MALDIVES IMEX (IMPORT & EXPORT) INTERNATIONAL TRADE Presented by: Giorgio Warren G. Martinez BSA – 3 INTRODUCTION Maldives is located in Southern Asia, group of atolls in the Indian Ocean, southwest of Sri Lanka and India. Tourism and fishing are key sectors of the Maldives’ economy which largely contributed to the country’s economic growth in the last decade. With the average of 7% growth in GDP, the country has advanced from a low income country to a middle income country. Main export item is fish and Thailand, Sri Lanka, France and Italy are main export destinations. Maldives mainly imports oil, machinery and electric electronic equipment which are imported from the UAE, Singapore, India, Sri Lanka and Malaysia. It is a member of South Asian Association for Regional Cooperation (SAARC) and the World Trade Organization (WTO). DATAS AND STATISTICS Top 20 products listed in decreasing order of their export potential to the world. Development indicators are relative to the country’s current situation, green indicating performance above its tradeweighted median and red otherwise. A blank cell indicates that data are not available. A blank cell in export potential means that the product was not consistently demanded over five years by any country in the respective region. Exports (US$ thousand) correspond to average exports to the world over the period 2009-2013. The Maldives has an open economy with a narrow export base, the country is heavily import oriented for most of its economic activities. As a result, foreign merchandise trade normally records a large deficit. Imports have averaged around two thirds of GDP in the last 5 years, and domestic exports, consisting primarily of fish and fish products have ranged between 10 to 15 percent of GDP. Imports: As the Maldives’ economy is heavily import-oriented, the country imports virtually everything such as petroleum products, intermediate and capital goods, foodstuffs, textiles, clothing, etc. Import partners: Singapore 23% UAE 19% India 11%, Malaysia 9% Sri Lanka 7% IMPORT PARTNERS (%) 7 23 9 Singapore UAE India Malaysia 11 Sri Lanka 19 Exports: Frozen, fresh and processed fish and other marine products. EXPORT PARTNERS Export partners: Thailand 22% Japan 22% UK 14% Sri Lanka 15% Germany 5% 5% 22% 15% Thailand Japan UK Sri Lanka Germany 14% 22% Exchange rate: Maldivian Rufiyaa is pegged to the US dollar at USD 1.00 = Rf 12.80 (mid rate) IMPORTS AND EXPORTS OF MALDIVES MAP FROM AROUND THE WORLD Legend : = MALDIVES = THAILAND = SRI LANKA = FRANCE = ITALY REACTION The country that I have chosen is Maldives, which is composed of 1,200 islands and they depend heavily on trade. Foreign trade represents 146% of the GDP. The state budget relies primarily on revenues from import duties. Therefore, tariffs are relatively high. However, as part of its trade policy, the government has removed quotas for the majority of products, and customs procedures have been simplified (obtaining an import licence is almost automatic). Fish products account for almost the entirety of Maldivian exports, while imports are led by hydrocarbon0073, electrical equipment , and aeroplanes. Maldives possesses few raw materials, and, as such, relies heavily on imported oil and finished products. As a result, the Maldives imports much more than it exports, which creates a structural trade deficit. According to WTO, in 2018, the Maldives exported USD 339 million worth of goods and imported USD 2.9 billion, resulting in a negative trade balance of USD 2.4 billion, 27% more than the previous year. With regard to services, the country exported USD 3.2 billion and imported USD 1.3 billion. These statistical datas are all driven from reliable sources and I believe that Maldives has a good impact on the international trade of business from around the world.
