China-Maldives free trade agreement may not endure
Subject Prospects for the China-Maldives free trade agreement. Significance The Maldivian government is aligning itself with Chinese political and economic interests. The free trade agreement (FTA) it signed with Beijing in late November is raising concerns in India, the Maldives’ longstanding security and economic partner. Maldivian President Abdulla Yameen is under pressure domestically from opposition parties who claim the deal was pushed through without following due process. Impacts A growing number of Chinese companies may explore opportunities under the FTA to develop resorts in the Maldives. China, which already provides the most visitors to the country, will increase its share of the Maldives’ tourism market. The Maldivian opposition will seek, and likely receive, Indian support to ensure a fair presidential election. Indian firms may seek to recover control of infrastructure projects if Yameen loses the 2018 poll.