Posts in category: TRADING

Trade at Tachileik, Shan State, the border town between Myanmar and Thailand, has come to a standstill now that Thai authorities are allowing just six vehicles with a Myanmar number plate to enter Mae Sai in Thailand. The move was announced and made effective by Thai authories on September 17 as part of measures to prevent the spread of COVID-19. Initially, the Thai authorities had said 168 trucks and one driver per vehicle will be allowed to cross the No.2 Friendship Bridge between the two countries. But as it will allow only six Myanmar cars to enter Mae Sai a day, traders from Myanmar are planning to do the same.

To reciprocate, they will allow only six vehicles from the Thai side to cross over to Myanmar. Tachileik authorities have also issued new restrictions and checks on Thai drivers at the border, such as requiring Thai vehicles to register and obtain approval from the Myanmar authorities before being permitted to trade in the country at a fixed date. Thai drivers are not allowed to enter Myanmar, hundreds of vehicles are now stranded on the Thai side since September 17. More than 200 small vehicles and more than 100 trucks are now stranded in Thailand. However, their side is facing difficulty as Thai exports to Myanmar are worth more than THB 1billion per month.

Although both sides had agreed in principle to implement COVID-19 restrictions simultaneously and only after negotiations, Thailand appears to have set unilateral rules which Myanmar has since reciprocated. While border trade was going smoothly, Thai side have started to break the agreement. Now, the Myanmar side is likely to ease the restrictions only when the Thais come and negotiate after relaxing their measures. An estimate of around 200 Toyota HiAce vehicles from Myanmar and more than 100 Thai trucks pass through the Mae Sai- Tarchileik boder trade gate on a daily basis.

Source: Myanmar Times

Myanmar’s external trade between 1 October and 4 September in the 2019-2020 financial year touched a high of US$34.35 billion, an increase of $1.84 billion compared with the corresponding period of the 2018-2019FY, according to the Ministry of Commerce. During the same period in the previous FY, trade stood at $32.5 billion, according to the data released by the ministry. Myanmar’s foreign trade has shown a 10-per cent increase, year over year, under the incumbent government. Myanmar has already reached a total trade value of $34 billion for the current FY, said an official from the ministry.

The Ministry of Commerce is endeavouring to boost export, enhance value-added production, reduce export barriers and provide trade financing services. In the current budget year, both maritime and border trade recorded an increase compared with the year-ago period, with exports estimated at over $16.4 billion and imports valued at $17.9 billion. 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. Export earnings from CMP (cutting, making, and packing) garment businesses are rising, while reliance on natural resources is lessening. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. At present, CMP garment sector which contributes to over 20 per cent of Myanmar’s export sector is facing hardship due to the cancellation of order from the European countries and suspension of the trade by western countries amid coronavirus consequences. As a result of this, manufacturing export, mainly CMP garment, and raw materials imported by the CMP businesses showed a drop amid the pandemic shock, highlighted the business people.

Source: The Global New Light of Myanmar

Myanmar’s border trade with China saw a decrease of US$ 188 million between 1 October last year and late August this current financial year. The border trade between Myanmar and China through five border checkpoints was over US$5.26 billion in the current budget year, which plunged from US$5.45 billion recorded in the corresponding period of last year. The border trade between Myanmar and China reached US$4.35 billion through Muse, US$128.6 million via Lwejel, US$491.83 million via Chinshwehaw, US$279.86 million via Kampaiti, and over US$ 4.94 million via Kengtung. The ministry’s data showed a slight drop in trade value via all border trade camps between Myanmar and China, except Chinshwehaw.

A large portion of Myanmar’s overland trade with China goes through Muse border. China has been stepping up border control measures to curb the spread of the deadly coronavirus infection.The transport delays caused damage to the quality of the goods and doubled the truck fares and the growers and traders are suffering huge financial losses amid the virus. In an effort to promote bilateral trade between Myanmar and China, the two countries have been organizing trade exhibitions, seminars and workshops on a rotating basis. The two countries are making concerted efforts to create more border economic zones and boost border trade. Border trade between Myanmar and China has seen a significant growth over the past couple of years. Bilateral trade volume between the two neighbors through the border checkpoints is around US$490 million per month.

China is the largest trading partner as well as one of the most important sources of investment for Myanmar. China’s investment in Myanmar from 1988 to date was worth nearly US$21 billion which is equivalent to about 25 per cent of total FDI in the country. The largest sector of China’s investment flowed to electricity generation sector, accounting for 63 per cent, followed by the oil and gas, and mining sectors with 36 per cent and the other sector with 1 per cent. The border trade between Myanmar and China was US$5.936 billion in the financial year 2015-2016, amounted to US$5.967 billion in the financial year 2016-2017, declined to US$4.7 billion in the financial year 2017-2018, and was recorded US$ 2.5 billion during the six month interim period prior to the next financial year 2018-2019. Myanmar’s bilateral trade with China was US$10.9 billion in 2015-16 FY, US$10.8 billion in 2016-2017 FY, US$11.78 billion in 2017-2018 FY, and US$11.36 billion in 2018-2019 FY.

Source: The Global New Light of Myanmar

Myanmar is exporting more fishes, prawns and other marine products to 40 countries including China, Japan, Korea, Thailand, the US, the Middle East countries and European Union. The country has gained high demand from foreign markets as more marine products are produced safely, according to the Basic Training Course for Safe Maritime Production Batch (1/2020) opening ceremony. There are currently 124 aquatic processing industries and 27 of them have permission to export to EU. As per the export countries’ requirements of food safety, the relevant country’s department has to issue necessary health certifications and quality assurance. As every country asks for the food safety system now, the Department of Fisheries is focusing on serving in accordance with the foreign markets.

This year’s marine export volume is over US$ 750 mln, an increase of $110 compared to the year-ago period. In this financial year, 50 quality controllers from fish and prawn processing factories will attend the training, and 50 people in the next budget year in coming September. As Myanmar is a member of World Trade Organization (WTO), fish and prawn processing factories are implementing the WTO Agreement on the Application of Sanitary and Phytosanitary Measures and following the guidelines of ASEAN, China, France, the US and the European Union.
The fishery products such as alive or freezing products, dry or salted products are being exported to over 40 countries.

Those who involved in the whole process such as fishing boats, fishing ports and fish breeding ponds are implementing the Good Aquaculture Practices (GAqP) and the processing plants are implementing the Good Manufactured Practice (GMP), the Sanitation Standard Operating Procedure (SSOP) and Hazard Analysis and Critical Control Points (HACCP). The maritime products from 49 fishery breeding ponds of Rakhine State, Taninthayi Region, Ayeyawady Region and Yangon Region are being implemented as per National Residue Monitoring Plan and 23 factories were permitted to export to the EU. In 2020, the Department of Fisheries has been cooperating with private business persons and giving basic training courses to helmsmen and 120 marine workers from 4 standard fishing ports and training courses to produce the fishery products safely.

Source: The Global New Light of Myanmar

Myanmar’s border trade with China has registered a decrease of US$147.27 million between 1 October and 14 August in the current financial year 2019-2020. Data from the Ministry of Commerce show the value of Myanmar-China border trade in all five borders touched over $5.07 billion in the current financial year, which significantly plunged from over $5.2 billion recorded in the year-ago period.This FY, border trade values totalled $4.19 billion through Muse border, $126.29 million via Lwejel, $471 million via Chinshwehaw, $279.25 million via Kampaiti, and over $4.84 million via Kengtung. The Commerce Ministry’s data showed a drop in trade value through all those border areas between Myanmar and China.

The decline in trade is attributed to the trade suspension and trade delay amid the tight security measures of coronavirus. China has been stepping up border control measures to contain the spread of the coronavirus infection.Next, the export of agricultural products is often halted, on account of China clamping down on illegal goods.Myanmar merchants are facing difficulties in exporting goods to China through the legitimate channel as they find the tax levied by China is too high.In a bid to lower trade barriers and offer relief to Myanmar traders through the border trade channel, the Ministry of Commerce, the relevant departments and Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts.

The two countries are making efforts to set up more border economic cooperation zones and promote border trade. Myanmar’s MOC is trying to boost exports of rice, broken rice, agro-products, fruits and fisheries to China through diplomatic negotiations. After a series of negotiation between Myanmar and China, the General Administration of Customs of the People’s Republic of China (GACC) granted licences to 43 Myanmar companies on 10 July 2020 to export the rice to China through a legitimate trade channel.Myanmar exports rice, sugar, pulses, sesame seeds, corn, dried tea leaves, fishery products, minerals, and animal products to China. At the same time, it imports agricultural machinery, electrical appliances, iron and steel-related materials, raw industrial goods, and consumer goods from the neighboring country.

Source: The Global New Light of Myanmar

Myanmar’s trade with members of the European Union (EU), during the first nine months of the current financial year 2019-2020, reached over US$2.57 billion, according to the statistics released by the Ministry of Commerce. Myanmar’s export to the EU surpassed its import, with $1.845 billion worth of export and $726.147 million valued import.Beyond regional trade regime, Myanmar has established trade links with EU members. Germany is the biggest trade partner in EU with the most considerable trade value, of $564.993 million with Myanmar, followed by Italy in second place, with about $349.166 million.

Spain was listed in third place with trade valued at $344.092 million, while The Netherlands stood at fourth place with an estimated trade value of $325.755 million. Myanmar’s trade with France reached about $243.332 million.The value of bilateral trade with Belgium was $201.416 million, while that with Poland was $133.847 million. Businesses with Denmark, Sweden and Finland, brought in more than $75 million each. Trade values with Austria, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Ireland, Latvia, Lithuania, Luxembourg, Malta, Portugal, Romania, Slovakia and Slovenia was less than $50 million each.The main export items are rice, pulses, tea leaf, coffee, garments on Cut-Make-Pack basis and fisheries.

Meanwhile, Myanmar imports machinery, data-processing equipment, electrical and optical goods, chemical products, motor vehicles and parts and pharmaceutical products, cosmetic, food and beverages and consumer goods. The CMP garment sector is now encountering hardships because of the cancellation of order from the European countries and suspension of the trade by western nations during the coronavirus crisis.Myanmar reinstated EU’s Generalized Scheme of Preference starting from 19 July 2013. Myanmar can enjoy GSP for export of fisheries, rice, pulses, agro products, bamboo and rattan finished products, forestry products, apparels and finished industrial goods. Nevertheless, the EU imposed a three-year tariff on Indica rice (long-grain rice) imported from Myanmar and Cambodia starting from 18 January 2019.

Source: The Global New Light of Myanmar

Myanmar’s border trade with neighbouring countries reached US$8.6 billion as of late July in the current financial year, an increase of over US$280 million compared to the same period of last financial year. Myanmar’s border trade with its neighbours was US$8.3 billion in the same period of financial year 2018-2019. Myanmar’s export volume through its borders fetched US$5.8 billion while the country’s import reached over US$2.7 billion. Muse border saw the largest volume and value of Myanmar’s total border trade, with an estimated value of over US$5.4 billion, followed by Myawady with US$858 million and Chinshwehaw with US$554 million during that period. The Sino-Myanmar border trade through all five border crossings has registered over US$4.7 billion in the current financial year, a decrease of US$123.5 million compared to the same period of last financial year, according to the ministry’s statistics.

Border trade with China was valued at US$3.89 billion through Muse border gate in this FY, US$123.35 million via Lweje, US$430.7 million via Chinshwehaw, US$263 million Myawady Trade Zone is Myanmar’s second largest border trading post. The decline in bilateral trade is attributed to the suspension and delay of some commodities amid the tight security measures of coronavirus. China has been beefing up border control measures to curb the spread of the coronavirus infection. China’s investment in Myanmar during the period from 1988 to date was valued at more than US$20 billion which is equivalent to about 26 per cent of total FDI in the country. The trade volume between Myanmar and Thailand has reached US$2.71 billion in total, a decrease of US$103.9 million compared to the same period of last year, according to ministry. The bilateral border trade saw US$2.82 billion in last year. Myanmar-Thailand border trade totalled US$2.711 billion between 1 October last year and early this year, which included US$1.95 billion in exports and US$757 million in imports. The Hteekhee border recorded the highest trade value of US$1.35 billion, followed by Myawady with US$820 million and Kawthoung with US$299 million. The country mainly conducts border trade with Thailand via seven borders Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Mese checkpoints. Meanwhile, Myanmar-India border trade is down by over 40% for the current financial year due to the temporary closure of border posts amid the ongoing COVID-19 pandemic. The trade value went down from US$128 million to US$76 million for the same period, a decrease of 40% compared to the same period of last financial year. The two countries conduct border trade mainly through the Tamu, Reed, Thantlang, and Kenglap cross-border trade camps, while a major part of bilateral trade is carried out via the sea.

Myanmar-Bangladesh bilateral trade via border checkpoints was valued at over US$747.63 million as of 26 June in the current 2019-2020 financial year, an increase of US$730 million from the corresponding period of last
year. When compared with last FY, this FY saw a significant surge in the value of exports by US$427.42 million while the bilateral imports rose by US$302.96 million. Between 1 October last year and 26 June this year, Myanmar transported commodities worth US$443.4 million to Bangladesh and imported goods valued at over US$304.2 million. Myanmar exports goods to Bangladesh through both maritime and land routes. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods and others while capital goods, intermediate goods to neighbouring countries and consumer goods, machinery and medicine are imported to the country. Around 20 percent of Myanmar’s total trade is conducted through its border crossings and the remaining 80 percent is done by sea route.

Source: The Global New Light of Myanmar

The Upper Myanmar India Association will start its own trade brokering business after the Myanmar economy returns to normal following the COVID-19 pandemic. The purpose is to connect traders from Myanmar and India who want to business. Even though traders from India want to do business in Myanmar, many have no point of contact here. So if India’s traders who trade care accessories, medical products or peas come for business.

Since the outbreak of COVID-19 in March, trade between the two countries has come to a halt and border gates at Chin State, Sagaing and Mandalay, which have been the main trading routes between northeastern India and Myanmar since 2017, have closed. Trade is conducted via maritime routes only. In fiscal 2018-19, trade totaled US$201 million. This is consisted mainly of exports worth US$177.5 million. Both countries had just opened the border checkpoint between Reekhorda town in Chin State and Zowkharthar village in Mizoram, in August 2018.

The Reekhorda-Zowkharthar post is the second trade gate between Myanmar and India. The other trading post is located at Tamu in Sagaing Region and Moreh in Manipur, India, which opened up for regulated trade in 2018. There is also an integrated check post (ICP) in Tamu- Moreh, allowing both Myanmar residents and foreigners to enter India as well as goods on vehicles. Before the pandemic, the Japan International Cooperation Agency had been upgrading a road linking Reed to Tiddim and Kalay in Chin State to improve trade. Myanmar mainly exports betel nuts, beans and pulses as well as garments and plastics to India at the border.

Source: Myanmar Times

While overseas demand for some Myanmar commodities has fallen short of forecasts this year due to COVID-19, exports of several locally produced crops have nevertheless risen and some even look promising.Myanmar corn is usually exported to China but demand from Thailand has raisen since the start of the 2019-20 fiscal year. According to the Minstry of Commerce, more than 60 percent of this year’s corn exports went to Thailand via the Tachileik and Myawaddy border towns.

The other Myanmar crop for which overseas demand has been promising is the avocado. According to the Myanmar Avocado Producer and Exporter Association, interest from Singapore and China on Hass avocados grown and harvested in Myanmar has been increasing. Hass avocados are the most commonly grown avocado variety in the world. Its fruit has high oil content and a nutty, rich taste. Its flesh is smooth textured and it has a thick skin casing.

In fact, Myanmar only started harvesting Hass avocados two years ago. as volumes are still low and due to disruptions caused by COVID-19, exports have yet to commerce. But demand is already growing. This year’s avocado cultivation has been successful and China has recently offered to import 500 tonnes per year. Singapore also wants 15 tonnes per week. There is a potential to break into the international market due to high interest from China, Singapore,Taiwan and Hong Kong.

Source: Myanmar Times

Myanmar rice export through sea trade generated an estimated income of US$581.6 million as of 17 July in the current financial year and the figures reflect an increase of $181.4 million compared with a year-ago period, as per data from Myanmar Rice Federation (MRF). Myanmar maritime trade constituted over 85 per cent of rice exports. Earlier, border trade was relatively high compared to sea trade in terms of rice exports. Since the previous financial year, border trade has dropped, and currently, it accounts for just 14.8 per cent of the total rice exports.

Rice exports through the borders have generated an estimated $96.68 million in the current financial year, which plunged from $173.3 million registered in the corresponding period of last year. Myanmar primarily exports rice to China through the borders. However, trading in agricultural products has been halted on account of China clamping down on illegal trade and China’s precautionary measures to contain the spread of coronavirus. It is difficult to ship rice in the rainy season. In July, rice prices significantly plunged as against June, said traders from Bayintnaung market. The volume of rice and broken rice exported between 1 October and 17 July in the 2019-2020FY has been estimated at over 2.25 million metric tons, worth over $678.29 million, according to an announcement from the MRF. In the current budget year, Myanmar has shipped rice to 66 foreign markets. China is the main buyer of Myanmar rice, followed by Malaysia and Madagascar. The Philippines is the fourth-largest buyer and Cote D’Ivoire the fifth-largest buyer of Myanmar rice.

In 2019-2020FY, Myanmar has exported broken rice mostly to Belgium, followed by Senegal, China, Indonesia and the Netherlands. Broken rice has been placed in 57 foreign markets. ASEAN countries constitute 17 per cent of Myanmar total rice exports. The European Union countries account for over 20.45 per cent of rice exports, while 30.2 per cent of total rice exports in Myanmar goes to African countries. According to the work coordination meeting held on 26 June, 150,000 tonnes of rice will be exported each in July and August. And, 100,000 tonnes of rice will be sent to the external market in September, totalling rice export quota of 400,000 tonnes. The Ministry of Commerce, Myanmar Inspection and Testing Service (MITS), the authorized organization of the State and MRF implemented rice reserve scheme on 30 April. The state has purchased an adequate amount of rice (50,000 tonnes). Myanmar shipped 3.6 million tonnes of rice in the 2017-2018FY, which was an all-time record in rice exports. The export volume plunged to 2.29 million tonnes, worth $691 million, in the 2018-2019FY.

Source: The Global New Light of Myanmar