Burma - Trade Barriers Burma - Trade Barriers
In 2012, the government formally terminated a dual exchange rate system, which hindered foreign trade and investment and replaced it with a current exchange rate, a managed float regime that closely reflects the true market rate. Nevertheless, the private financial sector, foreign exchange market and regulatory framework remain significantly underdeveloped and require increased technical support for implementation and long-term strategic planning.
Apart from the exception for trade activities in the Special Economic Zones (SEZ) (two of three, Kyauk Phyu SEZ in Rakhine State and Dawei SEZ in the Tanintharyi region, currently face delays; only the Thilawa SEZ in the Yangon region is on track), trading with Myanmar requires certificates of exporter/importer registration, import permits and licenses by the Ministry of Commerce. International firms have been prohibited from participating in any form of onshore trade until recently when a relaxation was allowed only due to urgent needs in the agricultural and medical sectors.
Meanwhile, when the U.S. government lifted the country program of economic sanctions, including some against certain individuals and selected companies, trade began to increase with a significant rise from $196.9 million in FY 2015-2016 to $690.6 million in FY 2016-2017 and then, $718.38 million in FY 2017-2018. Then, reflecting a downward adjustment of Myanmar’s economic growth (the World Bank projected a decrease from 6.8 percent in 2017-2018 to 6.2 percent in 2018-2019), the value of trade between the United States and Myanmar reduced to $455.72 million in 2018.
Although the Government of Myanmar removed some trade barriers, especially with ASEAN countries, Myanmar’s overall trade has seen fluctuations given the issues in Rakhine, the potential loss of the Generalized Scheme of Preferences by the European Union (EU), and currency volatility (resulting in significant kyat depreciation - approximately 18 percent versus the U.S. dollar) with its negative impact on imports and the inflation rate.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.