DTIS, Volume I - Enhanced Integrated Framework (EIF)

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licenses are required for fish exports. The Ministry of Economic Development and Trade (MEDT) regulate general exports through general export licenses. Specific trade finance is generally not available in the Maldives and there are no export promotion or incentive schemes in operation. C. MULTILATERAL TRADING SYSTEM Maldives is a founding member of the World Trade Organization (WTO) and party to the agreements, decisions and declarations constituting the single undertaking. This means that trade in the Maldives is governed by the international rules based system and special provisions for least developed countries apply to the Maldives. Currently the membership of the WTO is engaged in the latest round of trade talks, the Doha Development Agenda (DDA), which seeks a development-friendly outcome. The results of this round of negotiations will have an impact on Maldives, not least because of its impending graduation from least-developed country status. Although the DDA covers a whole spectrum of issues, the main areas of negotiation that will affect Maldives are: • Non-Agriculture Market Access (NAMA) • Agriculture • GATS • TRIPS • Special and differential treatment • Trade facilitation A brief review of each area follows. NAMA The Maldives as an LDC has no obligations under NAMA other than to bind its rates. Since 100 per cent of its industrial and fisheries tariffs are bound, the country will not be required to make any new commitments under NAMA. The simple average bound rate of industrial tariffs in Maldives is 38.6 per cent and average applied rate is 21.2 per cent 9 . The impact of NAMA negotiations on the Maldives applied tariff (and therefore import prices and tariff revenue) under the Doha Round will be nil or negligible. This is a significant consideration for the Maldives as revenue from import duties is 62.3 per cent of tax revenue and 26.3 per cent of total revenue excluding grants. 10 As Maldivian fish (fresh and frozen fish) exports enjoy duty free tariffs under EBA in the EU market, only a small degree of preference erosion is likely for some fish exports in 9 Table III.1(page 32) of WTO Trade Policy Review, Maldives 2003 10 Calculated on 3 year average (2002-4) from Table 13.3 of Statistical Yearbook of Maldives 2004 29
the Japan and USA markets. 11 Fish from the Maldives face a low 3.5 per cent tariff in Japan. 12 The duty-free-quota-free agreement for LDC exports that was reached at the WTO Ministerial Conference in Hong Kong in December 2005 is likely to result in zero tariffs even in the Japan and USA markets. AGRICULTURE Since Maldives operates no agricultural subsidies and bound rates are significantly higher than applied rates for agricultural imports, the impact of the current negotiations on Maldives tariff and revenue are likely to be nil or negligible 13 . Moreover, the Maldives exports no agricultural products and, given the limited land availability, it is not likely to do so in any significant way in the future. Tariff reductions in foreign markets are of little use or consequence. However, Maldives is a net food importer and depends on imports of all food except fish. Therefore, a reduction of subsidies on major food products, which it imports, could increase local prices. For example, if all domestic support and export subsidies in OECD countries were removed, the world price of wheat is estimated to rise by 14 per cent, rice by 3.9 per cent, vegetable and fruits by 2.9 per cent, vegetable oil by 7.9 per cent, sugar by 4.9 per cent, livestock and meat by 8.6 per cent and processed food by 2.8 per cent. 14 Such increases in prices and overall value of imports will also adversely affect the balance of payments and foreign currency requirements of the country. SERVICES GATS negotiations are currently focusing on a request-offer system and clarification of some GATS rules. WTO members initially make requests to partner countries to liberalize certain sectors (for example, the EU has requested Maldives to liberalize the provision of waste management services). The Maldives has not made any requests. Following these requests, countries enter into consultations (effectively bi-lateral negotiations) and then make initial offers that will be applied to all WTO members, not just those that made the request. In addition, members are expected to make initial offers on other sectors. Maldives has not scheduled any sector under the Uruguay Round of GATS but may come under pressure to schedule some sectors. Prior to this however is the need to undertake an assessment of future requirements for services development in the country. Although Maldives has not scheduled any sector, it operates a relatively liberal regime in some services sectors. Therefore, scheduling some services sectors under GATS should not present serious problems. For example, participation in tourism resorts is open to both 11 Bound rates are close or equal to applied rates in most industrial countries which are Maldives main export destination (US, EU and Japan accounted for 59.3% of exports in 2003 – calculated from Table 15.4 Statistical Yearbook of Maldives 2004. 12 EU Market Access Database (last updated 7 September 2005) 13 Simple average bound rates, at 41.2%, are 57% higher than the actual applied rates of 17.8%. Calculated from Table III.1 (page 32) of WTO Trade Policy Review, Maldives 2003 14 US Department of agriculture Economic Research Service, “Cost of Agricultural Distortions” (2001), 30
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 and 44: the relatively high rate of unemplo
Page 45 and 46: A. DESTINATION OF MERCHANDISE EXPOR
Page 47 and 48: Penetration of international market
Page 49 and 50: Overall, the importance of foreign
Page 51: on goods deemed luxury goods (e.g.
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
Page 97 and 98: legislation incorporates the initia
Page 99 and 100: CHAPTER 6 CUSTOMS SERVICES AND TRAN
Page 101 and 102: Maldives Port Authority • Respons
Page 103 and 104:
the correct amount of customs duty
Page 105 and 106:
suspense procedures, thus eliminati
Page 107 and 108:
A new domestic terminal at MIA will
Page 109 and 110:
There is need to clarify MAC’s na
Page 111 and 112:
Changes in the role and structure o
Page 113 and 114:
Significant improvements have been
Page 115 and 116:
CHAPTER 7 THE TOURISM SECTOR Chapte
Page 117 and 118:
British market in 2001. In 2004, be
Page 119 and 120:
Similarly, considerable demand was
Page 121 and 122:
for imports of support infrastructu
Page 123 and 124:
government revenues from the supply
Page 125 and 126:
number of trainees that have been t
Page 127 and 128:
established as a quality tourism de
Page 129 and 130:
Maldives' unspoiled marine environm
Page 131 and 132:
The Faculty works very closely with
Page 133 and 134:
TOURISM ACT A key objective of the
Page 135 and 136:
HRD studies and conduct of necessar
Page 137 and 138:
D. ESTABLISH AN ENABLING BUSINESS E
Page 139 and 140:
Main Recommendation No. 5: review a
Page 141 and 142:
Main Recommendation No. 6: Scale-up
Page 143 and 144:
CHAPTER 8 FISHERY SECTOR Chapter Pl
Page 145 and 146:
processing under-performing more th
Page 147 and 148:
per cent - see Table 8.4. The secto
Page 149 and 150:
In the light of these market trends
Page 151 and 152:
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
Page 159 and 160:
• Can seaming and retorting; •
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DTIS, Volume I - Enhanced Integrated Framework (EIF)

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