72720 v1 World Trade Indicators 2009/10 Myanmar Trade Brief Trade Policy only a slight difference between agricultural and non- agricultural goods. However, this does not take into Myanmar has a relatively less restrictive trade regime account the fact that its exports are currently banned than its East Asia and Pacific (EAP) or low�income by both the EU and the United States due to group counterparts. The simple average of the MFN investment and trade sanctions related to the internal applied tariff rate has remained almost constant since political situation. Over the course of 2008 Myanmar’s 2001 and was 5.6 percent as of 2007, significantly currency, the kyat, appreciated by 3.1 percent against lower than the averages for both the EAP region and the U.S. dollar, making exports more expensive in low-income countries (9.6 and 12.5 percent, foreign currency terms. The official exchange rate is respectively). Based on the MFN applied tariff, only for transactions conducted by the government Myanmar ranks 58th out of 181 countries (where 1st is and state enterprises, however, and does not least restrictive). Since 2005, Myanmar has had a necessarily reflect the rate experienced by private maximum tariff on all goods (excluding alcohol and citizens. tobacco) of 37.8 percent. The trade policy space, as measured by the wedge between bound and applied As a member of the Association of South-East Asia tariffs (the overhang), has remained constant over the Nations (ASEAN), Myanmar has been involved in the past several years and was 76 percent in 2007. In negotiation of several free trade agreements (FTAs). In addition, only 17 percent of all tariff lines are bound. March 2008, Japan signed an FTA with ASEAN Regarding the extent of its commitment to trade member countries whereby Japan will eliminate tariffs liberalization in services, Myanmar ranked 121st out of on 93 percent of goods exported from ASEAN 148 countries on the GATS Commitment Index. member countries. In February 2009, a free trade deal was signed between ASEAN members and Australia Myanmar instituted a ban on rice exports in 2004 and New Zealand. The framework is comprehensive, designed to maintain the domestic supply. Since 2006, covering goods and services as well as investment and the ban has been relaxed incrementally each year. intellectual property issues. It is expected to come into Although a ban was instituted for five months in 2008 effect by the end of 2009. In August 2009, an FTA following cyclone Nargis, exports of rice for the year was signed between India and ASEAN countries and were expected to exceed their level in the previous is expected to take effect on January 1, 2010. A year.1 bilateral investment treaty was ratified by India, which is expected to increase bilateral investment between the two nations while it is in effect for the next 10 External Environment years.2 The simple average of the rest of the world tariff faced by Myanmar’s exports is 9.8 percent. When taking into Behind the Border Constraints account the volume of exports, it is 1.8 percent, with The Logistics Performance Index, a measure of the extent of trade facilitation, rates Myanmar at 1.86 on a scale from 1 to 5 with 5 being the highest Unless otherwise indicated, all data are as of August 2009 performance, compared with a score of 2.58 for the and are drawn from the World Trade Indicators 2009/10 EAP region and 2.29 for countries in the low-income Database. The database, Country Trade Briefs and group. The country ranks 147th out of 150 countries in Trade-at-a-Glance Tables, are available at the world and 12th in the EAP region (with Malaysia http://www.worldbank .org/wti. leading the regional group). The area in which Myanmar performed the best was domestic logistics If using information from this brief, please provide the costs, while its weakest performance was in the ability following source citation: World Bank. 2010. ―Myanmar to track and trace shipments. Trade Brief.‖ World Trade Indicators 2009/10: Country Trade Briefs. Washington, DC: World Bank. Available at http://www.worldbank.org/wti. World Trade Indicators 2009/10 Myanmar Trade Brief Trade Outcomes 2. Bilaterals.org, 2008; 2009a–c. 3. Tripartite Core Group, July 2008, p. 21. In May of 2008, Cyclone Nargis hit Myanmar and 4. The data in this section are from IMF, 2009, unless created a storm surge that devastated parts of the otherwise noted. country, with estimates of about 140,000 people killed 5. U.S. Department of State, December 2009. and millions left homeless. Economic losses have been 6. EIU, 2008, pp. 24. estimated to be 2.7 percent of GDP.3 The government has since engaged in reconstruction projects but the economy is expected to take a number of years to fully References recover. During 2008, Myanmar’s total trade in goods Asian Development Bank. 2009. Asian Development and services grew by 12.6 percent in nominal U.S. Outlook 2009: Rebalancing Asia’s Growth. Manila: Asian dollar terms.4 Natural gas exports (which make up Development Bank. about 40 percent of total exports) increased in the first Bilaterals.org. April 2009a. ―AANZFTA.‖ . in the second half of 2008, and have since leveled off. ———. August 15, 2009b. ―India-ASEAN FTA: Trade This contributed to an increase in exports of 2.7 in Goods (2009).‖ . percent in 2008 in nominal U.S. dollars. During the fourth quarter of 2008, however, exports more than ———. April 2009c. ―Japan-ASEAN.‖ . quarter of 2007. Other major exports include ———. June 5, 2008. ―India-Burma BIT Approved.‖ agricultural products (18 percent), precious and semi- . precious stones (12 percent), and timber and forest Economist Intelligence Unit (EIU). 2008. Country Profile products (8 percent).5 Most of Myanmar’s exports are 2008: Myanmar. EIU sent to regional neighbors, with 42 percent sent to International Monetary Fund (IMF). August 2009. Thailand. An increase in investment in the natural gas International Financial Statistics (Country Tables). industry in recent years has increased the demand for IMF, Washington, DC. capital goods. This, coupled with the increase in the Tripartite Core Group (Government of the Union of price of oil, has led to the overall increase in the value Myanmar, ASEAN, the United Nations). July 2008. of imports in recent years.6 In nominal U.S. dollar Post Nargis Joint Assessment. terms, imports increased by 26 percent in 2008. U.S. Department of State: Bureau of East Asian and Pacific Affairs. December 2009. ―Background Note: Burma.‖ Washington, DC. Notes 1. Asian Development Bank, 2009, Asian Development Outlook 2009, pp. 246.