Myanmar, EU chamber sign trade and investment deal
Myanmar, EU chamber sign trade and investment deal
Frontier Myanmar, 26 Nov 2017
URL: https://frontiermyanmar.net/en/myanmar-eu-chamber-sign-trade-and-investment-deal
YANGON – A government trade promotion body has signed a deal with the European Chamber of Commerce to promote bilateral trade and investment from European companies.
The Memorandum of Understanding was signed between Mya trade – the Myanmar Trade Promotion Organization, under the Ministry of Commerce – and Euro Cham Myanmar in Yangon on Friday.
It is Mya trade's first agreement with a foreign business chamber since the government launched its five-year National Export Strategy in March 2015, Deputy Minister for Commerce U Aung Toe said.
“I am confident that the MoU will enhance bilateral trade corporation between Myanmar and European Union, and promote investment of companies from the EU,” he said in his opening remarks.
Business ties between the EU and Myanmar have expanded significantly since 2011 with the lifting of most economic sanctions and reinstatement of the Generalized System of Preferences for Myanmar exports. In 2013, work began on an Investment protection Agreement that is now nearing completion.
U Aung Soe, director general of Mya trade, said the resumption of GSP – which the EU temporarily withdrew in 1997 to punish the military regime – had been particularly important for growing Myanmar exports.
European Commission figures show that bilateral trade has grown from just 245 million euros (US$292 million at current exchange rates) in 2010 to 1.559 billion euros ($1.86 billion) in 2016.
Most of the growth has been in Myanmar exports, which increased almost 350 percent in three years, from 223 million euros in 2013 to 993 million euros in 2016. Of this figure, 69.6 percent was textile products, while another 5.7 percent was footwear and hats.
“The main export items to EU countries are clothes, fishery products and forestry products,” Aung Soe said.
But Myanmar is also facing challenges in promoting export volumes to the EU.
“The main problem is most Myanmar products do not meet EU quality standards,” Aung Soe said. “For example, we have abundant agri-products but we can’t export most of them because they contain chemical residues.”
The Memorandum of Understanding was signed between Mya trade – the Myanmar Trade Promotion Organization, under the Ministry of Commerce – and Euro Cham Myanmar in Yangon on Friday.
It is Mya trade's first agreement with a foreign business chamber since the government launched its five-year National Export Strategy in March 2015, Deputy Minister for Commerce U Aung Toe said.
“I am confident that the MoU will enhance bilateral trade corporation between Myanmar and European Union, and promote investment of companies from the EU,” he said in his opening remarks.
Business ties between the EU and Myanmar have expanded significantly since 2011 with the lifting of most economic sanctions and reinstatement of the Generalized System of Preferences for Myanmar exports. In 2013, work began on an Investment protection Agreement that is now nearing completion.
U Aung Soe, director general of Mya trade, said the resumption of GSP – which the EU temporarily withdrew in 1997 to punish the military regime – had been particularly important for growing Myanmar exports.
European Commission figures show that bilateral trade has grown from just 245 million euros (US$292 million at current exchange rates) in 2010 to 1.559 billion euros ($1.86 billion) in 2016.
Most of the growth has been in Myanmar exports, which increased almost 350 percent in three years, from 223 million euros in 2013 to 993 million euros in 2016. Of this figure, 69.6 percent was textile products, while another 5.7 percent was footwear and hats.
“The main export items to EU countries are clothes, fishery products and forestry products,” Aung Soe said.
But Myanmar is also facing challenges in promoting export volumes to the EU.
“The main problem is most Myanmar products do not meet EU quality standards,” Aung Soe said. “For example, we have abundant agri-products but we can’t export most of them because they contain chemical residues.”