Maldives-Türkiye Trade Pact Slashes Import Costs for Cafés and Restaurants

A new Preferential Trade Agreement (PTA) between the Maldives and Türkiye is set to significantly lower investment costs for the Maldivian food and beverage industry by eliminating import duties on essential machinery and equipment. Implemented on August 1 following nine months of stakeholder consultations, the agreement allows for the duty-free import of 404 categories of goods. This move targets a critical pain point for local entrepreneurs, as equipment for cafés and restaurants previously attracted import duties ranging from 10 to 20 percent. Speaking on PSM's Raajje Miadhu programme, State Minister for Economic Development and Trade Hussain Zamir explained that the agreement was shaped by direct feedback from the sector. These consultations identified Türkiye as a primary manufacturer of the high-quality, modern machinery required by the Maldivian hospitality industry. The benefits extend across the entire tourism and dining landscape, from urban cafés in Malé to restaurants within guesthouses and luxury resorts. Under the new arrangement, business owners can now replace aging equipment or source new machinery from Türkiye at zero tariff, reducing the overhead for both existing operators and new entrants into the market. State Minister Zamir highlighted that Turkish products are renowned for integrating modern technology and durability, ensuring that Maldivian businesses have greater access to long-lasting, efficient tools. By removing the tax burden on these imports, the government aims to lower the barrier to entry for new entrepreneurs and reduce operational costs for established businesses. While the food sector is a primary beneficiary, the Ministry of Economic Development, Transport and Trade noted that the PTA also provides duty exemptions for goods essential to the fisheries, agriculture, and creative industries. This broader trade strategy is intended to stimulate economic growth by reducing the cost of production and modernization across several key sectors of the Maldivian economy.