Posts in category: TRADING

The 105-mile trade zone in Muse, which is the main source of trade on the Sino-Burmese border, has been hampered by the lack of importers and the closure of private banks, with trade falling by more than half, according to the Muse 105-mile border trade zone. Currently, the 105-mile trade zone is trading normally. But yesterday there was a temporary suspension on the 8th and 9th February,2021. However, Man Win Pauk and Kyin San Pauk Pauk are trading. This is where the previously traded vehicles go. The import side is the same as the Chinese side. There is no trade stop at Man Win Pauk and Kyin San Pauk Pauk. But in this 105-mile trade zone, there are two main points. The first is that private banks in the Muse area 105 miles are closed on the 8th and 9th.

Due to the closure of the banks, there are some difficulties in running the money. Second, company representatives and agents working in the 105-mile trade zone are protesting. There is no jute service. But at the moment, there is trade in fruits, watermelons and fruit cars. There are no other products. Trade in the Muse 105-mile border trade zone has dropped by more than half in recent days due to the current political situation. Normally, around 1,000 cars have to travel. Currently, about 1,400 vehicles left on the 7th. Yesterday, on the 8th, it decreased a little bit. There was a slight decline in trade. Trade has dropped sharply from around $ 10 million to $ 15 million a day in recent days. In percentage terms, it has dropped by more than half. People have to make sure that trade does not stop at any time. It is a matter for traders, farmers and farmers. The other country does not stop buying. Myanmar is ready to export. 

Therefore, the operation process needs to be continuous. This will benefit the farmers and the state. People also need business opportunities. China also trades regularly. At present, there is regular cross-border trade, so importers and exporters should continue to do so. People will continue to facilitate the trade. Banks in northern Shan State, including Muse, have been shut down due to the ongoing political situation, and people are increasingly withdrawing money at ARM machines. Imported vehicles have been in the Muse 105-mile trade zone for four days, while imported vehicles have been in the area for two days and about 700 to 1,000 imported vehicles are waiting in line to be inspected in the trade zone, according to truck drivers. According to a truck driver who have been there for four days, there is no custom has been inspected. They said they did not check because there were no agents carrying jute. On February 10, thousands of people continued to protest in Muse.

Source: Daily Eleven

Myanmar’s maize export to Thailand via Myawady border trade zone hit about 100,000 tons in 10 days. Maize, one of Myanmar’s agricultural products, could be exported to Mae Sot, Thailand through Myawady border checkpoint with Form-D attached between 1 February and 31 August. So, a total of 445 Form-Ds have already been issued from 1 February to 9 February 2021 and Myanmar earned US$30,62 million from the export of 99,637.37 tonnes of maize. Thailand imposed a hefty tax on imported goods during its corn season to protect its growers’ interest. It grants tax exemption for corn import between February and August.

For the rest of the time, Thailand will impose 73 per cent of tax on corn import as per the notification submitted to the World Trade Organization (WTO). Thailand annually imports to around 5 million tonnes of corn from foreign countries. The local maize consumption in Myanmar is also higher than that in the previous year. This year, the association targeted to export 1.6 million tonnes of corn, according to the Myanmar Corn Industrial Association (MCIA). At present, Myanmar’s corn export is heavily relying on border trade.

The country mainly sends the corn to the neighbouring countries like China, Laos and Thailand. Corn is also shipped to Singapore, Malaysia and Viet Nam through sea trade. Myanmar exported over 2.2 million tonnes of corn to the foreign market in the past FY2019-2020, with an estimated value of over $360 million, according to the data of the Ministry of Commerce. Currently, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. There are about 1.12 million acres of corn in Myanmar, and it has three corn seasons — winter, summer and monsoon. The country produces 2.5-3 million tonnes of corn annually.

Source: The Global New Light of Myanmar

The border trade between Myanmar and Thailand hit US$998 million as of 22 January in the current financial year 2020-2021 ending September, said a statistical report of Myanmar’s Ministry of Commerce. During this period, the border trade value dropped by $238 million compared to that of the same period of the previous FY. The bilateral border trade was $1.2 billion in the last year. The Myanmar-Thai total border trade was shared by Myanmar’s export of $675 million and its import of $322 million.

Between 2016-2017FY and 2019-2020 (as of August), Thailand has been Myanmar’s largest trade partner among the ASEAN states, followed by Singapore and Malaysia. Myanmar is carrying out border trade with Thailand’s neighbouring country through seven border checkpoints — Tachilek, Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Maese border areas respectively. Among them, Hteekhee completed the most extensive trade in border trade with Thailand, followed by Myawady. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate, coconut (fresh and dry), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand.

It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country. The bilateral trade between Myanmar and Thailand stood at $659 million in FY2020-2021 (as of November), $5.1 billion in FY2019-2020, $5.5 billion in FY2018-2019, $2.9 billion in the mini-budget year of 2018 or transitional period from April to September this year, $5 billion in FY2017-2018, $4.3 billion in the 2016-2017FY, $4.8 billion in the 2015-2016FY, $5.7 billion in the 2014-2015FY, $5.6 billion in the 2013-2014FY, $4.7 billion in the 2012-2013FY, and $4.5 billion in the 2011-2012FY, according to the Myanmar Ministry of Commerce.

Source: The Global New Light of Myanmar

THE total border value reached over US$3.02 billion in the first four months of the current financial year 2020-2021, a decrease over $644 million, according to the Ministry of Commerce. As of 22 January, the country’s export via land borders amounted to $2 billion while its import shared $1.01 billion.

This FY’s border trade dropped by over $644 million, compared to the same period of last FY when it amounted to $3.7 billion, stated the ministry’s figures. Myanmar has opened 18 border trade camps and conducts border trade with neighbouring China through Muse, Lwejel, Kampaiti, Chinshwehaw and Kengtung with Thailand via Tachilek, Myawady, Kawthaung, Myeik, Hteekhee, Mawtaung and Maese, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed border checkpoints respectively.

Muse topped the land borders’ list with the most trade value of $1.5 billion, followed by Hteekhee with $421 million and Myawady with $337 million. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufactured goods and other commodities while capital goods, intermediate goods and consumer goods are imported to the country.

Source: The Global New Light of Myanmar

Myanmar-China trade is being coordinated with the relevant district governors and township administrators in accordance with the terms of the COVID-19 period to ensure that trade in the Muse 105-mile trade zone, which is the main trade route between Myanmar and China. Myanmar-China trade gates have been reopened. During the current COVID-19 period, people are working in accordance with the terms of the COVID-19 period to ensure that trade between Myanmar and China is not delayed, and they are working to ensure that trade is not suspended in coordination with the relevant district administrators and township administrations, said by the director of the Muse 105-mile border trade zone.

The state of emergency was declared on Myawaddy TV at around 8 am on February 1 by Order No. 1/2021, as enforced by the President’s Office. In Muse, the entrance and exit of the town was opened at 10 am on February 2, and the entry and exit of trucks at the Man-Won-Kyin-San-Kyaw checkpoint at the Burma-China border checkpoint was reopened at 10:30 am and started at 10:37 am. During the COVID-19 epidemic, the two countries worked to speed up trade, but China has tightened controls on export vehicles in accordance with Chinese regulations. Trade was delayed due to spraying and driver replacements, and more than half of all truck arrivals fell.

During the COVID-19 period, when Myanmar exported to China, according to Chinese regulations, people sprayed their export vehicles. Then the drivers have to change the time. Then there is the influx of vehicles, which reduces the number of vehicles. In the past, at least 400 vehicles were allowed to enter the area. Now they have 150; only about 200 were allowed to enter. The number of trucks entering China has decreased. Even so, owning one is still beyond the reach of the average person. The number of cars exported to Mandalay from my trade zone car park increased by at least 600 every day. There are about 700. There are about 300 fruit trucks and about 300 other products. All fruit trucks are imported through Kyin San Kyaw Gate and the remaining 300 items are shipped through Man Wan Gate, so too Manwon Gate.

China’s slow export of goods in the 105-mile trade zone on the Muse border, which accounted for 97 percent of the trade in the 2019-2020 fiscal year, with more than $ 4.8 million in trade and 98 percent in the 2020-2021 fiscal year, with more than $ 400 million in trade. People get about 15 million a day. But last January, it was estimated at 470 million, about 460 million. About 97%. This is not because of Myanmar’s export weakness. In fact, if Myanmar could export as before, people would be able to export more than 100 percent. China’s acceptance power. Myanmar driver does not change. If Myanmar drivers can enter China, more export cars can enter. Negotiations have been held with Chinese officials at the national, ministry and regional levels not to change drivers. The Chinese side said that the above steps have been submitted. 

If Myanmar drivers are allowed to enter China directly only with a certificate of COVID-19 clearance, this traffic congestion period can be overcome, said by the director of the Muse 105-mile border trade zone. Myanmar officials want to boost Myanmar’s export sector. The two sides also discussed ways to boost exports to boost bilateral trade for the benefit of Myanmar farmers and to increase bilateral trade. Coordination will be made to improve connectivity, according to the Muse 105-mile border trade zone. There are about 1,000 trucks carrying imported goods in the 105-mile trade zone, and about 2,000 trucks and six-wheelers are waiting in line at the exit of the 105-mile trade zone in Muse on the Burma-China border. At present, the Muse 105-mile border trade zone provides rice, watermelon, cucumbers, agricultural products, including plums and cotton and fishery products. It mainly exports minerals and mineral resources, as well as oil and gas, consumer goods, food products, vehicles and accessories, clothing and apparel, imports of telecommunications equipment.

Source: Daily Eleven

The sesame market is sluggish as Chinese New Year is approaching, and some buyers stop buying. Yet, the price is stable, traders from Mandalay market said. The market of edible oil crop has been slow-moving from the previous week as the Chinese New Year festival is drawing nearer. It is normal that the market faces slow-down during that time, said by the general secretary of Monywa Commodity depot. At present, the black sesame price dips to K50,000 from K55,000-56,000 per basket, the depot stated. The prices of white and brown sesame varieties remain stable on the back of domestic demand. At the same time, there is low demand by foreign market. The price of black sesame seeds (Samone variety) shows downtick.

On 4 February, the FOB prices of sesame stood at US$2,000-2,100 per tonne of Samone sesame, $1,250-1,300 per tonne of white sesame and $1,150-1,200 per tonne of brown sesame. Last year, the sesame prices drop by over 20 per cent compared with the prices in the previous years due to the COVID-19 negative impacts. Consequently, the growers do not make large profit this year, a trader from Mandalay market stressed. Normally, Myanmar exports about 80 per cent of sesame production to foreign markets. China is the main buyer of Myanmar sesame, which is also shipped to markets in Japan, South Korea, China (Taipei), UK, Germany, the Netherlands, Greece, and Poland among the EU countries.

The EU markets prefer organic-farming sesame seeds from Myanmar, said an official from the Trade Promotion Department. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China purchases various coloured sesame seeds from the country. This year, Japan has not purchased Myanmar’s sesame yet. Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the main producer of sesame seeds.

The seeds are also grown in Mandalay and Sagaing regions. Of the cooking oil crops grown in Myanmar, the acreage under sesame is the highest, accounting for 51.3 per cent of the overall oil crop plantation. The volume of sesame exports has registered at over 96,000 tonnes, worth $130 million, in the financial year 2015-2016; $100,000 tonnes, worth $145 million, in the 2016-2017FY; 120,000 tonnes, worth $147 million, in the 2017-2018FY; 33,900 tonnes valued $43.8 million in the 2018 mini-budget period, 125,800 tonnes, worth $212.5 million in the 2018-2019FY and over 150,000 tonnes of sesame, worth $240 million in the previous 2019-2020FY, the trade data of Central Statistical Organization indicated.

Source: The Global New Light of Myanmar

THE Ministry of Commerce has extended import permits on the reconditioned machine for the small and medium- sized enterprises, support the establishment of the manufacturing process and reduce the capital expenditure, according to the notification released in the third week of January 2021. The Ministry of Commerce has allowed the import of used machines which are useable since 2015, according to section 13, subsection (b) of the Export and Import Law of the ministry.

The ministry issues the notification every year as per its policy, intending to avoid unnecessary goods piled up and environmental damage, and improving the entrepreneurs’ production capacity. Those reconditioned machines are to be remained usable up to 10 years starting from the import date. The machines shall be repaired to have the usable condition. The import requires a 10-year warranty by foreign sellers. Moreover, the machine parts and accessories of those imported machines shall be easily purchased in the domestic market.

The reshipment inspection certificate with six-month validity is also required to ensure the running condition of those machines, as per the notification. Nevertheless, the permit does not cover home appliances such as refrigerator, air-conditioner, washing machines, copier, printers, televisions, computers and office machines. Those machines which are designated for commercial sales are also not included. The notification comes into effect within 60 days of the issue date (20 January 2021). Those reconditioned machines can be imported only via maritime trade.

Source: The Global New Light of Myanmar

The flow of goods came to a halt in the Muse 105th zone on the morning of 1 February 2021. About 500 trucks of watermelons are stuck in border areas amidst trade suspension. The exporters expect the regular trade at the soonest, especially during high demand season by China, traders from Muse stressed.  According to Muse Fruit Wholesale Centre, as Chinese New Year is approaching, watermelons and muskmelons demand rising in recent days. In January-end, a watermelon fetched up to 7,000 Yuan per tonne, and the growers received a handsome profit.

The melon price hit a seven-year record high. Nevertheless, the price is fluctuating depending on the political climate and market demand at present. About 300 trucks of watermelon and muskmelons were earlier traded a day. This year, the growers raised the concerns over the melon market amid the COVID-19 crisis. Consequently, the number of melon growers sharply fell, and so, the acreage did. Only 50-60 trucks enter the Muse market every day during the pandemic. The market is expected to remain more robust as the demand exceeds the supply, Myanmar Watermelon and Muskmelon Producers and Exporters Association stated.

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’s watermelon market earlier relied only on China. Myanmar shipped 45 tonnes of seedless watermelon to Dubai market in the past two months, the association stated. After the country achieves success on the Dubai market, Myanmar plans to expand its market to Hong Kong SAR, the UAE and Qatar, the association stated. 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

Myanmar’s trade gap has significantly narrowed to US$237.385 million in the financial year 2020-2021 from just $698.157 million registered in the corresponding period of the 2019-2020FY, according to the commerce data.
Between 1 October and 22 January in the current FY, Myanmar’s external trade drastically plunged to $9.7 billion from $12 billion recorded in the year-ago period. While exports were estimated at $4.7 billion, imports were valued at $4.768 billion this FY. Compared to the FY2019-2020, exports showed a drop of over $1 billion, while imports fell by $1.47 billion. Myanmar witnessed a slump in exports triggered by the coronavirus pandemic. Moreover, the country cannot hold jade emporiums.

As a result of this, export income plummeted, according to Myanmar Trade Promotion Organization. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limited trading time to contain the virus’s spread. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors.

The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020FY, $1.14 billion in the 2018-2019FY, $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 an export target at US$16 billion and import at $18 billion. 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

Kalay-Tamu border between Myanmar and India has not lifted its restriction yet amid the coronavirus impacts, said Chairperson U Hla Maung of Kalay-Tamu Border Chamber of Commerce. The cross-border trade between Myanmar and India has stopped since 10 March 2020. The Tamu border trade was supposed to resume in January, and however, in fact, it is still not back to normal due to the travel difficulties caused by the pandemic. The reopening of the border post would depend on the spread of the virus, and border crossing will be allowed in line with health guidelines.

Myanmar conducts border trade with neighbouring India through Tamu, Reed, and Htantlang land border crossings. Border trade via Tamu is estimated at US$60 million per year. India closed the border checkpoints in Mizoram and Manipur on account of COVID-19, and traders were reeling under the outbreak’s negative impact. Now, the exports through Reed border dramatically soared despite the slump in Tamu border trade. Between 1 October and 22 January in the current financial year, trade values were registered at over $19.44 million at Tamu post and $73.897 million at Reed.

There was no trade recorded at the Htantlang border. According to data, over the past three and half months since October, the India-Myanmar trade jumped to $93.337 million from $44.98 million recorded in the year-ago period on account of a strong export figure at Reed post released by the Ministry of Commerce. Myanmar exports mung beans, pigeon peas, green grams, areca nuts, ginger, saffron, turmeric, bay leaves, fishery products, fruits, and vegetables to India. At the same time, it imports pharmaceuticals, oil cakes, electronic appliances, motorbikes, steel and other construction machines and building materials from the neighbouring country.

Source: The Global New Light of Myanmar