NEWS - Myanmar to Improve Unfavorab

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Subject: NEWS - Myanmar to Improve Unfavorable Situation

Myanmar to Improve Unfavorable Situation

               Xinhua
               06-JUL-99

               in Foreign Trade 

               (By Duan Tingchang) 

               YANGON (July 7) XINHUA - Myanmar, an agro-based
               developing country with agriculture accounting for 35
               percent of its export value, has of late taken a series
of
               measures to reverse the unfavorable situation in its
foreign
               trade. 

               Since the outbreak of the Asian financial crisis in
mid-1997,
               Myanmar's export sector, which is mainly based on the
               export of primary products, suffered great losses in
foreign
               exchange earnings. 

               According to official figures released by the country's
Central
               Statistical Organization, Myanmar's foreign trade volume,
               including its border trade, amounted to 3.9615 billion
U.S.
               dollars in 1998, of which the import was 2.824 billion
dollars
               while the export reached 1.1375 billion dollars. Its
trade
               deficit was as high as 1.6865 billion dollars, 470
million
               dollars more than the previous year. The Myanmar
               government has taken a series of measures to reverse this
               situation. First, it designates priority goods for import
and
               exempts customs duties on the import of agricultural
               implements to promote agricultural development. These
               goods include agricultural machinery, pesticide,
fertilizer, and
               construction materials such as cement, steel bar, pipe,
               ceramic tile, iron sheet, machinery equipment, etc. 

               Second, the government has increased border trade points
               and simplified trade-related formalities to promote
border
               trade. Up to now, Myanmar has opened 12 border trade
               points along its borders with China, Thailand, India and
               Bangladesh. 

               Meanwhile, it shortened the period of export and import
               formalities from the previous one week or one month to
two
               days. From February last year, the country also cut
border
               trade service charges to 8 percent from 10 percent. 

               Third, the government imposed restriction on the import
of
               luxury goods by raising their customs duties. From
February
               1998, the government raised the rate of income tax on
               imported goods from 1.5 percent to 2 percent. 

               The government encourages more use of home-made
               products, giving special privileges to exporters who
fetch 2
               million dollars from export earnings or above. 

               Besides, the Myanmar government is planning to expand the
               range of export goods, add non-traditional commodities
such
               as natural gas in its export and increase the export
quota of
               processed and manufactured goods to enable export goods
               value-added. 

               As a result, the country's export in 1998 increased by
235
               million dollars as compared with that in 1997.