DTIS, Volume I - Enhanced Integrated Framework (EIF)

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government revenue will be required to make up for the losses to be encountered in the next few years. Furthermore there is discussion underway within the SAARC about establishing a Common External Tariff, a Customs Union and even an Economic Union. This would require the Maldives to establish adequate capacity for researching all these aspects and for formulating policy positions. E. FREE TRADE AGREEMENTS The Maldives has, or is negotiating free trade agreements with India, China, Sri Lanka and Qatar. The main benefit of the FTA with India is that it allows the Maldives to import certain products such as pharmaceuticals that otherwise are banned for export. The FTA does not provide for any tariff preferences. The arrangement with China, signed in September 2005 allows Maldivian products to be exported on a non-reciprocal zero tariff basis. However, the specific list of products and the origin criteria are yet to be agreed. A bilateral FTA is currently being negotiated with Sri Lanka. This would give additional preferential market access than what is covered by the SAFTA agreement. The agreement is close to being finalized. The key element for Maldives is to ensure duty-free access for its fish. Sri Lanka already has FTAs with most other SAARC members. There is also a possibility of a bilateral FTA with Qatar. This is however unlikely to have any significant immediate economic impact but could nevertheless present some opportunities in the future. F. PREFENTIAL SCHEMES Two of the Maldives’ major trading partners, the EU and Japan, maintain preferential schemes from which Maldivian exports benefit. As one of the least developed countries, the Maldives benefits from preferential market access to the EU under the Everything But Arms (EBA) arrangement, which allows duty free exports. However, only two Maldivian exports benefit from this provision - canned tuna and fresh/chilled tuna loins. Other exports to the EU are on a MFN basis. . The EU now accounts for a quarter of Maldivian exports. On graduation from LDC status, the Maldives is likely to lose this preference, as it will no longer benefit from 35
EBA. Appropriate transition arrangements will be required to ensure preferential access for Maldivian exports of canned tuna to Europe. Japan also operates a scheme, which grants preferential treatment to 149 developing countries, with special treatment for 47 least-developed countries (in terms of tariff-and quota-free access). Exports to Japan from the Maldives also account for a further quarter of total exports. These exports are mostly fresh, frozen and dried fish. However there are no GSP or LDC GSP provisions for fresh and frozen fish, but there is duty free entry under GSP for dried fish. Maldives also benefits from the other GSP schemes offered by many developed countries. However, there are currently practically no exports to those countries, so no benefits are being realized. VII. Trade Implications of Graduation from LDC Status After some years of study, the UN ECOSOC adopted a report in June 2004 recommending the graduation of Maldives from LDC status from November 2007. However, because of the tsunami, the UN is known to be supportive of deferring this date. Theoretically, graduation from least-developed country status will affect the privileges and preferences that Maldives currently enjoys under the multilateral trading system as an LDC member of the WTO. As the graduation of an LDC is unprecedented since the establishment of the WTO in 1995, the graduation of the Maldives will establish some important precedents for the trade body in regard to transitional arrangements. Indeed, WTO members (through the Committee for Trade and Development, CTD) have responded cautiously and agreed to grant the Maldives a transitional period based on a roadmap for graduation to be prepared by the Maldives government. However, in tangible terms, there are two major consequences of Maldives graduating from LDC status: loss of preferential market access; and possible reduction in trade related technical cooperation. In addition, there are also implications for the Maldives in regard to its WTO obligations. Each of these three consequences is considered in turn. In regard to the loss of preferential market access, the consequences will be serious. Of the 168 items exported by the Maldives (counting the same product exported to different destinations separately and the EU as one country) 19 only three items 20 gain any preferential market access as a result the country’s LDC status. These are canned tuna and fresh/chilled tuna loins to EU and dried skipjack to Japan. 19 Calculated from Maldives Customs Service Statistical Year Books 1999-2003 20 Excluding SAARC exports (which will all be duty free under SAFTA) 36
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 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: emoved. However, in order to provid
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
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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
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British market in 2001. In 2004, be
Page 119 and 120:
Similarly, considerable demand was
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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
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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
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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.
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monitoring and evaluation dates fro
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and catering industry chefs demand
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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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