Posts in category: TRADING

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

Sino-Myanmar border trade has registered a decrease of US$123.5 million between 1 October and 17 July in the current financial year 2019-2020.Data from the ministry show the value of Sino-Myanmar border trade in all five border areas touched over $4.7 billion in the current budget year, which significantly plunged from over $4.83 billion recorded in the year-ago period.Border trade values totalled $3.89 billion through Muse border in this FY, $123.35 million via Lweje, $430.7 million via Chinshwehaw, $263 million via Kampaiti, and over $4.45 million via Kengtung.

The Commerce Ministry’s data showed a drop in trade value through all those border areas.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. The transport delays caused damage to the quality of the goods and doubled the truck fares. 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 related 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 exports rice, sugar, pulses, sesame seeds, corn, dried tea leaves, fishery products, minerals, and animal products to China while 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