight) values for the purpose 
of levying tariffs.  
17. Could Maldives explain how the procedures d escribed above comply with WTO rules? 
 
Answer:
 
A draft Customs Law has been drafted and is ready  for submission to the Parliament.  With the 
ratification of the Customs Act, Maldives Custom s Services will be able to implement the WTO 
Customs Valuation Agreement in full.  Passing of the bill has been delayed due to the priorities set for 
the democratic reform agenda of the country, and sheer vo lume of legislations to be passed by the 
Parliament.  The Government’s legislative agenda  for 2009 has some 80 legislations awaiting the 
passage though the parliament. 
 
18. Could Maldives clarify when it plans to fully implement WTO commitments, in particular 
regarding the implementation of the WTO Customs Valuation Agreement?  What are the 
current impediments faced by Maldives in this context? 
 
(Please refer to 16) 
 
 
 WT/TPR/M/221/Add.1 
Page 10  
 
  (iv) Import prohibitions, restrictions, and licensing 
 WTO Secretariat's Report, page 25, para.32  
19. Could Maldives clarify whether all alcoholic beverages are banned?  
 Answer:
 
Alcoholic beverages are not banned.  Alcohol is widely available in tourist areas. 
 (4)
  I NTERNAL MEASURES  
 
(ii) Competition policy  WTO Secretariat's Report, page 29, para.46 
 20. Could Maldives elaborate on its plans to set out a comprehensive competition policy in light 
of further privatisations?  
 
Answer:
 
Establishment of a conducive business environmen t through amendments to the legislative and 
regulatory framework pertaining to private sect or development is an utmost priority of the 
Government.  Legislation dealing with arbitrati on, competition policy, consumer protection and fair 
trading will be drafted a nd submitted to the Parliament in the medium term.  The scope of the 
competition policy will be to establish a level pl aying field for all investors and to prevent anti-
competitive business practices.   
(iii)  Government procurement 
 WTO Secretariat's Report, page 29, para.47-48 
 
The report notes that although the introduction of competitive tendering has improved transparency, certain issues remain unresolved.  Tenders are ge nerally not widely circulated and are at times 
published in the local language, making it difficult fo r foreigners to submit bids.  Furthermore, the 
reasons and basis for tender decisions are not alwa ys readily available or clearly explained.   
 21. Could Maldives explain how it plans to remove these obstacles that have the potential to 
undermine the participation of foreign bidders? 
 Answer:
 
The Government of Maldives is already working with assistance from multilateral agencies to 
strengthen the tendering process and to make it make it more transparent.  To this effect, revised 
guidelines and documents on government procu rement and tendering have been produced and 
government staff trained on revised guidelines.  Pr ocurement of goods and services valued in excess 
of US$1,000,000 is advertised both locally and in ternationally using English language.  Any 
procurement less than US$1,000,000 are only adverti sed in local language but open for interested 
foreign bidders.   All the advertisements are published in the website of Ministry of Finance and Treasury 
(www.finance.gov.mv
).  
 Decisions related to all procurements are made av ailable in the Ministry of Finance website.  The 
reasons and basis for the tender decisions are disclo sed to all bidders and are made available in the 
website.  In the event of a complaint by any bidder, issues are further clarified and addressed.  WT/TPR/M/221/Add.1 
 Page 11 
 
 
  Unsatisfied bidders can submitted complains to  the Anti-Corruption Commission for further 
investigation.    
 
Under the new Government’s priv atization and corporatization program, projects identified for 
privatization is advertised in the Inv est Maldives Website (www.investmaldives.org ) in English 
language, enabling interested foreign parties to s ubmit expressions of interest (EOI) and bids as per 
the procurement/tender process.  Th e policy position of the new administration is to provide equal 
treatment for all potential local and foreign investors.  22. Has Maldives taken any steps to setting up an electronic procurement information system, 
available in other languages than the local one?  
 
Answer:
 
All major Government procurements are advertised either in the website of Ministry of Finance and 
Treasury and the Invest Maldives Webs ite.  The announcements are av ailable in English language.  
 
(vii)  Intellectual property rights 
WTO Secretariat's Report, page 31, para. 54 
 
The report states that "[a]t present there are not laws  or regulations to prot ect intellectual property 
rights (IPR) in the Maldives".  
 
23. Could Maldives confirm when it plans to fo rmulate comprehensive intellectual property 
legislation?  
 
Answer:  
Maldives is working with technical assistance from  WIPO to establish a comprehensive national IP 
framework.  In this regard, an action plan has been agreed between WIPO and the Government.  A 
Copyright bill has been drafted and is ready for submi ssion.  Other IP legislations are currently being 
drafted and are expected to be subm itted to Parliament by mid 2010.  
(viii)  Standards and conformity assessment WTO Secretariat's Report, page 32, para. 56 
 
The report notes that the Maldives, along with ot her SAARC members, has agreed to a Regional 
Action Plan on Standards, Quality Control and M easurement.  Mutual acceptability and recognition of 
certification schemes and accredited testing will also  be promoted under the plan.  However, the 
Action Plan, which was to enter into for ce in 2006, has still not been implemented. 
 
24. Could Maldives elaborate on the reasons why this Action Plan has not entered into force yet?  
 
Answer:
 
In cooperation with the UNIDO, the Maldivies is  working on implementing a national standardization 
system.  The initiative aims to strengthen standards , metrology, testing, q uality and conformity 
assessment as well as building institutional structures and national capacities.  
25. When does Maldives expect that this Action Pl an will be implemented?  What measures are 
being undertaken to this endeavor?    
  WT/TPR/M/221/Add.1 
Page 12  
 
  Answer:
 
In cooperation with the UNIDO, the Maldivies is  working on implementing a national standardization 
system.  The initiative aims to strengthen standards , metrology, testing, q uality and conformity 
assessment  as well as building institutional structures and national capacities. 
 
WTO Secretariat's Report, page 32, para. 57 
 
The report indicates that the Maldives' Standard an d Metrology Unit (MSMU) was established in the 
MED in June 2006.  Amongst others , its functions include serving the secretariat for the National 
Standard Council, which has yet to be set up. 
 
26. Has Maldives an implementation plan for all outstanding structures that are necessary for an 
effective national standardization system?   
Answer:
 
In cooperation with the UNIDO, the Maldivies is  working on implementing a national standadisation 
system.  The initiative aims to strengthen standards , metrology, testing, q uality and conformity 
assessment  as well as building institutional structures and national capacities. 
 
Another function or the MSMU is to operate a national enquiry point as stipulated under the WTO 
TBT Agreement.  Footnote 14 indicates that the TBT Enquiry Point is being developed in the MSMU 
but has not yet started functioning.  
 27. When does Maldives foresee that the TBT Enquiry Point will start functioning?  
 
Answer:
 
In cooperation with the UNIDO, the Maldivies is  working on implementing a national standardization 
system.  The initiative aims to strengthen  standard s, metrology, testing, quality and conformity 
assessment  as well as building institutional structures and national capacities.  The Ministry of Economic Development would deal with any enquiry on TBT 
 
Government report, page 16, para. 73 
 
It is well noted that Maldives is a member of World Health Organization (WHO)/FAO Codex 
Alimentarius from March 2008, International Offi ce Epizootics from November 2007, and IPPC from 
October 2006.  Moreover, it is welcomed that Mald ives is building up capacity within the field of 
plant quarantine, and that Maldives is also consid ering the development of a national phytosanitary 
certificate based on the model from the Interna tional Plant Protection Convention (IPPC).  
Furthermore, we take note that Maldives consid ers introducing good manufacturing practices, and 
national standards for fish and fish products based on Codex standards.  
 28. Could the Maldives provide further details on this? 
 Answer
: 
Maldives is working to strengthen its technical ca pacity by participating in Codex meetings and 
seminars.  At the same time Maldives is also working to accept voluntarily some of the Codex 
standards (creating awareness and translating some  of these standards into local language). 
 
Currently Maldives follows EU standard for the ex port of fish and fish products. As for Non EU 
countries, it follows the standard of the importing country.  Efforts are being made at the technical level to see the possibility of adopting Codex st andards as the national st andards for fish and fish 
products.   WT/TPR/M/221/Add.1 
 Page 13 
 
 
  IV.  TRADE POLICIES BY SECTOR 
 (5) S
ERVICES  
 (iii) Telecommunications 
 
WTO Secretariat's Report, page 41, para. 48 
 
Footnote 12 notes that regulations on pricing an d market dominance apply to Dhiraagu in sectors 
where it is the dominant player in the market.  
 
29. Could Maldives provide more details on the abov e-mentioned regulations , and in particular, 
with regard to the content and the legal basis?  
 
Answer:
 
There are no stand alone regulations issued  on market dominance, but the Maldives 
Telecommunication Regulation 2003 (currently the key  legal instrument for the telecom industry) 
specifically addresses aspects of Market dominance (Section 42), Price Control (Section 38) and 
Anti-competitive practices (Section 41).  The operato rs have been notified on the Authority's position 
on which operator is the dominant in which sector of the market. 
  
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
 
 I. ECONOMIC ENVIRONMENT 
 
(4) K
EY STRUCTURAL POLICY CHALLENGES  
 
(i) Privatization and SOEs 
(page 6, paragraph 16) 
As indicated in the Report, in order to motivate pr ivate-sector participation, the Government decided 
to create an enabling and economically viable bus iness environment; this includes privatizing SOEs. 
 a) Could the Maldives please provide details of  their plan for SOE privatization?  
 
Answer: 
 
The new administration, since taking office in  November  2008, has embarked on a comprehensive 
privatization program.  The Government has identified 18 government owned or controlled 
enterprises to be privatized und er various forms of Public Privat e Partnership (PPP) arrangements. 
 
The program aims to reduce government's direct i nvolvement in the economy through divestment of 
SOEs such as airports, shipping, and utility compan ies.  The Government, with technical assistance 
from IFC and other multilateral agencies, is seeki ng suitable partners.  Some of the privatization 
transactions are expected to be realized by early 2010. 
 
b) Are their any limits on the level of participation by foreign investors?  
 
Answer:  
The Maldives allows 100% foreign ownership. 
  
 WT/TPR/M/221/Add.1 
Page 14  
 
  (6) D
EVELOPMENTS IN TRADE  
 (i) Composition of trade, (ii) Direction of trade 
 
(page 8, paragraph 22 and page 11, paragraph 23) 
We note from the Report that due to  the termination of the Multi-Fi bre Agreement (MFA), which had 
set quotas on developing-country garment exports to de veloped countries, the clothing industry in the 
Maldives collapsed in 2005.  This has also led to a sharp decline in  exports from the Maldives to the 
US and Japan since 2003. 
 
Could the Maldives government please elaborate furthe r on the background to, and the contents of the 
MFA, and its impact on the domestic clothing industry and exports?  
 
Answer:
 
The quota based international MFA came to an e nd in December 2005. It allowed countries like 
Maldives to export garments up to the quota limit to major export markets such as USA.  A number of 
foreign investors, mainly from Sri Lanka, invested in the Maldives to benefit from the quota based 
trading regime.  As Maldives lacks an indigenous garments industry, with the phasing out of quotas, 
most of the foreign investors clo sed their operations, resulting in end to garment exports from 
Maldives.  
 
(pages 8-11, paragraphs 21-23 ) 
The data in the Report suggests that the Separate  Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu currently has only a small share of th e Maldives’ total export and import trade. 
 
a) From the Maldives’ perspective, what goods and services would be the most welcome if we 
were able to supply them? 
 
Answer:  
We will welcome trade of any goods and services t hat can be competitively sold in the domestic 
market.  Invest Maldives can be contacted for discu ssion on business prospects in the Maldives and 
would be happy to welcome prospective business opportunities.  
 
b) Could the Maldives please recommend what first steps our business community should take, 
and which channels it should approach in  order to enhance our two-way trade?  
 
Answer:  
The Maldives is open for business for all interested parties.  The new Government is working towards 
establishing a one-window approach to improve trade and investment ties with other countries and 
private investors. 
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES  
(2) G
ENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  
 
(page 13, paragraphs 7-9 ) It is stated in the Report that there appears to be little coordination or cons ultation between different 
ministries and departments, and no formal interac tion or coordination between the public and private 
sectors on trade issues. 
 Is this situation improving?  Could the Maldives please advise which authority a foreign trader should 
approach in the event of any trade dispute?  
  WT/TPR/M/221/Add.1 
 Page 15 
 
 
  Answer:  
A cross sectoral trade policy coordination mechanism has  been instituted.  The new administration is 
working towards strengthening the existing mechanism through regular dialogue. 
 
General trade disputes can be addressed to Ministry of Economic Development.  Settlement of trade 
disputes related to contractual arrangements will ha ve to be resolved through the judiciary or as per 
the contract terms.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 (3) M
EASURES DIRECTLY AFFECTING EXPORTS  
 
(v)  Export-processing zones  
(page 28, paragraph 43 ) We note that there are no export processing zones in the Maldives. 
 
Could the Maldives please explain the rationale for this  policy given that it is keen to develop export-
oriented industries?   Answer
: 
A response to be provided at a later date.  
 
B. Report by the Government of Maldives (WT/TPR/G/221)
 
 
VI. GRADUATION 
 (1) OVERVIEW 
 
(page 28, paragraph 1) 
As an LDC, the Maldives continues to rely on technical assistance and other forms of assistance 
provided by development partners for its efforts to  integrate into the multilateral trading system.  
 
From the Maldives’ perspective, what type of assist ance might we be able to offer in this respect?  
 Answer:
 
A response to be provided at a later date. 
 
(6) FUTURE OUTLOOK 
 
(page 30, paragraphs 157, 158 and 160)  As indicated in the Report, with the intention of addressing the Maldives’ existing structural and 
economic challenges, the trade policies of the new Government will specify policy targets for 
short-term and medium-term for major economic sectors such as fisheries, agriculture, energy, 
tourism and other essential services.  
 
Could the Maldives government please describe what it considers to be the existing structural and 
economic challenges, and further elaborate on its specific short-term and medium-term strategies 
designed to tackle these issues?     WT/TPR/M/221/Add.1 
Page 16  
 
  Answer:
 
Major structural challenges include:  
1- Dependency on key two sectors for economic development and diversification 
2- High levels of public debt and sustained budget deficits 
3- Underdeveloped financial sector to facilitate pr ivate sector investment financing, including 
large scale investments and SME development  
4- Large public service, of which civil service alone accounts for 11% of the total population.  
5- Increasing unemployment levels and widening income  inequity gaps between the capital and 
outer atolls  
Short to medium tem mitigation measures introduced include: 
1- Introduction of new products in major two industries and support SME linkages and 
development in all economic sectors 
2- Privatization of SOEs to reduce government role and encourage private sector development 
and participation in pr ovision of essential and public services 
3- Support SMEs development activities targeted  towards middle and lower income groups, 
market based skills development and voca tional training courses introduced through 
vocational institutes.  
4- Public expenditure rationalizatio n measures introduced such as cuts in wage and salaries, 
travel and other operational expenses, expe nditure reduction on budget funded capital 
projects and focus on PPPs and privatization to finance large capital investment projects.  
5- Introduction of a tax system.   
6- Civil service rationalization and labour market reform.  
7- Strengthening the financial sector, includi ng the establishment of a dedicated SME 
development bank 
 
 KOREA
 
 Question 1
: Government Report, page 17, paragraph 78 
 
Korea is intrigued by the plan unveiled by the Govern ment to virtually eliminate the use of fossil fuel 
by 2020.  
 Could Maldives provide further information on this pl an, including but not limited to: technologies to 
be used, budget allocated (including financin g arrangements with domestic and/or foreign 
investors/institutions), timeline for implementation,  opportunities for foreign firms (as contractors or 
investors), etc. 
 
Answer:
 
The new administration has declared Maldives to become a carbon-neural economy by 2020.  Under 
this plan Maldives will adopt both climate change mitigation and adaptation measures.  Efforts to 
introduce introduce greener technologies such as the use of renewable energy, solar and wind energy 
to reduce dependency on imported fossil fuels, would be  explored.  Maldives would also try to attract 
investment to undertake research in green technologies.  This plan is  expected to cost Maldives 
government US$110 m a year for 10 years.  Maldives welcomes any interested foreign firms to be a 
part of our call to make the environment a gree ner one and to become a partner for pursuing 
sustainable development. 
 
Question 2 : Government Report, page 25, paragraphs 123~129 
Figure V.1 in page 25 highlights the number of  foreign investments approved during the period 
2000-2008.  Korea notes some fluctuation in the number of approvals granted yearly.    WT/TPR/M/221/Add.1 
 Page 17 
 
 
  1. Could Maldives clarify whether there is a particular reason for this fluctuation?   
 
Answer:  
The Figure V.1 does not include foreign investment s in tourism sector.  Further there are no 
consolidated data on foreign investment to ascertain the total stock of FDI accumulated.  The revised 
law is intended to address these shortcomings. 
 
2. What were the approval rates (number of appr ovals/number of applications) for the years 
2000-2008?  Is there a correlation between th e two figures (i.e. number of approvals and 
approval rates)? 
 Answer:
 
A response to be provided at a later date. 
 
As a related question, could Maldives clarify the criteria used by the Government to screen FDI 
applications?  Is there a national security criteria in place? 
 
Answer:  
There is no restrictions imposed on FDI limits as long as it consistent with the general principles of 
the constitution.  
 
Question 3 :  Secretariat Report, page 46-7, paragraphs 7-10 
Imminent graduation from LDC status will pose new challenges to the Maldives.  In this respect, 
could Maldives further elaborate on its policy ac tions enacted to take on this new challenge? 
 
Answer:  
Maldives is already having discussions with EU  to formalize extension of the current EBA 
arrangements for an additional three years post gr aduation.  In addition Maldives is seeking to 
access EU GSP + scheme to ensure the continue d EU Market Access for Maldives fish exports. 
 In addition, Maldives has recently signed TIFA ag reement with USA and hope to benefit from its 
OPIC facility. 
 
Maldives is also considering negotiating with mu ltilateral and bilateral partners to extend access to 
technical assistance and concessional financing for a reasonable time frame to enable Maldives as a 
graduating country to cope better in the global tradi ng environment.  The Government is considering 
to negotiate an extension of EIF benefits for a period after graduation. 
 
In the domestic front, the Government is working on diversifying its major sectors of the economy. 
 Question 4
:  Secretariat Report, page 6, paragraphs 16-17 
While the role of the state seems to be prevalen t in the economy today, para 17 of the Secretariat 
Report describes the Government’s plan to privatize a number of SOEs.  Could Maldives further 
elaborate on the status of this endeavor? 
 
Answer:  
The new administration, since taking office in  November 2008, has embarked on a comprehensive 
privatization program.  The Government has identified 18 government owned or controlled 
enterprises to be privatized und er various forms of Public Privat e Partnership (PPP) arrangements. 
 
The program aims to reduce government’s direct involvement in the economy through divestment of 
SOEs such as airports, shipping, and utility com panies.  The Government, with technical assistance  WT/TPR/M/221/Add.1 
Page 18  
 
  from IFC and other multilateral agencies, is seeking  suitable partners.  Some of the privatization 
transactions are expected to be realized by early 2010 
 
 
CANADA
 
 
Part III. Trade Policies and Practices by Measu re: (4) Internal Measures; (viii) Standards and 
Other Technical Requirements: paragraph 57, page 32: 
 
The Secretariat's report states that "The Maldives Standard and Metrology Unit (MSMU) was 
established in the MED in June 2006.   Its functions include [among others]:  assisting the Government 
in the adoption of standards and technical regulati ons to protect consumer interests;…maintaining a 
data base on standards and technical regulations of the Maldives and its trading partners, and 
operating a national enquiry point as stipulated under the WTO TBT Agreement…."   
Canada applauds efforts by the Maldives to strengt hen its institutional capacity in the TBT area, and 
notes the establishment of a national enquiry point under the TBT Agreement within the MSMU, and 
the maintenance of "a data base on standards and t echnical regulations of the Maldives and its trading 
partners."   
 
1. Though mention is made in paragraph 57 that MSMU is the TBT enquiry point, no indication 
is given as to the TBT notification authority pursuant to WTO/TBT Article 10.10.  Could the 
Maldives confirm whether MSMU is also the TB T notification authority or whether another 
body fulfils that function?   
Answer:
 
Currently Ministry of Economic Development fulfils the responsibility of this function.   
2. With the existence of a TBT enquiry point and a database of its regulations, it appears that the 
Maldives is well on its way towards full operati on of its transparency office.  Could the 
Maldives elaborate on the systems/methods it is putting in place to surmount past challenges with compliance to WTO TBT tran sparency obligations, in particular notification pursuant to 
TBT Article 15.2 and notificati on of draft technical regulati ons and conformity assessment 
procedures?   
 
Answer:
 
In cooperation with the UNIDO, the Maldivies is  working on implementing a national standardization 
system.  The initiative aims to strengthen standards , metrology, testing, q uality and conformity 
assessment  as well as building institutional structures and national capacities.  Part III. Trade Policies and Practices by Measu re: (4) Internal Measures; (viii) Standards and 
Other Technical Requirements: paragraph 59, page 32: 
 The Secretariat's report states that "an SPS enquiry point has now been set up."   
 3. However, the existence of an SPS notification authority pursuant to WTO/SPS Annex B, 
paragraph 10 is not clearly stated.  Coul d the Maldives confirm whether the SPS enquiry 
point is also the SPS notification authority or whether the SPS notification authority is 
another body? 
 
Answer:
 
Currently SPS enquiry point is also the SPS notificati on authority, which is the Ministry of Economic 
Development (formely, the Ministry of Trade and Industries)  WT/TPR/M/221/Add.1 
 Page 19 
 
 
   
4. What systems/methods is the Maldives putting in place to overcome past challenges with 
compliance to WTO SPS transparency obligations, in particular notification of draft measures 
when comments can still be taken into account?   
 
In cooperation with the UNIDO, the Maldivies is working on implementing a national standardization 
system.  The initiative aims to strengthen standards, metrology, testing, quality and conformity assessment as well as building institutio nal structures and national capacities. 
 
Part IV. Trade Policies by Sector: (5) Servic es; (iii) Telecommunications: paragraph 51, 
page 42: 
 
The Secretariat report notes that two different bills for Telecommunications are being drafted:  one 
will create an independent communications au thority and the other will create a separate 
Telecommunications Act. 
 
5. Could the Maldives provide an update on th e progress of these pieces of legislation? 
 
Answer:
 
The Communications Authority Bill has been submitted to the Attorney General' s Office.  The bill is 
awaiting to be submitted to the Parliament.  The draft of the Telecommunications bill has been 
completed soon.  
6. Could the Maldives provide information on whether the draft Telecommunications Act 
addresses the telecommunications regulatory best practices set out in the Basic 
Telecommunications Reference Paper?  These relate to:  prevention of anti-competitive 
practices by major suppliers; interconnection w ith a major supplier; public availability and 
transparency of procedures for interconnection; recourse to an independent domestic body for 
resolution of disputes with a major supplier; pu blic availability of licensing criteria;  and 
independence of the telecommunications regulatory body.  
Answer
: 
The Telecommunications Act in fact addresses all tho se aspects of the telecommunications industry.  
In principle, the act is based on the Maldives Telecommunications Regulation 2003 which is the de 
facto Telecommunications Act in the interim.  Th e establishment of the regulatory body is now in a 
separate Act as indicated above.  
Part V. Integrated Framework, Aid for Trade, and Trade-Related Technical Assistance: 
(2) Trade-Related Technical Assistance; (iii) Trade-related technical assistance needs: 
paragraph 13, pages 47-48:  
 
The Secretariat Report notes that the Maldives has submitted few notifications to the WTO and that 
there is a general need for knowledge building on  the WTO agreements and the DDA negotiations.  
 
7. Does the Maldives have a plan to address the need for greater knowledge building in this 
area?  Has the Maldives considered requesti ng assistance/guidance in the preparation of 
notifications from economies nearby that ar e operational in the area of notifications?  
 
Answer:
 
Maldives recognizes the need for greater knowledge  and capacity building in WTO related matters 
including WTO Agreements and DDA negotiations.  Th e Government intends to request for assistance 
from WTO and other Technical and Multilateral Agencies working on international trade issues.  WT/TPR/M/221/Add.1 
Page 20  
 
  THE UNITED STATES
 
 (3) T
RADE POLICY DEVELOPMENTS  
 Page viii, Paragraphs 6 and 7:
  The Secretariat stat es that "the tariff remains unduly complex (and 
therefore opaque)..." particularly since it is the pr incipal source of revenue.  The Secretariat also 
maintains that a more efficient allocation of domestic resources could result from "lower and more uniform tariffs".  
What is the Maldives doing to address the complexity/ opacity of its tariff structure and lower the duty 
rates?  
Answer:
 
The current tariff structure consists of 11 differen t tariff rates including a specific duty for a single 
item.  The tariff rates are published widely and is available on the website of the Maldives Customs 
Service.  
The existing tariff structure has been used only for revenue purposes in the absence of a direct 
taxation system.  The Government intends to broader the tax regime.  The various tax legislation 
proposed will lead to the rationalization of the tariff structure in the medium term.  
 
(4) S
ECTORAL DEVELOPMENTS  
 
Page viii, Par agraphs 12-13:   The Secretariat notes that although fisheries account for nearly all 
merchandise exports, "…fishing and fish processing activities are characterized by very little product 
diversification and low va lue-added products."   
 Could the Maldives provide an update on policies re lated to diversifying output , especially into higher 
value-added activities? 
 
Answer:
 
The Government plans to diversifiy the economy away from the two traditional sectors of tourism and 
fisheries through creation of new industries and services.  Introduction of new products such  as water sports, adventure travels, boutique guest houses, and 
cultural and health tourism and tourism real est ate development are considered in the tourism 
industry while aquaculture and new methods of fi sh harvesting will be introduce in the fishing 
industry.   Both sectors will be re-oriented to  become research based.  In add ition, agricultural will be further 
expanded as a means to increase food secur ity using capital intensive methods. 
 
To diversify the economy, Maldives need to broaden the export base and favorabl e measures such as 
a more flexible rules of origin from the p reference granting countries would be welcome. 
 Maldives continues to get trade preferences from cooperative members.  The Maldives is appreciate 
of the assistance and welcome the support of our development partners. 
  WT/TPR/M/221/Add.1 
 Page 21 
 
 
  II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 (6) F
OREIGN INVESTMENT REGIME  
 
Page 16, Paragraph 20:   In the 2002 TPR, as indicated in WT/TPR/M/110 and 
WT/TPR/M/110/Add.1, the Maldives reported that it was drafting a revised Foreign Investment Law 
to address the shortcomings of the current law, incl uding certain requirements to use local materials.  
 Could Maldives provide an update of its efforts to revise the law? 
 
Answer:
 
A draft Bill on Foreign Investment is already with the Attorney General's Office.  The Government 
aims to revise the existing legal, regulatory and bu siness environment for fo reign investment in the 
accordance with the liberal poli cy of the new Administration. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 (i) Registration, documentation, and customs clearance 
 Page 19, paragraph 10
:  The Secretariat report refers to the Maldives' use of a valuation database as 
a means to verify value.  The report states that  some invoice prices are adjusted according to the 
database price.    How does the Maldives obtain the valu es which are used in the datab ase?  What valuation method is 
used when the values are adjusted?  How often are the values updated? 
 
Answer:
   
Values are based on the documents submitted to th e customs by the importer.  The database is 
continuously updated and the average  value of the last 3 months are taken as the normal value.  
 
Page 19, paragraph 11 :  The Secretariat report refers to the Maldives' use of risk assessment for 
release of "all single-item consignment goods and direct-delivery cargo, such as cement and river 
sand."    Could the Maldives explain what treatment goods that  do not fall into those two categories receive? 
Are they also cleared on the basis of a risk assessment?   
 
Answer:
   
The purpose of the assessment referre d is to verify the quantity, value and the classification of the 
goods.  All imports are subjected to the process.  
Page 19, paragraph 12
:  Why does the Maldives include "priva te representatives" on the Customs 
Committee that considers importers' appeals on va luation decisions?  Who are these "private 
representatives" and what is their role in the cu stoms valuation decisions issued by the Customs 
Committee?  How does the Maldives en sure that the "private represen tatives" do not have a conflict of 
interest such as a commercial interest in th e outcome of the Committee's deliberations? 
 Answer: 
 
The Maldives is ready to implement the WTO Cu stoms valuation agreement as soon as the Customs 
Act is passed.  Until the Act comes into effect,  fo r the interim, transactions value is used based on 
internal data base.  This is verified by a comm ittee, which comprised of representatives from the WT/TPR/M/221/Add.1 
Page 22  
 
  private sector.  The purpose of the private sectors par ticipation is to ensure that the valuation is not 
discretionary and is fair for the importers.  (ii) Tariffs  
(a) Tariff bindings 
 Page 20, Paragraph 16:
  The Secretariat's report notes that  in 2008 the applied MFN tariff rates 
exceeded the bound rate on 218 lines and that the G overnment "justifies" these applied rates "on 
religious and environmental grounds".  In f ootnote 1, the Secretariat cites polyethylene 
sacks/bags/tube rolls as an example of such a produc t.  The applied tariff exceeds the bound tariff for 
this product justifiable on e nvironmental grounds, according to the Maldives authorities.  Yet, 
polyethylene sacks/bags/tube rolls are currently being produced domestically.  In general, then, could 
the Maldives authorities clarify what steps it is taking  to reduce applied tariffs to their bound rates?  
 
Answer:  
After passage of the proposed export-import bill, tari ff rates will be amended.  Tariff  rates exceeding 
the bound rates in some lines are imposed on religious  and environmental goods.  This is due to the 
absence of a tax system there is no other way to ac hieve the environmental and religious goals other 
than to have high duty rates.  Further, the Gove rnment considers the measure as the least trade 
restrictive.  
(d) Customs valuation  
Page 22, paragraph 19
:  We look forward to the Maldives’ im plementation of the provisions of the 
WTO Customs Valuation Agreement.  What actions has Customs taken to move towards a valuation 
methodology that is consistent with the WTO Agreement? 
 
Answer:   
A draft Customs law has been drafted and is ready  for submission to the Parliament.  With the 
ratification of the Customs Act, Maldives Custom s Services will be able to implement the WTO 
Customs Valuation Agreement in full.  Passing of the bill has been delayed due to the priorities set for 
the democratic reform agenda of the country, and sheer vo lume of legislations to be passed by the 
Parliament.  The Government's legislative agenda for 2009 has some 80 legislations awaiting the 
passage though the Parliament.  
(iv) Import prohibitions, restrictions, and licensing 
 
Page 27, paragraph 33
:  The Secretariat report indicates that under Law 31/79, all imports are 
subject to licensing.  It appears, however, that the Maldives has not yet notified this legislation to the 
WTO Secretariat.  When does the Mald ives intend to submit its notification? 
 
Answer:    
Please refer to the notification to G/LIC/N/3/MD V/1 of 15 April 2002 under Article 7.3 of the 
Agreement on Import Licensing Procedures.  
(v) Anti-dumping, countervailing, and safeguard measures 
 
Page 27, Paragraph 35:
  The Secretariat advises that the Mald ives currently has no specific laws or 
regulations dealing with anti-dum ping, countervailing or safeguard issues.  The Export and Import 
Law of the Maldives (Law No. 31/79) entrusts the Ministry of Trade and Industries with regulating 
the export and import trade in the country.  Accordingly, we understand that the Ministry may take specific anti-dumping actions against any country on an  ad hoc basis in the absence of any legislation  WT/TPR/M/221/Add.1 
 Page 23 
 
 
  governing anti-dumping.  In its prior TPR, the Ma ldives indicated that antidumping, countervailing 
and safeguard measures might be desirable, but  that introducing such measures would require 
technical assistance.  Please clarify whethe r the Maldives has imposed any antidumping, 
countervailing duty or safeguard measures under the Export and Import Law.  In addition, please 
indicate whether the Maldives plan s to introduce specific legislation and implementing regulations 
dealing with antidumping, countervailing du ties or safeguards and, if so, when. 
 
Answer:  
Maldives has not imposed any anti-dumping measu res and has no plans to have a specific law on 
antidumping or countervailing duties. 
 
(4) I NTERNAL MEASURES  
 (iv) Local-content requirements  
Page 29, Paragraph 50:
  Please explain the Maldives' encouragement of foreign investors to use 
domestically produced raw materials in light of Article 3.1(b) of the Subsidies Agreement. 
 
Answer:   
The Foreign Investment Law provides that, where suitable materials for the processes are not 
obtained in sufficient quantities locally, they may be obt ained from outside the Republic of Maldives.  
While the Law encourages the use of local raw materials where available and feasible, this does not 
operate in practice since Maldives has limited raw materials, No investors have been rejected on 
failure to fulfil this requirement.  
 
(v) State-owned enterprises 
 Page 29, Paragraph 52
: The Report states that SOEs receive preferential rates and fees for state land, 
and government guarantees for domestic and external  loans.  Will the Maldives notify these measures 
under Article 25 of the WTO Subsidies Agreement?   
 
Answer:   
Almost all the SOEs are service providers.  The only exception is the Maldives Industrial Fisheries 
Company, which competes with 3 other private co mpanies.  We are reviewing to see if there is any 
subsidies that needs to be notified und er Article 25 of the Subsidies Agreement. 
 (vii) Intellectual property rights 
 
Page 31, paragraph 54:
  The Secretariat's report indicates that there are currently no laws or 
regulations to protect trademarks and GIs.  Howe ver, the Ministry of Economic Development has 
registered 424 "local" trademarks between 2002 a nd 2008.  The Secretariat also indicates that 
"international" trademarks are not registered or  protected in the Maldives;  however, foreign 
advertisements are printed in the local news papers as cautionary notices on protection of their 
trademarks through local agents.  
 What is the legal effect of registration of "l ocal" trademarks with the Ministry of Economic 
Development?  What is the definition of a "loc al" trademark?  Does the term "international" 
trademark refer to a trademark owned by a foreign right holder?  Is there any protection for 
trademarks owned by foreign right holders?  
 
Answer
:  
The exiting provisions do not discriminate between  local and foreign trademarks.  International 
'trademarks'  are registered.  WT/TPR/M/221/Add.1 
Page 24  
 
  In paragraph 86 of its report
, the Government of Maldives mentions that a copyright law was 
drafted and is expected to come into force in 2010.  Does the Maldives plan to publicize the draft 
copyright law prior to entry into force?  If so, by what means will the draft be publicized and how 
much time will the government allow for the public to review the draft and provide comments on it 
before it enters into force?  Answer: 
 
Maldives is working with technical assistance from  WIPO to establish a comprehensive national IP 
framework.  In this regards, an action plan has been agreed between WIPO and the Government.  A 
Copyright bill has been drafted and is ready for submi ssion.  Other IP legislations are currently being 
drafted and are expected to be subm itted to Parliament by mid 2010. 
 
 
__________