Myanmar liberalises border trade with China
Myanmar has liberalised its border trade procedures with China to facilitate export and boost bilateral trade between the two countries.india Updated: Aug 01, 2006 18:46 IST
Myanmar has liberalised its border trade procedures with China to facilitate export and boost bilateral trade between the two countries.
The newly-introduced trade procedures allow merchants to directly transport exporting goods to the Myanmar-China border trade point at Muse first, where export licenses will be issued after a sale contract is formally established with buyers from the Chinese side, said a commerce ministry official on Tuesday.
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.
Previously, traders had to seek export licenses first in Yangon and later in Nay Pyi Taw, the newly-relocated administrative capital, for the exporting goods to be carried to the Muse trade point.
The liberalisation was made in line with the norms prescribed by the World Trade Organisation (WTO) so as to reduce hindrances and smoothen the flow of commodities, according to the directorate of trade.
Meanwhile, the Myanmar government has highlighted five objectives of its border trade, which include cementing of friendly relationship with 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 and $1 million, with $347 million being registered in the fiscal year of 2004-05, $505 million in 2005-06 and $207 million 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 in 2005, up 5.6 per cent from 2004.
Of the total, China's exports to Myanmar was pegged at $935 million, while its imports from Myanmar stood at $274 million.
The trade volume between China's Yunnan province and Myanmar, including the border trade, amounted to $630 million during the year, up 14.6 percent from the previous year.
Of the total, Yunnan's exports to Myanmar stood at $400 million, while its imports from Myanmar were valued at $230 million, the figures show.