Question

China has recently signed its second FTA with which of following SAARC member country?

• A. Bangladesh
• B. Maldives
• C. India
• D. Sri Lanka

Answer 1

Answer: (B)

Maldives

India’s influence in its neighbourhood was dealt a stunning blow recently with Maldives entering into a Free Trade Agreement (FTA) with China. The FTA, which was signed on December 8, 2017 during Maldivian President Abdulla Yameen’s four-day visit to Beijing, is Maldives’ first with any country. Maldives has become the second South Asian country after Pakistan to sign an FTA with China. Under the FTA, China and Maldives would reduce the tariffs of over 95 percent of the goods to zero. They are also committed to opening the service market such as finance, healthcare and tourism and agreed to cooperate practically in key areas. The biggest worry for India is that the FTA will draw the Maldives more closely into China’s security net. China’s growing presence in the Indian Ocean presents a challenge to India as it looks to define its place in the U.S.-led “Indo-Pacific” realignment.