Myanmar liberalizes border trade procedures to boost trade with China

Myanmar has liberalized some trade procedures dealing with border trade being carried out in Muse trade point with China to facilitate exporters and boost bilateral trade between the two countries, said a commerce official Tuesday.

The newly-introduced trade procedures allow merchants to freely and directly transport some of the items of the exporting goods from across the country to the Myanmar-China border trade point of Muse first and export licenses will be issued on the spot after a sale contract is formally established with buyers from the Chinese side.

According to the official, such export licenses-on-arrival of exporting goods are applicable only to beans and pulses, sesame, maize, onion, rubber, marine products and forest products except teak as well.

Previously, traders had to seek export licenses first in Yangon and later in Nay Pyi Taw, the newly-relocated administrative capital, for all items of the exporting goods to be carried to the Muse trade point for trading.

The liberalization was made in line with the norms prescribed by the World Trade Organization so as to reduce the hindrance of red tape and smooth the regional flow of commodities, according to the Directorate of Trade under the Commerce Ministry.

Meanwhile, the Myanmar government has stressed the development of the country's border trade with five objectives to promote bilateral trade with neighboring China. The five objectives include cementing of friendly relationship between Myanmar and China, promotion of bilateral trade, transformation of border trade into normal trade and full collection of tax.

According to government statistics, daily trade volume in Muse ranges between 500,000 U.S. dollars and 1 million dollars, with 347 million dollars being registered in the fiscal year of 2004-05, 505 million dollars in 2005-06 and 207 million dollars in the first quarter of 2006-07, and it is predicted that the total trade volume in 2006-07 will be higher than the previous year.

So far, out of 163 plots reclaimed for the zone, 97 have been sold to merchants in installment, the border trade authorities revealed.

According to Chinese official statistics, China-Myanmar bilateral trade hit 1.209 billion dollars in 2005, up 5.6 percent from 2004. Of the total, China's exports to Myanmar took 935 million dollars, while its imports from Myanmar stood at 274 million dollars.

The trade volume between Yunnan province and Myanmar, including the border trade, amounted to 630 million dollars during the year, up 14.6 percent from the previous year. Of the total, Yunnan's exports to Myanmar represented 400 million dollars, while its imports from Myanmar were valued at 230 million dollars, the figures show.

Source: Xinhua