DTIS, Volume I - Enhanced Integrated Framework (EIF)

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of added value accruing to the Maldives. While export volumes continue to grow, export values vary according to the international price level, where the Maldives is a price taker on virtually all fish products. Only the fairly small volume of canned fish attracts a small premium of approximately Rf 25.50 (US$ 2) per case, due to the environment-friendly - but not labeled as such - status of the product where the raw material is caught by pole and line. The importance of reef fish exports has been declining in the last few years, but the export of sea cucumber remains significant. The decline in reef fish products is a reflection of lower volumes of landings, and increased sales domestically to the tourism resorts. The majority of fish product exports are now handled by the private sector rather than by the parastatal fish company, MIFCO. In both 2003 and 2004, private sector exports accounted for roughly two-thirds of fisheries exports. Table 3.6: Principal Exports (2003-2005) Description 2003 2004 2005 (Jan-Jun) Value (RF % Total Exports Value (RF % Total Exports Value (RF % Total Exports mn) mn) mn) Various tuna products 843 58.3 1,056 67.2 682 91.3 Reef fish products 61 4.2 23 0.1 0 0.0 Sea Cucumber (dried) 43 3.0 31 2.0 15 2.0 Other Marine Products 19 1.3 30 2.4 28 3.7 Fish Meal 13 0.9 15 1.0 9 1.2 Sub-Total Fish sector 979 67.8 1,156 72.5 734 98.3 Garments and apparel 462 32.0 409 26.0 8 1.1 Other (mostly scrap 4 0.3 8 1.5 5 0.7 metal) TOTAL 1,445 100.0% 1,572 100.0% 747 100.0% Source: Calculated from Statistical Yearbook of Maldives 2004 and Customs Services data on export by commodity. In 2003, exports of garments and apparel accounted for 32 per cent of total exports, some Rf 461 million ($ 36 million). The decline in this sector started in 2004, when their share of exports had dropped to 26 per cent ($32million) and then virtually disappeared in 2005. As previously noted, the reason for this was the closure of the factories at the end of 2004 due to expiration of the Multi Fibre Agreement and the removal of quotas (see box). Box: Impact of international trade rules: Sri Lankan investors had established a garment and apparel industry in Maldives as a way of overcoming quotas imposed on Sri Lanka. Once the quotas had been removed at the end of 2004 due to the end of the MFA, there was no incentive for them to remain in the Maldives, especially as the local production was much less competitive than that in Sri Lanka. The closure of the industry is a good illustration of the impact that international trade regulations can have on an economy. There is a small amount of re-exports of desalination parts, scrap metal, velambuli (plant oil used for therapeutic treatments indigenous to the Maldives) and handicrafts. 21
A. DESTINATION OF MERCHANDISE EXPORTS In relation to the destination of merchandise exports, the USA was the single most important export market until 2005. The dramatic decline in exports to the USA has been due to the expiration of the MFA. The main markets in 2005 are relatively evenly distributed between the EU, Thailand and Japan, each accounting for between 20-25 per cent of total exports (see Table 3.7). The EU market seems to be following a fairly solid growth rate. But the Japanese market grew considerably during 2005 accounting for almost a quarter of total exports in the first half of the year. Sri Lanka has remained a significant market (around 13 per cent). The bulk of the frozen products (tuna) are exported to the Thai processing industry, where economies of scale allow more profitable production of canned tuna destined in particular for the EU and US markets. Table 3.7: Main Export Destinations, percentage by value (FOB) Country 2001 2002 2003 2004 2005 (Jan- Jun) United States 40.7% 38.4% 32.3% 26.5% 1.2% EU, of which: 17.1% 14.0% 15.7% 19.3% 24.4% UK 9.0% 9.5% 9.7% 9.8% 13.0% Germany 6.1% 3.3% 3.8% 4.9% 5.2% Sri Lanka 19.3% 15.4% 13.6% 12.3% 13.4% Thailand 8.6% 14.6% 16.4% 23.5% 21.2% Japan 4.6% 11.5% 10.3% 11.7% 24.5% Source: Calculated from Statistical Yearbook of Maldives 2004 and Customs Services The EU is the main market for canned tuna from the Maldives, of which the UK and Germany are the most important markets, followed by France, the Netherlands and Italy. Sri Lanka takes mostly dried and salted fish products, with only little value added accruing to the Maldives. But these intermediaries are turned into more attractive fish oils etc. in Sri Lanka. The latter process could just as easily take place in the Maldives. In fact, the level of fish manufacturing is lagging behind and product development is receiving very little attention and support from the GOM. In regard to market access conditions, Maldives benefits from preferential market access terms in the EU and Japanese markets, through GSP arrangements, and in Sri Lanka through the SAPTA arrangement. B. FUTURE OF MERCHANDISE EXPORTS The Maldives merchandise exports are likely to remain based on fish products. The direction of exports will therefore be towards the future main fish product importing 22
Page 1 and 2: FINAL R E P O R T Volume 1 MALDIVES
Page 3 and 4: GSP HACCP HDFC HDI HIES HH HRD HS I
Page 5 and 6: TRIPS TRTA TSA TTMP UAE UK UNCTAD U
Page 7 and 8: CHAPTER 6: CUSTOMS SERVICES AND TRA
Page 9 and 10: major stakeholders as the basis of
Page 11 and 12: C. ECONOMIC TRENDS Buoyant GDP grow
Page 13 and 14: WTO members (through the Committee
Page 15 and 16: The recommendations cover these iss
Page 17 and 18: Requirements Action no. Action reco
Page 25 and 26: government, and lawmakers are elect
Page 27 and 28: . 4
Page 29 and 30: to Sri Lanka. However, by 2004 the
Page 31 and 32: This relatively high proportion of
Page 33 and 34: On an annual basis, total NFA of th
Page 35 and 36: elow provides data on the public in
Page 37 and 38: According to the estimates prepared
Page 39 and 40: Table 2.8: Damage to agricultural f
Page 41 and 42: II. Imports - Merchandise There has
Page 43: the relatively high rate of unemplo
Page 47 and 48: Penetration of international market
Page 49 and 50: Overall, the importance of foreign
Page 51 and 52: on goods deemed luxury goods (e.g.
Page 53 and 54: the Japan and USA markets. 11 Fish
Page 55 and 56: The Modalities provide that the res
Page 57 and 58: emoved. However, in order to provid
Page 59 and 60: EBA. Appropriate transition arrange
Page 61 and 62: Several provisions such as Article
Page 63 and 64: CHAPTER 4 POVERTY REDUCTION AND HUM
Page 65 and 66: Table 4.2: Poverty Gap Ratios per R
Page 67 and 68: produced locally and are readily av
Page 69 and 70: commerce, information and communica
Page 71 and 72: Table 4.3: Fishery Sector employmen
Page 73 and 74: This also requires policies that ta
Page 75 and 76: with routine functions of administe
Page 77 and 78: Applying for a license to invest in
Page 79 and 80: E. MINISTRY OF FISHERIES, AGRICULTU
Page 81 and 82: K. PRIVATE SECTOR STAKEHOLDERS Priv
Page 83 and 84: Overall, it is estimated that the c
Page 85 and 86: The cash is held and disbursed by t
Page 87 and 88: difficult to reach given the except
Page 89 and 90: system of micro-credit intermediari
Page 91 and 92: F. LAND, RAW MATERIALS AND SUPPLIES
Page 93 and 94: B. LABOUR MARKET REFORM About 44 pe
Page 95 and 96:
Appendix The mixed record of the Ma
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legislation incorporates the initia
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CHAPTER 6 CUSTOMS SERVICES AND TRAN
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Maldives Port Authority • Respons
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the correct amount of customs duty
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suspense procedures, thus eliminati
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A new domestic terminal at MIA will
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There is need to clarify MAC’s na
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Changes in the role and structure o
Page 113 and 114:
Significant improvements have been
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CHAPTER 7 THE TOURISM SECTOR Chapte
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British market in 2001. In 2004, be
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Similarly, considerable demand was
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for imports of support infrastructu
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government revenues from the supply
Page 125 and 126:
number of trainees that have been t
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established as a quality tourism de
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Maldives' unspoiled marine environm
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The Faculty works very closely with
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TOURISM ACT A key objective of the
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HRD studies and conduct of necessar
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D. ESTABLISH AN ENABLING BUSINESS E
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Main Recommendation No. 5: review a
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Main Recommendation No. 6: Scale-up
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CHAPTER 8 FISHERY SECTOR Chapter Pl
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processing under-performing more th
Page 147 and 148:
per cent - see Table 8.4. The secto
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In the light of these market trends
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documentation, and administration.
Page 153 and 154:
monitoring and evaluation dates fro
Page 155 and 156:
and catering industry chefs demand
Page 157 and 158:
It is expected that the trial fishe
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• Can seaming and retorting; •
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DTIS, Volume I - Enhanced Integrated Framework (EIF)

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