Posts in category: TRADING

MUSE border trade virtually hangs down because of coronavirus outbreak in the border market, said U Min Thein, the vice-chairman of Muse Rice Wholesale Centre. On 29 March, a Myanmar national was found to be COVID-19 positive in Kyauk Wine market in Kyaigaung. The next day, China restricted the border crossing at the Mang Wein checkpoint, which is one of major border crossings between Muse and Kyaigaung. Consequently, the main export stuffs namely rice and broken rice, pulses, aquatic products, onion and chilli to China through Mang Wein checkpoint were 100 per cent suspended.

Although the export items are allowed through other checkpoints Wan Ding and Kyin San Kyawt, the inspection over the products has been tightened starting from 20 April because of pandemic. Currently, the export of such products as rice, broken rice, green gram, aquatic products, onion and chilli are halted 100 per cent at Muse border checkpoint. The watermelon and muskmelon are still exported via Kyin San Kyawt checkpoint. However the trade of watermelon and muskmelon are down 90 per cent than previously because the health checks are more stringent than earlier at Kyin San Kyawt checkpoint.

According to the statement of the People’s Republic of China Yunnan COVID-19 prevention team prevention on 19 April said that any of 30 sample items from an export truck to China were needed to undergo COVID-19 test starting from 20 April. The COVID-19 test on each sample item will cost 60 Yuans. The costs will be borne by the owner of the cargos. The export products will only be allowed to discharge the day after the COVID-19 test proves negative. Besides, the traders and cargo handlers will have to undergo COVID-19 tests daily and the cost is 60 Yuans per person. Likewise, people are allowed to enter the workplace only after having the medical record, checking the body temperature and wearing the masks and gloves. The workers and staff have to stay in the restricted areas from 9 pm to 8 am. Those who are disobedient of the rules will be deported. As a result, some export cargos to China through Muse border trade seem to be suspended 90 per cent while some export items are suspended 100 per cent.

Source: The Global New Light of Myanmar

MYANMAR’S Trade Department under the Ministry of Commerce has notified that four food commodities are temporarily restricted for import via the Myanmar-Thailand border starting from 1 May, Myawady Trade Zone reported. The restricted items include various beverages, coffee mix and tea mix, instant coffee, and condensed milk and evaporated milk. However, they can be imported through maritime trade. Traders stressed that it would add more extra transport costs. Moreover, it causes price hikes in the retail market at present. The value of Myanmar’s bilateral trade with the neighbouring country Thailand through the land border has registered a decrease of US$370.79 million between 1 October and 2 April of the current financial year 2020- 2021 as against a year-ago period the statistics issued by the Ministry of Commerce indicated. The ministry reported that exports surpassed imports in trade with Thailand this year, with exports reaching over $1.3 billion and imports valued at over $589.7 million, totaling $1.9 billion.

Myawady border performed the best among seven border points between Myanmar and Thailand, having a trade value of $729.46 million. During the corresponding period of the past FY2019-2020, Myanmar-Thailand border trade touched a high of $2.28 billion. During the last FY, Myanmar has increasingly exported corns to Thailand through the Myawady border. Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border posts between Myanmar and Thailand during October and May period in the FY2019-2020, said an official of the Ministry of Commerce. At present, Myanmar exports the corn to Thailand through Myawady and Tachilek land border. About 5,000-6,000 tonnes of corn are daily sent to Thailand through Myawady, while Tachilek border does not regularly export. Myanmar is allowed for corn export between 1 February and 31 August with Form-D, under zero tariff.

Thailand imposed 73 per cent of tax on corn import to protect the rights of their growers if the corns are imported during the corn season of Thailand, according to the notification of the World Trade Organization regarding corn import of Thailand, said a corn exporter. Myanmar intends to reach an export target of one million tonnes of corn to Thailand this year, Myanmar Corn Industrial Association stated. Additionally, exports of natural gas from the Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous years. This year, gas exports via the Hteekhee border drastically fell. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Htikhee, Myeik, Mawtaung and Meisei. Except for Tachilek and Myawady, the remaining border posts showed a decrease in the trade this FY. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, consumer goods such as cosmetics and food products from the neighbouring.

Source: The Global New Light of Myanmar

According to the Chin Shwe Haw Chamber of Commerce, the closure of the Chin-Shwe-Haw border checkpoint, which is a cross-border trade between Burma and China, has halted the export of Myanmar agricultural products and fertilizers and metal products imported from China. The gate was closed on April 16, citing the Chinese side as saying that the virus was found on April 16. The Chin Shwe Haw border gate will be reopened on May 15. It will be closed for a month. They also say that it will shut down again if the virus is found again, depending on the virus. There are more than 400 cars here on the side of Myanmar, and more than 100 cars have entered the Chinese side. This is the export of goods from Myanmar. On the Chinese side, they have more than 300 imported goods coming to Myanmar. 

On the morning of 22nd April,2020, the last 147 cars have been unloaded. About 420 cars on the next road coordinate with traders. The gate is closed for a month, so will the goods be dropped off at Chin Shwe Hall or they negotiate with the traders to return the goods to Muse and Lwe Kyi, some put it down. However, few cars were ordered to return to Muse and Lwa Kyi. Mandalay collapsed again. People are in a lot of trouble. In addition, a trader from Chin Shwe Haw said, it is uncertain whether it will be reopened. So that all people have to endure it and prepare mental strength, manpower and financially.

Pulses from Burma at Chin Shwe Haw border gate sesame, corn dried chillies; agricultural products such as betel nut and sugarcane are being exported. Iron ring Soup powder Etc. are being imported. The items banned by China’s COVID-19 defense force include commercial vehicles and agricultural products, raw vegetables and small local pumpkins, and sugarcane. The Yunnan provincial government has closed the two border checkpoints in Muse due to the COVID-19 disease, and the Yunnan COVID-19 National Guard issued a strict entry and exit rules in a statement issued on April 19. Traders are also worried that the border with China will soon be closed again due to the COVID-19 virus.

Source: The Global New Light of Myanmar

Myanmar’ trade with foreign countries through border posts reached US$5.6 billion as of 2 April in the current financial year 2020-2021, which started in October, according to the figures released by the Ministry of Commerce. During the period, the country’s export via land borders amounted to $3.7 billion while its import shared $1.9 billion.

This FY’s border trade down by over $264 million, compared to the same period of the last FY2020-2021 when it amounted to $5.9 billion, the Ministry’s figures said. Muse topped the list of border checkpoints with the most trade value of $2.5 billion, followed by Myawady with $729 million.

The country conducts border trade with neighbouring China through Muse, Lwejel, Kampaiti, Chinshwehaw and Kengtung with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei borders, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed checkpoints, respectively.

From 1 October to 2 April of this FY, the country’s foreign trade has totalled over $7.8 billion while its sea trade valued at $4.1 billion, according to the Ministry’s report. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods, and others. In contrast, capital goods, intermediate goods and consumer goods are imported to the country.

Source: The Global New Light of Myanmar

Export earnings from the fisheries sector over the first half (1 Oct-2 Apr) of the financial year 2020-2021 touched a low of US$448.6 million, a decrease of $56.7 million from the year-ago period, according to statistics released by the Commerce Ministry. The figures stood at $505.37 million during a year-ago period. Myanmar’s fishery exports have slightly declined in H1, owing to the COVID-19 impacts and the current trade delay amid the political changes. At present, the frozen fish export market in Mon State came to a halt. Therefore, some fish are processed into dried fish for the domestic market. Saltwater fishing businesses this year might suffer loss, a fishing entrepreneur said.

The current political climate negatively affects the fish market. Political stability plays a crucial role in economic growth, including the fishery sector. Following the drop in exports, the prices of fish and prawn also drop in the domestic market. Myanmar Fisheries Federation (MFF) expected to earn more than $800 million from fishery exports in the FY2019-2020, and it reached a target. Myanmar exports fisheries products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union. Additionally, Food and Agriculture Organization (FAO) and World Health Organization (WHO) issued guidelines to ensure food safety during the COVID-19 pandemic in April 2020.

The permitted companies are advised to carry out food safety plans, follow the guidelines of WHO and FAO, formulate the safety management system and suspend the exports if any suspicious foodborne virus or virus infection risk are found in the products. They can resume the exports once the products meet food safety criteria set by the General Administration of Customs of the People Republic of China (GACC). China is the second-largest buyer of Myanmar’s fishery products, accounting for US$254 million out of the overall fishery export value of $850 million in the financial year2019-2020. The federation expects to reach a fishery export target of US$1 billion in the current FY2020-2021.

The MFF is making concerted efforts to increase fishery export earnings by developing fish farming lakes that meet international standards and adopting advanced fishing techniques. The foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates to ensure food safety. Fishery products must be sourced only from hatcheries compliant with GAqP to meet international market standards. The MFF works with fish farmers, processors, and the Fisheries Department under the Ministry of Agriculture, Livestock, and Irrigation to develop the GAqP system.
Processors can screen fishery products for food safety at ISO-accredited laboratories under the Fisheries Department. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar.

Myanmar exported 340,000 tonnes of fishery products worth $530 million in the 2013-2014FY, 330,000 tonnes worth $480 million in the 2014-2015FY, 360,000 tonnes worth $500 million in the 2015-2016FY, 430,000 tonnes worth $600 million in the 2016-2017FY, 560,000 tonnes worth $700 million in the 2017-2018FY, 580,000 tonnes worth over $730 million in the 2018-2019FY and $847.5 million, according to the Commerce Ministry. An MFF official said the federation had asked the government to tackle problems faced in exporting farm-raised fish and prawns through G2G pacts and ensuring smooth freight movement between countries to bolster exports. Myanmar’s economy is more dependent on the agricultural sector to a large extent. Also, the fisheries sector contributes a lot to the national gross domestic product (GDP). Its fishery production, including shrimps and saltwater and freshwater fish, is far better than the regional ones. If the country can boost processing technology, it will contribute to its economy. It will also earn more income for the stakeholders in the supply chain, stated Yangon Region Fisheries Department. 

Source: The Global New Light of Myanmar

As China is stepping up the coronavirus containment measures in the border areas, watermelon exporters are suffering. Some watermelon trucks are returning from the Myanmar-China North-East border checkpoint as the watermelon is not traded, and the truck drivers no longer bear the cost and tariff on the China border. Additionally, starting from 20 April 2021, the coronavirus test is mandatory for cross-border traders. Following the coronavirus cases on the border in Ruili of China to restrict border access at the Mang Wein checkpoint. Ruili-Kyalgaung river crossing is also closed. Furthermore, China imposed the lockdowns on Kyalgaung and Ruili cities. Kyinsankyawt and Wan Ding posts also restricted trading, truck drivers said. Around 400 trucks of watermelon and muskmelon previously entered China via Kyinsankyawt and Wan Ding posts.

For now, only a hundred trucks loaded with other goods are seen in the border area. Watermelon and muskmelon will be harvested up to May-end across the country, except Kayah and Chin states. Therefore, the cross-border fruit depots suggest that the growers harvest the watermelon depending on the market condition. As border post is sluggish amid the coronavirus resurgence, many watermelon trucks are stranded in Muse. Consequently, watermelon supply exceeds the demand, leading to possible market failure, Khwar Nyo Fruit Depot warned. A truckload of watermelon (855 variety) fetches 45,000-65,000 Yuan in mid-March. At present, watermelon price is drastically plunging, and it does not even cover the truck freight rate.

Myanmar’s watermelon market earlier relied only on China. Myanmar shipped 45 tonnes of seedless watermelon to the Dubai market in December 2020 and January 2021. After the country achieves success in the Dubai market, Myanmar plans to expand its market to Hong Kong SAR, the UAE and Qatar, the association stated. On 5 January 2021, 105th mile Fruit Wholesale Centre released a statement that the number of watermelon and muskmelon trucks for exports is to be set to govern the market. During the previous financial year, the growers and the traders suffered the loss due to the price instability and transportation difficulties triggered by the COVID-19. Myanmar yearly exports over 800,000 tonnes of watermelon and about 150,000 tonnes of muskmelons to China, the association stated. 

Source: The Global New Light of Myanmar

The value of Myanmar’s maritime trade over the first half (1 Oct-2 Apr) of the current financial year 2020-2021 sank to US$10 billion, a drastic drop of over $4.3 billion as against the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $4.06 billion, imports have registered at $6.116 billion. Compared to the same period in the 2019-2020 fiscal year, imports fell by $2.78 billion, while exports reported a decrease of $1.53 billion.

Meanwhile, the value of trade through the border this FY was estimated at $5.6 billion, a decrease of $264 million as against a year-ago period. Myanmar witnessed a slump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and limited the trading time to contain the spread of the virus. For maritime trade, disruption in the logistic sector, the suspension of some ocean liners and the pandemic-induced container shortage scaled-down the maritime trade somehow.

The country’s total external trade touched a low of $15.78 billion, which plunged from $20.36 billion recorded in a year-ago period. Myanmar’s sea trade generated $26 billion from an overall trade value of $36 billion in the last FY 2019-2020, the Ministry of Commerce’s statistics indicated. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products. At the same time, it imports capital goods, consumer goods, and raw industrial materials.  The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade. It includes the Yangon inner terminals and the outer Thilawa Port.

Source: The Global New Light of Myanmar

Border trade between Myanmar and India hit US$155 million as of 2 April in the current financial year 2020-21 ending September, said a statistical report of Myanmar’s Ministry of Commerce. The border trade during the period increased by $78.8 million compared with the same period of the previous fiscal year. Myanmar-India total border trade was shared by Myanmar’s export of $154 million and its import of $0.7 million.

Some of the border trade zones between Myanmar and India closed the border in March 2020 due to COVID-19, including the crossing between Tamu township and the Indian town of Moreh. However, the border trade resumed on 6 January as COVID-19 infections in the area have declined. Most India-Myanmar border trade passes through the Tamu crossing and the Reed crossing in Chin State. In contrast, a significant part of the bilateral trade is delivered through ships.

According to the Ministry of Commerce, the total trade volume from Tamu border trading post in FY 2020-2021 was $31.15 million, with exports valued at $30.76 million and importing $0.39 million. Total trade volume via the Reed border trade post in the same period was $124 million, with exports valued at $123.66 million and import of $0.34 million. Myanmar mainly exports to India fruits and vegetables, marine and forestry products while importing from India the medicines, electronic products, motorbikes, cotton yarn, non-alloy steel and other construction materials.

Source: The Global New Light of Myanmar

MYANMAR’S trade gap has significantly narrowed to US$168.202 million in the first half of the current financial year 2020-2021 from just $1.29 billion registered in the corresponding period of the 2019- 2020FY, according to data provided by the Ministry of Commerce. The drastic drop in imports is a contributing factor to a decrease in trade deficit this year. Between 1 October and 2 April in the current FY, Myanmar’s external trade drastically plunged to $15.78 billion from $20.36 billion recorded in the year- ago period. While exports were estimated at $7.8 billion, imports were valued at $7.9 billion this FY. Compared to the FY2019-2020, exports showed a drop of over $1.7 billion, while imports fell by $2.85 billion. Myanmar witnessed a slump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and limited trading time to contain the virus’s spread.

For maritime trade, disruption in the logistic sector, some ocean liners’ suspension, and the pandemic-induced container shortage somehow scaled down the maritime trade. The lack of money in circulation due to the closure of private banks decreases economic efficiency, an exporter stressed. Political uncertainties, reduced mobility derail the main contributors to the economy, and certain restrictions on banking, businesses’ operations, logistics, and network services, World Bank stated. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods. At the same time, it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is endeavouring to boost export under World Trade Organization’s rules, enhance value-added production and competitiveness, reduce export barriers and provide trade financing services.

The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and import substitution Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020FY, $1.14 billion in the 2018-2019 FY, $1.3 billion in the previous mini-budget period (April-September, 2018), $3.9 billion in the 2017-2018FY, $5.3 billion in the 2016-2017FY, and $5.4 billion in the 2015-2016FY, according to statistics released by the Central Statistical Organization. Under the National Planning Law for the Financial Year 2020- 2021, Myanmar intends to reach the export target of US$16 billion and import at $18 billion. The Ministry of Commerce has adhered to its policy reform depending on the State and people’s requirements. Moreover, a series of trade liberalization and openness for policy development have been introduced for enhancing a more viable trade environment. The private sector plays a prominent role in Myanmar’s market-oriented economic system. The ministry is highlighting free and fair trade, ensuring product safety and quality goods and services.

Source: The Global New Light of Myanmar

Myanmar’s Muse border trade came to a standstill following the closure of the Man Wein border checkpoint triggered by the detection of the coronavirus cases in the border area, according to the Muse Rice Wholesale Centre. A Myanmar citizen who tested positive for COVID-19 was found in Kyalgaung precious stone market on 29 March. It prompted China to restrict border access at the Man Wein checkpoint, a major border crossing between Muse and Kyalgaung areas. Over 180 trucks from Myanmar struck in Kyalgaung, Yunnan Province were allowed to depart on 11 April, said Muse traders. Man Wein post has been closed down since 12:30 pm of 30 March. Man Wein is the important cross-border pointbetween Myanmar and Ruili, China.

Following the detection of coronavirus case in Kyalgaung border, the Ruili-Kyalgaung river crossing is also closed. The coro-navirus tests and vaccination are now offered in Kyalgaung, Vice-Chair U Min Thein of the Muse Rice Wholesale Centre elaborated. Consequently, there is no trade flowing in and out of the country via the Muse-Man Wein border, and Myanmar’s Muse border came to a halt. Howev-er, Kyinsankyawt and Wan Ding posts give the green light to over 400 watermelon trucks. Before the Man Wein check-point closure, Myanmar daily sent about 2,000 tonnes of rice and 40,000 broken rice bags to China. This Man Wein post plays a pivotal role in trading between Myanmar and China.

Myanmar exports rice, broken rice, onion, chilli pepper, pulses and beans, food commodities and fishery products to China. In contrast, electrical appliance, equipment, medical device, household goods, construction materials and food products are imported into the country via Man Wein. Before the COVID-19 pandemic, about 500 trucks were daily flowing in and out of the Myanmar China border Man Wein. At present, Man Wein post remains closed amid the height-ened coronavirus containment measures. The closure of the Man Wein checkpoint wreaked havoc on the Muse trade. Trade value through the Muse land border plummeted to US$2.47 billion between 1 October and 2 April in the current financial year 2020- 2021 from $2.6 billion recorded in the corresponding period of last FY, the Ministry of Commerce’s data showed.

Source: The Global New Light of Myanmar