EU Statement at the Trade Policy Review of the Republic of Maldives, 23 October 2024

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EU Statement at the Trade Policy Review of the Republic of Maldives, 23 October 2024

23.10.2024 EU mission to the WTO in Geneva - Press and information team

Statement delivered by Ambassador João Aguiar Machado

I would first like to welcome the Delegation of Maldives, led by H.E. Mr. Hussain Zamir, Minister of State for Economic Development and Trade, and thank the Discussant, H. E. Mr Colin Murdoch (Antigua and Barbuda), for his introductory remarks.

The EU welcomes this opportunity to review the developments in the Maldives'trade policies and practices since its last Trade Policy Review in 2016. According to the Secretariat Report, Maldives is a success story of how a small island economy facing a wide range of structural development challenges can use international trade and WTO membership to foster economic growth and raise the living standards of its population. This is demonstrated by the fact that since its first TPR in 2003, Maldives has leapfrogged from LDC to middle-income country status.

The EU notes that the Maldives' rich and varied marine resources has played a vital role in shaping economic development with nature-based tourism and fisheries being the main drivers of economic growth and employment. However, this narrow economic base makes the Maldives vulnerable to external shocks and a risk of overuse of its natural resources. In this regard, the EU notes the strategic importance of the Maldives in ensuring sustainable long-term development as set out in its 'Tourism Climate Action Plan,' which establishes a roadmap for the sector's adaptation to climate change. The EU welcomes the Maldives' tourism diversification strategy and acknowledges the importance of trade and industrialisation for achieving inclusive and sustainable growth.

During the period under review, Maldives has taken important measures to improve its trade regime. For example, it has embarked on digitalization for trade facilitation, introducing a digital platform for the processing of customs refunds, and putting in place an Authorized Economic Operator scheme. Work on the establishment of a national single window also continued during the period under review, with a focus on updating the legislative framework for the single window's operation. The EU commends the Maldives for these trade facilitation reform efforts.

Turning now to the bilateral trade relationship between the EU and Maldives. In 2023, total trade between the EU and the Maldives stood at €282 million. 92% of the EU's imports from the Maldives were fishery products. Trade in services presents a positive balance in favour of the Maldives.

During the review period, the Maldives also joined the Organisation of African, Caribbean and Pacific States (OACPS) in December 2022, and applied subsequently to join the EU-OACPS agreement. The new EU-OACPS agreement will further enhance the EU-Maldives partnership. The EU supports the Maldives towards a sustainable and inclusive development in line with the EU Global Gateway Strategy and the Indo-Pacific Strategy. There are two priority areas for EU support under 2021-2027 Multiannual Indicative Programme with an amount of €12 million for the 2021-2024 period, focusing on Green recovery (climate change and circular economy) and Good governance, Rule of Law and security.

The EU welcomes that Maldives - a founding WTO Member - acknowledges the positive contribution of the rules-based trading system, with the WTO at its core, to the stability and predictability of global trade relations, as well as the WTO's role as a forum to voice its trade concerns and priorities. Maldives is not a party to either the ITA or the GPA but participates in the investment facilitation for development agreement, TESSD and dialogue on plastics pollution.

In our written questions for this TPR, the EU has raised a number of issues, including the importance the EU attaches to the Maldives' acceptance of phase 1 of the WTO Agreement on Fisheries Subsidies to make sure that the disciplines enter into force, which is crucial for an economy so dependent on fisheries. We also seek information on subsidies to fisheries, the challenges of developing a standards system, outstanding notifications under different WTO agreements, support provided for the consumption of fossil fuels and a clarification on marine services.

Mr Chairman, the EU is committed to supporting the Maldives in achieving its sustainable development goals and fostering a fair and transparent trading system.

On behalf of the EU, I look forward to a constructive dialogue with Maldives during this Trade Policy Review.

Thank you.