Former President Mohamed Nasheed has stated that the newly signed Free Trade Agreement with China will endanger peace in the Indian Ocean region.

Speaking to RaajjeTV from Colombo, Sri Lanka, President Nasheed said that India will seek to protect their interests in the region in the event of such a situation, with Maldivians suffering due to it.

He added that Parliament Members have a responsibility in analyzing the FTA and informing the public on the deal. As such, he said the MPs and the whole Parliament must take a larger role in understanding the deal both in Parliament and Committee sessions. The dialogue on FTA, he said, must be more engaging and seek the input of stakeholders.

The former President also highlighted on the role Maldives played in the Indian Ocean region. As such, he said the Maldives must prioritize on peace in the Indian Ocean region. President Nasheed said that India will seek to protect their interests in the event of any possible threats, perceived and/ or real.

‘In such a scenario, if we [Maldivians] suffer under these conditions, then it is a loss to peace in the Indian Ocean region. Therefore, if our neighbors suffer due to an agreement we enter into, then we have to reflect on that,’ he said.

President Nasheed warned that Maldives stood to lose more under the FTA with China. An agreement of that nature must be entered to after intense discussions.

An FTA, he said, must be mutually beneficial to both nations. With this FTA, President Nasheed pointed out that China had the potential to export goods worth MVR 4 billion while Maldives had limited scope in China market.

‘Chinese businesses have all the rights all Maldivians have. Businesses not open to foreign parties are opened to Chinese businesses. This includes retail, construction and a host of other businesses open to Chinese,’ he said.

The former President remarked that this FTA could bankrupt local businesses. He said Chinese corporations had a larger capital base and more leverage in taking loans and therefore can start businesses faster.

‘From what I can see, Chinese imports in local markets, will limit market for other importers. Over time, this will decrease and overall decrease total amount earned as duties and other revenues,’ President Nasheed said.