30
MAR 2017
FOOD FOCUS THAILAND
SURF
THE AEC
The reform effort of Myanmar to democratic end has been
increasingly recognized from time to time, sinceafterNational
League forDemocracypartyorNLDofAungSanSuuKyiwon
a landslide victory in thegeneral electiononNovember 2015.
afterUSSanctions’ Lift
Latest, United States of America announced to cancel National
Emergency or officially lift all economic sanctions against Myanmar
on October 7, 2016, as well as revise the name lists in Specially
Designated Nationals and Blocked Persons (SDN) List, to keep
Myanmar military related persons out of prohibited lists, except the
personsand juristicpersons that are found toget involvedwithdrug
andweapon trades.Thespecial custom taxprivilegeofGeneralized
Systemof Preferences orGSP, has alsobeen resumedand started
its enforcement again on November 13, 2016 after being revoked
since1989. It isconsideredasaclear signal ofUS target in restoring
its relationshipwithMyanmar ineverydimension, including theboost
of mutual trade and investment cooperation between the two
countries. All of these movements have thus represented as
opportunities forThaientrepreneurs tocomeupwith theappropriated
business strategies forMyanmarmarket and change this challenge
intoanopportunity.
LiftingSanctions inDetails
Limitation inBusinessPractices
USTravel isProhibited
AssetsSeizure
Banning the Import of Jade
andRuby
BanningAll Financial
Transactions
US removed lists of persons/ juristic persons and
Myanmar organizations fromSDN List to increase
businessopportunities toUS companies inmaking
investment inMyanmar.
UScancelsall kindsofassetsseizure, including real
estate and all benefits getting from real estate in
Myanmar.
Cancellation of jade and ruby import banning,
including the jade and ruby ornaments that will be
exported from Myanmar to US both directly and
indirectly through the 3
rd
country. Myanmar can
therefore resume itsornament tradewithUSagain.
Clearingall financial service limitations inMyanmar:
Simply, US financial institutions cangiveany kinds
of financial services inMyanmar without limitation.
SanctionsStrategies
Frozen foods (HS 03)
KeyProduct inThisGroup:
• FrozenCrabs
(HS 0306144090)
• FrozenShrimps
(HS 0306170003)
Leatherworks (HS 42)
KeyProduct inThisGroup:
• SportyBags/ Box and
Other Similar Containers
(HS 42029190)
Clothing (HS 62)
KeyProduct inThisGroup:
• LadySuits andDresses
(HS 6204)
0-7.5
0
0
0-20
4.5
0-28.6
7.1-16
0
0
0
7.1-16
0.2
14.5
1.4
0.2
0.3
0.07
0.07
Myanmar needs to improve food quality and production standard to make
themmeetwith theUSstandards.Moreover,majorityof import tax for frozen
food is normally 0%, therefore, Myanmar might not get much benefits from
theGSP in this product group.
UShas imported thisgroupofproductmainly fromChinawithoutGSPprivilege,
while Myanmar is ranked as 15
th
country from the total import volume.
Therefore, itshould takebenefit from thisvalueadded taxprivilege to increase
its export volume toUS.
Currently, clothing is the commodity listed in Sensitive List of US, which
excludes from theGSP List. However, Myanmar revealed that US is to give
special GSP to Myanmar. The reflection of this fact is more obvious when
Myanmar prepares to set up special economic zone for textile and clothing
industry in respondingwithspecialGSPofUS.Closewatch isneeded for this
issue and furthermovement.
Commodity
LDBDC (%)
MFN (%)
Ratio:Myanmar/US’sTotal
Import VolumeonTheSame
ProductionType from
TheRest of TheWorld
Remarks
Liftingof EconomicSanctions:
UnlockingUS’sTrade and Investment Limitations in
Myanmar
Crucialstepof
Table1
TheTop-ThreeExportedGoods fromMyanmar toUS inDetails
