Weekly Business Roundup
By WILLIAM BOOT
Saturday, March 1, 2008
Burma’s leading trade organization, the Union of Myanmar Federation of Chambers of Commerce and Industry, has expressed worries that the country might not be ready for the Asean-China free trade agreement.
Aside from the fact that the Association of Southeast Nations compact does not begin until 2015, Burma faces a far more urgent change in its trading arrangements with most neighbors.
This year Burma has to fully integrate into the Common Effective Preferential Tariff scheme for the Asean Free Trade Area.
Burma along with Laos was given extra time to adapt because it joined the Asean group later than most of the other 10-member countries.
But this year Burma will have to reduce tariffs to no more than 5 percent on almost all goods traded within Asean, or preferably remove them altogether.
Only Cambodia will remain outside the trading agreement, probably joining in 2009.But Zaw Min Win, vice president of the chamber, said he is worried about the looming agreement on tariff reductions or abandonment between Asean and China, to which Burma is a signatory.
“The free trade area could be dangerous for us as a nation if we lack the capacity,” Zaw Min Win told Rangoon media.
He said that although there was great trade growth potential with China, “We need to change our production techniques to incorporate sophisticated methods that are accepted internationally.”
Analysts note that much of the junta-condoned Burmese trade across the border to China’s Yunnan Province is illegal.
By WILLIAM BOOT
Saturday, March 1, 2008
Burma’s leading trade organization, the Union of Myanmar Federation of Chambers of Commerce and Industry, has expressed worries that the country might not be ready for the Asean-China free trade agreement.
Aside from the fact that the Association of Southeast Nations compact does not begin until 2015, Burma faces a far more urgent change in its trading arrangements with most neighbors.
This year Burma has to fully integrate into the Common Effective Preferential Tariff scheme for the Asean Free Trade Area.
Burma along with Laos was given extra time to adapt because it joined the Asean group later than most of the other 10-member countries.
But this year Burma will have to reduce tariffs to no more than 5 percent on almost all goods traded within Asean, or preferably remove them altogether.
Only Cambodia will remain outside the trading agreement, probably joining in 2009.But Zaw Min Win, vice president of the chamber, said he is worried about the looming agreement on tariff reductions or abandonment between Asean and China, to which Burma is a signatory.
“The free trade area could be dangerous for us as a nation if we lack the capacity,” Zaw Min Win told Rangoon media.
He said that although there was great trade growth potential with China, “We need to change our production techniques to incorporate sophisticated methods that are accepted internationally.”
Analysts note that much of the junta-condoned Burmese trade across the border to China’s Yunnan Province is illegal.
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