WORLD TRADE  
ORGANIZATION  WT/TPR/M/221 
24 November 2009 
 (09-5899) 
Trade Policy Review Body 
26 and 28 October 2009  
 
 
 
TRADE POLICY REVIEW 
 
MALDIVES 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPR ESENTATIVE OF THE MALDIVES 4 
III. STATEMENT BY THE DISCUSSANT 7 
IV. STATEMENTS BY MEMBERS 11 V. REPLIES BY THE REPRESENTATIVE OF THE MALDIVES AND ADDITIONAL 
 COMMENTS  23 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 28 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Maldives are 
reproduced in document WT/TPR/M/221/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/221 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The second Trade Policy Review of Maldives was held on 26 and 28 October 2009.  
The Chairperson H.E. Mr. Istvan Major (Hungary) we lcomed the delegation of the Maldives, headed 
by Mr. Ahmed Inaz, Deputy Minister, Ministry of Economic Development, and the discussant, H.E. Mr. Dennis Francis (Trinidad and Tobago).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by the Maldives was contained in document 
WT/TPR/G/221 and that of the WTO Secretariat in WT/TPR/S/221. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegati on of the Maldives:  Brazil, Chinese Taipei, the 
European Communities, and Japan.  All advance que stions, as well as the responses received from the 
delegation of the Maldives are reproduced in WT/TPR/M/221/Add.1. 
4. The following delegations had submitted written questions after the two-week deadline:  
the 
Republic of Korea, Canada, and the United States . 
5. The Chairperson said that the reports prepared for the review noted that since its previous 
Trade Policy Review in 2002, the Maldives' economy had posted robust growth, driven mainly by the 
tourism sector.  The Government recognized that to  sustain growth in the future, it would need to 
diversify the economy and introduce a more broad-based  tax structure that would enable it to raise 
sufficient tax revenues to finance its developmental needs without relying so heavily on the tariff and 
lease payments.  Other key challenges that had been  highlighted included:  the complexity of the 
Maldives' tariff;  the country's graduation from a least developed country in 2011;  its ability to address environmental issues and widespread state involvement in many sectors, which appeared to had crowded out private enterprises.  He noted that Members would be interested in learning more 
about the Government's efforts in these and other areas. 
6. Additionally, as "Aid for trade" was a main f eature of the Maldives' TPR (indeed, Chapter 5 
was devoted to the subject), he would like to emphasize the need for donors to continue to provide such aid and other assistance, notwithstanding their current difficult fiscal circumstances. 
 WT/TPR/M/221 
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  II. OPENING STATEMENT BY THE REPRES ENTATIVE OF THE MALDIVES  
7. The trade policy review of the Maldives is taking place at a very critical juncture in the 
country’s development history. As you may aware, during the timeframe covering the current review, 
the Maldives has undergone significant changes on po litical, social and economic fronts. The country 
has made significant strides towards achieving ma ny MDG targets. It ranks first in the UN human 
development index in the South Asia region with a per capita income above US$2,912. Furthermore, 
the country will graduate form the UN list of Least Developed Countries by the end of December 2010. Despite these achievements, the count ry remains highly vulnerable to both internal 
and external shocks, both econom ically and environmentally.  
8. Allow me to share with you all, some of th e notable changes the country has undergone since 
the last Trade Policy Review- the context of which,  I believe, is equally important to the review 
exercise. 
9. Maldives had its first multiparty democratic elec tions last year, after a long reform process 
followed by a four-year long democratic a nd human rights Reform Agenda. The Reform 
Agenda introduced sweeping constitutional and democratic changes to create a new, modern 
democratic system for the country that fully comp lies with international human rights standards and 
norms.  
10. The formal Reform Agenda began on 9th June 2004,  was part of a wider set of reforms that 
aimed to promote and strengthen democracy; develop a functioning multi-party system in the country; 
modernize the electoral system; enhance the role of the media; enhance the independence of the 
judiciary; strengthen the civil service; and stre ngthen key institutions. For a country with limited 
capacity, this was a challenging task that consumed the better part of the time and effort of the policy 
makers and legislators. 
11. By the time the new Government came to office, the domestic economy was experiencing the 
brunt of the international fuel, food and financ ial crisis. By November 2008 the country was 
experiencing double digit inflation, twin deficits, hi gh levels of public and private debt and upward 
pressure on the foreign exchange peg. The pre- ex isting levels of high gove rnment expenditure and 
deep budget deficits further exacerbated the situation.  These risk factors continue to be one of the 
major challenges facing the new government.  
12. Maldives is a small island deve loping economy, dependent on onl y two major sectors, namely 
tourism and fishing. The domestic population of  300,000 is dispersed over 194 islands.  The 
fragmented nature of the population makes it very expensive to provide the necessary physical 
infrastructure, as economic activities were difficult to sustain without scale economies. The Maldives 
has no mineral resources and, with very little subs istence agriculture, and is a net-food-importing 
country; even the major staples of rice, flour and sugar were imported. As a net importing county we 
are entirely dependent on imports fo r our day to day consumption.  
13. The twin pillars of tourism and fishing, accounts for nearly 31.4% of the country’s GDP, and 
employed around 18% of the labour force . Both sectors are highly susceptible to external volatilities.  
14. Despite the challenges and difficulties, Maldives continues to be one of the most open and 
liberal economy in the region. With the developmen t partners such as the World Bank and the IMF, 
the country has maintained a steady course of econom ic reform. As a contrac ting party to GATT since 
1983 we continue to believe in the merits of the rules-based world trading system.  
15. Protectionism is not an objective we seek by our  trade and investment policies.  We have one 
of the lowest average tariffs in South Asia, despite  having no direct tax system and its heavy reliance  WT/TPR/M/221 
 Page 5 
 
 
  on import duties for government revenue.  Non-ta riff barriers were few.  Import licensing is 
automatic, and minimal customs procedures applied.   
16. The investment regime, with no performance re quirements, equity holding limitations or 
currency restrictions, is one of the most liberal in the region, and is being further liberalized. Domestic 
industry protection and restricting entry of fo reign goods have never been a policy goal. 
17. The new administration is fully aware of the need  to continue on the path of openness. It has 
committed to introduce much needed structural re forms to address many of the challenges in the 
economy even during this very difficult economic time . The Government is actively working with our 
development partners to consolidate the instituti onal and legal supervisory framework for trade and 
investment in the country. 
18. The government’s economic policies will continue  to support and strengthen the open liberal 
trading regime the country has pursued in the past. It’s key economic policies are designed to 
transform the role of the government and to become  a lead facilitator in rejuvenating and restructuring 
the domestic economy.   
19. Decentralization of services, privatization, ra tionalization of public involvement in service 
delivery and economic activities, development of SMEs and labour market reform comprise the thrust 
of the new government’s economic policy in the me dium to long term. Further, these policies are 
envisaged to be implemented in para llel with a strong social safety ne t for all, which is an enormous 
challenge for a small country. 
20. We recognize the importance of private sector development and the need for the government 
to play an active role in facilitating private sector growth. It recognizes that the potential for 
diversifying the economy largely depends on le tting the private sector do the business of doing 
business.   
21. A much more comprehensive privatization pro cess is intended to achieve this objective. 
Major State Owned Enterprises will be privatized in the medium term with prospects already 
established to realize some by early 2010. In the sa me tone, Invest Maldives, the dedicated investment 
promotion arm of the government, is looking for po tential investors in both social and economic 
sectors.  
22. To realize the policy objectives, the government is committed to introducing much desired 
legal and regulatory frameworks to create a more  conducive business environment for private sector 
development and private investments. Continuous e fforts are been put to drafting and to tabling key 
legislation relating to business registrations, foreign investments, intellectual property, arbitration, 
competition, fair-trading and consumer protecti on with the on-going rapid governance reform. 
23. The government is committed to introducing a comprehensive tax regime and reduce 
dependency on tariffs for government revenue generation. The tariff st ructure will be rationalized in 
the medium term. 
24. The government is further committed to de liver the promise of establishing a small 
government and limiting its direct involvement in the operational activities of the economy.  
25. The Maldives is embarking on these highly ambitious but critical structural economic reform 
programs at very difficult times. The combined e ffects of the global financial crisis and domestic 
budgetary crisis have made it difficult for government to embark on these reforms at the pace we 
wish. With the impending graduation, we are e qually worried that loss of trade preferences and WT/TPR/M/221 
Page 6  
 
  technical assistance to further enhance our trade cap acity will make it more difficult for us to achieve 
some the critical reforms that are necessary to consolidate the open trade regime.   
26. The Maldives needs a continued support in the me dium term for the country to make a strong 
and stable foot hold in the global economy and to  seek sustainable and long terms benefit from the 
global trading environment. We take our obligations  seriously and would continue with the on going 
reform process within the limits of our capacity.  WT/TPR/M/221 
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  III. STATEMENT BY THE DISCUSSANT (H.E. Mr. Dennis Francis (Trinidad and 
Tobago)) 
Introduction 
 
27. If perchance anyone had not been aware of the gravity of the problem of sea-level rise in 
general and, more specifically, of the threat that this phenomenon poses to the Maldives, with 
potentially far- reaching implications for the economy and thus policy, that situation would have been 
graphically corrected in recent weeks following the decision of the Maldivian Government to host a 
sub-marine Cabinet meeting to heighten interna tional attention to the ongoing submergence of its 
territory.  This situation serves to reinforce the ur gency with which coordinate d international action to 
mitigate climate change is required, action th e practical modalities of which can be found at 
Copenhagen this December to map out a clear way fo rward.  Global action to meet the challenge of 
climate change is understandably an urgent priority for the Maldives, as manifested in its decision to 
make the country the first totally carbon-neutral economy by the year 2019. 
Economic Situation  
 
28. The Maldives is a small and vulnerable devel oping country with a highly open economy, 
manifested in the fact of its heavy dependence on international trade, which in 2009 accounted for in 
excess of 150 percent of GDP.  Even with the after effects of the tsunami of 2004, real GDP growth 
registered a robust average of 7.4 % betwee n 2003 and 2008, peaking in 2006 at 18%; a most 
extraordinary achievement by any standard.  This  strong economic performance was driven largely by 
recovery in the tourism sector, which represents a key point of contact for the Maldives with the 
international economy as well as the dynamism of the construction sector in the wake of the 
destruction wrought by the tsunami of 2004.  On the other hand, GDP projections for 2009 indicate a 
contraction of 1.3%, as a result of the declines in both tourism arrivals and the fisheries catch, which 
also constitutes a major industry not only in te rms of foreign exchange generation but also, 
employment. In order to reduce the Maldives’ heavy reliance on tourism and fisheries, the 
Government is taking steps to divers ify the productive base of the economy. 
29. Unfortunately, the strong growth recorded during the review period was accompanied by 
rising levels of unemployment, which reached a high of  14% in 2006, before d eclining to the level of 
12% in February of this year.  On the inflation front, the low levels of inflation that had been characteristic of the earlier part of the decade gave way to rising inflation wh ich peaked at 12.9% in 
2008 and stood in February 2009 at 11.9%.  Beari ng in mind that the Maldives imports virtually 
everything it consumes, the impact of the recent fo od and energy crises no do ubt contributed to the 
inflationary spiral, as did the Government’s growing fiscal deficit, albeit in circumstances post the tsunami that were justifiable. 
30. Facing the looming prospect of graduation from LDC status to Developing Country status in 
2011, the need for the Maldivian authorities to adopt  pragmatic strategies to finance its development 
is urgent, having regard to the consequential w ithdrawal of external grant and other concessional 
funding post- graduation.  As such, the existing large budget deficit which peaked at 12.6 % of GDP 
in 2008 and the accumulated public debt which t oday approximates 55% of GDP, are obviously not 
sustainable.  The situation will thus require much discipline and restraint on the part of the authorities 
to bring these imbalances within acceptable limits,  as the centre -piece of its economic stabilization 
and diversification strategy. 
31. Commendably, the Government’s appreciation of the imperatives of tighter fiscal control, 
among other things, as a means of stimulating the entry of private investors into the market is already 
evident, as it is projecting that the deficit will be cut to 7.4% of GDP in the current year, declining 
further to 3% of GDP in 2010.  This, however, is  predicated upon the expected rise in capital receipts WT/TPR/M/221 
Page 8  
 
  as the Government’s programme to privatize the State Owned Enterprises (SOE’s), gathers 
momentum together with new taxation measures to ta ke effect in 2010.It seems  that the Government 
is quite committed to the comprehensive implementa tion of the privatization programme, given that it 
has already listed the Maldives Airports Company Ltd, among others, for sale.  
32. These are, of course, bold but necessary in itiatives being taken by the newly elected 
Administration of the Maldives to promote greater efficiency in the domestic market, and, as it has 
said, to increase transparency and accountabilit y of the State Owned Enterprises. Beyond the 
divestment of these publicly-held enterprises, however , the commitment of the Government to sustain 
its policy of bringing stability and predictability to its fiscal operations must remain a national priority 
if the country’s strategic objective of attracting gr eater private investment flows, including Foreign 
Direct Investment is to be achieved given th e obvious linkages with employment generation. 
33. The Maldives maintains an open investment  regime, in that it permits 100% foreign 
ownership in all sectors of the economy with no discrimination between domestic and foreign 
investors.  FDI applications are administered on the basis of a positive list. With the stock of FDI virtually doubling between 2000 and 2007 to US$ 209 million, that is, predating the current reforms, 
significant steps on the part of the Government towards achieving macro-economic stability, 
buttressed by a fully liberalized investment regime  should act as a fillip to new capital inflows and 
higher rates of capital formation in the productive sectors of the economy. This would significantly 
advance the policy of diversifying the economy. 
34. Given that the Maldivian Government depends  so heavily on the tariff as a source of tax 
revenue; the tariff generating approxi mately two-thirds of all taxes collected, the stabilization of the 
Government’s finances is thus directly linked to reforming the tax system.  In this regard, the 
Government has indicated that it intends to adopt  a broadly – based consumption tax; such a tax 
would go a long way towards diversifying and stab ilizing its tax revenue a nd moreover, allow the 
Government to finance its investments in essential infrastructure, human capital and other key areas. 
Likewise, the imminent passage of legislation through the Maldivian Parliament to implement a 15 % 
Business Profits Tax in 2010 will make the country’s tax system more comprehensive by taxing 
income as well as consumption.  Insofar as the Busi ness Profits Tax is collected on income earned in 
the Maldives by foreign investors, if the new tax is not to result in international double taxation of 
such income, which could discourage foreign inve stment, the Maldives might usefully negotiate 
bilateral tax treaties with those countries where major foreign investors reside. 
Trade Policy and Administration 
35. It was a prudent step by the Government  to establish the Trade Policy Coordinating 
Committee in 2009 with representation from all the relevant stakeholders.  I congratulate the 
Government as this is a necessary first step in correcting past bureaucratic communication and coordination problems, while laying the groundw ork for achieving system–wide consistency and 
coherence of Government’s economic and business policy.  No less is required in the efficient 
management of a modern economy in the fiercely competitive business environment of today’s highly 
globalized economy. Moreover, as graduation will inevitably result in the Maldives having to 
implement its WTO obligations as a Developing Country, the benefit of more rigorous policy 
coordination and analysis as a means of ensu ring compliance with relevant WTO rules and 
regulations will become apparent. 
36. The Government of the Maldives has stated in its  trade policy report prepared for this meeting 
that trade and economic liberalization is the sine qua non for promoting Private Sector – led growth, 
raising living standards and reducing poverty.  A key aspect of this strategy is to actively encourage 
the establishment and growth of Small and Medium  Enterprises, SME’s.  This philosophy underlies  WT/TPR/M/221 
 Page 9 
 
 
  the Government’s efforts to reduce the degree of di stortion in the economy and to enhance the level of 
transparency, which is so critical to th e efficient functioning of the market. 
37. With the tariff as the principal source of the Government’s tax revenue as well as its main 
trade policy instrument, inefficiencies arise in its administration given that there are 11 different rates 
and several exemptions.  In its report, the Secretar iat has drawn attention to the effects of such an 
unnecessarily complex tariff structure. The high administ rative cost of   the tariff is, of course, a 
charge on the Exchequer.  Though the Government moved in 2006 to eliminate a large number of 
these exemptions, their continued prevalence cont ributes to making the tariff opaque and probably 
acts as an incentive for tax evasion.  In a situ ation where the Government’s fiscal budget is under 
extreme pressure, foregoing one quarter of the ta riff revenue through exemptions and concessions, as 
was the case in the year 2006 will have the effect of accentuating rather than attenuating the Budget 
deficit. 
38. While the Government’s dependence on the tari ff for such a high proportion of its revenue 
leaves limited policy flexibility to effect a reduction in the number of rates, in the short term, (unless 
immediate alternative tax streams can be identified) , the rationalization of the tariff structure in the 
medium term through unifying some of the exis ting rates will increase transparency while reducing 
the cost of tariff administration.  On the other hand,  short term policy flexibility might be exercised in 
reviewing the scope of the exemptions list, in or der to avoid the appearance of uneven treatment of 
dutiable imports especially where such products are not  in competition with locally –made substitutes.  
The adoption of these measures by the Maldivian authorities, as soon as it is feasible to do so, would add a significant boost to the Government’s efforts to  raise competitiveness and to grow exports as the 
existing high tariff amounts to a disincentive to inv estment and risk- taking since it acts as a tax on 
exports. 
39. Considering the critical role of transparency in maintaining the integrity of the multilateral 
trading system, it is a matter of concern that the Ma ldives has not made any notifications to the WTO.  
It is fully recognized that the preparation and fili ng of such reports constitutes a major challenge for 
Developing Countries in general and for Least De veloped Countries in particular, who are both 
resource and capacity constrained. Nevertheless, the proper functioning of the system pre-supposes 
universal compliance, and so I would urge the Maldives to make good use of the technical cooperation facilities of the Secretariat in strengtheni ng its ability to contribute to this important 
aspect of the governance arrangements for global trade. 
40. As regards the WTO principle of predictability, reference has been made in both Reports to 
the fact that applied tariff rates on 218 tariff lin es exceed the bound rates. The Government’s stated 
commitment to a policy of liberalization would be further strengthened by the realignment of these applied rates, sooner rather than later, in li ne with established multilateral trade principles. 
41. Like many Developing Countries and LDC’s, the Maldives has pressed for an early and 
equitable outcome of the Doha Development Round, especially in so far as it can benefit from the 
Aid–for-Trade initiative and other forms of technical assistance.  It must be emphasized, in this 
regard, that the market access provisions negotia ted in the DDA along with the necessary additional 
resources coming available under Aid-for-Trade and other cooperation programmes, not to mention, 
in particular, the capacity – building components can  provide a commercial lifeline to all Developing 
Countries, especially the LDC’s a nd the SVE’s, a group with which incidentally the Maldives seem, 
on examination, to have much in common.  It woul d, therefore, be interesting to learn whether any 
consideration has been given by the Maldivian auth orities to strengthening its collaboration with the 
SVE’s in the context of the current DDA nego tiations, without prejudice to its position upon 
graduation. WT/TPR/M/221 
Page 10  
 
  42. Paying particular attention to the issue of graduation which will create new challenges for the 
Maldivian authorities, mindful of the fact that O fficial Development Assistance accounts for as much 
as 30 % of the domestic budget, the Government is  to be congratulated for its pragmatism in 
establishing the inter- ministry ‘Working Group on Smooth Transition from LDC Status’ to prepare a 
transition strategy.  This notwithstanding, it is clear  that given the period of economic uncertainty that 
will be ushered in by graduation, the Maldives will continue to require the committed assistance of the 
international community to support its development needs in several areas, including but certainly not 
limited to  its trading relations with the global economy. 
43. It is my hope, therefore, that as in former years, the development partners and others will 
recommit themselves to supporting the Maldivian au thorities during the current critical period of 
reform to put their economy on a footing for self-sustained growth.  In this connection, the recent 
announcement of an Agreement reached between the IMF and the Government of the Maldives, under 
which the Fund will provide US$60 million as a Sta ndby Facility to support the country’s economic 
stabilization programme will give desirable rea ssurance to the donor community and, equally 
importantly, to the international investment commun ity that the Maldives is on a credible track to 
restructure its economy, among other things, thr ough addressing the imbalances in its domestic and 
external accounts.  I note in this regard, that the President of the Maldives has recently taken his 
message of comprehensive economic reform to several  of his country’s key trading partners in the 
context of promoting inward investment into  the Maldivian economy. Naturally, I support and 
applaud the President’s initiative and express the hope as I am sure we all do, that it creates an early 
harvest. 
44. I would like to conclude my remarks by posing just a couple of additional questions to the 
Deputy Minister and his delegation, namely:  Is ther e a plan to review the list of products currently 
exempted from the tariff and if so, can we be give n some more details of the plan, including for 
example, timeframes for removal? 
45. Given the importance of fishing to the local economy, both as a source of exports and 
employment, what specific steps are planned to in crease the local value-added content of this key 
sector and perhaps the authorities would also care to clarify whether the fishing industry is among those strategic sectors being prioritized by the Gove rnment for the formation/ expansion of Small and 
Medium Enterprises? 
46. In a recent interview the President commented th at the lack of an integrated transportation 
system is a major hindrance to development in th e Maldives. Given the necessity of integrating the 
domestic market as a basis for enhancing compet itiveness and attracting business, how does the 
Government contemplate addressing this structural  problem without jeopardizing fiscal stability in 
both the short and long term? 
47. I should like to end by thanking Deputy Minister  Inaz and his team for coming to dialogue 
with the membership on the building of the new ec onomic architecture currently taking shape in the 
Maldives and on the status and prospects for its trade development. It is fully appreciated that after 30 
years a new Government has taken office recently, a nd is no doubt still at the stage of evaluating the 
specifics of policy actions in implementing its stated reform agenda.  I would t hus like to congratulate 
the Government for accepting to submit to this review  process, even before settling-in fully to the 
realm of governance, and to wish it and the peop le of the Maldives, ev ery success as they move 
forward, with confidence and commitment , in this process of transformation.  WT/TPR/M/221 
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  IV. STATEMENTS BY MEMBERS 
BRAZIL 
48. First, I would like to express Brazil’s admirati on for the resilience displayed by the people 
and government of the Maldives in coping with th e consequences of the 2004 tsunami. It is with 
satisfaction that we note the steps taken in th e gradual recovery from its worst effects.  
49. The long-term challenges confronting the Ma ldives - depletion of freshwater aquifers 
threatening water supplies; global warming and sea level rise; coral reef bleaching - are of such extension that cannot be dealt with by the count ry alone. They require not only international 
cooperation but also a multilateral commitment to address the risks posed by climate change and 
environmental degradation. 
50. Irrespective of this, we note that Maldives has adopted a number of measures to protect 
environment, such as strict environmental require ments on tourist resorts and controls on goods that 
are harmful to the environment. Although welcome and necessary, those measures will not be enough 
to counteract the consequences of global warming unless resources and political will are pooled together through multilatera l coordinated action.  
51. Notwithstanding this, according to the Secr etariat Report, between 2003 and 2008, the 
economy of the Maldives has been improving, with  average GDP growth of 7.4%. This was due 
mainly to the resurgence of the tourism sector. Consequently, GDP per capita rose from 
approximately US$ 2.400 in 2003 to US$ 4.000 in 2008.  
52. Moreover, the Maldives has continuously taken the steps towards an enhanced democratic 
system. Political parties were legalized in 2 005, and a new Constitution was adopted in 2008, 
culminating in the realization of the first plur al, direct Presidential election in October 2008.  
53. So, Maldives has shown that, in spite of all difficulties, least developed countries can 
overcome many of its constraints through the adoption of the necessary political and economic 
reforms. The graduation of Maldives from LDC stat us, which is expected to occur in 2011, bears 
testimony that countries can overcome huge difficulties in their path to progress. 
54. A point that deserves to be highlighted, and th at, ideally, should be subject to an in-depth 
discussion refers to the graduation from the LD C status. Although no country wishes to remain 
permanently as an LDC, the graduation implies signi ficant costs in terms of market access. Indeed, 
the Maldives risk to lose preferentia l market access and to receive potentially smaller flows of aid and 
technical assistance. In view of that, Brazil believes that international cooperation should be 
intensified so that the Maldives be capable to bette r cope with the challenges of the transition from the 
LDC status and to make it as smooth as possible. 
55. The Secretariat’s report also points out that the GDP of Maldives is expected to contract in 
2009, since the global economic crisis has negatively affected the tourism sector, the largest economic 
activity in the country and the main source of fore ign currency. Therefore, diversification of the 
economy is required to reduce vulnerabilities associated  with excessive reliance in one sector. In this 
context, Brazil would like to reaffirm the importa nce of concluding the Doha Round in a way that 
takes fully into account the needs of developing an d least developed countries such as the Maldives. A 
truly Development Round will gene rate benefits in various fronts: (i) establishment of a more 
balanced set of rules and disciplines governing th e multilateral trading system, particularly in 
agriculture, including cotton; (ii) creation of market access opportunities to developing and less 
developed countries, including via Duty-Free Quota-Free access to LDCs; (iii) recognition of WT/TPR/M/221 
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  developing countries needs for flexibility; (iv) strengthening of the multilateral trading system and 
(iv) combating the international crisis through a non-distorting stimulus package to consumption.  
56. Turning briefly to the economic ties between Ma ldives and Brazil, I note that the bilateral 
trade flow more than tripled during the last thr ee years, although figures are relatively very modest 
and, therefore, well below their potential. Brazil hopes that the two countries continue to strengthen 
their economic ties. 
57. Let me conclude by wishing success to Maldives in its efforts to continue to reform its 
political and economic institutions a nd to implement the social and environmental programs that the 
country aims to. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU  
58. This review provides a valuable opportunity for us to take a fresh new look at the recent 
economic and trade development in the Maldives.  We would like to congratulate the Maldives on its 
programme of governance reform aimed at building up a participative democracy.  We believe this 
reform can only have a positive effect, and at the same time will help to accelerate economic 
development.  We also wish to express our respect and support to th e Maldives for the considerable 
progress it has made in rebuilding the co untry after the Asian Tsunami of 2004. 
59. We have noted that the Maldives faces several  special environmental challenges, and the 
Government has announced a plan to make the count ry carbon-neutral by 2019.  The plan envisages a 
new, renewable electricity-generation and tran smission infrastructure based on 155 large wind 
turbines, and half a square kilometre of rooftop sola r panels, etc.  These impressive efforts to address 
the threat of global warming and the consequent rise in sea levels also deserve our strong support 
internationally. 
60. Before concluding, we would like to raise two qu estions and give one pr oposal here.  The first 
question is that as indicated in the Report in orde r to motivate the private sector’s participation the 
Government of the Maldives decided to create and enabling an economically viable business 
environment, this includes privatization SOEs.  Could the Maldives provide some more details of 
their plan for SOEs privatization?  And also ar e there any limits on the level of participation by 
foreign investors?  
61. Currently the Maldives is a very famous country in the field of tourism.  Maldives has been 
considered a highly attractive destination, but we  believe that there is ample room for further 
development in terms of goods as well as service s.  We would like to know from the Maldives’ 
perspective what are the most potential goods and services that would welcome further cooperation. 
62. We are very glad to learn that the Maldives will graduate from the LDC countries, but its 
current status according to the Report, the Maldives continue to rely on technical assistance and other 
assistance provided by the developed partners for its effort to integrate into the global economy.  We 
would like to propose to the Maldives to consider  our country as a potential partner in technical 
assistance because we are pretty well equipped and also we have a lot of experience to cooperate with 
foreign countries. 
EUROPEAN COMMISSION 
Some remarks on the economic and investment outlook 
63. It is commendable that Maldives has effectiv ely managed to maintain sustained economic 
growth over the last years, even  despite adverse external shocks, such as the 2004 tsunami.  This has  WT/TPR/M/221 
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  been a remarkable economic succe ss, as a result of which the Mald ives will graduate from least 
developed country status in 2011. This is very  good news: Maldives has a new horizon ahead, and a 
good number of possibilities and challenges to embrace. And in order to embrace them in good shape, 
the Maldives need, for instance, to  pay special attention to its fiscal deficit. This would be 
instrumental to correct the current imbalances, and allow the government to effectively implement its 
planned projects and policies.  
64. Another important challenge ah ead is the diversification of  the economy. We recognise the 
constraints faced by Maldives, and would be inte rested in hearing the government’s plans and 
objectives to this end. For instance, we would like  to know whether the government aims to further 
promote the development of downstream industries, like auxiliary industries for the fisheries sector, 
and how it plans to support the private sector. Strengthening the private sector, and maintaining the 
already liberalised foreign investment regime, will c ontribute positively to the diversification of the 
economy. The Maldives may wish to take further actions to enhance the predictability of its 
regulatory regime. For example, Maldives has to da te no framework legislation on competition. We 
would be interested to hear more about the time frame for putting this important policy into place. 
Bilateral relations and regional integration 
65. As I was just mentioning, we acknowledge the difficulties Maldives is facing. The small size 
and narrow economic base of small islands like the Maldives make them suffer from diseconomies of 
scale, which come alongside human capital constraint s and transport challenges.  In order to overcome 
these difficulties, it is essential to promote economic activities that are not dependent on these factors 
– particularly services. It is also vital to pursu e regional integration and the creation of genuine 
regional markets to achieve economies of scale. We  call on more progress in the consolidation of 
economic integration in the SAARC region. 
66. EC's trade with Maldives has been stable over the last few years. EU ranked as its second 
major trading partner in 2008. This bilateral trad e results from the preferential access to the EC 
market under the Everything but Arms regime , from which Maldives h as been significantly 
benefiting. In recognition of the significant progr ess and development made, Maldives will graduate 
from the UN's LDC list in January 2011. In order to support a smooth trans ition to non-LDC status, 
the EU GSP Regulation foresees a transitional period  of at least three years during which graduating 
countries continue to benefit from the preference s granted under the special arrangement for least 
developed countries. We welcome that the Govern ment of Maldives is already anticipating the 
eventual expiry of this transition period by pr eparing itself for eligibility for the Special Incentive 
Arrangement for Sustainable Development and G ood Governance, also known as GSP+. There should 
therefore be no concerns of a loss of preferential market access – at least as far as it concerns the EU market. 
67. Of course, our bilateral relationship goes we ll beyond trade. The Maldives have benefited 
from EU development aid since 1981. Currently, EU ai d is provided through complementary channels 
and cover a significant number of areas. Aid programmes are carried out in areas such as good 
governance, democratization, the fight against drugs , and environment protection. On the latter, the 
EU is also notably providing support through the Global Climate Change Alliance initiative towards 
the “safe islands programme” in order help Mald ives addressing one of its main environmental 
challenges. More specifically on Aid for Trade, we welcome the inclusion in the Secretariat report of 
a full section on aid for trade, which inter alia  provides useful information on the processes that are in 
place in the country for the purposes mainstreaming. We attach great importance to Aid for Trade, 
and as a concrete demonstration of this the EC has played the role of donor facilitator in the Enhanced 
Integrated Framework. WT/TPR/M/221 
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  Concerning Maldives's trade policies and measures 
68. We have already submitted deta iled questions on a number of measures, so I will now just 
briefly touch upon 4 specific trade-related measures.  
69. I would like to refer first to customs procedures: We note that Maldives has not yet 
implemented the provisions of the Customs Valua tion Agreement. Maldives's authorities have argued 
that significant progress has been made towards full implementation. However, the draft customs law 
has not yet been discussed by the Parliament. We w ould be grateful if Maldives could share with us 
the planned timeframe for adopting the draft Custom s Law, and what specific actions the government 
is undertaking. 
70. Second, Maldives currently does not have any law or regulations to grant intellectual property 
rights 
protection. The Secretariat's report indicates that some legislation on copyright, trademarks, 
patents and geographical indications are currently be ing drafted, and we encourage Maldives to step 
up efforts in finalising these legislations. This w ill greatly contribute to improving the business 
environment, including for foreign investment. Effective IPR protection and enforcement are indeed important elements of a predictable and friendly business environment.   
71. My third point relates to the standardisati on regime. The Maldives Standard Act and the 
Standard for Weights and Measures Act are currently being drafted, but it is not clear when this 
legislation will actually enter into force. At th e regional level, Maldives has agreed with other 
SAARC Members to pursue a Regional Action Plan on st andards. This has actually entered into force, 
but is not yet implemented. We would like to en courage Maldives to finish the on-going domestic 
legislation, and implement the necessary structures for an effective national standardisation system. 
Likewise, a similar effort should be made to impl ement the Regional Action Plan on standards, and 
we would like the Maldives authorities to confirm th e timeline and actions pursued in this regard.  
Similarly, in the field of SPS, we would like to know more about the current  plans to develop national 
standards on fish and fish products. 
72. Fourth, Government procurement is anothe r important regulatory pillar, which has a 
significant role to play in the diversificati on of the Maldives's economy. We commend Maldives's 
effort to introduce competitive tendering, which is an important step towards enhanced transparency. 
We invite Maldives to continue undertaking additi onal efforts. For instance, some positive steps could 
be making tenders more widely known, through an electronic procurement information system, 
making sure that data is displayed in other languages apart from Mahl.  
JAPAN 
73. The Japanese Government welcomes the economic recovery of the Maldives from the adverse 
effects of the 2004 tsunami.  According to the Secr etariat’s Report, the average growth rate of the 
Maldives’ economy was 7.4% between 2003 and 2008 , and its per capita GDP exceeded US$ 4,000 in 
2008. 
74. Having said that, we would like to make two comments, which we see as issues for the further 
growth of the Maldives’ economy: 
75. Firstly, we note the large fiscal deficit due to  the large public expenditure which took place 
after the tsunami disaster.  We also observe the high inflation rate, which is partly caused by the monetization of the government budget deficit via the Central Bank.  We share the view of the 
Secretariat’s report that the deficit and inflation coul d be a serious constraint on the future growth of 
the Maldives.  WT/TPR/M/221 
 Page 15 
 
 
  76. The report by the Government of the Maldives tells us that it duly recognizes the problem and 
plans to implement the privatization and structural  tax reform with the support of the IMF and other 
international organizations.  We hope that the Mald ivian Government continues its efforts for a sound 
fiscal policy. 
77. Secondly, as both the Secretariat’s Report and the Maldivian report describe, the expected 
important change in the near future for the Mald ivian economy is the graduation from the LDC status 
in 2011.  This will have implica tions for its preferential treatments both in trade and international 
treaties, as well as for various supports for LDC. 
78. Japan hopes that the Maldives, as a Member of the WTO, will take the necessary measures to 
prepare and manage the smooth transition after its gr aduation of the LDC list.  We also wish that it 
will establish legislations and institu tions consistent with the multilatera l trading system, especially in 
the areas of SPS and TRIPS. 
79. In conclusion, Japan would like to reiterate its hope that the Maldives will continue its efforts 
to establish sound fiscal policy and prepare for the graduation of LDC in 2011.  Japan is pleased to 
support its efforts, in cooperation with relate d organizations and other member countries.   
CANADA 
80. Canada would like to highlight the various major events that have taken place since the last 
trade policy review of the Maldives in 2003, in particular the destructive tsunami of 
26 December 2004.  In spite of its negative impa ct on the economic environment, we are pleased to 
note that the country's economy achieved an average growth of 7.4 per cent from 2003 to 2008.  As a friend of the Maldives, Canada was pleased to be ab le to contribute 6.5 million dollars worth of aid 
following the tsunami. 
81. Canada firmly supported the advent of participatory demo cracy in the Maldives in the 
framework of the presidential election of Octobe r 2008.  The former High Commissioner of Canada 
to the Maldives, Mrs Angela Bogdan, had the honour of being co-leader of the international election 
mission for the second round of the elections.  We strongly encourage the Maldives to continue their 
efforts to strengthen democratic development.  Likewise, we would note the positive development of 
the June 2004 introduction of the "Roadmap for Reform", which led to the establishment of 
independent institutions vital for ensu ring good governance and accountability. 
82. With the Maldives’ impending graduation from Least Developed Country (LDC) status in 
2011, Canada is pleased to see that the governme nt of the Maldives recognises the importance of 
ensuring a smooth transition.  Canada would lik e to congratulate the Maldives for proactively 
establishing the inter-ministry "Working Group on Sm ooth Transition from LDC Status", tasked with 
preparing a transition strategy in partne rship with international institutions. 
83. Canada is pleased to see the progress being ma de in the economic reforms being undertaken 
by the government of the Maldives.  We also note th at the Maldives is a party to the South Asian Free 
Trade Agreement and is negotiating bilateral free-trad e agreements with Sri La nka and Qatar.   We 
would encourage the Maldives to further liberalise its  foreign investment regime, particularly given 
the need to bridge the funding gap in the economi c infrastructure re-building process required in the 
wake of the destruction caused by the tsunami.  
84. We recognise the efforts that the Maldives has made to liberalize trade, however, we cannot 
help take note of the dominant role that tariffs pl ay in generating revenues for the Maldives. As noted 
by the WTO Secretariat in its report, the Maldiv es’ tariff regime remains unduly complex.  Canada WT/TPR/M/221 
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  encourages the Maldives, in the interest of creating a more stable and predictable trade environment, 
to reduce or eliminate the gap between bound and applied tariff rates. 
85. In closing, Canada would like to welcom e the positive advances that the Maldives has 
implemented since the last Trade Policy Review and encourages the Maldives to continue efforts 
towards greater transparency and trade liberalization.   
UNITED STATES 
86. Albert Einstein once said, “In the middle of difficulty lies opportunity.”  The Maldivian 
experience in the face of adversity shows the wis dom of these words.  Since the 2003 TPR – indeed, 
in less than a decade, the Mald ives has overcome a devastating natural disaster, accomplished a 
successful government transition, and firmly set a pa th towards economic liberalization.  Maldives has 
a small, yet growing market that is receptive, both politically and statutorily, to foreign investment, 
and trade in goods and services. 
87. Maintaining an average seven percent growth  rate, including during the aftermath of the 
tsunami, is no small feat.  The current economic dow nturn has negatively affected most of the world 
economy, and Maldives is no exception.  Nonetheles s, many of the economic liberalization programs 
the government is working on – or plans to undert ake – will have a lasting impact on Maldives’ 
economic recovery efforts.  We commend the govern ment for its commitment to privatization and 
encourage you to accelerate the pro cess.  Not only will privatizati on help increase efficiency and 
promote transparency, but it will also help shephe rd the kind of investment  necessary for Maldives to 
upgrade physical infrastructure, develop a fina ncial market, create opportunities for small and 
medium enterprises, and enhance the economic potential for all Maldivians.  And, we are pleased that 
the Maldives government has chosen  to join the International Labour Organization and has begun to 
reform the nation’s labor laws so that they are in line with international standards.   
88. The United States values its friendship with Ma ldives.  The government of Maldives has been 
a partner in the pursuit of international security and other critical issues, such as environment and 
climate change, regional integration, and democratic  institutions.  The United States is proud to have 
taken our bilateral trade relationship with Maldives to  the next level.  Just two weeks ago, on October 
17, our two governments signed a Trade and Investme nt Framework Agreement that will serve as a 
foundation for this aspect of our bilateral engageme nt and provide a forum for the Maldives and the 
United States to examine ways to enhance bilateral trade and investment.  Our hope is that the TIFA 
will help support the trade opening policies that th e government of Maldives is undertaking to boost 
investment, employment, per capita income , and prosperity for all Maldivians. 
89. Maldives continued commitment to diversifica tion is key to the nation’s economic growth 
and development.  We recognize the challenges that  Maldives will continue to face as it makes the 
transition along the road to economic prosperity.  For this reason, the United States has chosen to 
review the Maldives’ request to be reinstated in our Generalized System of Preferences (GSP) 
program. 
90. The United States remains mindful of the Maldiv es efforts to upgrade its trade policy regime 
as characterized in the government’s report for this meeting.  Specifically, we support the 
government’s efforts to reduce its dependence on im port duties as the primar y revenue generator.  
Pursuing a broad-base taxation system  in conjunction with plans to develop a financial market will 
establish a diverse portfolio of revenue-generati ng schemes that will boost government earnings and 
help achieve poverty-alleviation.  As the governme nt prepares to implement new taxation laws, we 
urge Maldives’ policymakers to pay heed to the eff ects that new undertakings could have on trade and 
investment.  Furthermore, we encourage the government  to address what the Secretariat, in its report, 
characterized as an “unduly complex” tariff struct ure.  Simplifying the tariff bands will facilitate  WT/TPR/M/221 
 Page 17 
 
 
  trade.  And we urge Maldives to lower tariffs, particularly on line items where the applied rates 
exceed the WTO-bound rates.  Such action woul d help ease the financial burden on Maldives’ 
consumers as they, too, recover from the economic downturn. 
91. We are also aware of the government’s effort s to establish a customs valuation database 
(about which we hope to learn more in the cour se of this review), improve transparency in 
government procurement, introduce quality contro l mechanisms on exports, and develop laws to 
protect intellectual property rights.  The United Stat es stands ready to work with Maldives as your 
government develops IP laws to ensure that they are TRIPs-consistent.  As part of the TPR process, 
the United States has submitted questions to the Mald ives regarding actions such as these in an effort 
to help the Maldives pursue economic advancemen t, and we look forward to considering your 
responses. 
92. The United States acknowledges the tests faci ng the Maldives because of its island-nation 
topography.  In particular, we heard President Nashee d’s call for people to real ize that the Maldives is 
a “frontline state” whose very existe nce is threatened by climate change.  Who could doubt President 
Nasheed’s commitment to making Maldives the firs t carbon-neutral country by 2020 when he, along 
with the vice president, and a number of cabinet ministers took their seats at a table on the ocean 
floor, held a meeting, and signed a document calling on all countries to cut their carbon dioxide emissions?  Environmental degradation threatens th e health and welfare of the global population and 
we commend the Maldives for its creativity in ga ining worldwide public attention to this pressing 
issue.  
93. The United States continues to believe that th e Doha Round negotiations will set the terms of 
trade for decades to come.  Furthermore, the Roun d presents an unprecedente d opportunity to address 
concretely the global environmen tal challenge of climate change and energy security through 
increased global trade in and use of environmenta l goods and services.  The Secretariat advises that 
Maldives wants a “quick and positive” outcome of the Doha Round, especially with regard to 
technical assistance and the "aid for trade initia tive”.  The United States welcomes Maldives 
enthusiasm and notes that a successful outcome can be achieved – but completion of the Round 
depends on all Members’ efforts.   
SRI LANKA 
94. I welcome this opportunity to speak on the occasion of the TPR of the Maldives, particularly, 
in view of our close and friendly relations exis ting between Sri Lanka and the Maldives based on 
mutual respect and the principle of good neighbourlin ess and shared interests.  As you all are aware, 
the Maldives and Sri Lanka are Members of the SA ARC regional grouping and the South Asian Free 
Trade Agreement (SAFTA).  In the sphere of trade and investment, we have concluded and 
successfully put into operation bilateral arrangements such as promotion of tourism and bilateral civil 
aviation arrangement.  In addition to the regional dimension, we regularly discuss and enhance our 
trade and investment relations under the framewo rk of the Maldives-Sri Lanka Joint Commission 
Arrangement. 
95. The bilateral trade relations between the Mald ives and Sri Lanka have been long standing.  
The Maldives is the third largest trading partne r of Sri Lanka among the SAARC countries accounting 
for total trade of US$62 million.  The value of Sr i Lanka’s exports recorded US$48 million in 2008.  
The value of imports from the Maldives recorded US$14.1 million in the same year.  Sri Lanka’s main import from the Maldives is dried salted fish (Maldives fish) accounting for about 80% from the 
total imports in 2008. 
96. In the sphere of trade in services, we have ma intained a strong relationship with the Maldives 
for a long period of time.  In the banking sector, the Bank of Ceylon, Sri Lanka’s premier bank, has WT/TPR/M/221 
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  had a presence in the Maldives since 1981, providing  financial services to the Maldivian economy.  
The Sri Lanka Insurance Corporation has been pr oviding insurance services since 1976.  Two private 
sector insurance companies have also been providing general insurance services in the Maldives since 
2005.  In the tourism sector, a number of Sri Lankan investments are operating in the Maldives successfully.  We maintain regular air services betw een the two destinations providing much needed 
connectivity to the Maldivian tourist industry.  We have provided secondary an d tertiary education to 
the Maldivian students and large number of educati onal specialists still serving in the islands.  The 
health sector is another area where we provide services to the Maldivian nationals. 
97. Sri Lanka being a close and a friendly neighbour , would like to extend its congratulation to 
the Maldives for its impressive economic and social achievements and progress in the recent past.  We 
noted that, despite the adverse effects of the Ts unami in 2004, of which both our countries were 
victims, the Maldives was able to gain a real GDP  growth of 7.4% between 2003-2008.  The GDP per 
capita has doubled from US$2,429 in 2003 to US$4,414 in 2009.  The Maldives has undergone considerable political, constitutional and judicial  changes during the period under review.  The 
Maldives is successfully maintaining a liberal forei gn investment regime together with appropriate 
institutional arrangements.  The Maldives has al so successfully established themselves as a well 
sought after tourist destination in the South Asia , and which sector contributes more than 70% of 
economic activity in the Maldives. 
98. Despite these salutary achievements made by the Maldives in a relatively short period of time, 
we note that the climate change issue is still a ser ious challenge for the Maldives to be addressed in 
the future.  In this regard, we appreciate the very ambitious environmental plan of the Government to 
achieve carbon neutrality by 2019.  The Maldives is expected to graduate from least developed 
country status in 2011.  This will naturally also be a challenging task to be addressed in the near 
future. 
CHINA 
99. Over the last 30 years, the Chinese people have co me to a strong belief that there is no single 
universal path to growth. Each country has to take a road that is suited to its national conditions. In 
our view, the Maldives is a good example of how sm all and vulnerable island countries can maintain 
sustained growth and continue improving living sta ndards. There are a lot we can learn from the 
Maldives experiences. Keeping the economy open, making tourism and fishing in which it has 
comparative advantages as pillar industries, and put ting environment protection as a top priority, to 
name just a few. Thanks to these proper policies a nd others, for the years under review, the Maldives 
has continued to achieve excellent levels of econom ic development despite the devastating tsunami of 
2004. Real GDP growth averaged 7.4% between 2003 a nd 2008, although it is expected to contract by 
1.3% in 2009. GDP per capita rose from 2,429 US dollars in 2003 to 4,072 US dollars in 2008 and is expected to reach 4,214 US dollars this year. Li fe expectancy rose from 65 years in 2003 to 68 years 
in 2008 and absolute poverty declined from 3% in 1997 to 1% in 2004 as a result of the robust 
growth.  
100. What we find most venerable is the importance that the Government of the Maldives attaches 
to the protection of environment. In March, Preside nt Nasheed unveiled an ambi tious plan to make the 
Maldives the first carbon-neutral country by virtuall y eliminating the use of fossil fuel by the year 
2020. On 17 October, just less than 10 days ago, one message topped all big media of the world. And 
that is, as the discussant has also mentioned in his in tervention, that President Nasheed and his cabinet 
wore scuba gear and held a meeting under water. This special meeting demonstrates the resolution of 
the Maldives to fight against global warming. And mo re importantly, it sends a strong signal to the 
world that Copenhagen has to deliver.   WT/TPR/M/221 
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  101. As the Government Report of the Maldives has illustrated, trade between our two countries 
dated back to some centuries ago until it was interr upted by external factors. In 1982, direct trade 
relations resumed. In March 2004, China and th e Maldives signed Trade and Economic Cooperation 
Agreement. So far, bilateral trade is still mod est. In 2008, merchandise trade was only 33 million 
US dollars with the balance favouring China, whic h to some extent underlines the need for the 
Maldives to further diversify its economy and thus ex ports. At the same time, as both the Secretariat 
Report and the Government Report have pointed out, exports from the Maldives to China have started 
to enjoy duty-free-quota-free treatment. We hope this  will further promote th e economic development 
of the Maldives and strengthens the economic and tr ade relationship between the two countries, as 
referred to by the Government Report of the Mald ives. Another welcome progress takes place on the 
services aspect. In 2002, the Mald ives became a destination country  for Chinese citizens travelling 
abroad. In April 2007, China Eastern Airlines opene d a direct flight between Shanghai and Male. In 
2007, the numbers of Chinese tourists visiting the Ma ldives reached 36, 000, making China one of the 
biggest countries of Maldivian tourism exports. 
102. China and the Maldives also have close relations  in other areas of economic cooperation. As 
of May this year, Chinese enterprises have signe d project and labor service cooperation contracts 
worth 138 million US dollars, with the accomplished turnover of 74 million. Since 1972, China has provided aid to the Maldives within its own capability . And we are proud to have helped construct the 
building of the Ministry of Foreign Affairs of the Maldives. 
INDIA 
103. We have watched with admiration the strengthe ning of democracy in the Maldives through 
broad based political and institutional reforms.  We c onsider that in the years to come, these reforms 
are bound to yield rich dividends by improving inclus ivity and participation of the people in political 
and economic decision making. 
104. We are pleased to note that Maldives has ma de progress on poverty, education and health 
targets and seen significant improvement on empowerment of women.  The result of these 
improvements has led to Maldives being removed from the list of LDCs in December 2004.  The 
graduation while is the most positive endorsement of the efforts of the Government to achieve higher 
trajectory of growth, it does come with some costs.   We hope the developmen t partners of Maldives 
will continue to assist Maldives in the transition period. 
105. The Secretariat Report has identified the large fiscal  deficit and the consequent level of public 
debt as serious constraints on Maldives’ growth.  Given the lack of a broad based tax system and 
mention in the Government Report to develop the fi nancial market in the short-to-medium term, and 
to introduce debt instruments which could be purc hased by the public;  it would be of interest to 
Maldives investment and trade partners as th ese policy reforms unfold in the coming years. 
106. During the last decade, the Ma ldives maintained a steady GDP growth rate of 10%.  The 
Maldivian resources are essentially marine-based with emphasis on fishing and tourism.  The 
Maldivian economy is primarily dependent on these two sectors.  While fisheries accounts for 6.3% of 
GDP, tourism accounts for 27.1% of GDP and more than 60% of the Maldives’ foreign exchange 
receipts.  Earlier this month, Maldives became one of the official finalists of the “New Seven Wonders of Nature” of the world.  We wish Mald ives success when results of voting are released in 
2011. 
107. India is proud of its very close relations  with Maldives as these ties encompass ethnic, 
linguistic, cultural, religious and commercial links steeped in antiquity.  India and Maldives enjoy 
close, cordial and multi-dimensional relations.  Bilateral relations ha ve been nurtured and 
strengthened by regular contacts at the highest leve ls.  President Nasheed just concluded a five-day WT/TPR/M/221 
Page 20  
 
  visit to India.  He was the chief guest at the “H igh Level Conference on Cl imate Change:  Technology 
Development and Transfer”. 
108. The Secretariat has stated that the Maldives’ onl y operational bilateral trade agreement is with 
India.  This agreement allow the Maldives to impor t certain products from India, the export of which 
is otherwise not permitted;  these  products include , river sand, eggs, potatoes, and onions.  In 2008, 
while imports from India were US$145.138 million and exports to India amounted to US$1.96 
million.  Indian imports from the Maldives primarily  comprise scrap metals while Indian exports to 
the Maldives include agriculture and poultry produce,  pharma products, a variety of engineering and 
industrial products. 
109. India has been offering assistance to Maldiv es in its developmental process.  The major 
projects executed by India include (i) Indira Gandhi  Memorial Hospital, (ii) Faculty of Engineering 
Technology (FET), (iii) Faculty of Hospitality & Tour ism Studies, (iv) Male International Airport, 
etc.  A large number of projects are presently under process for possible assistance from Indi8a.  These are mostly covered under the Aid to Maldiv es Fund.  India has trained over 350 Maldivians 
during the last 10 years under the Indian Technical and Economic Cooperation Programme. 
PAKISTAN 
110. Tourism, Maldives largest industry, accounts for 28% of GDP and more than 60% of foreign 
exchange receipts.  Over 90% of Government tax revenue comes from import duties and tourism 
related taxes.  The tsunami of 2004 disrupted the steady growth of the economy bringing tourism to a 
halt while badly damaging physical and social infr astructure.  As a result of the tsunami, the GDP 
contracted by about 4.6% in 2005.  A rebound in  tourism, post tsunami reconstruction, and 
development of new resorts helped the economy r ecover quickly, with GDP growth registering a 
5.7% in 2008. 
111. Diversifying beyond tourism and fishing,  reforming public finance and increasing 
employment are the major challenges facing the G overnment.  Over the longer term, the Maldivian 
authorities worried about the impact of erosion and possible global warming on their low-lying 
country;  80% of the are is one meter or less about sea level.  Government spending on social needs, 
subsidies, and civil servant salaries have created a large budget deficit and inflation has picked up 
sharply reaching nearly 13% in 2008 due to high oil and food prices. 
112. We wish the Maldives well and hope that with its sound economic fundamentals, the 
Maldives will achieve a higher growth trajectory.  In  order to sustain growth the Maldives need to 
diversify the economy;  agriculture and manufacturing continue to play a weak role in the economy, 
constraint by the limited availability of land to be cultivated and shorta ge of domestic labour. 
MAURITIUS 
113. The shores of Mauritius and the Maldives are washed  by the same waters of the Indian Ocean.  
Our two countries are members of the Commonwealth  and share the common values this organization 
advocates.  We are both small is lands developing states in the UN system.  Furthermore, upmarket 
tourism represents for both of our countries a key pillar of the economy.  For all these reasons, 
Mauritius can fully understand and appreciate the de velopment efforts and its inherent vulnerabilities 
of the Maldives, include a dispersed population in about 200 of the 1,200 islands spread over 900 km 
in the Indian Ocean.  We are, for instance, fully su pportive of the lead stand taken by the Government.  
We are also supportive of the strengthening of democracy and good governance being witnessed in 
the country.  WT/TPR/M/221 
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  114.  It is an indisputable fact that the Mald ives has pursued sound economic policies for nearly 
three decades.  As a result, the country has achiev ed buoyant growth over this period.  Indeed, the 
Maldives’ socio-economic indicators have show n significant improvements over the past two 
decades, as reflected in a falling infant mortality rate, expanding school enrolments, and rising literacy 
rates.  We applaud such achievements and welcom e the fact the Government of Maldives remains 
committed to further reducing pove rty and enhancing human capital and has undertaken a successful 
reconstruction programmes after the deadly tsuna mi which hit the country five years ago. 
115. As matters stand, the development of the tour ism and fisheries sectors, favourable external 
conditions, large inflows of external aid, and good economic management are expected to continue to 
contribute to a steady rise in the gross domestic product (GDP) which has averaged by 9% since the 
late 1970s. 
116. My delegation takes good note of the fact that the Vision 20/20 development strategy of 
Maldives spells out a series of long-term aspirations  of the country, such as:  becoming a top-ranking 
middle income country, achieving gender equality;  establishing a minimum of 10 years of formal 
schooling and good tertiary education;  ensuring acc ess to quality medical care and health insurance, 
and promoting the conditions for rapid economi c growth with the Maldives serving as a hub of 
regional free trade. 
117. However, like many of our developing countries, including our own, the Maldives faces some 
important development challenges as it strives to su stain strong economic growth and improve living 
standards particularly in the context of its gradua tion from the LDC status and in the current economic 
and financial crisis.  These include the mitig ation of social, economic, and environmental 
vulnerability as a direct consequence of inter alia  the small size and dispersed character of the 
population, the high dependence on tourism and fish ing (industries which are subject to external 
shocks) and the fragile ecosystem and geography of the country and the potential effects of the global 
warming. 
118. We would, therefore, encourage the Governme nt of the Maldives in its ongoing efforts in 
addressing these challenges, in particular in co nsolidating the economic and human resources, 
diversification of its economy, fostering private-sect or led growth and employment and adaptation to 
global warming.  We urge in this respect the de velopment partners of Maldives to reaffirm this 
support including through Aid for Trade initiative to its development efforts. 
119. With regard to global warming itself, the world has carefully noted the recent and first ever 
underwater cabinet meeting, chaired by H.E. Mr. Mohamed Nasheed, President of the Maldives.  
Apart from highlighting the threat and vulnerability  faced this island nation from rising sea levels, 
this unprecedented event mobilised world attention to  the international campaign of meeting 350 ppm 
CO2 target. 
120. The Maldives has taken bold initiatives recently in  the UN system on the issue of the relation 
between climate change and human rights.  We ar e very much hopeful therefore that the Maldives 
will also take a lead role on the climat e change and international trade debate. 
BARBADOS 
121. Barbados commends the Maldives on the efforts th ey have made to enhance their trade policy 
since the last review in 2003, particularly in th e face of daunting challenges including the devastating 
Asian tsunami of 2004.  Their s ubsequent economic recovery and ge neral robust growth highlights the 
resilient nature of this economy on the one hand, wh ich is at the same time  disadvantaged by the 
effects of the global crisis, increased unemployment and rising inflation, on the other. Moreover, the 
impact of global warming due to climate change th reatens the very viability of the Maldives islands WT/TPR/M/221 
Page 22  
 
  and we congratulate the Maldives government on the persistent and pro-activ e measures being taken 
in this respect. 
122. These are the same kind of challenges that con front many LDCs and small island developing 
states (SIDS).  As a SIDS and a small, vulnerabl e economy (SVE), with which the Maldives shares a 
number of characteristics, Barbados fully unde rstands the complexity of this situation. 
123. Barbados supports the ongoing efforts of the Ma ldives Government to diversify its economy 
and make it more competitive, including through targ eted services trade and industrial development 
measures. We further recognise and encourage the Maldives’ continued endeavours to fulfill their 
WTO obligations through inter alia  the strengthening of nationa l standards and SPS Agreement 
provisions as well as developing legisla tion on intellectual property rights. 
124. The Maldives is actively seeking to facilitate a smooth transition from LDC status by 2011, 
and in this respect has identified a number of sp ecific areas in which it will require the assistance of 
the international community. We urge that timely act ion and sustained attention be provided to fulfill 
their needs.  
125. Moreover, we would look forward to the Doha  Round concluding in a manner that does not 
impose any additional burden on countries like the Maldives as they seek to integrate themselves 
more fully into the global economy and trading system. 
HONDURAS 
126. We are pleased to note, in the Report by the Secr etariat, that in spite of the 2004 tsunami, the 
Maldivian economy grew at an average rate of 7. 4 per cent during the period 2003 to 2008, falling by 
1.3 per cent in 2009.  Over the same period, its GDP grew from US$2,429 to US$4,072. 
127. In the trade policy area, there has been little ch ange in the legal framework.  Tariffs are the 
country's main source of income, and almost all of the tariff lines are bound. 
128. At the sectoral level, we note that fisheries and tourism services are the most important 
components of the country's trade.  Since fisheries account for nearly all of its exports, we urge the authorities to take steps that would help to  enhance the value added of this product. 
129. At the multilateral level, we observe from the report that the Maldives is an original Member 
of the WTO.  In that connection, it has stated th at it wants a quick outcome of the Doha Development 
Agenda, especially with regard to technical assistance and Aid for Trade. 
130. Similarly, the Maldives is faced with challenges in  its efforts to maintain  its growth.  We are 
referring, among other things, to the need to divers ify its economy, since it is expected to graduate 
from its LDC status in 2011.  Another challenge con cerns the country's fiscal deficit and the erosion 
of export preferences.  Global warming is a serious threat to the Maldives, in that it is causing the 
level of the sea to rise.  We therefore urge the authorities to continue their work, and we hope that 
they will manage to make improvements in all of the areas and boost the country's level of 
development. 
  WT/TPR/M/221 
 Page 23 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF THE MALDIVES AND ADDITIONAL 
COMMENTS 
131. On Fiscal policy and tax reform, while the Maldivian economy rebounded strongly following 
the tsunami disaster of 2004, a number of major challenges remained, the most pressing of which was the unsustainable fiscal policy that remained after the tsunami. This situati on was made worse by the 
global financial and economic crisis which adve rsely affected the economy from 2008 onwards.  
132. The challenge now returning to a more su stainable fiscal path, while maintaining 
macroeconomic stability, while ensuring that the most vulnerable segments of the population are 
protected in the process.  On the revenue side, plans are underway to broaden the tax base. 
133. On privatisation, the new administration h as embarked on a comprehensive program. The 
government has identified 18 SOEs to be priva tized under Public Private Partnership (PPP) 
arrangements. 
134. The program aims to reduce the government’s direct involvement in the businesses through 
targeted privatizations of airports, shipping, and utility companies.  
135. The lack of an integrated transportation system is a major impediment to the conduct of trade 
in the Maldives. This is being addressed by openi ng the transport network to 7 private parties in 
separate regions. So far 5 parties have been select ed and one party has already started providing the 
services. 
136. On diversification, the Government plans to diversifying the economy away from the two 
traditional sectors of tourism and fisheries through increasing the value addition of related sectors. 
137. Introduction of new products such as water spor ts, adventure travels, boutique guest houses, 
and cultural and health tourism and tourism real es tate development are considered in the tourism 
industry while the local value added of fishin g industry would be enhanced though product 
diversifications. 
138. On foreign investment, the current regime remain s open and liberal. Further, the law is being 
amended. 
139. On customs valuation, the required enabling law (the draft Customs law) is drafted and is 
with the Parliament. With the ratification of the Cu stoms Act, Maldives Customs Services will be able 
to implement the WTO Customs Valuation Agreement in full.  
140. On intellectual property rights, the 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 submission. 
Other IP legislations are currently being drafted a nd are expected to be submitted to Parliament by 
mid 2010. 
141. Passing key trade related legislations such as th e Customs Act, the IPR law and the Tax laws 
has been delayed due to the prior ities set for the democratic reform agenda of the country and sheer 
volume of legislations to be passed by the Parlia ment. The government’s legislative agenda for 2009 
has some 80 legislations awaiting the passage though the parliament. 
142. On graduation from the LDC graduations, Maldiv es is already having discussions with major 
preference granting countries. WT/TPR/M/221 
Page 24  
 
  143. In conclusion, we feel that the TPR exercise has been very useful for us. It has enabled us to 
inform the WTO Members of what we have been able to achieve to improve our economy and trade 
regimes and at the same time we learnt where we  are lagging behind. I would like to express my 
appreciation to Members for their remarks concer ning our contribution to the WTO and the Doha 
Development Agenda.  We remain fully committed to playing our part in ensuring a successful 
Ministerial next month. 
DISCUSSANT 
144. Over the course of the last two days, we have  had a very full discussion on the current state 
and the evolving path of economic and trade polic y in the Maldives as it relates to relevant 
multilateral trade rules and principles.  I should like to thank Minister Inaz and the Maldivian 
authorities for their responsiveness in helping to cl arify members’ concerns and enquires on various 
aspects of the trade policy of the Maldives.  I am e qually appreciative of the keen interest and indeed, 
engagement demonstrated by members in gaining a clearer understanding of the priorities as well as 
the constraints acting upon the Government’s broad- based reform agenda to reposition the Maldivian 
economy for take-off into self-sustained growth. 
145. What has emerged very clearly out of these di scussions is the imperative of creating in the 
Maldives, an institutional and regulatory framework, appropriate to its needs and circumstances, to 
stimulate, promote, facilitate and attract business de velopment, including Foreign Direct Investment, 
as the new engine of growth of the economy.  I th erefore noted, with satisfaction and encouragement, 
that the Government recognizes the potential for dive rsifying the economy largely depends on “letting 
the private sector do the business of doing business.” 
146. Our discussions have highlighted several of the key actions taken by the Government in this 
direction, for example its plans to control a nd reduce the fiscal deficit, its new proposals for 
broadening the base of the tax system, emerging policies in the area of labour market reform, its privatization programme for some 18 State Owned En terprises to begin in early 2010 and its strategies 
to diversify the economy beyond tourism and fisher ies though, among other things, moving into the 
area of financial services. 
147. It is, unarguably, both bold and ambitious, the G overnment’s plans, but also, necessary, if the 
fundamentals of an efficient market-based econo my that determines the allocation of productive 
resources are to be put firmly in place.  Without  it, the Government’s strategic objectives for the 
economy and for realizing the ambitions of the Mald ivian people are likely to be frustrated, with 
adverse consequences for social and economic deve lopment, and with increased risk of potential 
reversal of the development gains the country has achieved thus far. 
148. At this juncture, I wish to congratulate th e Maldivian Government and People on achieving 
the distinction of being ranked first in Sout h Asia in the UN Human Development Index and 
moreover, to express the hope for its continue d improvement in its overall global ranking. 
149. An issue of considerable importance which has not thus far been mentioned specifically in 
our discussions, but which nevertheless has been addressed as an underlying concept by members in 
their respective Statements and/or questions is th e issue of “confidence” in the Maldivian economy.  
We know ever so graphically from recent turmoil in  the global economy, that when confidence fails, 
economies falter and, in the worst case scenario, slip into recession.  So one of the supreme dictates 
the Maldives must confront in giving life to its economic reform agenda, is how to most effectively 
create and sustain confidence in its economy going forward. 
150. This brings me, to the current situation and prospects for action by the authorities to bolster 
important aspects of the regulatory environment with a view to guaranteeing transparency and  WT/TPR/M/221 
 Page 25 
 
 
  predictability of its operations.  In this regard , ongoing collaboration by the Government with the 
World Intellectual Property Organization to est ablish a comprehensive Intellectual Property 
Framework is most welcome, give n the importance of IP protection in stimulating investment and 
potentially in creating long-term streams of income  for the domestic economy.  The fact that the 
Government intends to submit a package of IP Legi slation to the Parliament by mid-2010 is taken to 
suggest that the authorities justifiably accord a high priority to bringing the Maldives into line with 
basic international norms and standards of IP protec tion.  This bodes well for the future and indeed for 
the ability of the Maldives to effectively protect its own IP assets from unauthorized exploitation. 
151. Bearing in mind the real challenges faced by sm all resource-deficient countries in establishing 
and administering their IP systems, this is one pot ential area that might form the basis of bilateral 
technical cooperation with other members who wish  to support the Maldivian agenda of market 
reform and institution-building. 
152. Some delegations have enquired into the Mald ives’ plans to adopt comprehensive competition 
policy legislation.  In its response, the Government has indicated that the thrust of this law, which is to 
be drafted in the medium term, will be to establish a level playing field for all investors and to prevent 
anti-competitive business practices.  I wish to co mmend the Government on its recognition of the 
overall benefits of such legislation in enhancing the efficiency of th e domestic market, and to urge it 
not to lose sight of the importance of getting such legislation through the Parliament as soon as is feasible, given its potential contribution to diversifying the economy. 
153. Without wishing in any way to appear to be pa tronizing of the Government, permit me to cite 
for general information, assistance in this ar ea that is available from UNCTAD, UNIDO and other 
International Organizations, which the Maldivian au thorities might avail themselves of when they are 
ready to proceed on this matter. 
154. It is always reassuring to the membership to h ear other members affirm their continuing faith 
in the merits of the rules-based multilateral trading system.  The Minister was also explicit in his 
remark that protectionism is not an objective of the Maldives either in its trade or investment policy.  I 
was therefore greatly encouraged to hear Minister  Inaz say that the various tax legislation proposed 
will lead to the rationalization of the tariff structur e in the medium term, and that in specific relation 
to the applied tariff rates on some 218 items being higher than the bound rate , these applie d rates will 
be amended upon passage of the Export-Import Bill.   Naturally, the membership supports and 
applauds the Maldives in its efforts to pass and im plement these critical pieces of legislation, which 
will further enhance the country’s compliance with its WTO obligations. 
155. Recalling that mitigating climate change and its e ffects is at the top of the policy agenda for 
the Maldives, the Government is to be congratulat ed for its forthcoming legislative action to reduce 
the tariffs on carbon friendly imports, both as a means of actively promoting the utilization of green technologies and to stimulate green investments.  In respect of the latter, Intellectual Property 
Protection being developed would certainly help to attract such  investments to the Maldives. 
156. In respect of Government Procurement, th e Government’s policy of only advertising 
internationally and in En glish, those tenders the value of whic h exceed one million US dollars appears 
to contradict the goal of strengthening the openne ss of the business environment.  While tenders 
valuing less than one million US are only advertised  in the local language, though they are open to 
interested foreign bidders.  It may be that in reviewing its Foreign Investment Law, the authorities 
might seek to address this apparent anomaly in the Government’s procurement practice, on a non-
discriminatory basis. 
157. A major hurdle that the Maldives will face, as we have heard, is the issue of graduation from 
LDC status and the implications of that for its ec onomic viability in the short term and for its long WT/TPR/M/221 
Page 26  
 
  term stability.  I believe that it was the delegate  from India who most eloquently captured the essence 
of what some might consider the conundrum of gr aduation – namely, that the country is to be 
graduated as a reward for its economic and develo pmental achievements over the recent past, even 
though such graduation will itself greatly test its  ability to maintain its economic and social 
development programmes. 
158. I listened with much care on Monday as one delegation after another expressed great 
admiration and respect for the Maldivian people in the high degree of resilience they have shown in 
overcoming the misfortunes of the tsunami of 2004.  But more than that, I have been deeply moved and encouraged by the genuine concern and suppor t expressed for the Maldives as it faces the spectre 
of graduation and for the commitments and/or concessions made and/or under consideration by 
several members, most notably the EC, the United St ates and others in maintaining and/or providing 
continued access for the Maldives to certain specifi c preferential programmes, given the expected 
continuing fragility of its economic  situation after graduation. 
159. This is indeed most heartening, as it is wi dely acknowledged by the membership that the 
assistance and support of the international community  will be absolutely n ecessary for the Maldives 
during this crucial period of econo mic transition and perhaps, for so metime beyond it.  Such show of 
flexibility and understanding amounts to a reaffirmati on of the legitimacy and importance of ‘Special 
and Differential Treatment’ to those members w hose economic conditions do not permit the full 
assumption of WTO obligations and disciplines as mandated by Marrakesh Agreement. 
160. To conclude, it seems to me that the watc hwords for the Maldives are “commitment and 
confidence”; commitment to staying the course of its  broad-based economic reform agenda to expand 
income and wealth on the one hand, and in that rega rd, the practical necessity of carefully calibrating 
its steps in such a way as to increase the confid ence of the Private Sector and the International 
Community in its economy.  It is clear that the memb ership accepts that this is a process and is willing 
to be as supportive as possible of the Maldives as it proceeds along the path of root and branch 
economic reform. 
161. This show of goodwill is perhaps one of the most  valuable “resources” that the Maldives can 
have at this juncture of its deve lopment and which, I imagine, it do es not take for granted.  Let me, 
therefore, on my own behalf and that of the entire membership express, yet again, our appreciation to 
the Maldivian Government for the spirit of cooper ation they have shown th roughout this review and 
to give them our best wishes for success as they enter this crucial phase in the economic life of their 
country. 
UNITED STATES 
 
162. We have a couple of follow up questions that we would like to pose at this time relating to 
tariff bindings and intellectual property rights. 
163. The response to our question on tariff bindings notes that tariff rates exceeding the bound 
rates in some lines are imposed on religious and environmental goods.  What methodology does the 
Government use to determine the tariff rated needed to achieve its religious and environmental goals?  
Does the Government find such goals in any public available documents, and if so where can they be 
found?  Could the Maldives please confirm when envi sages reducing applied tariff rates to the level of 
bound rates?  What steps does the Government have  taken to reduce the applied rates to the bound 
rates? 
164. Regarding intellectual property rights does the Maldives plan to publicize the action plan 
agreed between WIPO and the Government?  Also does the Government plan to publicize the draft 
copyright law prior to its entry into force?  If so , by what means will the draft be publicized and how  WT/TPR/M/221 
 Page 27 
 
 
  much time will the Government allow for the public  to review the draft and provide comments on it 
before it enters into force? 
165. Does the Maldives plan to publicize the other draf t IP legislation noted in the above answer 
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? 
EUROPEAN COMMISSION 
 
166. We also have a few follow up questions first notable on the reply received on TBT issues.  
The EC would appreciate more detailed informati on on the plans of the Maldives concerning the TBT 
area, notably on the detailed actions and plan s regarding the implementation of a national 
standardization system.  
167. Second, we have a follow up on the reply concerning physical inspection.  In the reply (page 
8) the Maldives have noted that there are plans to use non-intrusive modern scanning technology to 
inspect the incoming goods at the border to reduce physical inspection.  However, the EC would like 
to encourage the Maldives to move away from physi cal inspection, instead of allocating resources to 
very expensive technologies, and rather to re ly on a documentation-based approach. Therefore it 
would be appreciated to receive more information about the plans in the future to reduce physical 
inspection and use risk assessment, based on documentation.  
CHAIRPERSON 
168. Before concluding this meeting I would like to r ecall that there is one further issue and this is 
the adoption of the 2009 Report of the Trade Polic y Review Body.  The Report is contained in 
document WT/TPR/W/41 which was distributed to the Members two weeks ago.  I would also like to recall that there is a small change in the text of the circulated text of the Report, namely that according 
to the newest better plan Kuwait and Suriname w ill not be review in 2 010 and two other Members 
will be chosen instead.  As I don’t see any opposition the Report is adopted. 
 WT/TPR/M/221 
Page 28  
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
169. The second Trade Policy Review of the Maldives has given us a much clearer understanding 
of the Maldives' trade policies and practices and of the formidable challenges that it faces.  I thank 
Mr. Ahmed Inaz, Deputy Minister for Economic Development, and his delegation as well as the 
Discussant, Mr. Dennis Francis of Trinidad and Tobago, and Members of the TPRB for contributing 
to our informative and constructive exchange of views during these two days.  The Maldives' response 
to the large number of questions is also very much appreciated. 
170. Members praised the Maldives for its robust ec onomic growth and resilience, especially in 
light of the devastation caused by the 2004 tsunami .  Members highlighted th e risks to the Maldives 
posed by global warming and rising sea levels.  Th ey welcomed the plan to make the Maldives carbon 
neutral by 2019.  However, Members also emphasi zed that international cooperation and multilateral 
commitments would be needed to address the environmental risks of global warming. 
171. Members commended the Maldives for its politic al and economic reforms, its impending 
graduation from LDC status as well as the form ation of the "Working Group on Smooth Transition 
from LDC Status".  In addition, some Members emph asized the need for international help to mitigate 
any adverse effects of the graduation.  While welcoming economic reform s, some Members sought 
further details on certain aspects, such as priv atization and economic diversification plans. 
172. Some Members raised concerns about the large fiscal deficit and high inflation and urged the 
Maldives to implement tax reforms aimed at broa dening its tax base and re ducing reliance on tariffs 
for revenue.  Members also encouraged the Maldiv es to make its tariff simpler and reduce, if not 
eliminate, the gap between applied and bound MFN rates. 
173. Certain Members raised concerns about the l ack of competition policy, IPR legislation and 
non-implementation of the WTO's Customs Valuation Agreement;  they encouraged the Maldives to 
implement these in a timely manner.  At the same time, Members welcomed the introduction of competitive tendering as regards government procurem ent.  Members also en couraged the Maldives 
to implement an effective national standardizati on system.  Additionally, Members also called for 
further consolidation of economic integration in the SAARC region so as to create regional markets 
and achieve economies of scale. 
174. To conclude, I would again like to thank the Maldives delegation for enabling us to 
understand better its trade and trade -related policies and the domestic and international contexts in 
which they are formulated and implemented.  I would also like to than k the Discussant for his 
insightful comments, and Members for contributing to what has been a very enlightening two days of 
discussions.  We look forward to receiving respons es to the remaining outstanding questions within 
the next month. 
__________