As an island nation located in the heart of the Mediterranean, Malta is no stranger to trade. In fact, the country has a long history of trading with neighboring countries, as well as with nations all over the world. In recent years, Malta has been an active participant in free trade agreements, which have helped to boost the country`s economy and strengthen its position as a hub of trade in the region.
A free trade agreement (FTA) is a pact between two or more countries that eliminates tariffs, quotas, and other barriers to trade. FTAs encourage trade by making it easier and more cost-effective for businesses to import and export goods and services. By reducing trade barriers, FTAs can also increase competition and productivity, boost economic growth, and create new jobs.
Malta is a small country with a population of just over 500,000 people, which means that trade is an essential component of its economy. The country has signed several free trade agreements over the years, which have helped to open up new markets for Maltese businesses and increase the country`s exports.
One of Malta`s most significant free trade agreements is the European Union (EU) agreement. Malta joined the EU in 2004, and since then, it has been part of the EU`s single market and customs union. This means that Maltese businesses have access to a market of over 500 million consumers in the EU. Moreover, Malta benefits from the EU`s common trade policy, which means that the EU negotiates free trade agreements with other countries on behalf of all EU member states, including Malta.
Malta has also signed free trade agreements with several countries outside the EU. In 2014, Malta signed an FTA with Tunisia, which is aimed at boosting trade and encouraging investment between the two countries. The agreement eliminates tariffs on most goods and services traded between the two countries, and it also includes provisions to protect intellectual property rights and improve investment conditions.
In 2017, Malta also signed an FTA with Singapore. The agreement aims to deepen economic and trade relations between Malta and Singapore and promote bilateral investment. The agreement eliminates tariffs on most goods traded between the two countries, and it also includes provisions to encourage cooperation in areas such as intellectual property, e-commerce, and government procurement.
Malta has also signed free trade agreements with other countries, including Turkey, Lebanon, and Jordan. These agreements aim to promote trade and investment between Malta and these countries and help Maltese businesses to expand into new markets.
In conclusion, Malta`s free trade agreements have been instrumental in boosting the country`s economy and strengthening its position as a hub of trade in the region. These agreements have opened up new markets for Maltese businesses, increased the country`s exports, and created new jobs. As Malta continues to develop its trade relations with other countries, it is likely that we will see even more significant benefits in the years to come.