Myanmar is taking some measures to boost border trade with neighboring countries, establishing Muse border trade zone and transforming its border trade with China into normal trade as an initial step for the move.

In fact, such transformation from border trade into normal trade has been implemented in the 150-hectare Muse trade point linking China's Ruili in Yunnan province as a pilot project since early 2005.

Since achievements have been claimed in the Muse trade point with China, which is also known as the Muse 105th Mile Border Trade Zone and was formally inaugurated on April 11 this year, all other trade points with the rest of the neighboring countries such as Tamu with India, Maungtaw with Bangladesh, and Tachilek and Myawaddy with Thailand are set to follow suit.

Myanmar has a total of 13 main border trade points with the four neighbors.

Recently, as part of its bid in the move, Myanmar has liberalized some trade procedures dealing with the border trade being carried out in Muse trade zone with China to facilitate exporters and boost bilateral trade between the two countries.

The newly-introduced trade procedures on July 24 by the Ministry of Commerce allow merchants to freely and directly transport some of their exporting items from across the country to the Myanmar-China border trade zone of Muse first and export licenses will be available within a day on the spot after a sale contract is formally established with buyers from the Chinese side.

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.

Previously, traders had to seek export licenses first in Yangon and later in Nay Pyi Taw, the newly-relocated administrative capital, for their 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, said the Directorate of Trade under the Commerce Ministry.

According to government statistics, daily trade volume in Muse ranges between 500,000 U.S. dollars and one million dollars with 347 million dollars being registered in the fiscal year of 2004-05 (April-March), 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.

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 import from Myanmar stood at 274 million dollars.

Of the bilateral trade, that 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.

Yunnan's exports to Myanmar represented 400 million dollars, while its imports from Myanmar was valued at 230 million dollars. The two countries have set a target for their annual bilateral trade to increase to 1.5 billion dollars.

Following the establishment of the Muse border trade zone with China, similar zone in Myawaddy bordering Thailand's Maesot will be opened later this year, local reports said. The Myawaddy border trade zone in southeastern Kayin state will be the second largest of its kind after the Muse trade zone.

Thailand stands as Myanmar's largest trading partner, taking up about 1.9 billion U.S. dollars or 38 percent of Myanmar's 4.9 billion dollars' foreign trade in 2004-05, statistics show. Of the Myanmar-Thai bilateral trade, the border trade represented about 70 percent.

Dealing with India, Myanmar is also planning to set up similar zone in Tamu linking the neighbor's Moreh. According to official statistics, Myanmar-India bilateral trade amounted to 557.68 million dollars in the fiscal year 2005-06 which ended in March, up 24 percent from 2004-05. Of the total, the border trade accounted for 14.68 million dollars.

India stands as Myanmar's 4th largest trading partner after Thailand, China and Singapore and also Myanmar's second largest export market after Thailand, absorbing 25 percent of Myanmar's total exports.

Myanmar and India have set a target for their bilateral trade to attain 1 billion dollars in 2006.

With respect to border trade with Bangladesh, Myanmar is also planning to set up similar trade zone in Maungtaw with the neighbor's Teknaf. The formal border trade between the two countries was initiated in September 1995.

According to local reports, bilateral trade between Myanmar and Bangladesh reached over 60 million dollars in the fiscal year 2005- 06 which ended in March, up 20 percent from 2000-01's 50 million dollars. Of the total, Myanmar's export to Bangladesh stood 55 million dollars, favoring Myanmar. The two countries are striving to increase their bilateral trade to 100 million dollars.

Observers here said that Myanmar's border trade with neighboring countries stands an important position in its foreign trade. Therefore, promotion of border trade through establishing trade zones and liberalizing trade procedures not only contributes to the country's economic development but also enhance the continuous development of its economic and trade ties with neighboring countries.

Source: Xinhua