Monthly Archive

The sixth JTC meeting between Thailand and Myanmar was held in Bangkok on 1^st and 2^nd November 2012. The Myanmar side was led by the Minister of H.E. U Win Myint of Ministry of Commerce of The Republic Union of Myanmar and Thai side was led by Minister Boonsong Teriyapirom , Ministry of Commerce of Royal Thai. The two side had agreed to strengthen trade and investment by eliminating tariff and non – tariff barriers.

The focus was on trading and opening the border checkpoints, which accounts for a large portion of trade between the two countries. Then, organizing border trade fairs, promoting the exchange of officials, enhancing banking arrangement, eliminating of trade barriers, and encouraging the traders and investors to get a mutual benefit were also discussed.

The Thai side has also asked Myanmar side to support Thai enterprises looking to invest in the Dawei project. Myanmar is the sixth- largest trading partner of Thailand in ASEAN and bilateral trade has been increasing year by year which reached $6.1 billion last year in which about 85% of this was in the form of cross border trading.

 The meaning of “Haats” in India Language is Rural Market. When observing the establishment of border haats in our neighboring countries, there can be seen trade in border haats across the border at Meghalaya between Bangladesh and India.

Regarding the discussion point to set up the border haats along Myanmar – India at the fourth Myanmar – India Trade Commission, the Memorandum of Understanding between the Government of the Republic of India and the Government of the Republic of the union of Myanmar had already been signed by the Deputy Minister of the Ministry of Commerce of the Republic of the Union of Myanmar and the Foreign Secretary of the External Affairs of the Republic of India on 28^th May, 2012 during the state visit of the Prime Minister of the Republic of India to Myanmar.

According to the signed MoU, the very first haat (bazaar) will be set up at Pangsu Pass adjacent with Sagaing Region and Arunachal Pradesh as a pilot project even after signing the Mode of Operation of setting up border haats by the designated authorities.

The Joint Committee on Border Haats had already established and the First Meeting of Joint Committee on Border Haats between Myanmar and India was held in Naypyitaw on 18^th October, 2012. The Myanmar side was led by Mr. Khin Maung Lay, Director General of the Department of Border Trade, Ministry of Commerce while the Indian delegation was led by Mr. Siddharth, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry.

In that meeting, both sides recognized that border haats enable local trade and increase people-to-people contacts and promote the well-being of the people in areas of difficult access across the borders of two countries through establishing a traditional system of marketing the local produce at local markets.

Both sides discussed in detail and finalized the draft Mode of Operation, proposed earlier by the Indian side. Both sides agreed that, after the approval of the competent authorities of both sides, the signing of the Mode of Operation on Border Haats will be done in the next meeting of Myanmar – India Joint Committee on Border Haats.

At present, the Department of Border Trade had already submitted the draft Mode of Operation on Border Haats to Attorney General Office for getting legal advice.

In order to promote border trade between Myanmar and neighbourings, China, Thailand, India and Bangladesh, the respective border posts hold trade promotion meetings in the last week of every month under the guidance of the Head Office of the Department of Border Trade, with the aim of exchanging the views of officials and local business men.

In China side, monthly ground-level trade promotion meetings between officials from both sides are alternatively held in Muse (105) Mile Trade Zone of Myanmar and in Jiegao of China discussing the issues related with the promotion of trade, including trade barriers, trafficking, facilitating of logistics and reduction of taxes, etc. In addition, on 22^nd November, 2010, Senior Officials Meeting between the Ministry of Commerce of Yunnan Province and the Ministry of Commerce was held in Naypyitaw, Myanmar for exploring opportunites not only for border trade but also for overseas trade.

With the view to facilitate and promote trade between Myanmar and Thailand, the Senior Official Meeting was held in Naypyitaw, Myanmar on 17 December, 2010. Both sides exchanged their views in friendly and transparent manner.

Furthermore, the meeting named Emerging Business Opportunties between India and Myanmar with Special Focus on North Eastern Indian States was held in Mandalay from 13^th to 16^th September in 2010, under the discussion of probable emergence of new border trade routes, escalation of trade through existing trade posts and expansion of tradable commodites.

In Bangladesh side, as agreed in the 4^th JTC Meeting between Myanmar and Bangladesh, the establishment of Joint Working Group of Border Trade Officials Meetings was welcomed to hold alternatively and monthly in both sides. So far 3^rd Joint Working Group Meeting was held at Cox’s Bazaar of Bangladesh, where matters relating to the promotion of border trade were discussed.

1. Regarding the Myanmar’s proposal for acquiring of the duty free, quota free market access on its agricultural produce in China market, either in the manner of elimination of quota or raising of quota on export of corn and rubber which have been cultivated as opium substitution crops in Kachin and Shan states of Myanmar, the Commerce Department of Yunnan Province informed the Myanmar side the normal quota free market access provisions for agricultural produce under China-ASEAN FTA Agreement, and suggested the Myanmar side formally apply to the General Administration of Quality Supervision, Inspection and Quarantine of China for related risk assessments for the purpose of further expansion of the export of the produce.
2. Regarding the proposal of Myanmar side for reducing the local tax differences imposed by Yunnan Province as compared with other Provinces (Regions) in China, the Department of Commerce of Yunnan Province has agreed to review the matter and find out the differences, and promised that the local tax structures imposed by other Provinces and Regions could also be achieved by Yunnan Province.
3. Both sides recognized the importance of good quality and fair prices of commodities in ensuring a sustainable market, and were willing to provide assistance to enterprises from both sides through trade promotion platforms to ensure smoother and more convenient trade.
4. Both side acknowledged that illegal trade hinders the development of normal trade and agreed that the relevant corresponding departments of both countries should cooperate in preventing smuggling trade.
5. The Chinese side proposed to increase the number of border trade posts appointed by Myanmar Government, which could effectively subdue illegal trade, and agreed to cooperate with the Myanmar side in guiding the Chinese enterprises to conduct trade in border trade posts appointed by Myanmar Government.
6. The Chinese side welcomed the Myanmar’s proposal for market access of Myanmar flowers into Kunming flower market, agreed to provide necessary assistance, and reiterated that due attention on quality control must be adhered. The Chinese side suggested that if Myanmar business entrepreneurs are interested in market study (the Myanmar business delegation should be headed by the Director General of the Department of Border Trade), the Chinese side would actively cooperate to organize local importers to meet them.
7. Regarding the upgrading of border trade posts, it is noted that the construction and upgrading of road which is from the Wangding- Metmine entry/exit gate to Muse 105 mile had successfully completed and that Wangding- Metmine entry/exit gate is going to be upgraded into National Level Gate by the Chinese side. The Myanmar side responded that Muse (105) mile Trade Zone has already existed in that area and trading can be carried out between Wangding- Metmine entry/exit gate and Muse (105) mile Trade Zone.