Turkey‑Maldives Preferential Trade Deal Unlocks Tariff Relief for 404 Products and Opens Strategic Market

Turkey and the Maldives have ushered in a Preferential Trade Agreement that marks a turning point in both nations' external trade strategies.

The Core Framework Signed in Istanbul

Signed on 4 November 2024 in Istanbul and published in the Official Gazette on 19 December 2025, the agreement encompasses comprehensive provisions on trade facilitation, removal of technical barriers, harmonisation of health and phytosanitary standards, and rules of origin.

Tariff Relief for 404 Products

■Iron‑steel and steel‑derived goods

■Aluminium sheets, electrical components and parts

■Refrigerators, air‑conditioners, televisions and other white‑goods

■Marine vessels, furniture, plastic goods

■Cosmetics, chocolates, candies, sausages, and fish fillets

Turkish exporters gain tariff advantages in these categories, with 293 tariff lines seeing duties eliminated entirely.

154 Items Granted Tax Reductions in the Maldives

■Fish meal, swordfish, cold‑water shrimp, and other shrimp varieties

■Fish used in the production of prepared/conserved fish products

These items receive tax cuts or exemptions favouring the Maldives.

Trade Volume and Growth Outlook

Last year’s trade volume stood at $69 million. The new tariff schedules aim for a 30‑40% increase, with analysts projecting a rise to $100 million within two years.

Strategic Location and Sectoral Impact

The Maldives, a pivotal chokepoint in the Indian Ocean, offers Turkey a fresh export market in tourism, fisheries, and logistics. Sectors such as electronics, white‑goods, and construction materials stand to benefit from reduced customs barriers, enhancing their global competitiveness.

Expert Commentary (Dr. Aslıhan Demir): This agreement is one of the most assertive steps in Turkey’s “Turkey Century” trade‑diplomacy agenda. The tariff concessions are expected to shave 5‑10% off production costs for capital‑intensive industries, boosting exporters’ profitability. Moreover, the Maldives’ strategic maritime position serves as a vital bridge for diversifying logistics chains and accessing Asia‑Pacific markets. While the short‑term impact on the trade surplus may be modest, the medium‑term potential for sectoral transformation and market‑share acquisition makes the deal a significant catalyst.