Ministry of Fisheries, Marine Resources and Agriculture has stated efforts are underway to reduce tariffs imposed on fish exported from the Maldives.
Speaking on a programme aired on PSM News, State Minister Hassan Rasheed said companies in the fisheries sector are unable to generate a good profit because of the large tariffs imposed on fish exports. In this regard, Rasheed noted a 24% duty is imposed on fish exported to the European market, which contributes to 95% of all exports from the Maldives. He said collaborative efforts with the Ministry of Foreign Affairs and the Ministry of Economic Development are underway to reduce the tariffs on fish exports.
The state minister further noted freight and handling charges are higher for the Maldives compared to neighbouring countries. As such, Rasheed revealed a freight charge of USD 2-3 is imposed on every kilogram of fish exported to Europe, along with a handling charge of USD 2.45. Therefore, he noted the total charges for freight and handling amount up to USD 5 per kilogram exported to Europe, which makes it difficult for the Maldives to compete with neighbouring countries.
Speaking on the programme, Managing Director of Ensis Fisheries Private Limited Mohamed Waseem said the large tariffs imposed on exports to Europe are hindering the progress of businesses in the fisheries industry, adding it is crucial to negotiate lower tariffs for Maldivian fish exports to Europe. He also noted it is important for the Maldives to find alternative markets for fish exports besides Europe.
Upon the entry of the Maldives into the list of developing countries, the duty exemption on Maldivian exports to Europe has been removed. As a result, profits from fish exported to Europe have decreased significantly.
The administration has stated negotiations are underway with the European Union (EU) to reduce the tariffs imposed on Maldivian exports. The administration stated significant progress has been achieved in the negotiations, with the fulfillment of most conditions set by the EU.