The UK recently praised the Maldives for its significant progress in trade and sustainable development during the WTO Trade Policy Review in October 2024.
Simon Manley, the UK’s Permanent Representative to the WTO, highlighted the enduring partnership between the two nations and their shared goals of economic growth, environmental sustainability, and fair trade practices.
A Strong Trade Partnership
As a Commonwealth member, the Maldives has long enjoyed a close relationship with the UK, marked by cooperation across governance, security, and trade. Simon Manley’s address during the WTO Trade Policy Review underscored the Maldives’ remarkable trade achievements.
From a country once classified as a Least Developed Country (LDC), the Maldives is now recognised as an upper-middle-income nation. This transformation is credited largely to the country’s open trade policies, particularly in tourism and fisheries, two sectors where the UK plays a prominent role.
“Tourism has driven forward a strong recovery,” Manley remarked, noting that British visitors are among the top four nationalities visiting the Maldives each year, demonstrating the importance of trade in services to the island nation’s economy.
Growth in Trade and Services
In recent years, the Maldives has seen a notable increase in trade, particularly in its services sector.
Tourism continues to be the backbone of the Maldives’ economy, contributing not only to economic recovery post-COVID-19 but also to sustainable development through responsible tourism practices.
In his speech, Simon Manley also praised the Maldives’ efforts in building a sustainable fishing industry. He highlighted the importance of environmentally friendly fishing methods, specifically pole-and-line fishing, which has been a cornerstone of the Maldives’ fisheries sector.
Maldives Trade Statistics (2017-2022) |
Percentage Increase |
|---|---|
| Trade in Services | 47% |
| Travel Service Exports | 64% |
This increase in trade has facilitated the Maldives’ development, allowing the country to rise up the ranks of the Human Development Index (HDI) and move towards a more diversified economy.
Bilateral Trade and Future Collaboration
The trade ties between the UK and the Maldives are robust, with total trade in goods and services between the two nations surpassing half a billion pounds in 2024. The UK remains the third largest market for Maldivian exports, particularly fish, which plays a vital role in bilateral trade.
Manley emphasised the significance of this relationship, stating,
“Our ties extend to businesses as well, with the launch of the British Business Group in May 2024 fostering further partnerships.”
Manley also looked ahead to the Commonwealth Heads of Government Meeting (CHOGM), where both nations will continue to strengthen their trade ties and collaborate on pressing issues such as climate change, environmental protection, and economic diversification.
Supporting Environmental and Social Goals
Environmental sustainability was another central theme of the UK’s address. Manley underscored the importance of protecting the Maldives’ marine biodiversity, not just for the enjoyment of tourists but also for the future health of the planet.
The UK’s involvement in initiatives like the Blue Planet Fund and the Ocean Country Partnership Programme is focused on marine pollution and biodiversity conservation.
In addition to environmental goals, the UK applauded the Maldives’ efforts in gender equality within trade. Manley highlighted the Maldives’ progress in promoting women’s economic empowerment and inclusion in small and medium-sized enterprises.
“We value the Maldives’ engagement on trade and gender equality,” he noted, reflecting the mutual commitment of both nations to advancing inclusive trade practices.
The Takeaway
The Maldives’ WTO Trade Policy Review showcased the nation’s impressive growth and resilience, particularly in tourism, fisheries, and sustainable trade practices. The UK’s continued partnership with the Maldives remains vital in addressing shared challenges, from climate change to gender equality in trade.
The UK and Maldives will build on their £500 million + trade partnership and shared commitment to environmental sustainability, driving a bright future for bilateral trade relations. At the upcoming CHOGM summit, both nations will proactively explore new collaboration opportunities.
Sources: THX News, Foreign, Commonwealth & Development Office, Department for Business and Trade & Simon Manley CMG.