Transcript “Trade and its Opportunities of Myanmar” Mr. Ko Ko Lay Deputy
27 th February, 2013 MICC, Nay Pyi Taw, Myanmar
Contents 1. Basic Principles and Objectives 2. Foreign Trade Relations 3. Trade Patterns and Direction of Trade 4. Export and Import Policies 5. Trade Facilitation Activities 6. Foreign Trade of Myanmar 7. Myanmar-USA Bilateral Trade 8. Needs
1. Basic Principle of Trade
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Trade activities should be aimed at the interest of the State and the people - Trade activities should not be a burden to the people - Trade activities should be aimed at structuring a long- term viable trading system rather than to gain short-term profit
Objectives of General Trade Policy
To implement trade policies systematically for proper evolution of the market-oriented economic system - To promote the export of various domestic products for export promotion - To carry out the promotion of trade not only through overseas trade but also cross border trade
Objectives of Foreign Trade Policy
To increase trade volume - To encourage private sector development in accordance with the market- oriented economic system - To expand market shares for Myanmar products in the world markets through collaboration with international organizations - To provide support and necessary assistance for trade facilitation
2. Foreign Trade Relations of Myanmar
Member of WTO - Member of ASEAN, BIMSTEC, GMS, ACMECS - Bilateral trade agreements with Bangladesh, China (PRC), India, Korea (ROK), Lao PDR, Malaysia, Pakistan, Philippines, Thailand and Vietnam.
3.
Trade Patterns
Myanmar is mainly an exporter of agricultural and primary products -main export items are agricultural products, fishery products, forest products, metals & minerals inclusive of natural gas, precious stones & pearls and some industrial products -major import items are capital goods, industrial raw materials, spare parts and consumer goods.
Direction of Trade
Currently, Myanmar Foreign Trade is mainly with Asian countries of China (PRC), Thailand, Singapore, India, Japan, Korea (ROK), Indonesia, Malaysia and Hong Kong.
4. Export Policy of Myanmar
To extend and explore the foreign markets by utilizing the natural and human resources effectively and efficiently and also to promote the export of traditional and value- added products.
Import Policy of Myanmar
To allow to import the commodity given priority as capital goods required by the State, raw materials for production, other important essential goods and the goods which support to the public health and export promotion.
5. Trade Facilitation activities
-After taking over the State power by new government in April, 2011, new government is carrying out a lot of reformed measures in all sectors including trade sector.
-Since trade facilitation is the important feature for smooth flow of international trade, new government has made liberalization activities in order to facilitate the trade matters. Those activities included: (i)Some important commodities such as fuel oil, edible palm oil are allowed to import, which were restricted to import by private sector previously.
(ii)motor vehicles are also allowed to import to any citizen of Myanmar and private company to use for individual and business purpose respectively.
(iii)Some important agricultural products of edible oil, edible oil seeds, onion and rice are also allowed to export to private sector, which were prohibited to export in the past.
(iv)Commercial tax on proceed of export earnings were abolished.
(v) export/import licenses are issued at both Yangon and Nay Pyi Taw offices rather than issued at Nay Pyi Taw office only .
(vi)Reduce required documents which are necessary to attach with application for licenses.
6. Foreign Trade of Myanmar (From 2009-2010 to 2011-2012)
A/U - US $ Million
Sr. No.
1.
Fiscal Year
2009-2010 2. 2010-2011 3. 2011-2012
Export
7586.94 8861.01 9135.60
Import
4181.40 6412.73
Volume of Trade Balance of Trade
11768.34 (+) 3405.54 15273.74 (+) 2448.27 9035.06 18170.66 (+) 100.54
Myanmar’s Foreign Trade by Commodity (From 2009-2010 to 2011-2012)
A/U - US $ Million
2. 3. Sr. No. 1. Export Description
(a) Agricultural Products (b) Animal Products (c) Marine Products (d) Mineral Products (e) Forest Products (f) Manufacture Goods (inclusive of natural gas) (g) Others
Import
(a)Capital Goods (b) Industrial Raw Materials (c) Consumer Goods
Total FY 2009-2010 FY 2010-2011 FY 2011-2012 Remarks 7586.94
1678.36 24.15 466.90 1017.75 561.52 3238.90 599.54
4181.40
1530.53 1635.98 1014.89
11768.34 8861.01
1800.39 93.77 498.61 2274.07 644.70 2907.95 641.51
6412.73
2480.68 2628.97 1303.08
15273.74 9135.60
2372.98 92.90 705.93 897.06 643.85 4007.81 415.08
9035.06
3843.31 3451.05 1740.70
18170.67
7. Myanmar - USA Bilateral Trade (From 2009-2010 to 2011-2012)
A/U - US $ Million
Sr. No.
1.
Fiscal Year
2009-2010 2. 2010-2011 3. 2011-2012
Export
2.562
Import
18.503
Volume of Trade
21.065
Balance of Trade
(-) 15.941 2.207 29.447 59.474 263.624 61.681 293.071 (-) 57.267 (-) 234.177
Myanmar – USA Bilateral Trade by Commodity (From 2010-2011 to 2011-2012)
A/U - US $ Million
2. 3. Sr. No. 1. Description Export
(a) Agricultural Products (b) Animal Products (c) Marine Products (d) Mineral Products (e) Forest Products (f) Manufacture Goods (g) Others
Import
(a)Capital Goods (b) Industrial Raw Materials (c) Consumer Goods
Total FY 2010-2011 FY 2011-2012 Remarks 2.207
0.033 - 0.421 - - 1.239 0.514
59.474
31.536 7.677 20.261
61.681 29.447
0.181 0.012 5.534 - 0.061 8.211 15.448
263.624
137.623 109.399 16.602
293.071
Some Top Items of Myanmar Products exported to USA
( From 2010-2011 to 2011-2012) A/U - US $ Million
Sr. No. Commodity
1. Garment 2. Prawn 3. 4. 5. Black Matpe Toor Whole Green Mung Beans 6. 7. Plywood Fish
FY 2010-2011 FY 2011-2012 Remarks
1.239 0.055 - 0.033 - 0.366 8.211 0.247 0.083 0.010 0.087 0.056 5.287
Some Top Items of imported products from USA to Myanmar
(From 2010-2011 to 2011-2012) A/U – US $ Million
Sr. No.
1. 2.
Commodity
Motor Vehicles & Spare parts Pharmaceutical
FY 2010-2011 FY 2011-2012 Remarks
3.057 2.766 6.641 3.822 3. 4. 5. 6 7 8 9 Wheat Seed Electrical Equipments Steel Products & Plastic Materials Aero-plane Spare parts Machine Machinery Steel Raw & & Ship & Accessory 2.031 1.235 0.797 0.675 0.656 22.608 - 7.658 4.771 92.726 1.491 22.248 - 79.082
8. Needs
Myanmar is making continuous reformed measures and trying to build a modernized and advanced democratic countries in the future.
To enable to support it, we do hope to receive all kinds of assistances from western countries which have relaxed the sanctions and also from other developed countries, interested nations and international organizations. We really need all kinds of assistances in all possible ways such as financial assistance (aid, grants, loans), technology know how and technical assistance & capacity building activities so as to build up all round development of the country.