Trade in Mae Sot-Myawaddy border up 27 per cent

Monday, 28 December 2009 13:29 Usa Pichai

Chiang Mai (Mizzima) - Border trading in Mae Sot-Myawaddy has increased 27 per cent from 2008 totalling more than 24 billion baht (724 million US$) in 2009.

Samart Loifa, Governor of Tak Province border with Burma, who presided over a press conference on late Thursday together with related authorities, gave a picture of the border trading position.

“This year trading in the Mae Sot-Myawaddy border is more than 24 billion baht (724 million US$) encouraging businessmen to invest more through this border checkpoint,” he said.

Pongthep Buasap, Director of Mae Sot Customs Office said that export from Thailand is rising while import from Burma is coming down because agricultural products from Burma such as rice and onions were being exported more to China. “There is high demand for these products from China, while Thai importers are also waiting for the ASEAN Free Trade agreement which will come into effect in January 2010 with 0% tax for importing these products,” he said, according to a report in the Thai website Manager.

A proposal to set up an ASEAN Free Trade Area (AFTA) was first mooted by the former Thai Prime Minister Anand Panyarachun, which was agreed upon with amendments during the ASEAN Seniors Economic Official Meeting (AEM) in Kuala Lumpur. In January 1992, the ASEAN members signed the Singapore Declaration, which was the creation of AFTA in 15 years. This was a comprehensive programme of tariff reduction in the region, which was to be carried out in phases through the year 2008. This deadline was subsequently moved forward and AFTA became fully operational on 1 January 2003.

The tariff reductions are for sensitive agricultural products and commodities such as rice. ASEAN members have until 2010 to reduce the tariff levels to 0-5%.

Export products on the top of the list are cooking oil, gasoline, second hand cars, Monosodium Glutamate (MSG), instant coffee powder, coffee creamer, and medicine and electronics equipment. Top imported products from Burma to Thailand are seafood, wooden furniture and agricultural products, according to the Mae Sot Customs office.

Early this month, Thailand’s Deputy Commerce Minister Alongkorn Ponlabutr made a trip to Burma, which resulted in two significant outcomes.

The first was that Thailand and Burma have agreed to resume trade relationship and investment by organizing the fifth Thai-Myanmar Joint Trade Committee, or JTC meeting during the first quarter of 2010, where Thailand will serve as the host. The JTC meeting was suspended for over five years. The JTC meeting will also include discussions on various issues such as offering account trade services for the two countries, as well as setting up wholesale and export markets around the Thai-Myanmar border, in order to increase border trade standards.

Secondly, a Thai-Burma Business Council will be set up and will operate with the cooperation of the Thai Chamber of Commerce and Myanmar Industries with three private institutes from Thailand, the Federation of Thai Industries, and the Thai Bankers' Association. The setting up of the council is expected to be completed by the first quarter of next year.