RESTRICTED  
  
WT/TPR/S/293  
 
21 January 2014  
(14-0322)  Page: 1/86  
Trade Policy Review Body   
 
 TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
MYANMAR  
This report, prepared for the first Trade Policy Re view of Myanmar, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secr etariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Myanmar on its trade policies 
and practices.  Any technical questions arising from this repo rt may be addressed to Masahiro Hayafuji 
(tel: 022 739 5873), Usman Ali Khilji (tel: 022 739 6936) and Zheng Wang (tel: 022 739 5288). 
 Document WT/TPR/G/293 contains the policy statement submitted by Myanmar. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Re view Body on Myanmar. This report was drafted 
in English. WT/TPR/S/293 • Myanmar 
 
- 2 - 
 
  CONTENTS 
SUMMARY ....................................................................................................................... . 7 
1   ECONOMIC ENVIRONMENT .......................................................................................... 9  
1.1   Introduction .............................................................................................................. 9  
1.2   Macroecono mic policies ............................................................................................. 11 
1.2.1   Exchange  rate policy .............................................................................................. 11 
1.2.2   Moneta ry policy ..................................................................................................... 11 
1.2.3   Fiscal policy ......................................................................................................... . 12 
1.2.4   Other structural changes ......................................................................................... 12 
1.3   Balance of payments ................................................................................................. 13 
1.4   Developments in Trade .............................................................................................. 14 
1.4.1   Composit ion of trade .............................................................................................. 14 
1.4.2   Direction of trade ................................................................................................... 14 
1.5   Foreign dire ct invest ment .......................................................................................... 15 
2   TRADE POLICY REGIME: FR AMEWORK AND OB JECTIVES .......................................... 17  
2.1   Introduction ............................................................................................................. 17 
2.2   General Constitutional and legal framework .................................................................. 17 
2.3   Development and admini stration of trade policy ............................................................ 18 
2.3.1   Main trade laws ..................................................................................................... 18 
2.3.2   Agencies involved in  trade policy implementation ....................................................... 18 
2.4   Trade poli cy objectives .............................................................................................. 20 
2.5   Trade agreements  and arrang ements .......................................................................... 20 
2.5.1   Multilate ral agreements .......................................................................................... 20 
2.5.2   Regional agreements .............................................................................................. 22 
2.5.2.1   ASEAN ............................................................................................................... 22 
2.5.2.2   ASEAN RTAs ....................................................................................................... 23 
2.5.2.3   GSTP ................................................................................................................. 24 
2.5.2.4   BIMSTEC ........................................................................................................... 24 
2.5.3   Other tr ading relations ........................................................................................... 24 
2.6   Trade disputes  and consul tations ................................................................................ 25 
2.7   Foreign inve stment regime ........................................................................................ 25 
2.7.1   Overview ..............................................................................................................  25 
2.7.1.1   Sectors restricted or prohibited to fo reign inve stors.................................................. 26 
2.7.1.2   Objectives .......................................................................................................... 28 
2.7.1.3   Equity restrictions and minimum capita l requirement................................................ 28 
2.7.1.4   Tax an d incentives .............................................................................................. 28 
2.7.1.5   Land  lease terms ................................................................................................ 30 
2.7.2   Procedures ........................................................................................................... 30 
2.7.3   BIAs  and DTAs ...................................................................................................... 31 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 32  WT/TPR/S/293 • Myanmar 
 
- 3 - 
 
  3.1   Measures Direct ly Affectin g Imports ............................................................................ 32 
3.1.1   Import Procedures and Customs Valuation ................................................................. 32 
3.1.2   Tariffs ............................................................................................................... ... 33 
3.1.2.1   Structure ...........................................................................................................  33 
3.1.2.2   Tari ff bindings .................................................................................................... 33 
3.1.2.3   Applied MFN tariff ............................................................................................... 33 
3.1.3   Other charge s affecting imports ............................................................................... 36 
3.1.3.1   Preferential tariffs ............................................................................................... 36 
3.1.4   Import licensing, pr ohibitions and restrictions ............................................................ 37 
3.1.4.1   Import licensing .................................................................................................. 37 
3.1.4.2   Import prohibitions ............................................................................................. 38 
3.1.4.3   Import  restrictions .............................................................................................. 38 
3.1.4.4   Tariff quotas and quantitative re strictions ............................................................... 38 
3.1.5   Duty  drawback ...................................................................................................... 38 
3.1.6   Rules of origin .......................................................................................................  39 
3.1.7   Continge ncy measures ........................................................................................... 39 
3.1.8   Governme nt procurement ....................................................................................... 39 
3.1.9   State trading ......................................................................................................... 40 
3.1.10   Standards and othe r technical re quirements ............................................................ 40 
3.1.11   Sanitary and ph ytosanitary measures ..................................................................... 41 
3.2   Measures Directly Affecting Exports ............................................................................. 42 
3.2.1   Export procedures .................................................................................................. 42 
3.2.2   Expo rt taxes ......................................................................................................... 42 
3.2.3   Export prohib itions and licensing .............................................................................. 43 
3.2.4   Export promotion ................................................................................................... 43 
3.2.4.1   Duty and tax co ncessions, an d subsidies ................................................................ 43 
3.2.4.2   Special economic zones ....................................................................................... 44 
3.2.4.3   Export finance, insurance, and guarantees .............................................................. 44 
3.2.4.4   Export promotion and marketing assistance ............................................................ 44 
3.2.5   Export operations of stat e enterprises, or  state tr ading ............................................... 44 
3.3   Measures Affectin g Production and Trade ..................................................................... 45 
3.3.1   Taxation and incentives .......................................................................................... 45 
3.3.1.1   Taxation ............................................................................................................  45 
3.3.1.1.1   Overview ........................................................................................................ 45 
3.3.1.1.2   Commercial tax and exci se tax ........................................................................... 45 
3.3.1.1.3   Income tax ...................................................................................................... 46 
3.3.1.2   Incentiv es and support ........................................................................................ 47 
3.3.2   Legal framew ork for bu sinesse s ............................................................................... 47 
3.3.3   State-owned economic enterprises (other than state-trading companies) and 
privatization .................................................................................................................... 48 
3.3.3.1   State-owned econ omic enterpri ses (S EEs) .............................................................. 48 WT/TPR/S/293 • Myanmar 
 
- 4 - 
 
  3.3.3.2   Privatization .......................................................................................................  50 
3.3.4   Small and medium-sized en terprises (SMEs) and assistance ......................................... 50 
3.3.5   Competition policy  and regulato ry issues ................................................................... 51 
3.3.5.1   Competition policy .............................................................................................. 51 
3.3.5.2   Pric e contro ls ..................................................................................................... 51 
3.3.6   Intellectual property rights ...................................................................................... 51 
3.3.6.1   Copyright and related rights ................................................................................. 52 
3.3.6.2   Patents .............................................................................................................. 52 
3.3.6.3   Trade marks ....................................................................................................... 52 
3.3.6.4   Enforcement ....................................................................................................... 52 
4   TRADE POLICIES BY SECTOR ..................................................................................... 53  
4.1   Agriculture ............................................................................................................. . 53 
4.1.1   Features ............................................................................................................... 53 
4.1.2   Policy objectives and regulatory  framework ............................................................... 53 
4.1.3   Fo restry  .............................................................................................................. . 56 
4.2   Mining, Energy, and Utilities ....................................................................................... 56 
4.2.1   Features ............................................................................................................... 56 
4.2.2   Key subsectors ...................................................................................................... 58 
4.2.2.1   Metal, precio us stones, and coal ............................................................................ 58 
4.2.2.2   Petroleum and natural gas .................................................................................... 59 
4.2.2.3   Electric utilities .................................................................................................. . 60 
4.3   Manuf acturi ng .......................................................................................................... 61 
4.3.1   Features ............................................................................................................... 61 
4.3.2   Policy objectives for the sector ................................................................................. 61 
4.3.3   Textiles and clothing .............................................................................................. 61 
4.4   Services ................................................................................................................ .. 62 
4.4.1   Features ............................................................................................................... 62 
4.4.2   Banking, finance and insurance ................................................................................ 63 
4.4.2.1   Banking .............................................................................................................  63 
4.4.2.2   Insura nce .......................................................................................................... 65 
4.4.3   Telecommunications ............................................................................................... 66 
4.4.3.1   Regulatory st ructure and measures ....................................................................... 66 
4.4.4   Transport .............................................................................................................  67 
4.4.4.1   Air transport services ........................................................................................... 67 
4.4.4.2   Maritime transport se rvices .................................................................................. 68 
4.4.5   Tourism ................................................................................................................ 70 
REFERENCES .................................................................................................................. 7 2 
5   APPENDIX  TABLES .................................................................................................... 73  
6   ANNEX 1: AID FOR TRADE AND TRADE-RELATED TECHNICAL ASSISTANCE ............... 79  
6.1   Overview ................................................................................................................. 79 WT/TPR/S/293 • Myanmar 
 
- 5 - 
 
  6.2   Trade in Myanmar's Na tional Develo pment Plan ............................................................ 79 
6.3   Financing of Myanmar's developm ent strategy, includ ing Aid for Trade ............................. 79 
6.3.1   WTO trade-relate d technical a ssistan ce ..................................................................... 83 
6.3.1.1   Evaluation of WTO technical assistance to date ........................................................ 83 
6.3.1.2   Assessment of technical assi stance and capacity  building needs ................................. 84 
 
CHARTS 
 
Chart 1.1 Product composition of  merchandise tr ade, 2011/ 12 ............................................... 14 
Chart 1.2 Direction of me rchandise trad e, 2011/ 12 ............................................................... 15 
Chart 1.3 Approved foreign inve stment by main  sector , 2005- 12 ............................................ 15 
Chart 1.4 Approved foreign investment by origin, 2005/06-2011/12 ........................................ 16 
Chart 3.1 Distribution of  MFN tariff ra tes, 2013 .................................................................... 34 
Chart 3.2 Average applied MFN tari ff rates, by HS  sectio n, 2013 ............................................. 36 
Chart 3.3 Fund s approval .................................................................................................. 39 
Chart 4.1 Myanmar's main agri cultural export s, 2007-12 ....................................................... 53 
Chart 4.2 Production and expo rts of natura l gas, 2006-11 ..................................................... 57 
Chart 4.3 Imports of petr oleum produc ts, 2008- 13 ............................................................... 57 
Chart 4.4 Generation and consumption of electricity in Myanmar, 2007-13 ............................... 57 
Chart 4.5 Myanmar's exports of clothing, 2006-12 ................................................................ 62 
Chart 6.1 Total aid-for-trade commitm ents and disburse ments, 2005-11  ................................. 81 
 
TABLES 
 
Table 1.1 Selected economic indicators, 2009-12 ................................................................... 9  
Table 1.2 Basic economic  indicators , 2009- 13 ...................................................................... 10 
Table 1.3 Balance of payments, 2009-13 ............................................................................. 13 
Table 2.1 Co mmissions ..................................................................................................... 19 
Table 2.2 WTO notificati ons, 31 Octo ber 2013  ...................................................................... 21 
Table 2.3 RTAs ................................................................................................................  23 
Table 2.4 Sectors reserved  for Myanmar citizens .................................................................. 26 
Table 2.5 FDI prohibitions/restrictions ................................................................................. 27 
Table 2.6 Tax ................................................................................................................. . 29 
Table 2.7 BIAS and DTAS .................................................................................................. 31 
Table 3.1 Tariff structure of Myanmar, 1996, 20 08, and 2013 ................................................ 34 
Table 3.2 Tariff  summary , 2013  ......................................................................................... 35 
Table 3.3 Preferenti al tariff s, 2013  ..................................................................................... 36 
Table 3.4 Procurement by the Ministry of Co nstruction, Myanmar, 2006- 12 (Kyats million) ......... 40 
Table 3.5 Export procedure ............................................................................................... 42 
Table 3.6 Export tax and cess ............................................................................................ 43 
Table 3.7 Expo rt permit .................................................................................................... 43 WT/TPR/S/293 • Myanmar 
 
- 6 - 
 
  Table 3.8 Selected taxes and their revenues, 2005-12 ........................................................... 45 
Table 3.9 Commercial tax and excise tax in Myanmar ............................................................ 46 
Table 3.10 Capital gains tax fo r the oil and gas sector ........................................................... 47 
Table 3.11 Legislat ion on business...................................................................................... 47 
Table 3.12 State-owned economic ente rprises in Myanma r, October 2013 ................................ 49 
Table 3.13 The share of public/private  sectors in GDP (end-March  2012)  ................................. 50 
Table 3.14 Sectoral distribution of  SMEs in Myanma r, July  2012 ............................................. 51 
Table 4.1 Performance of th e banking sect or, 2010- 13 .......................................................... 64 
Table 4.2 The telecommunications sector, 2007-12 ............................................................... 66 
Table 6.1 Total net ODA disbursement, 2002-11 ................................................................... 80 
Table 6.2 Overview of aid-for-tr ade programmes of main donors ............................................ 81 
Table 6.3 WTO technical assistance activities, 1995–2013 (end-July) ....................................... 83 
Table 6.4 Selected WTO acti vities by topic (including  via E-learning), 1995–2013 
(end-July) ....................................................................................................................... 84 
Table 6.5 Main challenges/constraints and techni cal assistance needs of various ministries ......... 85 
 
APPENDIX TABLES 
 
Table A2. 1 Major trade-related legislation ........................................................................... 73 
Table A2. 2 Main trade-related ministries and agencies .......................................................... 75 
Table A3. 1 Tariff lines with MFN applied ra tes that exceed thei r bound rate s, 2013 ................... 76 
Table A3. 2 Domestically produced goods exempt from  commercia l tax ................................... 77 WT/TPR/S/293 • Myanmar 
 
- 7 - 
 
  SUMMARY 
1. Reforms since 2010 have paved the way for Myanmar's reintegration into the international 
community, after having been isolated from a larg e part of the global economy for many years. 
Consequently, real GDP growth has been rising; it was estimated at 5.9% in 2011/12 and 6.4% in 
2012/13. Myanmar's per capita GDP was around US$900 at the end of March 2012.   
2. Myanmar has embarked on a series of reforms in its macroeconomic policies. On 
1 April 2012, the Central Bank of Myanmar replaced a pegged exchange rate (to the SDR) with a 
managed floating exchange rate for the national currency. Prior to the reform, Myanmar had a 
multiple exchange rate regime comprising both the official exchange rate and the informal parallel market exchange rates. Previously, monetary policy in Myanmar was determined by the financing needs of the fiscal deficit, which resulted in high inflation. With a view to providing greater 
operational autonomy to the Central Bank and improving the monetary transmission mechanism, 
the new Central Bank Law was enacted on 11 July 2013. The new law provides for Central Bank autonomy, enabling it to function independently of the Ministry of Finance.   
3. Myanmar's merchandise exports accounted for about 16% of GDP in 2011/12; main exports 
included gas, jade, wood and wood products, an d fish and crustaceans. Its merchandise imports 
also accounted for about 16% of GDP; main imports included petroleum products, and iron and 
steel and articles thereof. Myanmar's main export destinations in 2011/12 were Thailand, China, 
and India, and its main import suppliers were China, Singapore, and Thailand. 
4. Myanmar has large potential for growth, with a young labour force, abundant natural 
resources, and proximity to a fast-growing dynamic economic region. However, significant 
impediments remain to modernizing Myanmar's ec onomy and meeting the Government's goal of 
"fostering inclusive broad-based growth and povert y reduction". These include the lack of capacity 
and infrastructure. 
5. Myanmar is an original member of the WTO, and this is its first Trade Policy Review. 
Myanmar considers that the multilateral trading system can bring a wide range of opportunities for Myanmar's exports and overcome its supply-side co nstraints. At the same time, Myanmar's trade 
policy is strongly influenced by its participation in ASEAN, and ASEAN's free-trade agreements with 
third countries. Myanmar expects to benefit from GSP schemes reinstated by the EU and Norway. 
Myanmar has not been party to any dispute settlement proceeding at the WTO, as complainant, respondent, or third party. 
6. In the context of economic reforms, the Gove rnment has adopted measures to open up the 
economy and has been revising trade-related legislation. Myanmar is preparing a competition law, a Consumer Protection Law, and comprehensive IPR legislation, among others. Recognizing that 
the economy needs foreign capital and technology for continuous and sustainable development, 
the Government promulgated the new Foreign Invest ment Law in 2012, which generally allows FDI 
except in activities that are restricted or prohibited. Under the Law, tax incentives are granted on 
profits accrued from exports, and foreign companie s must employ a local workforce on the basis of 
increasing the share of local employees over time.   
7. Myanmar has bound 18.5% of its tariff lines at the HS eight-digit level. All agricultural lines 
(WTO definition) are bound, compared with only 5. 7% of non-agricultural lines. Final bound tariffs 
range from 0% (e.g. electrical machinery and transport equipment) to 550% (e.g. chemicals, 
beverages, and tobacco, and cereals and preparat ions). The average applied MFN tariff was 5.5% 
in 2013. Myanmar grants at least MFN treatment to all its trading partners. Myanmar has not yet 
applied the provisions of the WTO Customs Valuation Agreement. It has no anti-dumping, 
countervailing, safeguards or subsidies legislation in Myanmar. 
8. In 2012, Myanmar began to reform its non-automatic import licensing regime. Previously, 
importers of all merchandise required a non-automatic import licence before import, and it took 
several weeks to obtain an import licence. In April 2013, import licensing requirements for 166 products (over 1,928 tariff lines at the HS eight-digit level) were abolished. Myanmar does not impose tariff-rate quotas. Myanmar has not made a notification regarding its state-trading 
activities to the WTO. WT/TPR/S/293 • Myanmar 
 
- 8 - 
 
  9. Myanmar is neither party to nor an observer of the WTO Agreement on Government 
Procurement. 
10. Exporters of most products require an export licence. Recently, Myanmar began 
restructuring its export licensing regime, and fr om 2013, 152 types of goods no longer require 
export licences. Myanmar also reformed its ex port tax regime in 2011. Prior to the reform, 
exporters had to pay commercial tax at a rate of 8%, and income tax at a rate of 2% before exporting goods. Currently, commercial tax is levied on exports of only five commodities (gem, 
gas, crude oil, teak, and timber). 
11. Tax accounts for about 90% of total government revenue, and the largest source is 
commercial tax. However, 70 items are exempt from commercial tax if produced domestically, while imports are subject to a 5% tax, indicating different treatment for domestically produced and 
imported goods.  
12. According to the authorities, the private sector's share in GDP was about 91% in 2011/12. 
Currently, there are 41 state-owned economic enterprises.   
13. Agriculture accounted for about 30% of GDP in 2012/13. Labour productivity in agriculture is 
less than one third of the level in the rest of th e economy, probably due to the high labour/low 
capital structure of the sector with small farms and few machines. Main crops include rice, maize, 
pulses and beans, sugarcane, and cotton. Myan mar is a net food exporter. Myanmar's simple 
applied MFN tariffs on agricultural products (H S01-24) and industrial products (HS25-97) were 
9.0% and 4.8%, respectively, in 2013.  
14. Most of the natural gas Myanmar produces is exported to China. Myanmar does not export 
oil or oil products. Coal exports have been less than 10% of production. The manufacturing sector, 
which accounts for about 20% of GDP, is growing but still relatively small compared with agriculture and services. 
15. Services account for about 38% of Myanmar's GD P. The main services activities included 
trade and transport/communications. Myanmar is a net importer of services. In the context of the General Agreement on Trade in Services, Myanmar made specific commitments in tourism and 
travel-related services, and transport services; it  has not made horizontal commitments or listed 
any MFN exemptions. In general, services are characterized by state involvement through state-owned companies and restrictions on private-sector and foreign involvement. While FDI is not entirely prohibited, no foreign companies have been conducting banking or insurance 
businesses (except for representative offices of foreign banks). The Government is in the process 
of formally issuing two new nationwide basic telecommunications licences; the two licensees are to involve foreign companies. No exclusive rights are accorded to any company in civil aviation or 
maritime transport. Foreign direct investment, with foreign-equity participation up to 100%, is 
allowed in the hotels and related businesses.  
 WT/TPR/S/293 • Myanmar 
 
- 9 - 
 
  1  ECONOMIC ENVIRONMENT 
1.1  Introduction 1.1.  Myanmar is a least developed country. According to the IMF, annual per capita income was 
around US$900 in fiscal year 2011/12 (1 April 2011 to 31 March 2012)
1, and approximately 25% 
of its population live below the national poverty line (Table 1.1). Nonetheless, various economic data from different government sources, as well as those from different international organizations 
v a r y  s i g n i f i c a n t l y ,  m a k i n g  t h e m  d i f f i c u l t  t o  r e c o n c i l e ;  c o m p a r i s o n  o f  d a t a  o v e r  y e a r s  m a y  b e  
difficult, partly due to the existence of multiple exchange rates (section 1.2.1). Data provided by 
the authorities indicate that in 2012/13, services  accounted for about 37% of GDP followed by 
agriculture (30%) (Table 1.2). In 2011/12 (the latest year for which data were available), 
Myanmar's main export was fuels (mainly gas), which accounted for nearly 40% of total exports  
Table 1.1 Selected economic indicators, 2009-12
 
  2009/10  2010/11 2011/12  
A. Income and growth (%age change, unless otherwise 
indicated)     
Real GDP (IMF staff working estimates) 5.1 5.3 5.9 
GDP per capita at current ma rket price (US$) 587 742 900 
Exports of goods  4.7 13.9 16.6 
Imports of goods  1.9  15.8 27.5 
B. Prices and interest rates     
Inflation (CPI, %age change, period average) 2.2  8.2 2.8 
Lending rate (%) 17.0 17.0 13.0 
Deposit rate (%) 12.0 12.0 8.0-10.0 
C. Government finance (% of GDP)     
Revenue 10.7 11.4 12.0 
   Tax revenue 3.1 3.3 3.9 
Expenditure 15.6 16.9 16.6 
Overall balance -4.9 -5.4 -4.6 
Total public debt 55 50 50 
      Domestic public debt 19 21 22 
D. Memorandum items    
Current GDP (K billion) 34,958 39,847 43,368 
Current GDP (US$ billion) 38.1 49.6 56.2 
K/US$ (fiscal year average) 1,004 861 822 
Population (million) 59.1 59.8 60.4 
 
Note: Myanmar's fiscal year is from 1 April to 30 March.  Source: IMF (2013), Myanmar - 2013 Article IV Consultation and First Review under the Staff-Monitored 
Programme, IMF Country Report No. 13/250. Viewed at: http://www.imf.org/external/pubs/ft/scr/2013/cr13250.pdf  [25/11/2013]. 
1.2.  Myanmar has run persistent fiscal deficits for a few years, which the Government has 
financed by monetizing the debt. Recently, public debt as a percentage of GDP declined to about 
50% of GDP as the Government cleared its external debt arrears. 
1.3.  While various economic sanctions effectively isolated Myanmar from a large part of the rest 
of the world, the reform in the Government  since 2010 has paved the way for Myanmar's 
reintegration into the global economy. According to IMF data and the Myanmar authorities' estimates, real GDP growth has been rising and was estimated at 5.9% in 2011/12; it is estimated 
to be 6.4% in 2012/13. According to the IMF, inflation was around 2.8% in 2011/12; it is 
estimated to remain the same in 2012/13.  
                                               
1 IMF (2013). The national poverty line is defined as those living on less than US$1.25/per day.  WT/TPR/S/293 • Myanmar 
 
- 10 - 
 
  Table 1.2 Basic economic indicators, 2009-13 
  2009/10 2010/11 2011/12 2012/13 
GDP by economic activity, at constant prices (%age change)
Agriculture 5.6 4.7 -0.7 2.0 
Mining and quarrying 14.7 10.7 12.5 -6.7 
Manufacture 18.9 20.5 10.8 8.4 
Electricity, gas and water 10.0 15.4 4.0 8.2 
Construction 13.8 12.5 9.0 9.3 
Services 12.1 9.5 8.6 12.6 
 Trade 9.9 10.3 4.6 5.0 
 Transport and communications 16.2 7.3 13.2 22.9 
 Finance  30.8 37.9 106.7 40.0 
 Public administration 7.3 15.9 8.0 14.3 
 Other 11.5 12.5 15.3 14.9 
Share of GDP by economic activity, current prices (%)
Agriculture 38.1 36.9 32.5 30.5 
Mining and quarrying 1.0 0.9 5.8 6.1 
Manufacture 18.1 19.9 19.7 19.9 
Electricity, gas and water 1.0 1.1 1.0 1.2 
Construction 4.5 4.6 4.7 4.9 
Services 37.4 36.7 36.2 37.5 
 Trade 20.3 20.0 19.3 19.4 
 Transport and communications 13.5 12.4 12.8 13.3 
 Finance  0.1 0.1 0.1 0.2 
 Public adminstration 1.6 2.3 2.1 2.6 
 Other 1.8 1.9 1.9 2.1 
 
Source: Asian Development Bank online information. Viewed at: 
http://www.adb.org/sites/default/files/ki/2013/pdf/MYA.pdf . 
1.4.  Myanmar has large potential for growth, with a young labour force, abundant natural 
resources, and proximity to a fast-growing dynamic economic region. However, significant impediments remain to modernizing Myanmar's ec onomy and meeting the Government's goal of 
"fostering inclusive broad-based growth and povert y reduction"; these include the lack of capacity 
and infrastructure. 
1.5.  The authorities realize the need for reform and have embarked on a structural reform 
programme, prioritizing: 
 sustained industrial and agricultural development to attain poverty alleviation and rural 
development; 
 equitable sharing of resources among regi ons and states, while promoting local and 
foreign investment; 
 implementation of development programmes through community-driven participatory 
approaches to improve education, health, and overall living standards. 
1.6.  The authorities believe that full economic integration with ASEAN, as part of the 
implementation of the ASEAN Economic Community, will go a long way in achieving the above goals. Furthermore, they believe that macroeconomi c stability is imperative to achieve the goals. 
As such, the reform of the monetary and exchange rate policies has been among the 
Government's main priorities. The authorities consider the lack of implementing capacity to be the main risk to implementing the reform programme.  WT/TPR/S/293 • Myanmar 
 
- 11 - 
 
  1.2  Macroeconomic policies 
1.2.1  Exchange rate policy 1.7.  Since 1977, the kyat had been pegged to the SDR resulting in an extremely overvalued 
currency. The peg was used essentially to allocate foreign currency that was derived from public 
export earnings to fund public import payments. Furthermore the "export first" policy coupled with 
other exchange restrictions, such as a 100% margin requirement for letters of credit, resulted in private-sector import and export transactions being conducted in parallel markets at multiple 
exchange rates, which were considerably lower than the official rate.
2 The exchange restrictions 
and multiple exchange rates increased transact ion costs, discouraged FDI, and were trade 
distortionary. 
1.8.  In April 2012, the peg was replaced by a managed float. Currently the reference exchange 
rate is determined by a daily auction mechanism and the determined rate is allowed to fluctuate 
within a daily band of 0.8%. In addition, certain exchange restrictions were lifted, such as the requirement to use export earnings to fund imports. Private commercial banks were issued 
licences to engage in international transactions and open foreign currency accounts. As a result of 
these measures, the reference and informal markets rates have converged and now move broadly together. 
1.9.  The Foreign Exchange Management Law, which entered into force on 10 August 2012, lifted 
all restrictions on current payments and transfers abroad. This included all services transactions being permitted through the Swift system as well as  general restrictions on the holding and use of 
foreign exchange, based on implementing regulations to be issued.  
1.10.  It would appear that several foreign exchange markets continue to operate, where multiple 
exchange rates are used.
3 Unifying these would further increase external competitiveness and 
improve the business environment. On 5 August  2013, the Yangon Interbank Foreign Exchange 
Market was established to unify the multiple exchange rates. 
1.2.2  Monetary policy 1.11.  In the past, monetary policy in Myanma r was determined by the financing needs of the 
fiscal deficit, which resulted in high inflation. With a view to providing greater operational 
autonomy to the central bank and improving th e monetary transmission mechanism, the new 
Central Bank Law was enacted on 11 July 2013. The new law provides for Central Bank autonomy, enabling it to function independently of the Minist ry of Finance. Additionally, the Central Bank has 
the mandate to set and implement monetary policy. Furthermore, under the new law, the Central 
Bank serves as the short-term creditor to priv ate banks and as the supervisory body responsible 
for the monetary market and foreign exchange market. The Central Bank is also allowed to grant, 
revoke or reject licences for monetary organizations, for the stability of the monetary market. 
Currently, the Central Bank is in the process of drafting the implementing rules and regulations pertaining to the new law.  
1.12.  Official foreign exchange reserves held at state banks have been identified and their 
transfer to the Central Bank has started. The Central Bank has also started acquiring foreign exchange through the daily foreign exchange auctions. As a result, foreign exchange reserves in March 2012 were over US$7 billion (nearly 10 months of import coverage), compared with 
approximately US$2 billion in 2007/08 (3 months of import coverage). 
1.13.  The main objective of monetary policy in Myanmar is price stability. In this regard the 
Central Bank has started targeting reserve money so as to control liquidity in the economy. To 
achieve its reserve money target, the Central Bank conducts credit and deposit auctions twice a 
month. Additionally, the Central Bank sets ma ximum lending, minimum deposit and the Central 
Bank rates. Since 2011/12, the rates have been reviewed on a quarterly basis. The current Central 
Bank rate is 10% while the minimum deposit and maximum lending rates are 8% and 13%, 
respectively.  
                                               
2 For example the official rate in 2009/10 was 5.7 K/US$, while the parallel rate was 1,004 K/US$. 
3 IMF (2013). WT/TPR/S/293 • Myanmar 
 
- 12 - 
 
  1.14.  In order to encourage private sector activity, more flexibility was permitted with respect to 
lending and deposit rates. These may now fluctuate. Restrictions on eligible collateral have also been eased; this now includes landed property, gold and gold ornaments, machinery, agricultural commodities, fixed deposits, government securiti es, and personal and organization guarantees. 
Private-sector credit expansion was about 38% in 2011/12 and approximately 55% in 2012/13.  
1.2.3  Fiscal policy 1.15.  The 2012/13 Budget was debated in, and appr oved by, the Parliament for the first time. 
Salient features of the budget were: 
 state-owned enterprises were required to self -finance 78% of their working capital. This 
has since changed and profit-making state- owned enterprises are now required to 
self-finance all their working capital, while the Government will cover 20% of the 
working capital of loss-making enterprises; 
 withholding tax on imports has been abolished; 
 tax on key agricultural products has been abolished (Section 3 and Section 4); 
 commercial tax on domestic sales was simplified (Section 3); 
 public-sector employees are now required to pay income tax; 
 progressivity of the income tax has been increased. 
1.16.  Myanmar has a very low tax-to-GDP ratio, which has resulted in persistent fiscal deficits. 
The Government stated that its goal of broad-ba sed growth and poverty alleviation would require 
increased spending on, inter alia,  education, health, and infrastructure, which in turn would require 
fiscal space. The authorities are focused on increasing the tax-to-GDP ratio as well as modernizing 
the overall tax administration system and proce sses. In this respect, the authorities have 
committed to setting up a large-taxpayer office (LTO) by April 2014. The authorities envisage that the LTO would introduce taxpayer self-assessment and issue taxpayer identification numbers, and 
serve as a model for the creation of medium-taxpayer offices and ultimately for the reform of 
small-taxpayer compliance methods. Going forward the authorities plan to transform the current 
consumption tax to either a value-added tax or a general sales tax, whichever is more suited to 
the economy. Furthermore, the Government plans to introduce a special commodities tax on 
excisable goods. These taxes are planned to be implemented by 2018/19.  
1.2.4  Other structural changes  1.17.  The Government's growth strategy is based on private-sector development and raising 
agricultural productivity. In this respect the restructuring of special economic zones (Section 3) 
coupled with the new FDI law (Section 2) is expe cted to drive private-sector-led growth through 
increased investment in infrastructure and in labour-intensive export industries. Sectors and 
industries identified by the Government for investment are roads, electricity generation, ports, 
dams, and telecommunications.  
1.18.  The authorities believe that agriculture is key to growth and to poverty alleviation. In this 
regard recent land reforms (Section 4) granted land titles or long-term leases to farmers, which is 
expected to increase productivity as well as more participation in the sector (only 18% of the country's land area is currently under cultivation), and create higher employment and wages. Furthermore, land ownership would allow farmers to use the land as collateral for bank loans. It 
would appear that taxes on certain key agri cultural products were recently abolished.
4 
                                               
4 Previously all exports were subject to income tax (2%) and commercial tax (8%), now only 
five products are subject to these taxes, while they ha ve been abolished for all ot hers including agricultural 
products. WT/TPR/S/293 • Myanmar 
 
- 13 - 
 
  1.3  Balance of payments 
1.19.  According to data provided by the Central Bank, Myanmar's current account changed from a 
surplus of nearly US$1.5 billion (approximately 4% of GDP) in 2009/10 to a deficit of over 
US$1.3 billion (2.4% of GDP) in 2011/12 (Table 1.3). The reversal in the surplus was due to the 
trade surplus shrinking on account of rising imports. Imports have grown along with the demand 
for raw materials and capital goods as Myanmar op ens up and strives for industrial development. 
The services deficit was over 4% of GDP in 2011/12.  Despite services receipts more than doubling 
due to increased travel and tourism receipts, serv ices payments showed a much greater increase. 
The increase was due mainly to higher payments to joint-venture firms in the oil and gas sector. 
1.20.  Non-monetary capital movements increased considerably on account of significantly higher 
levels of foreign direct investment (FDI) in the power and oil and gas sectors. The non-monetary 
surplus more than offset the current account deficit, consequently the overall balance of payments 
showed a surplus of over US$1 billion in 2011/12, although the explanation of relatively large 
errors and omission compared to the si ze of the balance was not available. 
Table 1.3 Balance of payments, 2009-13 
(US$ million) 
  2009/10 2010/11 2011/12a 2012/13a 
Current account, excluding grants 1,470.4 876.5 -1,340.0 -982.3 
Official grants 85.0 64.1 41.3 28.3 
Trade balance 3,019.0 2,684.0 524.9 935.6 
   Exports 6,575.5 8,360.2 8,488.8 8748.9 
   Imports 3,556.5 5,676.2 7,963.9 7813.3 
Services, net -1,770.5 -1,974.2 -2,313.5 -2,420.5 
   Receipts 464.1 713.9 1,077.9 1,470.6 
      Non-factor services 330.5 589.8 783.0 1,232.2 
          Transportation and insurance 149.6 177.7 206.6 228.1 
          Travel 68.5 285.8 356.6 621.8 
          Government services 33.3 31.1 33.8 46.0 
          Other 79.1 95.2 186.0 336.3 
     Factor services (investment income) 133.6 124.1 294.9 238.4 
  Payments 2,234.6 2,688.1 3,391.4 3,891.1 
      Non-factor services 566.6 853.1 1,274.5 1,284.9 
          Transportation and insurance 357.3 532.8 739.8 741.0 
          Travel 45.7 72.9 146.3 220.6 
          Government services 35.8 27.1 24.4 24.5 
          Other 127.8 220.3 364.0 298.8 
     Factor services 1,668.0 1,835.0 2,116.9 2,606.2 
Private transfers, net 221.9 166.7 448.6 502.6 
Non-monetary capital movements 1,415.2 2,630.0 2,544.3 2,080.7 
     Long-term, net 419.5 360.4 484.0 925.8 
          Disbursements 563.9 499.5 604.6 1,084.8 
          Repayments -144.4 -139.1 -120.6 -159.0 
     Foreign direct investment 963.3 2,248.5 2,057.3 1,152.3 
     Other capital, net 32.4 21.1 3.0 2.6 
Errors and omissions -1,787.2 -2,782.5 -140.5 -943.2 
Overall balance 1,183.4 788.1 1,105.1 183.6 
Current GDP (US$ billion) 38.1 49.6 56.2 .. 
 
.. Not available. a Provisional.  Source: Data provided by the Central Bank of Myanmar, and IMF (2013); Myanmar - 2013 Article IV 
Consultation and First Review under the Sta ff-Monitored Programme,  IMF Country Report 
No. 13/250. WT/TPR/S/293 • Myanmar 
 
- 14 - 
 
  1.4  Developments in Trade  
1.21.  Trade data based on HS codes or a time series from the UN Comtrade database are not 
available.5 Based on data provided by the Central Stat istical Organization of Myanmar, in 2011/12, 
merchandise exports as a share of GDP were nearly 16%. Merchandise imports as a share of GDP 
rose from about 11% in 2009/10 to approximately 16% in 2011/12.6 
1.22.  The deficit in services trade declined from about 4.7% of GDP in 2009/10 to around 4% of 
GDP in 2011/12. 
1.4.1  Composition of trade 
1.23.  Data provided by the authorities indica te that although the share of natural gas in 
merchandise exports has declined slightly over the past few years, it remains Myanmar’s most important export item. Other major exports in 2011/12 were jade, wood and wood products and 
fish and crustaceans. Although in recent year s, exports of these commodities have grown in 
absolute terms, their share of total exports has been falling (Chart 1.1). On the other hand the share of agricultural exports such as pulses, maize, rice, and rubber has been rising. 
1.24.  Myanmar's major merchandise imports in 2011/12 were petroleum products, and iron and 
steel and articles thereof (Chart 1.1). The largest import categories relate to fuel, capital goods, and industrial raw materials, and their increase may reflect the opening up and industrial growth 
of the Myanmar economy. Within imports, there is a large category of "other"; due to data 
limitations it is not clear what constitutes "other".  
Chart 1.1 Product composition of merchandise trade, 2011/12 
Clothing
5.4%
Wood & 
products thereof
6.7%Maize
2.4%Pulses
12.3%Exports
Total:  US$9.1 billion Total:  US$9.0 billionRice
3.3%
Plastics & 
articles thereof
2.7%
Motor vehicles & 
parts thereof
8.5%Petroleum products
22.2%
Palm oil
4.3%
Iron & steel,
articles thereof
11.3%Imports
Other
13.1%
Ship, boats &
parts thereof
3.4%Other
30.9%
Chemicalsa
3.6%
Machinery;
mechanical appliances
10.9%Rubber
3.4%
Fish & crustaceans
6.5%
Jade
8.5%
Gas
38.3%
 
 
a Including fertilizers and pharmaceutical products. 
 Source: WTO Secretariat calculations, based on data provided by the authorities. 
1.4.2  Direction of trade 
1.25.  Myanmar's main export destinations in 2011/ 12 were Thailand, China, and India. Over the 
past few years, Thailand's share has declined slightly, while that of China has risen. The share of 
India has remained unchanged. ASEAN countries accounted for over 50% of Myanmar's exports in 2011/12.  
                                               
5 Only 2010 data were available in the UN Comtrade database.  
6 According to IMF (2013), merchandise imports as a share of GDP were 27.5% (Table 1.1). WT/TPR/S/293 • Myanmar 
 
- 15 - 
 
  1.26.  Data provided by the authorities indicate  that Myanmar's main import suppliers in 2011/12 
were China, Singapore, and Thailand (Chart 1.2 ); the share of imports from Singapore and China 
a p p e a r  t o  h a v e  b e e n  r i s i n g ,  w h i l e  t h e  s h a r e s  f r o m  T h a i l a n d  a n d  r e s t  o f  A s i a  h a v e  s h o w n  a  downward trend. Over 40% of Myanmar' s imports were from ASEAN countries. 
Chart 1.2 Direction of merchandise trade, 2011/12 
Singapore
5.9%Japan  3.5%
India
11.4%Thailand
41.9%Exports
Total:  US$9.1 billion Total:  US$9.0 billionChina
24.2%Singapore
27.8%Korea, Rep. of
5.0%Thailand
7.6%
China
30.8%Malaysia
3.4%
Japan
5.6%United States
2.9%Imports
Other
9.0%
Indonesia
4.8%Other
8.4%
India
3.6%Malaysia  1.7%
Korea, Rep. of  2.4%
 
 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
Chart 1.3 Approved foreign investment by main sector, 2005-12 
US$ million 
02,0004,0006,0008,00010,00012,00014,00016,00018,00020,000
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12Mining
Oil and gasPower
Other
 
Source: Data provided by the authorities of Myanmar. 
1.5  Foreign direct investment 
1.27.  Since 2005/06, FDI inflows have been volatile. In 2005/06, there was a large investment 
from Thailand in the power sector for a hydroelectric plant (Chart 1.3). Between 2006/07 and 
2009/10, FDI inflows tapered off and did not exceed US$1 billion. However, there was a significant WT/TPR/S/293 • Myanmar 
 
- 16 - 
 
  upsurge in FDI inflows in 2010/11 as the oil and gas, power, and mining sectors attracted 
considerable investment. FDI fell again to approximately US$5 billion in 2011/12. Since 2005/06, the oil and gas, power, and mining sectors have b een the largest recipients of foreign investment, 
while the largest investors in Myanmar are China; Thailand; Hong Kong, China; Republic of Korea; 
and the United Kingdom (Chart 1.4). 
Chart 1.4 Approved foreign investment by origin, 2005/06-2011/12  
 
China
41.7%Hong Kong, China
17.6%Korea, Rep. of
8.3%Thailand
25.0%
United Kingdom
3.6%Singapore
1.2%
Other
1.5%
Total:   US$32,948.8 millionMalaysia
1.1%
 
 
Source: Data provided by the authorities of Myanmar. WT/TPR/S/293 • Myanmar 
 
- 17 - 
 
   
2  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.1  Introduction 2.1.  Myanmar's main economic reforms started in 1988 when it began to adopt a market-oriented 
economic system in contrast to the previous centrally planned one. One of the initial steps taken 
towards a more open economy was to allow foreign direct investment and to encourage private sector development. The first Foreign Investment Law was promulgated on 30 November 1988; 
before that, foreign investment had been prohibit ed. However, it would appear that these reforms 
did not lead to substantial economic growth; there was lack of capital, international trade, and investment against the background of, inter alia , economic sanctions imposed by some other 
countries.   
2.2.  The current Constitution of Myanmar (its third since 1947) was promulgated in 
September 2008.
1 After elections in 2010, the current President (the head of State) was 
inaugurated and the Cabinet established on 30 March 2011. The new Government aims to conduct 
economic reform and open up the economy, an d has issued, revised or amended a number of 
trade-related laws to liberalize its trade and investment regime. Through measures to simplify the trade procedure, unify the exchange rate, and pr omote transparency, the Government wishes to 
improve the business environment in Myanmar to en courage the development of the private sector 
and attract more foreign investment. 
2.3.  The Government is currently formulating the National Comprehensive Development Plan 
(NCDP) 2011/12-2030/31, setting out priorities and reform agendas for the next 20 years. The 
NCDP, which will be supplemented by Five-Year Annual and Sectoral Plans, is expected to be 
finalized and adopted by Parliament during 2013. While the 20-year NCDP is being finalized, the 
Framework for Economic and Social Reforms (FESR), adopted in late 2012, has set out ten priority 
reform areas for the interim period of 2012-15.
2 In accordance with the FESR, the Government 
recognizes that further reforms are essential, and intends to promote competition by liberalizing trade. Among the policy priorities, the Government pays special attention to two areas: import 
opening and investment liberalization. The Government has been taking steps to eliminate the 
linkage between export receipts and import licensing, considering that more flexible import arrangements will help to limit currency apprecia tion pressures and provide broader benefits to 
Myanmar producers and consumers. On investment liberalization, the Government is considering 
merging the 2012 Foreign Investment Law with the Myanmar Citizens Investment Law, to provide 
a single investment framework. 
2.4.  Aid for trade and trade-related technical a ssistance are important for Myanmar's integration 
into the multilateral trading system. Following a request from the Government, an assessment of 
the country's needs in aid for trade and trade-related technical assistance was conducted as part of this TPR and is attached in Annex 1. 
2.2  General Constitutional and legal framework 
2.5.  According to the Constitution, Myanmar is a Presidential Republic with a bicameral 
legislature. The legislative power is in the Parliament ( Pyidaungsu Hluttaw ), which is empowered 
to adopt laws set out in Schedule I of the Union Legislative List. Pyidaungsu Hluttaw is made up of 
two houses: a 224-seat Amyotha Hluttaw  (House of Nationalities: 168 directly elected and 
56 appointed by the Military), and a 440-seat Pyithu Hluttaw  (House of Representatives: 
330 directly elected and 110 appointed by the Military ). Members of the Parliament have a term of 
five years. 
                                               
1 The first Constitution was adopted in 1947, just before Myanmar became an independent sovereign 
State in 1948. The second Constitution, approved in 1974, was suspended in 1988. 
2 The ten priority areas identified in the FESR 2012-15 are: fiscal and tax reforms; monetary and 
financial reforms; liberalization of trade and investment; private sector investment; health and education; 
security and agriculture; governan ce and transparency; mobile phone and internet; infr astructure; and 
effective and effici ent Government.  WT/TPR/S/293 • Myanmar 
 
- 18 - 
 
  2.6.  The President is the executive head of the Government; with a term of five years, the 
President serves no more than two consecutive terms.3 The President appoints the Cabinet, which 
is the executive body of the Government. Cabi net members, i.e. ministers appointed by the 
President, are responsible for administering thei r respective segments of the executive branch, 
and advising the President on their areas. 
2.7.  In descending order of importance, the Consti tution is followed by laws, rules, regulations, 
by-laws, notifications, orders, directives, and pr ocedures. There are two procedures to formulate 
laws: members of either the Pyithu Hluttaw or the Amyotha Hluttaw have the right to submit bills 
on their own initiative, and relevant ministries may prepare draft laws. After discussions in the Parliament, the President signs the Bill approved by the Parliament within 14 days of its receipt, and then promulgates it as law. The President may send the Bill back to the Parliament for further 
discussion, together with his comments. If the President does not send the Bill back to the 
Parliament within 14 days, the Bill becomes law on the day following the 14-day period. According to the authorities, once promulgated, laws are published in national newspapers and the President 
Office website. 
2.8.  Myanmar has seven regions and seven states.
4 The administrative divisions are further 
subdivided into districts, townships, wards, and vi llages. The judiciary system is composed of the 
Supreme Court of the Union, the High Courts of th e seven regions and seven states, courts of self-
administered divisions/zones, district courts, township courts, other courts established by law, Courts-Martial, and the Constitutional Tribunal of the Union.  
2.9.  Based on the Corruption Perceptions Index, Myanmar ranked 172
nd out of 176 countries 
worldwide in 2012.5 The Government has signed the UN Convention against Corruption. In order to 
implement this Convention, an anti-corrupt ion law was enacted on 17 September 2013.  
2.3  Development and administration of trade policy 
2.3.1  Main trade laws 
2.10.  The authorities state that trade-related domestic legislation must be formulated in line with 
the WTO Agreements. As these cannot be applied directly in Myanmar, domestic legislation must 
be adopted to apply WTO Agreements domestically. According to the authorities, when formulating 
trade-related legislation, relevant ministries, in particular the Ministry of Commerce and the Attorney General's Office, will assure the consistency and coherence between domestic legislation and WTO Agreements.  
2.11.  Many pieces of legislation are old and some date from the pre-1948 period. As the 
Government is undergoing economic reforms, a number of trade and investment related laws have been revised, amended or replaced. In particular, the Export and Import Law, promulgated on 
7 September 2012, replaced the Control of Import/Export Temporary Law (1947). Implementing 
rules and regulations of the Export and Import La w are being drafted by the Ministry of Commerce. 
The new Foreign Investment Law, and Foreign Exchange and Management Law were also 
promulgated in 2012 (Table A2.1). 
2.12.  Myanmar is preparing other trade related laws such as a competition law, a comprehensive 
IP law, a standardization law, a metrology law, a consumer protection law, and an SMEs law. A new Telecommunications Law has been prepared to enable the liberalization of the 
telecommunications sector; the draft bill has been  submitted to the Parliament for review and 
approval. 
2.3.2  Agencies involved in trade policy implementation  
2.13.  The Central Government has ten offices including the President's Office, the Hluttaw 
(Parliament) Office, and the Office of the Union Supreme Court.
6 There are 36 ministries, many of 
which have trade-related functions (Table A2.2). 
                                               
3 The President's election procedure is stip ulated in Section 60 of the Constitution. 
4 Regions are mainly inhabited by the dominant ethn ic group Bamar, while states are mainly inhabited 
by ethnic minorities. 
5 The lower the rank, the higher is the perceived leve l of corruption (Transparency International, 2012).  WT/TPR/S/293 • Myanmar 
 
- 19 - 
 
  2.14.  In addition, the Government organized various commissions, to facilitate its economic 
reform, improve the business environment, and pr omote competition (Table 2.1). Ministries may 
be members of these commissions, and ministers ma y serve as chairperson or secretary of specific 
commissions.  
Table 2.1 Commissions  
Commission Chair Main responsibility 
Planning Commission President Participating in the reform for the "equitable and inclusive" 
growth of the country, where "equitable growth" means "balanced and proportional de velopment among states and 
regions", while "inclusive growth" means "broad-based, 
shared, and pro-poor growth for the entire population". 
Monitoring the implementation of the Framework for Economic and Social Reforms (FESR).   
Finance Commission President Reforming public financial management, allocating financial 
resources, and improving financial situation of the country. 
Privatization Commission Vice President Privatization of state entities, to improve the economy of the 
State through developing the private sector, and helping to transform the economy to market oriented.  
Myanmar Investment 
Commission (MIC) Minister from 
the President 
Office Foreign and domest ic investment. 
 
Source: Information provided by the authorities. 
2.15.  Policies related to international trade are fo rmulated by the Ministry of National Planning 
and Economic Development (MNPED), in close cooperation with the President's Office, the 
Ministries of Commerce, and of Finance, and ot her trade-related ministries. The Ministry of 
Commerce (MOC) is in charge of policy coordination and implementation for all trade-related 
matters, and issues export/import licences. Currently, the Export Import Coordinating Committee 
(EICC) under the Ministry of Commerce monitors all export and import matters.7 Various 
departments under the Ministry of Commerce meet regularly to coordinate trade policies and 
practices, and representatives from the Union of  Myanmar Federation of Chambers of Commerce 
and Industry (UMFCCI) may be invited to participate in these meetings. Nonetheless, a number of ministries and agencies are responsible for the management of trade negotiations and implementation of different trade agreements. Fo r example, trade negotiating and implementing 
authorities are located in two different ministries, i.e. MOC on the WTO, and MNPED on ASEAN. 
There does not appear to be a national inter-ministerial committee on trade policy formulation and implementation. 
2.16.  Tariffs are determined by the Ministry of  Finance in consultation with the Ministry of 
Commerce and other concerned ministries. According to the authorities, the UMFCCI, representing the private sector, is invited for tariff and other trade policy discussions. Tariffs must be approved 
by the Cabinet and then adopted by the Parliament. 
2.17.  The authorities state that enhancing transpar ency in the public sector has been one of their 
priorities. Ministries have been using websites to publish information online. In particular, the Ministry of Commerce set up two websites through which businesses can access trade 
information.
8 According to the authorities, the Ministry of Commerce has been cooperating and 
coordinating closely with the UMFCCI and other associations, and conveys trade information and notification to those organizations in a timely manner. The Ministry of Commerce publishes a 
weekly Commerce Journal , and a monthly Trade News  booklet, providing trade-related 
information. 
                                                                                                                                               
6 President Office online information. Viewed at : http://www.president-office.gov.mm/cabinet/central-
offices (in Myanmar language only) [01/07/2013]. 
7 The EICC has sole authority to decide on all matt ers related to export and import procedure; the 
authorities stated that this may increase the effectiveness of the decision making process. 
8 They are: www.commerce.gov.mm  and www.myanmartradenet.com.mm . Businesses may apply for 
import/export licences from www.myanmartradenet.com.mm . WT/TPR/S/293 • Myanmar 
 
- 20 - 
 
  2.4  Trade policy objectives 
2.18.  The authorities state that Myanmar's trade policy objectives include: "systematically" 
implementing trade policies in accordance with the market-oriented economic policy; producing 
value-added products from primary goods to increase value-added in exports; promoting 
international trade; and facilitating exports and imports.  
2.19.  The Government has been promoting ex ports by exploring new export markets, and 
promoting exports of traditional and va lue-added products; its import policy, inter alia , is to boost 
imports of capital goods, which are considered by  the authorities as the major requirement of the 
economy, as well as construction materials, hygienic materials for people's health, and goods that support export-promotion activities. 
2.20.  Trade promotion organizations include the Ministry of Commerce, and the UMFCCI. A Trade 
Promotion Department was set up under the Ministry of Commerce in April 2013, to promote 
exports and to facilitate imports through: facilitating the trading activities of the private sector and SMEs, setting up trade financing schemes, collaborating with international organizations for market 
expansion, encouraging the development of SEZs , and promoting value-added product exports.  
2.5  Trade agreements and arrangements 2.5.1  Multilateral agreements 
2.21.  Myanmar is an original Member of the WTO; this is its first Trade Policy Review.
9 The 
authorities state that Myanmar believes in trade liberalization and desires free and fair international trade. The authorities consider that Myanmar's foreign trade policies are governed by the rules-based multilateral trading system.
10 It grants at least most-favoured-nation (MFN) 
treatment to all its trading partners. Myanmar has bound 18.5% of its tariff lines (all tariff lines 
under WTO agriculture), with the simple average final bound rate at 87.2% (section 3.1.2). Myanmar undertook specific commitments under the GATS in tourism and travel-related services 
(section 4.4.1), and did not list any exemption to the principle of MFN treatment in its GATS 
commitment. 
2.22.  The authorities consider that the multilat eral trading system can bring a wide range of 
opportunities for Myanmar's exports and overcome its supply-side constraints. Myanmar has been 
participating in the Doha Round, aiming to make sure that 100% duty-free, quota-free market access will be granted to LDCs by the end of the Round. The Government wishes to take advantage of the special and differential treatment provisions and technical assistance offered to 
LDCs, to meet the Government's economic objectives.   
2.23.  The authorities state that since the current Government took office in April 2011, trade 
policy reform measures have been formulated in line with WTO commitments. Trade opening and 
facilitation measures have been adopted, in particular the import/export licensing requirements on 
a number of products was lifted.  
2.24.  Myanmar has not been party to any dispute settlement proceeding at the WTO, as 
complainant, respondent, or third party. At end-September 2013, Myanmar had 49 notifications 
outstanding in the WTO Central Registry of Notifications.
11 Many of its notifications are old, and the 
relatively recent notifications were sent toge ther with other ASEAN members (Table 2.2).  
                                               
9 Myanmar (then called Burma) was also a founding Member of the GATT. 
10 Ministry of Commerce online information. Viewed at: http://www.commerce.gov.mm  [11/04/2013]. 
11 WTO online information. Viewed at: 
http://stat.wto.org/CountryProfile/WSDBC ountryPFView.aspx?Language=E&Country=MM  [05.11.2013].    WT/TPR/S/293 • Myanmar 
 
- 21 - 
 
  Table 2.2 WTO notifica tions, 31 October 2013  
WTO Agreement Requirement/content WTO document and date 
Agreement on Agriculture 
Article 18.2 Domestic support  G/AG/N/MYN/5, 7/10/2005 
G/AG/N/MYN/1, 20/12/2001 
Article 10 and 18.2 Export subsidies G/AG/N/MYN/6, 7/10/2005 
G/AG/N/MYN/4, 15/11/2004 G/AG/N/MYN/3, 26/06/2003 G/AG/N/MYN/2, 20/12/2001 
Agreement on Textiles and Clothing 
Article 2:7  Textile Monitoring Body G/TMB/N/177/Add.1, 10/03/1999 
G/TMB/N/177, 12/06/1996 
Article 6:1  Textile Monitoring Body G/TMB/N/118, 17/08/1995 
Enabling Clause, GATS  
Paragraph 4(a) of the 
Enabling Clause 
Article V:7(a) of GATS Regional trade agreement S/C/N/560, WT/COMTD/N/33, 08/07/2010 
Enabling Clause - RTA   
Paragraph 4(a) Regional trade agreement: 
ASEAN - India Free Trade 
Area WT/COMTD/N/35/Add.1, 31/05/2012 
WT/COMTD/N/35, 23/08/2010 
GATS Article III:4 and/or IV:2  
Articles III:4 and IV:2 Enquiry point notified to the 
Council for Trade in Services S/ENQ/78/Rev.8, 3/11/2005 
GATS Article V:7 (a)    
Art V:7 (a) Agreement Establishing the 
ASEAN-Australia-New Zealand 
Free Trade Area WT/REG284/N/1, S/C/N/545, 9/04/2010 
WT/REG284/N/2, S/C/N/545/Add.1, 
9/05/2012 
Art V:7 (a) Korea-ASEAN FTA S/C/N/559/Add.1, 3/05/2011 
S/C/N/560/Add.1, 3/05/2011 
GATT 1994 Article VI (Contingency measures) 
Articles 18.5 and 32.6 Anti-dumping, subsidies, and 
countervailing measures G/ADP/N/1/MYN/1, G/ SCM/N/1/MYN/1,  
8/01/2002 
Article 16.4 Semi-annual reports on anti-
dumping actions taken during 
the period G/ADP/N/132/Add.1, 25/10/2005 
G/ADP/N/126/Add.1/Rev.1, 25/10/2005 
G/ADP/N/119/Add.1/Rev.2, 25/10/2005 
G/ADP/N/105/Add.1, 13/10/2003 
G/ADP/N/98/Add.1/Rev.1, 15/10/2003 
G/ADP/N/92/Add.1/Rev.2, 15/10/2003 
G/ADP/N/85/Add.1/Rev.2, 16/10/2003 
G/ADP/N/78/Add.1/Rev.3, 15/10/2003 
G/ADP/N/2/Add.1/Rev.5, 25/07/1996 
GATT 1994 Article VII  
Article 20.1, 20.2, 22.1 
Annex III, LIC Article 2.2 
(footnote 5) Entry into force and 
Notification of Acceptance of 
the Marrakesh Agreement 
Establishing the WTO WT/Let/1/Rev.2, 22/05/1995 
GATT 1994 Article VII  
Annex III, Paragraph 1  Request for five-year 
extension on the application 
of the Customs Valuation 
Agreement 
 G/VAL/W/40/ Add.1, 14/01/2000 
G/VAL/W/40, 21/09/1999 
Annex III, Paragraph 1 Work Programme Progress 
Report 
 G/VAL/N/4/MYN/1, 12/10/2001 
GATT 1994 Article XXIV: 7(a) (Free-Trade Areas)  
Article XXIV: 7(a) (Free-
Trade Areas) Agreement Establishing the 
ASEAN-Australia-New Zealand Free Trade Area  WT/REG284/N/1, S/C/N/545, 9/04/ 2010 
Article XXIV: 7(a) (Free-
Trade Areas) Agreement on Comprehensive 
Economic Partnership Among 
Japan and Member States of 
ASEAN Countries 
 WT/REG277/N/1, 14/12/2009 
Agreement on Preshipment Inspection 
Article 5 No laws on PSI in Myanmar G/PSI/N/1/Add.10, 19/07/2004 
 WT/TPR/S/293 • Myanmar 
 
- 22 - 
 
  WTO Agreement Requirement/content WTO document and date 
Quantitative restrictions (G/L/59 and G/L/59/Rev.1)  
Notifications of 
quantitative restrictions Myanmar notified that it does 
not maintain quantitative 
restrictions. 
 G/MA/NTM/QR/1/Add.8, 1/03/2002 
Agreement on Rules of Origin 
Paragraph 4 of Annex II Certificate of origin for the 
GSP;  and certificate of origin 
for ASEAN Common Effective 
Preferential Tariff Scheme 
 G/RO/N/36, 12/03/2002 
Agreement on Subsidies and Countervailing Measures 
Article 25.1 Notification of subsidies G/SCM/N/71/MMR, G/SCM/N/95/MMR, 
25/06/2003 
 
Article 25.11  Semi-annual reports on 
countervailing duty actions taken G/SCM/N/4/Add.1/Rev.3, 25/07/1996 
G/SCM/N/75/Add.1/Rev.4, 24/10/2003 G/SCM/N/81/Add.1/Rev.3, 24/10/2003 G/SCM/N/87/Add.1/Rev.2, 24/10/2003 G/SCM/N/93/Add.1/Rev.1, 24/10/2003 G/SCM/N/98/Add.1, 20/10/2003 G/SCM/N/106/Add.1/Rev.1, 25/10/2004 G/SCM/N/113/Add.1, 25/10/2004 G/SCM/N/122/Add.1, 7/04/2005 G/SCM/N/130/Add.1, 19/10/2005 
Article 32.6 Myanmar has no laws and/or 
regulations relevant to the 
Agreements on Anti-Dumping 
and Subsidies and 
Countervailing Measures. 
 G/ADP/N/1/MYN/1, G/SCM/N/1/MYN/1, 
8/01/2002 
Agreement on Safeguards  
Article 12.6 Laws, regulations, and 
administrative procedures 
relating to safeguard 
measures 
 G/SG/N/1/MYM/1, 10/01/1996 
Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)  
Article 69 Contact points IP/N/3/Rev.10/Add.2, 30/06/2008 
 
 
Source: WTO Secretariat. 
2.5.2  Regional agreements 
2.5.2.1  ASEAN 
2.25.  Myanmar became an ASEAN member in 1997; it will chair the ASEAN in 2014. Trade with 
other ASEAN members accounts for around 40% of Myanmar's total imports and around 50% of its total exports (section 1.4.2). ASEAN Economic Ministers agreed to realize an ASEAN Economic 
Community (AEC) by 2015; i.e. to establish a sing le market and production base in the ASEAN 
region, with freer flow of goods, services, skilled labour, and capital. ASEAN currently has 
component agreements on goods (ATIGA), services (AFAS), and investment (ACIA).
12 
2.26.  Under the ATIGA, ASEAN members must apply a tariff rate of 0-5% for goods originating 
within ASEAN, with flexibility granted to LDCs, including Myanmar (section 3.1.3.1). Myanmar's 
average tariff under the ATIGA was 0.6% in 2012. The basic principle for granting origin status to a product is 40% regional/local-content. An ASEAN Single Window to process trade documents 
electronically at national and regional levels will integrate national single windows of ASEAN 
member countries. Myanmar has been adopting trade facilitation measures, and is preparing to start its single window system in 2015. 
                                               
12 There are also ASEAN framework ag reements on the facilitation of goods in transit (AFAGIT), and the 
Facilitation of Inter-State Transport (AFAFIST), among others.  WT/TPR/S/293 • Myanmar 
 
- 23 - 
 
  2.27.  Under the AFAS, restrictions on services trade are to be removed in 2015-18 for Myanmar. 
However, the agreement on services has not been notified to the WTO. The ASEAN Comprehensive Investment Agreement (ACIA), signed in 2009, is intended to streamline the existing ASEAN investment agreements, with a view to attracting more foreign investment into ASEAN and 
increasing intra-ASEAN investment.  
2.5.2.2  ASEAN RTAs 2.28.  As an ASEAN member, Myanmar participates in ASEAN's preferential agreements with 
Australia and New Zealand, China, India, Japa n, and the Republic of Korea (Table 2.3). 
Table 2.3 RTAs  
ASEAN - Australia and New Zealand 
Title Agreement Establishing the ASEAN-Australia-New Zealand Free 
Trade Area 
Type Free Trade Agreement & Economic Integration Agreement 
Date of entry into force  1 January 2010 for Australia, Brunei Darussalam, Malaysia, 
Myanmar, New Zealand, the Philip pines, Singapore, and Viet Nam 
Transition for full implementation for 
Myanmar  2021/2024/2025 
Coverage Goods and services 
WTO consideration status  Factua l presentation not distributed 
Myanmar's merchandise trade with 
Australia and New Zealand (2011/12) Australia: 0.8% of total impo rts; 0.1% of total exports 
New Zealand: 0.2% of total imports; 0.003% of total exports 
WTO document series WT/REG284/N/1 and S/C/N/545, 9 April 2010 
ASEAN – China 
Title Agreement on Trade in Goods (under the 2002 Framework 
Agreement on Comprehensive Economic Cooperation between ASEAN and the People's Republic of China) 
Type Partial Scope Agreement & Economic Integration Agreement 
Date of signature/entry into force Goods: November 2004/January 2005 
Services: Jan 2007/July 2007 
Transition for full implementation for 
Myanmar  2015 
Coverage Goods and services 
WTO consideration status Factual Abstract distributed (goods)  
Factual presentation not distributed (services) 
Myanmar's merchandise trade with 
China (2011/12) 30.8% of total imports; 24.2% of total exports  
WTO document series WT/COMTD/N/20, 21 December 2004; 
S/C/N/463, 2 July 2008; 
WT/COMTD/51, 21 December 2004 
ASEAN – India 
Title Agreement on Trade in Goods (under the Framework Agreement 
on Comprehensive Economic Cooperation between ASEAN and the 
Republic of India, 2003, as amended in 2009) 
Type Free Trade Agreement 
Date of entry into force 1 January 2010 for Brunei Darussalam, Myanmar, and Viet Nam 
Transition for full implementation for 
Myanmar  2018/2021 
Coverage Goods 
WTO consideration status Factua l presentation not distributed 
Myanmar's merchandise trade with 
India (2011/12) 3.6% of total imports; 11.4% of total exports 
WTO document series WT/COMTD/N/35, 23 August 2010 
ASEAN – Japan 
Title Agreement on Comprehensive Economic Partnership among Japan 
and Member States of ASEAN 
Type Free Trade Agreement 
Date of entry into force 1 December 2008 (Singapore, Japan, Viet Nam, the Lao PDR, and 
Myanmar) 
Transition for full implementation for 
Myanmar  2026 
Coverage Goods WT/TPR/S/293 • Myanmar 
 
- 24 - 
 
  WTO consideration status Factual presentation not distributed 
Myanmar's merchandise trade with 
Japan (2011/12) 5.6% of total imports; 3.5% of total exports 
WTO document series WT/REG277/N1, 14 December 2009 and WT/REG277/N2, 
27 July 2011 
ASEAN - Republic of Korea 
Title Agreement on Trade in Goods (under the 2005 Framework 
Agreement on Comprehensive Economic Cooperation among the 
Governments of the Republ ic of Korea and ASEAN) 
Type Free Trade Agreement & Economic Integration Agreement 
Date of signature/entry into force Goods: August 2006/January 2010 
Services: November 2008/May 2009 
Transition for full implementation for 
Myanmar  2018 
Coverage Goods and services 
WTO consideration status Factua l presentation not distributed 
Myanmar's merchandise trade with 
Korea (2011/12) 5.0% of total imports; 2.4% of total exports  
WTO document series WT/REG287/N/1; WT/COMTD/N/33; S/C/N/559; S/C/N/560, 8 July 
2010. S/C/N/559/Add.1; S/C/N/560, Add.1, 3 May 2011 
 Source: WTO Secretariat, based on information from the authorities and the RTA website: 
http://rtais.wto.org/  [15/04/13].  
2.29.  As a member of ASEAN, Myanmar, together  with the other ASEAN members, is negotiating 
with ASEAN FTA partners (Australia, China, India,  Japan, Republic of Korea, and New Zealand) a 
Framework for Regional Comprehensive Economic Partnership (RCEP), which is to be concluded by 
the end of 2015. The Framework is to cover trade in goods, trade in services, investment, and economic and technical cooperation, competition, intellectual property, dispute settlement, and 
other issues.
13 
2.5.2.3  GSTP 2.30.  Myanmar signed the Global System of Trade Preferences among Developing Countries 
(GSTP) in 1988, which entered into force on 19 April 1989, to increase trade between developing 
countries.
14  
2.5.2.4  BIMSTEC 2.31.  The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Co-operation 
(BIMSTEC), which Myanmar joined on 22 December 1997, is not yet functioning. BIMSTEC is a 
forum to facilitate and promote trade, investment, and technical cooperation among participating countries: Bangladesh, Bhutan, India, Nepal, Sri Lanka, Myanmar, and Thailand. It identifies 
13 broad sectors for cooperation, including: trade and investment, technology, tourism, transport 
and communication, energy, agriculture, fisheries, poverty alleviation, and counter-terrorism and transnational crimes. In 2004, BIMSTEC parties agreed to establish a BIMSTEC Free Trade Area 
Framework Agreement in goods, services, and in vestment. Article 3 of the Agreement provides 
that goods, except those included in the Negative List, will be subject to tariff reduction or elimination according to different time frames. Myanmar had tariff reductions and eliminations for its fast track products before June 2011, and the tariffs on its normal track products are to be 
reduced or eliminated before June 2017. Rules of origin have not yet been agreed among BIMSTEC 
countries. 
2.5.3  Other trading relations 
2.32.  Myanmar is a beneficiary of a number of GSP schemes, including those accorded by: 
Australia, Belarus, Japan, New Zealand, the Russi an Federation, Switzerland, and Turkey. The EU 
reinstated GSP treatment for Myanmar in July 2013, granting retrospective benefits to Myanmar's 
                                               
13 ASEAN online information. Viewed at: http://www.asean.org/asean/asean-summit/item/asean-
framework-for-regional-compre hensive-economic-partnership  [29/10/2013]. 
14 WTO online information. Viewed at: 
http://rtais.wto.org/UI/PublicShowMemberRTAIDCard.aspx?rtaid=146  [21.03.2013]. WT/TPR/S/293 • Myanmar 
 
- 25 - 
 
  exports from June 2012. Norway reinstated GSP tr eatment in January 2012. China, India, and the 
Republic of Korea provide preferential tariff treatment for Myanmar's exports. 
2.33.  The Greater Mekong Sub-region (GMS) programme appears to have aided integration within 
the region. In 1992, Myanmar, together with Camb odia, Lao PDR, Thailand, Viet Nam, and Yunnan 
Province of China15, launched a programme of sub-regional economic cooperation, to enhance 
economic linkages across their borders.16 The GMS programme covers nine priority sectors: 
transport, energy, telecommunications, environm ent, human resource development, tourism, 
trade, private sector investment, and agriculture. The GMS countries have ratified an agreement to 
facilitate the cross-border movement of goods an d people, which is being implemented on a pilot 
basis at key border crossings, and is being prepared for full implementation in the GMS corridors.17 
There are no preferential tariff arrangements under the GMS. 
2.34.  To enhance bilateral trade with neighbouring countries, Myanmar has signed four MOUs on 
establishing bilateral joint trade commissions, with Bangladesh, India, Thailand, and Viet Nam. Joint trade commission meetings have been held alternately in Myanmar and the partner countries 
to discuss and negotiate bilateral trade issues. 
2.35.  Myanmar calls trade with neighbouring countries through border points mainly by road 
transport "border trade". It would appear that no  preferential treatment is accorded to border 
trade compared with other means of trade. Myanmar has 14 main border trade points with four 
neighbouring countries. Myanmar has signed five border trade agreements, with China, India, Bangladesh, Thailand, and Lao PDR. According to the authorities, these border trade agreements 
aim at the promoting and facilitating trade between two neighbouring countries. The Government 
consults and negotiates with border trade partners in respective Joint Trade 
Commission/Committee meetings (JTC), Joint Border Trade Commission meetings, and Working Group meetings. The authorities stated that th ere are no major trade issues between Myanmar 
and its neighbours. 
2.6  Trade disputes and consultations 2.36.  Arbitration provisions are prescribed in the Myanmar Arbitration Act 1944, which allows for 
international arbitration. For commercial disputes between domestic companies, the UMFCCI is the 
arbitrator, taking the role of mediator. According to the authorities, mediation is usually successful in the event of commercial disputes between local companies. For disputes relating to foreign companies, the Arbitration Rules of  the Chamber of Commerce apply.  
2.37.  Myanmar is not a member of the Internatio nal Convention for the Settlement of Investment 
Disputes. It became a party of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards in 2013.  
2.7  Foreign investment regime 
2.7.1  Overview 2.38.  The authorities consider that FDI and foreign- affiliated businesses will play an important role 
in Myanmar's economic development, and that the economy needs foreign capital and technology 
for continuous and sustainable development. Thus the Government has been adopting measures to improve its business environment by,  inter alia , reforming its foreign exchange regime 
(Chapter 1) and adopting a new Foreign Investment Law. The authorities state that the 
Government is making every effort to increase in ward FDI, and has no restriction on outward FDI. 
2.39.  FDI in Myanmar is governed by, inter alia : the new Foreign Investment Law (FIL) and its 
Implementing Rules (which set out requirements for foreign-invested companies and foreign 
projects in Myanmar); the Myanmar Companies Act 1914 and the Myanmar Partnership Act 1932 
(which set out details for corporate investment structures and governance requirements) (Chapter 3); the State-owned Economic Enterprise Law 1989 (which reserves certain sectors for 
                                               
15 Guangxi Zhuang Autonomous Region of China joined the GMS programme in 2004.  
16 ADB (2012b). 
17 ADB (2012a). WT/TPR/S/293 • Myanmar 
 
- 26 - 
 
  the State); the Special Company Act 1950 (which applies to joint ventures formed between private 
and state-owned companies); and the Special Economic Zone Law 2011 and the Dawei Special Economic Zone Law 2011 (which regulate in vestment in special economic zones).  
2.40.  The new Foreign Investment Law (FIL), promulgated in November 2012, is a revision of the 
Myanmar Foreign Investment Law of 1988. Implementing rules of the new FIL were promulgated 
on 31 January 2013 and supplemented by Notifica tion No. 1/2013 of the MIC. The new FIL 
supports investment projects that expand exports or produce import substitution products. Tax 
incentives are granted on profits accrued from exports, and foreign companies must employ a local 
workforce, on the basis of increasing the share of local employees over time. 
2.41.  The authorities state that if any provisions of this law are in conflict with any international 
treaty or agreement approved and accepted by the Myanmar Government, the provisions of the 
international treaty or agreement will prevail.   
2.42.  The new FIL and its implementing rules differ from the previous law mainly in: the sectors 
restricted or prohibited to foreign investors; ob jectives; equity restrict ions and minimum capital 
requirements; tax incentives; and land-lease terms. 
2.7.1.1  Sectors restricted or prohibited to foreign investors 
2.43.  The previous law of 1989 adopted a "positive list" approach where foreign investors were 
allowed to invest only in listed sectors. The new law lists certain activities that are restricted or 
prohibited to foreign investment (Article 4), including: 
a. businesses that can affect the traditional culture and customs of the ethnic nationalities 
of the country, and public health;  
b. businesses that can cause damage to the natural environment and ecosystem;  
c. importation of hazardous or toxic waste materials;   
d. production or use of hazardous chemicals specified in international agreements; 
e. importation of technology, medicines, instruments pending lab test or not obtaining 
approval for use; and 
f. investment activities within 10 miles of the border within the territory, except economic 
zones as specified by the Government.   
2.44.  The implementing rules list specific sectors reserved for Myanmar citizens (Table 2.4). 
Foreigners are not allowed to engage only in trading activities (sections 3.1.1 and 3.2.1). 
Table 2.4 Sectors reserved for Myanmar citizens 
Groups Sectors 
Schedule 1 Manufacturing and services sect ors reserved for Myanmar citizens only 
Manufacturing Administration and maintenance of natural forest Manufacturing of traditional medicines Extraction of crude oil up to 1,000 feet depth Small and medium scal e mineral production 
Production and plantation of  traditional herbal plants 
Wholesale of semi-finished products and iron ores 
Production of traditional food 
Manufacturing of religious materials and equipment 
Manufacturing of traditional and cultural materials and equipment 
Handicraft Services Private traditional hospitals Trading of traditional herbal raw materials Research and laboratory for traditional medicines Ambulance transportation service WT/TPR/S/293 • Myanmar 
 
- 27 - 
 
  Groups Sectors 
Establishment of health care centre for the aged 
Restaurant contract, cargo transportation cont ract, cleaning and maintenance contract on 
trains Electric power generating below 10 megawatt Publishing and distribu tion of periodicals in languages of ethnic people including Myanmar 
language 
Schedule 2 Agricultural Business and short-term and long-term plantation business reserved 
for Myanmar citizens only  
Schedule 3 Livestock breeding business reserved for Myanmar citizens only  
Schedule 4 Fishing business in Myanmar's territorial waters reserved for Myanmar citizens 
only  
 
Source: FIL Implementing Rules, 2013. 
2.45.  Further, the MIC Notification No. 1/2013 lists sectors prohibited or restricted for foreign 
investment (Table 2.5). Restricted businesses incl ude: those carried out by joint ventures with 
local investors (for the purpose of knowledge sharing), and those requiring certain conditions. 
These conditions may be attached to implemen t and meet certain manufacturing practices and 
standards, to properly use natural resources, or to apply environmental impact assessment. 
Table 2.5 FDI prohibitions/restrictions 
  
Prohibited 
sectors 21 types of activities including: 
Defence; electricity trading; natural forest management; small to medium-scale mining and extraction; exploration and production of jade/gem stones; exploitation of minerals 
including gold in the water way; air contro l management service; navigation service; 
printing and broadcasting; and certain environmentally hazardous activities 
Business to be 
carried out by 
joint venture 42 types of activities including: 
Manufacturing and distribution of some food  products except milk  and milk products; 
malt and malt liquors, spirits, ice, purified drinking water;  cordage, rope and twine of 
textile fibres; rubber and plastic 
Packaging 
Processing of hides, skins, and leathers, and manufacturing of footwear and handbags 
Manufacturing of paper, paper board; chem icals based on natural resources available 
domestically; fuels and aerosol; oxidants, compressed; chemicals; industrial chemical 
gases; raw materials for drugs, and high-tech vaccine 
Exploration and manufacturing of mining in large scale 
Establishment of factories to manufacture st ructural metal framewo rk for buildings and 
bridges, and precast co ncrete; real estate; golf courts  and resorts; o ffice/commercial 
buildings apartments, low-cost housing; new satellite towns 
Construction related to developing road links 
Air transport services; maritime transp ort and freight forwarding services 
Building and repairing of new ships at dockyard 
Inland port services through contai ner terminal and warehouse services 
Manufacturing of new wagon and locomotive engine 
Private special hospital/private special indigenous hospital 
Tourism services 
Businesses 
requiring opinions of the relevant ministries  115 activities under 13 ministries 
Businesses 
requiring 
other 
approval  27 activities 
Businesses 
requiring Environmental Impact Assessment 34 activities requiring an Environmental Impact Assess ment from the Ministry of 
Environmental Conservation and Forestry 
 Source: MIC Notice No. 1/2013. WT/TPR/S/293 • Myanmar 
 
- 28 - 
 
  2.46.  In addition, under Articles 3 and 4, Chapter II, of the State-owned Economic Enterprise Law 
(1989), certain sectors were reserved to the State (and conducted by State-owned Economic Enterprises (SEEs)) (section 3.3.1). For investment in any of the above restricted or prohibited activities, permission from the MIC may be granted with the approval of the Government while 
foreign equity must not be more than 80% in the reserved activities, if the investment is 
considered to be beneficial to the citizens and particularly the ethnic nationalities. For those large foreign investment projects which are considered to bring substantial benefit to public security, 
improve surrounding areas and the living conditions of citizens, the MIC will submit the application 
to the Union Parliament through the Government for approval.  
2.7.1.2  Objectives 2.47.  The 1988 FIL stated export promotion as its first objective; according to the authorities, this 
was "to obtain foreign earning and to support economic development". The new law lists the 
following objectives: produce minerals to meet national demand and to export the surplus; create jobs; develop human resources, improve infrastructure (in the areas of banking and finance, 
roads, national electricity and energy production); develop technology; develop transportation 
networks; and encourage competition between citizens and foreigners.  
2.48.  Under the new FIL, foreign investment is to be approved if it: supports the objectives of the 
national development plan, activities lacking mone y and technology, and those still not exercisable 
by the citizens; develops job opportunities; pr omotes and expands exports; produces import 
substitution goods; facilitates technology development; supports projects requiring large investment; encourages energy saving, and the exploration and extraction of new energy, as well 
as sustainable energy development (such as ne w bio-based energy); develops modern industry; 
conserves the environment; supports exchange of information and technology; develops banks 
and banking business that matches international standards; facilitates local development; develops 
citizens' intellect and intelligence; and meets the short- and long-term domestic utilization of state 
energy resources.  
2.7.1.3  Equity restrictions and minimum capital requirement 
2.49.  The new FIL allows 100% foreign ownership in all except certain prohibited or restricted 
activities, whereas the previous FIL listed a limit ed number of sectors and activities where FDI was 
allowed. Foreign investment may be made through: a 100% foreign-owned entity; a joint venture (JV) with a Myanmar citizen or entity, at an ownership ratio decided between the parties; or any 
system contained in a contract and approved by both parties.
18 Foreign investment in restricted 
businesses must be no more than 80%. 
2.50.  The current minimum capital requirements are specified in accordance with the Company 
Act: US$150,000 for industrial, hotel and construction companies, and US$50,000 for companies 
in services, travel and tours, bank representative offices, and insurance representative offices.19 
2.7.1.4  Tax and incentives 
2.51.  Foreign invested companies pay, inter alia , corporate tax, commercial tax, withholding tax, 
and personal income tax; different tax rates may apply to non-resident foreigners (Table 2.6). 
                                               
18 In accordance with the FIL (1988), foreign investment could take one of the following three forms: 
(1) partnerships, limited companies, or wholly foreign-owned subsidiaries  (a partnership fi rm or a limited 
company incorporated outside Myanmar could conduct busi ness as a foreign branch by bringing in the total 
capital required by such a branch); (2) production-sharing contracts with one of the State-owned Economic Enterprises (SEEs) for exploration, ex traction, and sale of petroleum and natural gas and mining operations; 
and (3) joint ventures, either as partnerships or limite d companies with any individual, firm, cooperative, or 
SEEs of Myanmar. 
19 Previously, the minimum foreign capital required  was US$500,000 for a manufacturing company, and 
US$300,000 for a services organization. WT/TPR/S/293 • Myanmar 
 
- 29 - 
 
  Table 2.6 Tax 
(%) 
Tax Resident 
citizens  Resident 
foreignersa Non-resident 
foreigners 
Corporate tax  25 25 35 
Commercial tax 0-100 0-100 0-100 
Withholding tax on:    
  Interest n.a. n.a. 15 
  Royalties 15 15 20 
  Payments made by state organizations, 
development committees, cooperatives 
societies, partnership firms, companies, 
organizations formed and registered under any 
existing law, for purchasing of goods locally and 
receiving services under a contract or an 
agreement or any consent 2 2 3.5 
  Payments made by a foreign entrepreneur or 
foreign company, for receiving services and purchasing of goods locally under a contract or an agreement or any consent 2 2 3.5 
Personal income tax 2-30 2-30 35 
Capital gains tax 10 10 40 
 
n.a. Not applicable.  
a A foreigner staying in Myanmar for 183 days or more during a calendar year is a "resident 
foreigner". 
 Source: DICA online information. Viewed at: 
http://www.dica.gov.mm/includes/Invest ment%20Guide%20Book/M IG%20chapter%205.pdf  
[16/10/2013]; and information provided by the authorities. 
2.52.  The authorities offer various tax incentives to attract foreign investment. The new FIL allows 
tax incentives for up to five years (three years under the previous Law), with the possibility of extension. These incentive programmes include: 
 income tax exemption for five consecutive years including the year of commencing 
operations on commercial scale, or more years of tax exemptions/reductions if the investment is considered to be "beneficial to the State"; 
 income tax reduction or exemption on profits maintained in a reserve fund for 
re-investment within one year; 
 right to deduct depreciation from profit, us ing a depreciation rate designated by the 
Government for the purpose of income tax assessment; 
 up to 50% reduction of income tax on profits accrued from exports; 
 applying the same income tax rate for foreigners and citizens; 
 expenditures on R&D are deducted from income tax; 
 right to carry forward and set off losses for up to three consecutive years, from the year 
the loss is made; 
 exemption from import tariffs or commercial tax, or both on imported machinery, 
equipment, instruments, machinery components, spare parts, and materials used for the 
construction of business; 
 exemption from import tariffs or commercial tax, or both  on imported raw materials for 
production for the first three years after completion of construction of business; 
 if investment is increased with the approval of the MIC, and the original invested 
business is expanded, exemption from import tariffs or commercial tax, or both on WT/TPR/S/293 • Myanmar 
 
- 30 - 
 
  imported machinery, equipment, instruments, machinery components, spare parts, and 
materials required for use in the business expansion; and 
 exemption and reduction from commercial tax on products manufactured for export. 
2.7.1.5  Land lease terms 
2.53.  Land in Myanmar is owned by the State; thus, foreign investors are not allowed to own 
land. Under the new FIL, foreign investors may lease land for 50 years (30 years previously), and the land lease may be extended for two consecutive terms of 10 years (15 years previously). Land 
lease contracts must be approved by the MIC. The MIC may designate another 10-year extension 
with the consent of the Government, for investment projects in the less developed and poor communication regions. For investment in the agriculture and livestock sectors, foreign investment may form joint ventures with Myanmar citizens under contract.  
2.54.  Foreign investors who have established joint ventures with Myanmar counterparts may also 
apply to obtain the right to cultivate or utilize vacant, fallow, and virgin land (section 5(e), Chapter III of the Vacant, Fallow and Virgin Lands Management Law (2012)). Priority is given to 
applications for investment in industries in which local investors are not able to invest (section 12, 
Chapter IV of the Vacant, Fallow and Virgin Lands Management Law (2012)).  
2.7.2  Procedures 
2.55.  Businesses in Myanmar may take the form of partnerships, limited companies, or 
branches/representative offices of a foreign company. Foreign investors most frequent set up limited companies. If one share is owned by a fo reign partner, the company is considered as a 
foreign-invested company, and must be registered with the DICA (Directorate of Investment and 
Company Administration).  
2.56.  To obtain an investment permit, the investor must submit a proposal in the prescribed form 
to the MIC, together with the required documents.
20 The MIC accepts or rejects an application 
within 15 days, and decides whether to approve the proposal within 90 days. The MIC evaluates 
foreign investment proposals, stipulates the terms and conditions of investment permits, and assesses foreign investment situations.
21 Permits are issued to investments that do not affect the 
interests of the State and the people, national dignity, sovereignty, and the environment. An 
investor with a permit from the MIC under the 1988 FIL may continue to work and enjoy benefits until expiry of the contract.  
2.57.  An investor must also register with the DICA under the Ministry of National Planning and 
Economic Development, except for joint ventures with State equity formed under the Special 
Company Act 1950.
22 Registration of a foreign company or branch takes one day upon submission 
of completed documents. After depositing a registration fee23 in Myanmar Economic Bank, a 
foreign investor obtains a temporary registration certificate, valid for six months, then a Company 
Incorporation Certificate. 
2.58.  Foreign companies may not engage solely in trade. However, if they are registered under 
the FIL as a manufacturer of finished goods for export, they may import machinery and equipment 
for the establishment of the factory, and raw materials for production. These foreign companies 
                                               
20 These documents include: intended activities; financial credibility of the company/individual; a copy 
of the Permit/Decision of the MIC for manufacturing, and hotel & construction business; undertaking not to do trading activities. In the case of a branch or representative office of a foreign company, the required 
documents include: annual repo rts for the last two financial years, or co pies of the Head Office's balance sheet 
and profit and loss account for the last two financia l years, notarized and consularized by the Myanmar 
Embassy in the country where the company is incorporated. 
21 DICA online information. Viewed at: http://www.dica.gov.mm/app.htm  [25/02/2013]. 
22 Documents required for th e registration of a company include: de claration of registration; declaration 
of legal and official version of the documents; list of  Directors; a copy of the MIC permit & decision for 
manufacturing, hotel & construction businesses; undertaking not to undertake trading activities. 
23 The registration fee for the incorporation of a company/branch is K 1,000,000, and the renewal fee is 
K 500,000 (DICA online information. Viewed at: http://www.dica.gov.mm/  [22.03.13]). The fee is the same for 
foreign and local companies. WT/TPR/S/293 • Myanmar 
 
- 31 - 
 
  must register as exporters/importers with the Ministry of Commerce to obtain the 
exporter/importer licence.  
2.59.  Foreign investors must recruit at least 25% of their employees from the local labour force in 
the first two years. The local employment ratio increases to at least 50% for the third and 
fourth years, and at least 75% for the fifth and sixth years. It may take more years for activities in 
academic areas to increase the local employment ratio. 
2.60.  The law stipulates that the Government must not nationalize economic activities formed 
with approval during the contract period or th e extended period. For any disputes, the solution 
method stipulated in the contract must be followed. If the contract does not stipulate a solution method, the laws of Myanmar (the Myanmar Arbitration Act 1944, or the UNCTRAL Rules) regarding dispute settlement must be followed. Section 18 (d) of the new FIL appears to allow an 
investor to challenge a decision of the MIC in the event of denial of the application or the issuance 
of an approval adverse to the interests of a fore ign investor under Myanmar law. However, section 
49 of the FIL provides that decisions of the MIC und er the new law are "final". It was not clear to 
the Secretariat how investors can challenge a decision of the MIC.   
2.61.  Neither the old nor the new FIL contains pr ovisions on mergers and acquisitions by foreign 
investors, and it is not possible for foreign investors to acquire shares from local companies. The 
Implementing Rules of the new FIL allows a foreign investor to acquire shares from a Myanmar 
shareholder in foreign-invested companies (and vice versa). Any such transfer is subject to the approval of the MIC as are the foreign equity limits (if any). 
2.7.3  BIAs and DTAs 
2.62.  Myanmar has concluded eight bilateral investment agreements, and eight double-taxation 
avoidance agreements (Table 2.7). 
Table 2.7 BIAS and DTAS 
Bilateral investment agreements 
Country/Region Date of signature Date of entry into force 
Philippines 17.02.1998 11.09.1998 
Viet Nam 15.02.2000 - 
China 12.12.2001 21.05.2002 
Lao PDR 05.05.2003 - 
Thailand 14.03.2008 - 
India 24.06.2008 08.02.2009 
Kuwait 06.08.2008 - 
EU 21.05.2013 - 
Double-taxation avoidance agreements 
Country/Region Date of entry into force 
United Kingdom 01/10/1948 
Viet Nam 01/04/2004 
Republic of Korea 01/04/2004 
Malaysia 01/04/2009 
India 01/04/2009 
Singapore 01/04/2010 
Lao PDR 01/04/2011 
Thailand 01/04/2012 
 
- Not yet in force.  Source: UNCTAD IIA online database. Viewed at: 
http://unctad.org/Sections/dit e_pcbb/docs/bits_myanmar.pdf  [16 January 2013]; and information 
provided by the authorities. WT/TPR/S/293 • Myanmar 
 
- 32 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports  3.1.1  Import Procedures and Customs Valuation 3.1.  Merchandise imports into (and exports from) Myanmar are governed under the Sea Customs 
Act (1878), Land Customs Act (1924), the Export Import Law 2012, and the Tariff Law (1992). 
The acts and laws are administered by the Minist ry of Finance and the Ministry of Commerce.  
3.2.  Under the present laws and regulations, to be able to import, an importer must register a 
company that is to engage in trade with the Directorate of Investment and Company 
Administration, Ministry of National Planning and Economic Development, and register as a 
"trader" with the Directorate of Trade of the Mini stry of Commerce. The importer is also required 
to join the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). 
Currently, only Myanmar nationals are allowed to engage in trade, except for imports of inputs and 
exports of processed goods by manufacturing firm s that have been registered under the Foreign 
Investment Law and consequently also registered as an importer and exporter with the Directorate 
of Trade. 
3.3.  All imports must be declared on an import declaration form (CUSDEC-1) and, where 
applicable, be accompanied by an import licence.
1 Import licences are issued by the Department of 
Commerce and Consumer Affairs, which is part of  the Ministry of Commerce. In certain cases, 
import licences are issued based on recommendations provided by relevant ministries and associations under the UMFCCI. Also required are an invoice, bill of lading or air consignment note, packing list, and any other certificates or permits issued by relevant government departments (for 
example SPS certificates from the Ministry of Ag riculture and Irrigation, for the import of live 
plants and animals, and a certificate from the Fo od and Drug Administration for the import of 
medicines and foodstuff). 
3.4.  The required documents must be submitted to Customs before the arrival of the goods. 
Customs assessment takes two hours, on average,  and classification is based on the Customs 
Tariff of Myanmar (2012), which uses both the ASEAN harmonized nomenclature and WCO 
harmonized system. Myanmar does not apply th e provisions of the WTO Customs Valuation 
Agreement. Customs valuation is based on the "real value", which is taken to be the normal price or import value of goods at the time and place of importation.
2 Import duties are charged on the 
c.i.f. price (real value). After Customs has asse ssed the duty payable, the importer may pay in 
cash or a payment order or through a direct debit from a current account. However, cash 
payments are only permitted if the assessed duty is less than K 5,000. Customs duty in excess of 
K 5,000 needs to be made by a payment order. Additionally, importers and joint-venture 
enterprises may open current deposit accounts with the Customs Department. The customs duties 
and other taxes levied on imports (section 3.1.5) may be deducted from these accounts. The authorities stated that prior to the exchange ra te unification, a constant rate of K 450/US$ was 
used as the exchange rate for miscellaneous imported goods. In 2011, the Central Bank of 
Myanmar (CBM) issued a daily rate, which was applied to the import of cars, vehicles, and spare parts. Since the exchange rate unification on 1 April 2012, the daily exchange rate issued by the 
CBM has been used for duty assessment. The authorities state that about 10% of imports are 
physically examined at the port. Currently, cu stoms clearance requires about three days; the 
authorities intend to implement th e ASEAN single window by 2015. 
3.5.  Under the current legislation, importers have the right of appeal against decisions or orders 
by customs officers. In the first instance, the importer may lodge an appeal with the Revenue 
Appellate Tribunal within one month after the decision; under certain circumstances (such as being 
                                               
1 In April 2013, import licensing requirements were abolished for 166 import commodities, 
corresponding to more than 1,900 tariff lines.  
2 The authorities state that the real value is defined as "the wholesale cash pr ice less trade discount, for 
which goods of the like kind and quality are sold, or are capable of being sold, at the time and place of 
importation or exportation, as the case may be, withou t any abatement or deduction whatever, except (in the 
case of goods imported) of the amount of (the sale tax and of) the duties payable on the importation thereof: 
or where such price is not ascertainable, the cost at wh ich goods of the like kind an d quality could be delivered 
at such place, without any abatement or deduction except as aforesaid." WT/TPR/S/293 • Myanmar 
 
- 33 - 
 
  hospitalized or arrested) the deadline may be extended to three months. The tribunal may alter, 
annul or uphold the original decision; however, it cannot impose a greater penalty or confiscation amount than assigned in the original order. Additi onally, a customs officer, the Minister of Finance 
and Revenue, and the President of Myanmar may, of their own accord or in response to a petition 
by any party, modify, reverse or uphold any of their own decisions or those taken by any of their 
predecessors. Furthermore, the Director-General of Customs and the President of the Union of 
Myanmar may summon the record of any case dispos ed of by an officer subordinate to them (in 
the case of the latter this includes the Minister of Finance). Fines vary according to the case. 
Between 2006 and 2011, there were 150 appeals, all of were ruled against the defendant.  
3.6.  Myanmar does not impose pre-shipment inspection requirements on imports. 3.1.2  Tariffs  
3.1.2.1  Structure 
3.7.  The applied MFN tariff in Myanmar consists of 15 bands ranging from 0% to 40%; this is 
unchanged since 1996. The large number of bands renders the tariff relatively complex. All tariffs 
are applied ad valorem . The 2013 tariff comprised 9,558 lines at the HS 8-digit level and 
418 "statistical lines" at the HS 9-digit and 10-digit levels.
3 The tariff is based on the HS2012 
nomenclature.  
3.1.2.2  Tariff bindings 
3.8.  Myanmar has bound 18.5% of its tariff lines at the HS 8-digit level. All agricultural lines 
(WTO definition) are bound, compared with only 5. 7% of non-agricultural lines. Final bound tariffs 
range from 0% for electrical machinery and transport equipment to 550% for chemicals, 
beverages and tobacco, and cereals and preparations. According to Myanmar's tariff reduction 
schedule, the final bound tariff rates have been in effect since 1995. The average bound tariff rate was 87.2% in 2013.  
3.9.  As per WTO Secretariat calculations, there are 32 tariff lines where the MFN applied tariff 
exceeds the bound rate. These lines pertain to, inter alia,  hard zinc spelter and zinc products, 
agricultural machinery and parts, and motor vehicle part and accessories (Table A3.1). However, 
according to the authorities, the applied MFN rate exceeds the bound rate on only two tariff lines 
(2620.1900.00 and 8708.9910.00). 
3.1.2.3  Applied MFN tariff 3.10.  The average applied MFN tariff was 5.5% in 2013, about the same as in 1996 and slightly 
lower than in 2008. The changes are due almost entirely to changes in nomenclature. The 
significant difference (82 percentage points) between the average applied MFN tariff and the average bound rate, and the fact that less than 19% of the tariff lines are bound, gives the 
authorities considerable scope to raise tariffs, thereby making the tariff quite unpredictable 
(Table 3.1). Almost 95% of the applied MFN tariff ranges from duty free to 15%, while the modal or most common tariff rate is 1% (Chart 3.1). Nearly half of all tariff lines have nuisance rates 
(greater than zero, but below or equal to 2%); the authorities' purpose for these was not clear to 
the Secretariat. 
3.11.  According to WTO sectoral definitions, average tariffs on agricultural products are higher 
than those for non-agricultural products. The respective rates in 2013 were 8.9% and 5%. The 
average tariff on agricultural products has rema ined unchanged, while that on non-agricultural 
products is slightly lower than in 2008. As mentioned the decline was mainly due to the change in nomenclature.
4 
                                               
3 These 418 lines are used only for internal statistical purposes. 
4 Tariffs on vehicles under HS heading 87.03 were also reduced from 30-40% in 2007 to 1% in 2012.  WT/TPR/S/293 • Myanmar 
 
- 34 - 
 
  Table 3.1 Tariff structure of Myanmar, 1996, 2008, and 2013  
 MFN applied 
  1996 2008 2013 
Bound tariff lines (% of all tariff lines) .. .. 18.5 
Simple average applied rate 5.7 6.1 5.5 
   WTO agricultural products 8.5 8.9 8.9 
   WTO non-agricultural products 5.2 5.7 5.0 
Domestic tariff peaks (% of all tariff lines)a 5.5 7.4 5.3 
International tariff peaks (% of all tariff lines)b 5.5 7.4 5.3 
Overall standard deviation of tariff rates 6.5 7.7 6.7 
Coefficient of variation of tariff rates 1.1 1.3 1.2 
Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
Duty-free tariff lines (% of all tariff lines) 3.6 3.4 4.0 
Non-ad valorem  tariffs (% of all tariff lines) 0.0 0.0 0.0 
Nuisance applied rates (% of all tariff lines)c 46.9 46.4 46.9 
Number of lines 5,798 10,689 9,558 
  Ad valorem  5,587 10,323 9,178 
  Duty free 211 366 380 
  Non- ad valorem   0 0 0 
 
.. Not available. 
 a Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate. 
b International tariff peaks are defined as those exceeding 15%. 
c Nuisance rates are those greater than zero, but less than or equal to 2%. 
 Note: Calculations on averages are based on national tariff line level (10-digit in 1996, and 8-digit in 2008 
and 2013). The 1996, 2008, and 2013 tariffs are, respectively, based on HS1996, HS2002 and HS2012 nomenclatures. 
 Source: WTO Secretariat calculations, based on da ta provided by the authorities of Myanmar. 
Chart 3.1 Distribution of  MFN tariff rates, 2013 
(4.0%)(0.02%)(1.3%)(30.5%)(12.8%)(2.3%)(8.5%)(1.1%)(9.2%)(6.5%)(6.5%) (12.0%)(3.5%)(1.2%)(0.6%)
0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000Duty free0.1%0.5%1.0%1.5%2.0%3.0%4.0%5.0%7.5%10.0%15.0%20.0%30.0%40.0%
Number of tariff linesTariff rates 
 
 
Note: Figures in parentheses denote the share of total lines. The 2013 tariff schedule consists of 
9,558 tariff lines. 
 
Source: WTO Secretariat calculations, based on da ta provided by the authorities of Myanmar. 
3.12.  Duty-free rates apply to, inter alia : animals and animal products; fruit, vegetables and 
plants; cereals and preparations; and fish and fishery products. The highest bands (i.e. 30% and WT/TPR/S/293 • Myanmar 
 
- 35 - 
 
  40%) apply mainly to alcoholic beverages, tobacco products, natural or cultured pearls and other 
precious stones, and motor vehicles and other transport equipment (Table 3.2 and Chart 3.2). The authorities state that the highest rates were assigned to what are considered luxury goods. They also state that the tariff could be converted to an  excise duty for some of these goods when/if a 
system of excise tax becomes operational in My anmar. Furthermore, the authorities expect a 
decline in customs revenue with the realization of the AEC in 2015. 
Table 3.2 Tariff summary, 2013  
  Number 
of lines Average 
(%) Range 
(%) Standard 
deviation Nuisancea Duty 
free 
Total 9,558 5.5 0-40 6.7 46.9 4.0 
Agricultural products (HS 01-24) 1,594 9.0 0-40 7.6 17.8 10.4 
Industrial products (HS 25-97) 7,964 4.8 0-40 6.3 52.7 2.7 
WTO agriculture 1,298 8.9 0-40 8.3 23.4 9.2 
  Animals and products thereof 150 9.4 0-15 6.9 1.3 33.3 
  Dairy products 38 3.3 3-5 0.7 0.0 0.0 
  Fruit, vegetables and plants 348 10.9 0-15 6.6 12.6 10.9 
  Coffee and tea 42 14.3 5-20 4.3 0.0 0.0 
  Cereals and preparations 185 9.9 0-15 6.3 5.9 14.6 
  Oil seeds, fats and oils and their products 198 2.1 0-15 2.2 73.2 1.0 
  Sugars and confectionary 32 6.8 0.5-20 7.5 50.0 0.0 
  Beverages, spirits and tobacco 106 24.3 15-40 10.6 0.0 0.0 
  Cotton 5 0.8 0-1 0.4 80.0 20.0 
  Other agricultural products n.e.s. 194 3.2 0-15 2.5 42.3 0.5 
WTO non-agriculture 8,260 5.0 0-40 6.2 50.6 3.2 
  Fish and fishery products 377 8.0 0-15 3.9 7.2 12.7 
  Minerals and metals 1,386 3.4 0-30 4.3 56.3 4.8 
  Chemicals and photographic supplies 1,327 2.4 0-20 3.6 78.7 2.4 
  Wood, pulp, paper and furniture 455 6.8 0-15 5.6 2.0 4.4 
  Textiles 802 8.9 0-20 6.3 26.9 0.1 
  Clothing 300 16.8 2-20 5.0 3.7 0.0 
  Leather, rubber, footwear and travel 
goods 319 4.6 0.5-20 3.8 32.6 0.0 
  Non-electric machinery 1,291 1.9 0-15 2.4 76.3 6.6 
  Electric machinery 694 4.2 1-20 5.1 66.4 0.0 
  Transport equipment 551 7.8 0-40 11.9 34.1 1.3 
  Non-agricultural articles n.e.s. 722 5.5 0-30 5.4 44.0 0.1 
  Petroleum 36 1.6 0.5-3 0.5 91.7 0.0 
 
a Nuisance rates are those greater than zero, but less than or equal to 2%. 
 Note: Calculations on averages are based on national tariff line level (8-digit).  Source: WTO Secretariat calculations, based on da ta provided by the authorities of Myanmar. 
3.13.  Apart from the overall level of the tariff, as reflected in the average applied MFN tariff rate, 
there are potential efficiency losses depending on  the dispersion of these tariff rates across 
product lines. The greater the differentials in tariff  rates, especially within groups of similar and 
thus substitutable products, the higher the chance that consumer and producer decisions are distorted by the tariff structure. Since 2008, th e dispersion of tariff rates has decreased; the 
proportion of tariff lines involving domestic and international peaks has also declined and the 
overall standard deviation of the tariff rates decreased from 7.7% in 2008 to 6.7% in 2013 (Table 3.1), thereby making the tariff less complex.   
 WT/TPR/S/293 • Myanmar 
 
- 36 - 
 
  Chart 3.2 Average applied MFN tariff rates, by HS section, 2013 
Per cent 
 
0.02.55.07.510.012.515.0
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 2101   Live animals & products  
02   Vegetable products03   Fats & oils      
04   Prepared food, etc.05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins09   Wood & articles
10   Pulp, paper, etc.11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.15   Base metals & products
16   Machinery17   Transport equipment
18   Precision instrument19   Arms & ammunition
20   Miscellaneous manufacturing21   Works of art, etc.Average
(5.5%)
 
 
Source: WTO Secretariat calculations, based on da ta provided by the authorities of Myanmar. 
3.1.3  Other charges affecting imports 
3.14.  In addition to import duties, importers must pay an import licence fee and commercial tax 
on certain imports. A commercial tax works essentially as an excise duty, which is calculated on 
the landed cost of the product and is collected at the border. Commercial tax is charged on the sum of the c.i.f. value of the imports and the tariff (section 3.3.1.1.2).  
3.1.3.1  Preferential tariffs 
3.15.  Imports from ASEAN member states enter Myanmar at preferential rates under the ASEAN 
Trade in Goods Agreement (ATIGA). Under ATIGA 7,612 lines are duty free, 380 of these lines are 
also duty free under MFN; 590 tariff lines have been reduced but have rates greater than zero; 
while 1,356 lines have not been reduced (Table 3.3). Of these, 1,278 lines are to be reduced with full implementation of the AEC in 2015. In ad dition, there are 78 lines where Myanmar has taken 
an exemption to reduce or eliminate tariffs; these include poppy seed, opium, explosives, tanks, 
arms and ammunition, and works of art. 
Table 3.3 Preferential tariffs, 2013
 
 No. of 
lines ATIGAb AKFTAc 
Avg. 
(%) Range 
(%) Nuisancea Duty 
free Avg. 
(%) Range 
(%) Nuisancea Duty 
free 
Total 9,558 0.6 0-10 10.3 79.6 3.7 0-40 46.9 4.0 
Agricultural 
products  (HS 01-24) 1,594 0.7 0-5
 2.1 82.7 5.2 0-40 17.8 10.4  
Industrial 
products  
(HS 25-97) 7,964 0.5 0-10 11.9 79.0 3.4 0-40 52.7 2.7 
WTO agriculture 1,298 0.9 0-5  4.0 78.5 4.9 0-40 23.4 9.2  
  Animals and 
 products thereof 150 0.2 0-5 0.0 96.0 3.3 0-5 1.3 33.3 
  Dairy products 38 1.8 0-5  0.0 42.1 3.3 3-5 0.0 0.0  
  Fruit, vegetables 
 and plants 348 0.4 0-5 1.7 90.2 4.2 0-15 12.6 10.9 
  Coffee and tea 42 2.5 0-5  0.0 50.0 6.9 5-15 0.0 0.0  
  Cereals and 
 preparations 185 2.0 0-5 1.6 58.9 5.0 0-15 5.9 14.6 
  Oil seeds, fats and 
 oils 198 0.2 0-5  7.6 88.9 1.9 0-5 73.2 1.0  WT/TPR/S/293 • Myanmar 
 
- 37 - 
 
   No. of 
lines ATIGAb AKFTAc 
Avg. 
(%) Range 
(%) Nuisancea Duty 
free Avg. 
(%) Range 
(%) Nuisancea Duty 
free 
  Sugars and 
 confectionary 32 2.3 0-5 40.6 18.8 3.7 0.5-10 50.0 0.0 
  Beverages, spirits 
 and tobacco 106 1.6 0-5  0.0 67.0 18.6 5-40 0.0 0.0  
  Cotton 5 0.2 0-1 20.0 80.0 0.8 0-1 80.0 20.0 
  Other agricultural 
 products n.e.s. 194 0.6 0-5  7.2 81.4 3.0 0-5 42.3 0.5  
WTO non-
agriculture 8,260 0.5 0-10 11.2 79.8 3.5 0-40 50.6 3.2 
  Fish and fishery 
 products 377 0.3 0-5  0.0 94.4 5.8 0-10 7.2 12.7  
  Minerals and 
 metals 1,386 0.8 0-5 15.3 71.1 2.7 0-30 56.4 4.8 
  Chemicals and 
 photographic 
 supplies 1,327 0.6 0-10  19.8 71.0 2.0 0-20 78.7 2.4  
  Wood, pulp, paper 
 and furniture 455 0.8 0-5 3.5 73.2 3.7 0-15 2.0 4.4 
  Textiles 802 0.1 0-5  0.9 97.1 4.5 0-20 26.9 0.1  
  Clothing 300 0.0 0-0 0.0 100.0  8.3 2-20 3.7 0.0 
  Leather, rubber, 
 footwear  319 0.6 0-5  7.5 81.2 3.9 0.5-20 32.6 0.0  
  Non-electric 
 machinery 1,291 0.3 0-5 19.4 77.7 1.7 0-15 76.3 6.6 
  Electric machinery 694 0.2 0-5  8.1 90.1 3.4 1-15 66.4 0.0  
  Transport 
 equipment 551 0.8 0-5 6.4 77.5 7.8 0-40 34.1 1.3 
  Non-agricultural 
 articles n.e.s. 722 0.9 0-10  5.8 78.9 3.7 0-30 44.0 0.1  
  Petroleum 36 0.9 0-1.5  61.1 38.9 1.6 0.5-3 91.7 0.0 
a Nuisance rates, including rates  greater than zero, but less than or equal to 2%. 
b ASEAN Trade in Goods Agreement. c ASEAN-Korea Free Trade Agreement. 
Note Calculations of averages are ba sed on national tariff line level (8-d igit); nuisance and duty-free rates 
as a percentage of total numbers. 
Source WTO Secretariat calculations, based on da ta provided by the authorities of Myanmar. 
3.16.  In the context of being a member of ASEAN, Myanmar also has preferential import tariffs for 
China (ACFTA), Japan (AJFTA), Republic of Kore a (AKFTA), Australia and New Zealand (AANZFTA), 
and India (AIFTA). According to the authorities,  the tariff reduction schedules for these FTAs 
(except AKFTA) are being transposed from HS2007 nomenclature to HS2012 nomenclature and 
are therefore not available. With respect to AKFT A, the number of duty-free tariff lines is exactly 
t h e  s a m e  a s  t h a t  u n d e r  M F N .  H o w e v e r ,  s o m e  o f  the higher duty rates under MFN have been 
reduced under AKFTA. 
3.1.4  Import licensing, prohibitions and restrictions 
3.1.4.1  Import licensing 3.17.  Prior to June 2012, all imports into Myanmar required a non-automatic import licence. This 
has changed since June 2012, when the Government eased import licensing requirements for 166 
commodities (these correspond to more than 1,900 ta riff lines) by allowing their importation with 
an automatic licence. Subsequently, in April 2013, all licensing requirements for these commodities were abolished. Nonetheless, under the provisions of the Control of Imports and 
Exports (Temporary) Act 1947, most goods imported into Myanmar still require an import licence. 
Import licences are issued by the Department of  Commerce and Consumer Affairs of the Ministry 
of Commerce.
5 To obtain a licence, importers must submit an application on the company's 
letterhead, the requisite fee6, the pro-forma invoice, sales contract, and, if required, 
recommendations from relevant government departments and/or organizations. The authorities state that most licences are granted within 24 working hours.  
                                               
5 Prior to March 2011, the Trade Policy Council (TPC) had the exclusive authority to approve import and 
export licences. The TPC has since been abolished. 
6 The fee is based on the c.i.f. value of the goods up to a maximum of K 50,000. WT/TPR/S/293 • Myanmar 
 
- 38 - 
 
  3.18.  In October 2011, the Government began accepting applications for import licences at the 
Yangon branch of the Ministry of Commerce. Previously, only the Ministry of Commerce in Nay Pyi Taw accepted such applications. 
3.1.4.2  Import prohibitions 
3.19.  The Ministry of Commerce maintains a list of prohibited imports; any changes to the list are 
reviewed by the Directorate of Trade of the Mi nistry of Commerce. Under Section 18 of the Sea 
Customs Act, import prohibitions apply to, inter alia:  counterfeit currency and coins; pornographic 
material; all kinds of narcotic drugs and psychotropic substances
7; playing cards; goods bearing 
the imprint or reproduction of the flag of My anmar; goods bearing the emblem of Buddha and 
pagodas of Myanmar; arms and ammunition; antiques and archeologically valuable items; and wildlife and endangered species.  
3.20.  Under Section 19 of the Sea Customs Act, the President of Myanmar (or another official 
acting on behalf of the President) may from time to time prohibit or restrict imports; these are notified through the O fficial Gazette . Currently this list includes alcoholic beverages and 
cigarettes.
8  
3.1.4.3  Import restrictions 3.21.  Myanmar restricts certain imports. To impo rt these products, a recommendation is required 
from the relevant government department and agen cies. Imports of live animals and birds require 
the approval of the livestock, breeding and vete rinary department; live plants, seed, and soil 
imports require approval from the Department of  Agriculture; and telecommunications equipment 
needs to be approved by the telecommunications department.
9  
3.22.  Furthermore, foodstuff that could be harmful for human consumption, such as palm oil (two 
tariff lines) and dairy products, must be imported according to the specifications in the sales contract and be certified by a recognized health laboratory. All drugs and medicines to be imported 
must be registered with the Department of Food and Drug Administration, part of the Ministry of 
Health. Additionally, for the issuance of the impo rt licence for drugs and medicines, the importer 
must provide a drug importation approval certificate, a drug wholesalers licence, and drug 
registration certificate. 
3.23.  Imports of certain fruits are permitted only  at certain times of the year, when they are not 
produced in Myanmar.
10 
3.1.4.4  Tariff quotas and quantitative restrictions 
3.24.  Myanmar does not impose any tariff-rate quotas or quantitative restrictions.  
3.1.5  Duty drawback 3.25.  Imports of machinery and equipment that are re-exported are eligible for duty drawback. 
The goods must be re-exported within two years of importation. Under the current duty drawback 
scheme, seven eighths of the customs duty paid on  goods that can be easily identified will be 
refunded upon re-export. The claim for the duty drawback must be made at the time of re-export. 
The authorities state that claims for refund are processed within a week. 
                                               
7 Imports of certain narcotic drugs, psychotropic substances, and chemical precursors are permitted 
when the quantity is defined by the Ministry of Heal th and the importer has a certificate from the Central 
Committee of Drug Abuse Control.  
8 Information provided by the authorities. 
9 ASEAN online information. Viewed at: http://www.asean.org/communities/asean-economic-
community/item/myanmar-3 . 
10 Imports of honey orange are allowed between Marc h and September; durian from September to April; 
rambutan and pomegranate from January to 15 June; dr agon fruit and sunskit fruit between February and 
September; mangosteen from January to March and Oc tober to December; and jack fruit in January and 
February. WT/TPR/S/293 • Myanmar 
 
- 39 - 
 
  3.1.6  Rules of origin 
3.26.  Myanmar does not have any non-preferential rules of origin. Preferential rules of origin for 
imports under ATIGA and other FTAs are detailed in the appendices to the agreements.11 
3.1.7  Contingency measures  
3.27.  Presently there is no anti-dumping, countervailing, safeguards or subsidies legislation in 
Myanmar. The authorities state that they are in consultation with various donor agencies, with a view to introducing legislation in this area in the near future. 
3.1.8  Government procurement 
3.28.  Myanmar is neither party to nor an observer of the WTO Agreement on Government 
Procurement. Myanmar has no specific legislatio n governing public procurement. However, all 
government agencies must adhere to notifications issued by the President's Office (on 2 June 2012 
and 5 April 2013), which stipulate that every government agency must use the open tender 
system for all investment and commercial procurement, including that for construction works and procurement, of machinery, equipment, and vehicles. All government agencies/departments as 
well as sub-central entities must submit re curring expenditure requirements to the Budget 
department of the Ministry of Finance, and their capital expenditure requirements to the planning 
department of the Ministry of National Planning  and Economic Development. Funds are approved 
as part of the budget and planning laws. (Chart  3.3). The approved amounts are disbursed by the 
Ministry of Finance and Revenue.   
Chart 3.3 Funds approval 
Planning 
Department
Planning 
Commission
Parliament
Financial
Commission
Budget 
Department
Parliament
Line ministries/
Government agencies
1
2Capital expenditureBudget
Law
Planning
Lawonce approved, funds disbursed
once approved, funds disbursed 
 
Source: Information provided by the authorities of Myanmar. 
3.29.  The procurement system currently in plac e in the Ministry of Finance requires every 
procuring entity to form a tender selection committee.12 The invitation for bids should be published 
in two local papers and the government website. The committee reviews each company's proposal 
                                               
11 Rules of origin for each FTA in which Myanmar pa rticipates are set out in the appendices to the 
agreement: AANZFTA: http://www.commerce .gov.mm/images/stories/EIPR/ eip/aanzfta%20roo%20%20ocp.pdf ; 
ACFTA: http://www.commerce.gov.m m/images/stories /EIPR/eip/acfta%20roo%20%20ocp.pdf ; 
AJFTA: http://www.commerce.gov.m m/images/stories /EIPR/eip/ajcep%20roo%20%20ocp.pdf ; 
AKFTA: http://www.commerce.gov.m m/images/stories /EIPR/eip/akfta%20roo%20%20ocp.pdf ; 
AIFTA: http://www.commerce.gov .mm/images/stories/EIP R/eip/ai%20rooocp.doc ; and 
ATIGA: 
http://www.commerce.gov.mm/images/stories/ EIPR/eip/asean%20cept%20roo%20%20ocp.pdf.  
12 The tender selection committee is headed by the deputy minister and all heads of departments are 
members. WT/TPR/S/293 • Myanmar 
 
- 40 - 
 
  and invites the qualified ones to the tender opening.  Sealed bids are opened in the presence of all 
qualified bidders and the lowest bid is selected and sent to the Minister for approval. After approval by the Minister, the respective ag ency may proceed with the procurement.   
3.30.  Bidders for construction projects must provide a company profile, bank account details, 
certificate of registration, certificate of manufac turer, certificate of supplier, record of past 
performance, and in the case of a foreign company a recommendation by the Embassy of Myanmar. The original and three copies of the bi ds signed by authorized persons accompanied by 
a US$500,000 bid bond must be submitted. Unsuccessful bidders are refunded the bid-bond 
amount, while the successful bidder is required to furnish a guarantee of 10% of the tender amount; failure to do so results in the forfeiture of the bid-bond and black-listing of the company. 
With respect to construction, it would appear that domestic producers of, inter alia , tyres, cement, 
and MS rods are given preference; the margin of preference and how it is administered is not 
clear. 
3.31.  With regard to the Ministry of Constructi on, data on government procurement are detailed 
below (Table 3.4). According to budget estimates, government procurement was approximately 
7% of GDP in 2011/12, with construction-related procurement accounting for 6% of GDP.
13 
3.32.  The authorities state that procurement accounts are audited semi-annually so as to make 
the public procurement process transparent and e fficient; there is no complaints or appeals 
procedure. However, to ensure fairness and transparency, the authorities enacted an anti-corruption law on 17 September 2013. 
Table 3.4 Procurement by the Ministry  of Construction, Myanmar, 2006-12 
(Kyats million) 
  Total 
Expenditure Total 
Purchasing 
Expenditure Tendering  Non Tendering 
Expenditure 
   Foreign  Domestic  Local  % 
2006-07 127,162 86,197 17,102 341,938 85,838 99.6 
2008-09 117,151 83,289 105,207 1,193,805 81,990 98.4 
2010-11 366,376 238,621 701,531 6,289,370 231,631 97.1 
2011-12 273,453 177,974 20,155,855 12,670,795 145,147 81.6 
 
Source: Information provided by the authorities of Myanmar. 
3.1.9  State trading  
3.33.  Myanmar has not notified its state-trading activities to the WTO; its state-trading 
arrangements remain opaque. It would appear th at Myanmar Petrochemical Enterprise (MPE) has 
the sole right to import crude oil, while the Myan mar Petroleum Products Enterprise (MPPE) is the 
sole importer of refined petroleum products; Myanmar Oil and Gas Enterprise (MOGE), Myanmar Timber Enterprise (MTE), and Myanmar Salt and Ma rine Chemical Enterprise also seem to engage 
in state-trading activities. No further information on state trading in Myanmar was available to the 
Secretariat.  
3.1.10  Standards and other technical requirements 3.34.  Under the provisions of the Science and Technology Development Law, the Ministry of 
Science and Technology is responsible for standa rds and conformity assessment. The Ministry of 
Health's Food and Drug Authority and the Food and Drug Administration are responsible for promulgating and enforcing regulations and standa rds in the food and pharmaceutical industries 
(including imports). As such, the Ministry of Health is responsible for the National Drug Law, 
Traditional Drug Law, and the National Food Law.  The Ministry of Agriculture and Irrigation is 
responsible for the Plant Pest Quarantine Law and the Animal Health and Development Law.  
3.35.  According to the authorit ies, standards and technical regulations adopted in Myanmar are 
based on international standards and technical regulations. Food standards are adopted from 
                                               
13 Information provided by the authorities. WT/TPR/S/293 • Myanmar 
 
- 41 - 
 
  CODEX; fishery standards are based on EU regulations; pharmaceutical standards and regulations 
are based on British International Standards; and animal health risks are those that have been recognized by the OIE. Electrical standards are based on the IEC standards, motor vehicles follow UNECE standards, and building standards are based on ISO and ASEAN standards. 
3.36.  The authorities stated that Myanmar has 65 ex isting standards. It is developing a standards 
law and creating a National Standards Council (NSC) to revise the existing standards. The law has been drafted and submitted to the Cabinet and Parl iament for approval. A standards committee, to 
be set up under the NSC, will establish 19 tec hnical committees covering various sectors. The 
technical committees, which are expected to comprise government officials, academia, chambers of commerce, private sector industries, and professionals, will draft national standards and regulations in their respective areas. There will be a one-month period for comments, before the 
standard will be accepted. 
3.37.  None of Myanmar's preferential trade ag reements contains a chapter on standards and 
technical regulations. 
3.38.  Under the National Food Law and the Nation al Drug Law, food and pharmaceuticals must be 
labelled. For food, labels must clearly state name of the product, contents including name and net weight, manufacturer's name and address, batc h number, manufacturing date, expiry date, and 
required storage conditions. For pharmaceuticals, labels must clearly state the brand name, 
generic name, active pharmaceutical ingredients (API), and contents including name and amount, batch number, date of manufacture, expiry da te, and manufacturer's name and address, in 
English.  
3.39.  The Director General, Myanmar Scientific and Technological Research Department, Ministry 
of Science and Technology has been notified to  the WTO as the national enquiry point for all 
questions relating to technical barriers to trade (TBT).
14 However, the WTO has not received any 
notification concerning the technical regulations in force.15 
3.1.11  Sanitary and phytosanitary measures 3.40.  The Ministry of Agriculture and Irrigation and the Ministry of Livestock, Fisheries and Rural 
Development are responsible for sanitary and ph ytosanitary (SPS) measures in Myanmar. SPS 
standards adopted by Myanmar follow those of CO DEX, ASEAN, and the OIE. The Directorate of 
Investment and Company Administration (DICA), Ministry of National Planning and Economic Development, is the national enquiry point to the WTO.
16 Myanmar has not made any notification 
concerning its SPS measures to the WTO. 
3.41.  To support domestic agricultural production, Myanmar enacted a Pesticide Law and a Plant 
Pest Quarantine Law in 1990 and 1993, respectively. The two laws provide for management and 
control of maximum residue limits in food, as well as import and export certification of plant and 
plant products. In this respect a Pesticide Analytical Laboratory has been setup to carry out residue surveys and monitoring in agricultural f ood commodities. Furthermore, the laboratory has 
the capacity to carry out mycotoxin analysis.   
3.42.  The Plant Protection Division of the Minist ry of Agriculture and Irrigation is the competent 
authority to issue SPS certificates, as provided for under the Plant Pest Quarantine Law of 1993. Certificates for imports and exports are issued in the Yangon head office and at the inspection 
stations at seven border entry points. 
3.43.  Import inspection permits are also needed for imports of live animals, animal products, 
animal feed, and veterinary drugs. These are issu ed by the Ministry of Livestock, Fisheries and 
Rural Development and the Ministry of Health. The authorities stated that permits are issued 
within two days. The quarantine requirement for liv e animals is three weeks. Imports of GMOs are 
not permitted.  
                                               
14 WTO document G/TBT/ENQ/38/Rev.1, 8 July 2011. 
15 WTO document G/TBT/33, 27 February 2013. 
16 WTO document G/SPS/ENQ/26, 11 March 2011. WT/TPR/S/293 • Myanmar 
 
- 42 - 
 
  3.44.  SPS-related certificates are mandatory for: prepared food (Food and Drug Administration); 
fisheries (Department of Fishery); pharmaceuticals (Food and Drug Administration)17; pesticides 
(Department of Agriculture); and crops (Post Harvest Technology Centre of the Department of Agriculture). There is only one ISO 17025 accredited  laboratory, which is run by the Ministry of 
Livestock, Fisheries and Rural Development. 
3.2  Measures Directly Affecting Exports 3.2.1  Export procedures  
3.45.  Only Myanmar nationals may engage in international trade; however, foreign investors 
registered under the Foreign Investment Law as manufacturers may export their finished goods. 
3.46.  Exporters of most products require an expo rt licence prior to exporting (see section 3.2.3). 
Exporters must be registered as companies and exporters before they apply for export licences 
from the Department of Commerce and Consum er Affairs under the Ministry of Commerce 
(Table 3.5). For certain products, recommendations  are required from relevant ministries or 
associations under the UMFCCI. According to the authorities, these associations are authorized by 
the UMFCCI or relevant ministries to issue recommendations for export licences to monitor the 
export performance of these products.  
Table 3.5 Export procedure 
Process Department 
Company registration Directorate of In vestment and Company Administration 
Registration of importer and exporter Directorate of Trade 
Recommendation for export licen ce Relevant ministries or associations under the UMFCCI  
Export licence Department of Commerce and Consumer Affairs 
Insurance and customs clearance Relevant de partments under the Mi nistry of Finance  
Banking Central Bank of Myanmar 
Port clearance Myanmar Port Authority 
 
Source: Information provided by the authorities. 
3.47.  Exporters must submit an export declarat ion form to Customs before exporting the goods, 
together with required documentation, such as: the export licence, invoice, packing list, sales 
contract, letter of credit or general remittance exemption certification, forest pass for the shipment of forestry produce, health certificate for the export  of live animals, permit for the export of wild 
live animals, and other certificates and permits as required by the relevant government agencies.
18 
3.48.  Export inspections are conducted by Cu stoms. According to the authorities these are 
intended to avoid disputes between exporters and importers concerning the specifications.  
3.49.  Currently, private inspection companies st ationed in Yangon (e.g. SGS (Myanmar) Ltd. and 
OMIC (Myanmar) Ltd.) provide pre-shipment inspection for certain exported products. Inspection companies set up under the Myanmar Company Act (local and foreign companies) also provide inspection at the request of customers.   
3.50.  The Export Import Coordinating Committee (EICC) monitors all export and import matters 
(section 2.3.2); it is authorized to decide on all matters related to export and import procedures to 
streamline the effectiveness of the decision-making process.  
3.2.2  Export taxes 
3.51.  Myanmar reformed its export tax regime in  2011. Prior to the reform, exporters had to pay 
commercial tax at a rate of 8% and income tax at a rate of 2% before exporting goods. Currently, 
commercial tax is levied only on exports of five commodities (Table 3.6); according to the authorities, this is to preserve natural resources.  In addition, a cess is collected by Customs on 
behalf of the Ministry of Finance on four products.  
                                               
17 For pharmaceutical imports, a drug  registration certificate and a drug  importation approval certificate, 
both issued by the Ministry of Health are also required. 
18 Customs online information. Viewed at: http://www.myanmarcustoms.gov.mm/exportprocedure.aspx  
[21/05/13].  WT/TPR/S/293 • Myanmar 
 
- 43 - 
 
  Table 3.6 Export tax and cess 
Commercial tax Rate (%) Cess Rate 
Gems 30 Rubber  K 11.3732 /MT 
Gas 8 Cotton K 291.2 /MT 
Crude oil 5 Lac K 105.2 /MT 
Teak and conversions 50 Cutch K 49.728 /MT 
Timber and conversions 50   
 
Source: Information provided by the authorities. 
3.2.3  Export prohibitions and licensing  
3.52.  Exports of the following items are prohibited: arms and ammunition; pornographic articles; 
antiques; all kinds of narcotic drugs and psychotropic substances19; crude oil (from 2013); and 
raw logs (to be prohibited from 1 April 2014).20 
3.53.  According to the authorities, Myanmar does not use export quotas.  
3.54.  It would appear that the Government is restructuring its export licensing regime. The 
authorities state that, from 2013 152 types of good s no longer require export licences; no further 
information was available. Exporters of other goods still require export licences for export. To 
apply for an export licence, exporters must submit an application form and a sales contract, invoice; the Ministry of Commerce issues export licences within 24 hours. Licences are valid for three months, renewable but not transferable. Unlike for import licences, there is no export 
licensing fee. 
3.55.  A recommendation is required from the relevant department/ministry in order to obtain an 
export licence for certain commodities (Table 3.7). 
Table 3.7 Export permit 
Commodity Ministry / Department 
Agricultural seeds Ministry of Agriculture and Irrigation 
Teak scantlings and forest products Ministry of Environmental Conservation and Forestry 
Shrimp bran (prawn shell dust ), fish bran Livestock Breedi ng and Veterinary Department 
Metal  Ministry of Mines 
Religious commodities Religious Affairs Department 
Movies, video tapes Motion Picture Enterprise 
Animals, animal products and animals feed Li vestock Breeding and Ve terinary Department 
Materials related to food and drugs Food and Drug Administration 
Seeds and vegetable roots  Ministry of Agriculture and Irrigation 
Pearl products made of pearl and mother of pearl Myanmar Pearl Enterprise 
 
Source: Information provided by the authorities. 
3.56.  The time required to obtain a permit de pends on the type of commodity. For example, it 
takes from 6 months to 18 months to obtain re commendations from the FDA on materials related 
to food and drugs, while it takes from 1 w eek to 10 days to obtain SPS certificates.  
3.2.4  Export promotion 3.2.4.1  Duty and tax concessions, and subsidies 
3.57.  Myanmar notified that it did not use any ex port subsidies on agricultural products during 
1995-2004.
21   
                                               
19 Customs online information. Viewed at: 
http://www.myanmarcustoms.gov.mm/exportprohibitionsrestrictions.aspx  [21.05.13]. 
20 Notification No. 26/2013 from the Ministry of Envi ronmental Conservation and Forestry. Conversely, 
exportation of value-added timber products is encouraged.  
21 WTO documents G/AG/N/MYN/2, 20 December 2001; G/AG/N/MYN/3, 26 June 2003; G/AG/N/MYN/4, 
15 November 2004; and G/AG/N/MYN/6, 7 October 2005. WT/TPR/S/293 • Myanmar 
 
- 44 - 
 
  3.58.  Tax exemptions on exports are granted to domestic and foreign investors. Manufacturing 
businesses receive 50% income tax exemption on profits accrued from exports, and commercial 
tax exemption if the goods are exported with a few exceptions (section on 3.2.2). According to the authorities, no duty and tax concessions are linked to local-content requirements.  
3.2.4.2  Special economic zones 
3.59.  In accordance with the Special Economic Zone (SEZ) Law (January 2011), which is being 
revised, investors who carry out business in a SEZ are eligible for: 
 income tax exemption for the first five years on profits accrued from exports; 
 50% reduction of income tax for the second five years on profits accrued from exports; 
 50% reduction of income tax on profits accrued from exports for re-investment;  
 exemption from tariffs on the importation of raw materials, machinery, and equipment 
for export-oriented enterprises established in an SEZ; and 
 exemption from tariffs and commercial tax for five years on the importation of 
machinery and motor vehicles for investment enterprises, followed by a 50% reduction 
on import tariffs and commercial tax for the next five years. 
3.60.  The Government plans to establish three SEZs: Dawei, Kyauk Phyu, and Thilawa. 
Infrastructure is being developed in the Dawei SEZ. A plan for infrastructure development in 
Thilawa is being prepared, and an environmental impact assessment is being conducted in the 
Kyauk Phyu. 
3.2.4.3  Export finance, insurance, and guarantees 
3.61.  The authorities state that there is no government scheme to provide export credit, 
insurance or guarantees.  
3.2.4.4  Export promotion and marketing assistance 
3.62.  The Government aims to promote exports, diversify markets abroad, and improve the 
quality of exported products. The Ministry of Commerce intends to lower trade barriers by 
simplifying export (and import) procedures, and by issuing export licences as quickly as possible. According to the authorities, the number of docu ments required to obtain an export licence has 
been reduced, and a branch office of the MOC was set up in Yangon to reduce administration 
costs. 
3.63.  The Ministry of Commerce conducts traini ng, seminars, workshops, and trade fairs, to 
enable private sector participation in foreign trade. Information is available through official 
websites
22; the weekly Commerce Journal ; and monthly Trade News Bulletin . In addition, the 
Ministry of Commerce, in cooperation with the Ministry of Communications and Information Technology, has set up an Automated Price Information System
23, which provides information on 
domestic market prices of agricultural products to farmers, brokers, merchants, and businessmen.  
3.2.5  Export operations of stat e enterprises, or state trading 
3.64.  The State has a monopoly on exports of teak, petroleum and petroleum products, natural 
gas, salt and marine chemicals, pearls and pe arl products, and mineral and metal products. It 
would appear that state-trading arrangements include: 
a. Myanmar Timber Enterprise (MTE): state trading in raw log timber; 
                                               
22 Viewed at: www.commerce.gov.mm  and www.myanmartradenet.com.mm . 
23 The system was sponsored by the European Co mmission for Food and Agriculture Organization 
(EC-FAO). WT/TPR/S/293 • Myanmar 
 
- 45 - 
 
  b. Myanmar Petroleum Products Enterprise (MPPE): state trading in petroleum products; 
c. Myanmar Petrochemical Enterprise (MPE): state trading in crude oil and petroleum 
products; 
d. Myanmar Oil and Gas Enterprise (MOGE): state trading in natural gas; 
e. Myanmar Salt and Marine Chemical Enterprise: state trading in salt and marine 
chemicals; 
f. Myanmar Pearl Enterprise: state trading in pearls and pearl products; and 
g. The No. (2) Mining Enterprise: the sole exporter of electrolytic refined tin, wolfram ore, 
and tin tungsten ore.24 
3.65.  State-owned economic enterprises, or private enterprises, may be authorized to export 
these items if permission is obtained from the relevant state-trading enterprise(s); activities 
subject to state-trading arrangements remain opaque (section 3.1.9). 
3.3  Measures Affecting Production and Trade 3.3.1  Taxation and incentives  
3.3.1.1  Taxation  
3.3.1.1.1  Overview 3.66.  Myanmar has 14 different taxes and duties under the major headings: taxes levied on 
domestic production and consumption (excise du ty, commercial tax, stamp duty, state lottery, 
import licence fees, transportation tax); taxes levied on income and ownership (income tax); customs duties; taxes levied on public utilities such as land, water and embankment; and taxes on extraction of forest products, minerals, rubber, and fisheries.  
3.67.  Tax accounts for about 90% of total go vernment revenue, and tax revenue has been 
increasing in recent years. The biggest source of tax revenue is commercial tax, followed by income tax (Table 3.8). Profit tax was discontinued in 2011; those subject to profit tax before 
2011 are now subject to individual income tax. 
Table 3.8 Selected taxes and their revenues, 2005-12 
(K billion) 
Tax 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 
Commercial tax 226.1 319.2 384.6 429.2 466.5 601.8 768.7 
Income tax 145 260.1 334.1 422.6 415.6 436 711.1 
Profit tax 63.2 78.5 94.2 103.8 114.6 135.4 a 
Stamp duty tax 5.1 6.1 11.5 15.1 20.8 29.5 37.4 
State lottery tax 8.8 12.8 13.9 17.3 19.8 20.3 21.5 
Tariff 17.9 29.5 35.6 82.4 45.3 59.6 135.6 
 
a Profit tax was discontinued in 2011.   Source: Information provided by the authorities.  
3.3.1.1.2  Commercial tax and excise tax 
3.68.  In accordance with the Commercial Tax Law, amended in September 2011, commercial 
taxes apply to goods produced domestically, services carried out domestically, and imported 
goods, according to seven schedules (Table 3.9). 
                                               
24 Ministry of Mines online  information. Viewed at: http://www.mining.gov.mm/ME-2/1.ME-
2/details.asp?submenuID=13&sid=123  [28/06/2013]. WT/TPR/S/293 • Myanmar 
 
- 46 - 
 
  Table 3.9 Commercial tax and excise tax in Myanmar 
Schedules Items  Domestically produced Imported  
Schedule 1 70 items  Exempted  5% 
Schedule 2 65 items  5% 5% 
Schedule 3 132 items  5% 5% 
Schedule 4 90 items  5% 5% 
Schedule 5 52 items  5% 5% 
Schedule 6 
(Excise 
tax) Cigarettes 100%  100%  
Tobacco  50%  50% 
Virginia tobacco, cured 50% 50% 
Cheroots  50%  50% 
Cigars, pipes, all sorts 50% 50% 
Pipe tobacco  50% 50% 
Betel chewing preparations 50% 50% 
Liquor  50% 50% 
Beer  50% 50% 
Wine  50% 50% 
Teak and teak conversions 50% 50% 
Hardwood logs and hardwood conversions  50% 50% 
Jade and other precious stones 30% 30% 
Light vans, saloons, sedan cars, estate wagons, and 
coupes 25% 25% 
Gasoline 10% 10% 
Diesel oil 10%  10% 
Jet fuel 10% 10% 
Natural gas 8%  8% 
    
Schedule 7 Services  Tax rate  
 Railways, waterways, airways, and road transport business  5% 
 Entertainment business  5% 
 Trading business consisting of purchase and sale of goods  5% 
 Hotels, rest houses 5% 
 Sale of foods and drinks  5% 
 Tourism business (including tour guide services)  5% 
 Vehicles cleaning and oiling, repair and decoration  5% 
 Insurance except life insurance  5% 
 Beautifying and body fitness business including hair dressing  5% 
 Printing, computer typing, and computer graphic design (except photocopying)  5% 
 Brokerage services  5% 
 Drawing designs, decoration, and repairing of land, building, and construction  5% 
 Advertising business, taking and developing photos, editing and distribution business 
of motion pictures and video tapes 5% 
 Agents, lawyers, certified accountants, auditors  5% 
 
Source: Commercial Tax Law. 
3.69.  Under Schedule 1 of the Commercial Tax Law, 70 items are exempt from commercial tax 
(Table A3.2) if they are produced domestically, while a 5% tax is levied on the imported goods, indicating different treatment for domestically produced and imported goods. According to the 
authorities, these goods are for the basic need s of the Myanmar people, and the different tax 
treatment is to protect domestic producers. 
3.70.  In addition, the commercial tax rate is reduced to 3% for the production of import-
substitution goods by domestic enterprises located in  industrial zones. According to the authorities, 
this is to promote and protect domestic SMEs. Tax credits are allowed for producers of goods and 
persons carrying out goods trading; they may set-off tax paid on imported raw materials, or semi-finished goods.   
3.71.  It would appear that excise taxes listed in Schedule 6 of the Commercial Tax Law are 
effectively licensing fees collected by the Ministry  of Home Affairs; they are applied equally to 
domestically produced goods and imported goods.   
3.3.1.1.3  Income tax 
3.72.  The Income Tax Law, amended in September 2011, covers individual income tax and 
corporate income tax, and the tax is levied on worldwide income. Individuals are taxed under progressive rate schedules
25; residents and non-residents are subject to different tax rates 
                                               
25 Individual income tax is levied from 1% to 20% on salary income, and from  2% to 30% on business 
and professional income. WT/TPR/S/293 • Myanmar 
 
- 47 - 
 
  (Chapter 2).26 Corporate bodies are taxed at flat rates: 25% for resident companies, 35% for 
non-resident companies. 
3.73.  Dividends are exempted from tax. Capital gains tax is 10% for citizens and resident 
foreigners, and 40% for non-resident foreigners. However, capital gains from the oil and gas 
sector is taxed at 40% to 50%, dependin g on the value of gains (Table 3.10). 
Table 3.10 Capital gains tax for the oil and gas sector 
Companies in the oil and gas sector Capital gains tax rate 
Up to US$100 million 40% 
US$100 million - US$150 million 45% 
Over US$150 million 50% 
 
Source: Information provided by the authorities. 
3.3.1.2  Incentives and support 
3.74.  The MIC is responsible for granting tax exemptions and tax relief, such as: 
a. commercial tax reduction from 5% to 3% for the production of import-substitution goods 
by domestic enterprises located in SEZs; 
b. 50% income tax exemption on profits accrued from exports for manufacturing 
businesses; 
c. commercial tax exemption if the goods are exported; 
d. tariff exemption for capital assets imported for newly established industries with 
permission from the MIC, and for imports by NGOs for religious, health, or development 
purposes; 
e. incentives offered to foreign investors by the MIC (Chapter 2); and 
f. other incentives granted to investment in the SEZs (once they begin functioning). 
3.75.  The authorities state that data are not available regarding tax revenue forgone.  3.76.  The Government notified that it did not use any domestic support in the agriculture sector 
during calendar years 1995-2000, 2002, and 2004.
27  
3.3.2  Legal framework for businesses  
3.77.  Main business-related legislation is old (Table 3.11). Table 3.11 Legislation on business 
Legislation Main responsibilities 
Myanmar Companies Act 1914 Administers private and public companies 
Myanmar Companies Rules 1940 Provides the rules and regulations for the liquidation of 
private and public companies 
Special Company Act 1950 Specially promulgated for the incorporation of private and 
public companies in which the State has equity 
Myanmar Partnership Act 1932 Administers the partnership ente rprises and registration of 
partnerships 
State-Owned Economic Enterprise Law 1989 Identifies areas of economic activities to be undertaken 
solely by the state sector 
Private Industrial Enterprise Law 1990 Consolidates and promotes la rge, medium, and small scale 
private industries 
Myanmar Citizens Investment Law 1994 Promotes domestic investment so as to promote 
production and exportatio n by the private sector 
 
Source: Information provided by the authoritie s, and ASEAN online information. Viewed at: 
http://www.aseankorea.org/files/upload/e ng/ENG_Resources/Myanmar-GuideBook.pdf  [16/04/13]. 
                                               
26 DCIA online information: 
http://www.dica.gov.mm/includes/Invest ment%20Guide%20Book/M IG%20chapter%205.pdf  [18/10/13]. 
27 WTO documents G/AG/N/MYN/1, 20 December 2001, and G/AG/N/MYN/5, 7 October 2005. WT/TPR/S/293 • Myanmar 
 
- 48 - 
 
  3.78.  There is no bankruptcy law in Myanmar. 
3.79.  With the reform and opening of the econom y, the Government has been adopting measures 
to improve its business environment. It simplifi ed the registration procedure for companies in 
February 2013, and extended the validity period from three to five years. Registered companies 
used to be grouped into eight categories: trade (not allowed for foreign companies), services, 
industry manufacturing, hotels, tourism, jewellery, construction, and banking. Companies no longer need to fit themselves into a category, and may be registered upon declaring their lines of 
business to the Directorate of Investme nt and Company Administration (DICA). 
3.3.3  State-owned economic enterprises (other than state-trading companies) and 
privatization 
3.3.3.1  State-owned econ omic enterprises (SEEs) 
3.80.  State-owned economic enterprises are regulated under the State-Owned Economic 
Enterprise Law No. 9/89, according to which, certain activities are reserved for the State:  
 extraction and sale of teak;  
 cultivation and conservation of forest plantation (except village-owned fire-wood 
plantation cultivated by villagers for their personal use);  
 exploration, extraction, and sale/export of petroleum and natural gas;  
 exploration, extraction, and export of  pearl, jade, and precious stones;  
 breeding and production of fish and prawns in fisheries, which have been reserved for 
research by the Government;  
 postal and telecommunications services;  
 air transport services, railway transport services; 
 banking services and insurance services;  
 broadcasting services and television services;  
 exploration, extraction, and export of metals;  
 electricity generating services (other than those permitted by law to private and 
cooperative electricity generating services);  
 manufacture of products relating to securi ty and defence, which the Government has, 
from time to time, prescribed by notifications. 
3.81.  In the interest of Myanmar, the Government may permit joint ventures between the 
Government and other persons or economic organizations to conduct business in these reserved 
activities. In this case, foreign equity must not be more than 80% in the reserved activities. The 
Government may also prohibit or restrict the purchase, sale or transfer of products derived from or produced by or used by any enterprise s conducting the reserved activities. 
3.82.  The Ministry of National Planning an d Economic Development has been analysing the 
performance of SEEs. According to the auth orities, since Myanmar transformed from a 
central-planned economy to a market-oriented one, most SEEs have been privatized. Currently, 
41 SEEs remain, and all are subordinate to the relevant ministries (Table 3.12). WT/TPR/S/293 • Myanmar 
 
- 49 - 
 
  Table 3.12 State-owned economic ente rprises in Myanmar, October 2013 
Ministry SEEs 
Ministry of Information Printi ng and Publishing Enterprise 
 News and Periodicals Enterprise 
 Myanmar Motion Pi cture Enterprise 
Ministry of Agriculture and Irrigation Myanmar Agricultural Development Bank 
Ministry of Environmental 
Conservation and Forestry Myanmar Timber Enterprise 
Ministry of Finance Myanmar Economic Bank 
 Myanmar Investment and Commercial Bank 
 Myanmar Foreign Trade Bank 
 Myanmar Insurance Enterprise 
 Myanmar Small Loan Enterprise 
Ministry of Construction Department of Human Settlement and Housing Development 
Ministry of Livestock, Fisheries and 
Rural Development Livestock, Feedstuff, and Dairy Products Enterprise 
Ministry of Communications and 
Information Technology Myanmar Posts and Telecomm unications Department  
Ministry of Labour, Employment and 
Social Security Social Security Board 
Ministry of Mines No. (1) Mining Enterprise 
 No. (2) Mining Enterprise 
 No. (3) Mining Enterprise 
 Myanmar Gems Enterprise 
 Myanmar Salt and Marine  Chemical Enterprise 
 Myanmar Pearl Enterprise 
Ministry of Cooperatives Cooper ative Export Impo rt Enterprise 
Ministry of Transport Inland Water Transport Enterprise 
 Myanmar Port Authority 
 Myanmar Shipyards 
 Myanmar Airways 
Ministry of Hotels and Tourism Myanmar Hotels and Tourism Services 
Ministry of Industry No. (1) Heavy Industrial Enterprise 
 No. (2) Heavy Industrial Enterprise 
 No. (3) Heavy Industrial Enterprise 
 Textile Industries Enterprise 
 Pharmaceutical and Foodstuff Enterprise 
 Paper and Home Utility Enterprise 
Ministry of Rail Transportation Myanmar Railways 
 Road Transport Enterprise 
Ministry of Energy Myanmar Oil and Gas Enterprise 
 Myanmar Petrochemical Enterprise 
 Myanmar Petroleum Pr oducts Enterprise 
Ministry of Electric Power Hydro Power Generation Enterprise 
 Myanmar Electric Power Enterprise 
 Electricity Supply Enterprise 
 Yangon City Electricity Supply Board 
 
Source: Information provided by the authorities. 
3.83.  The authorities state that almost all SEEs  are making losses: SEEs spend 75% of the total 
government budget, and their annual losses are es timated at about 5% of GDP. The authorities 
consider that barriers for further development of SEEs include lack of a healthy financial system, low technology, and lack of market access and skilled labour.  
3.84.  Current policy objectives for government reform of SEEs are: encouraging the development 
of businesses, limiting SEEs to public services, maintaining the public interest SEEs under the guidance of the Government without transfer to  the private sector, and including the public-
private-partnership method in the privatization process. According to the authorities, SEEs 
operating under monopoly or other exclusive rights are under the Ministries of Health, Rail Transport, and Education; these SEEs are operating for the public interest, and will continue to be 
supervised by the Government.  
3.85.  According to the authorities, the Myanma r Economic Holdings, and the Myanmar Economic 
Corporation used to be owned by the military; they are now private companies whose shares are owned by ex-military personnel.  WT/TPR/S/293 • Myanmar 
 
- 50 - 
 
  3.3.3.2  Privatization 
3.86.  According to the authorities, the private se ctor's share in GDP is over 90%, and the State's 
presence is large only in telecommunication services, social and public administration, energy, forestry, construction, and electricity (Table 3.13). 
Table 3.13 The share of public/private sectors in GDP (end-March 2012) 
Public sector's share in GDP Private sector's share in GDP 
Sector Percentage in sectoral 
GDP (%) Year % 
Agriculture  0.1 2006-07 89.6 
Livestock and fishery 0.1 2007-08 90.6 
Forestry  72.8 2008-09 91.4 
Energy  75.3 2009-10 91.1 
Metallic and non-metallic minerals 1.1 2010-11 90.9 
Processing and manufacturing 3.9 2011-12 91.0 
Power  39.7   
Construction  43.0   
Transportation  0.8   
Communications 100.0   
Financial  44.5   
Social and public administrations 91.2   
Rental and other services 3.5   
Trade  3.1   
 
Source: Information provided by the authorities. 
3.87.  The first Privatization Commission was established in 1995. The authorities indicate that the 
Commission privatized 772 entities between 1995 and 2011, and the State gained K 660.2 billion from the privatization process.  
3.88.  The authorities state that through privatization the Government wishes to improve the 
efficiency of the underperforming SEEs, reduce their losses, and thus reduce the budget deficit. 
3.89.  Privatization methods adopted include the public-private-partnership, share system, 
franchise, joint venture, and sale of the enterprise. Before 2011, foreign participation was not 
allowed in the privatization process. Under the current regime, a new Privatization Commission 
was established, headed by a Vice President. The Commission plans to adopt a new privatization procedure using the "open tender" method; use the private-public-partnership method more; and 
focus more on underperforming SEEs.  
3.3.4  Small and medium-sized ente rprises (SMEs) and assistance  
3.90.  The authorities state that, as SMEs contribute to employment creation, resources utilization, 
income generation, and investment promotion, the Government pays special attention to 
facilitating their development, so that SMEs become larger and more competitive and innovative in 
the international market.  
3.91.  Around 99% of Myanmar's 43,275 registered enterprises are SMEs. Most registered SMEs, 
(63%) are in the food and beverage industry (Tab le 3.14). In addition, there is a large share of 
unregistered informal SMEs; for example, SMEs in trade and services are usually not registered. The authorities estimate that over 80% of a ll businesses in Myanmar are informal, most are 
family-owned or self-employed. 
3.92.  The Government is preparing an SME Law, with the objectives of: improving human 
resources development, boosting technology i nnovation, facilitating access to investment, 
improving infrastructure, and reviewing tax and other business-related regulations.  
3.93.  Different agencies under different ministries are responsible for the registration of and 
assistance to different SMEs. The Ministry of Cooperatives is responsible for registration of industrial cooperative societies and micro and handicraft enterprises, provision of technical 
assistance, and coordination and promotion of export and import businesses; the Ministry of 
Industry is responsible for registration of SMEs and the promotion of SME development. Assistance WT/TPR/S/293 • Myanmar 
 
- 51 - 
 
  is provided in the form of, for example, opening training programmes, providing market 
information, promoting linkages between local enterprises and foreign investors, and facilitating cooperation with the UMFCCI and various associations.  
Table 3.14 Sectoral distribution of SMEs in Myanmar, July 2012 
Industry Large Medium Small Total (%) 
Food and beverages 2,369 4,110 20,976 27,455 63.5 
Clothing and wearing apparel 341 380 1,001 1,722 3.9 
Construction materials 510 650 2,117 3,277 7.6 
Personal goods 375 410 330 1,115 2.6 
Consumer produce 144 79 97 320 0.7 
Literature and art 60 117 183 360 0.8 
Raw goods production 169 240 282 691 1.6 
Metal and mineral production 315 381 1,204 1,900 4.4 
Agricultural machinery 9 25 37 71 0.2 
Industrial tools and equipment 
production 15 49 66 130 0.3 
Automobile production 194 40 33 267 0.6 
Electrical equipment 43 15 12 70 0.2 
General 264 791 4,799 5,854 13.5 
 
Source: Information provided by the authorities. 
3.3.5  Competition policy and regulatory issues 
3.3.5.1  Competition policy  
3.94.  Myanmar is drafting a competition law, wh ich is expected to be promulgated before 2015. 
According to the draft, there will be a Competition Commission, which will act as the enforcement authority to control and monitor competition. Apparently, the Competition Law is to cover all 
sectors in the economy.  
3.95.  Myanmar is also drafting a Consumer Pr otection Law to be completed before 2015.  
3.96.  Myanmar is not party to any bilateral or regional agreement on anti-trust cooperation. The 
authorities state that they try to ensure fair competition in accordance with ASEAN Regional 
Guidelines on Competition Policy.
28 Some articles of the Constitution regulate competition; 
Article 36 (B) stipulates that "the Union shall protect and prevent acts that injure public interests through monopolization or manipulation of prices by an individual or group with intent to endanger 
fair competition in economic activities." 
3.3.5.2  Price controls  3.97.  It would appear that price controls are in place on coal, oil and oil products, natural gas, 
and electric utilities (Chapter 4). According to the authorities, SEEs do not produce and sell 
products or goods at fixed prices.  
3.3.6  Intellectual property rights 
3.98.  Myanmar has submitted its intellectual prop erty rights law to the Parliament for approval. 
According to the authorities, the draft Law is to be consistent with the TRIPS Agreement.
29 
Myanmar has been a member of the World Intellectual Property Organization (WIPO) since 2001.30 
                                               
28 ASEAN Secretariat online information. Viewed at: http://www.aseansec.org/wp-
content/uploads/2013/07/ASEANRegionalGudelinesonCompetitionPolicy.pdf  [09.09.2013]. 
29 An LDC Member is given an extended time-limit, until July 2021, for the full implementation of the 
provisions of the TRIPS Agreement other than those relating to national treatment and most-favoured nation treatment. WTO online information. Viewed at: http://www.wto.org/english/news_e/news13_e/trip_11jun13_e.htm  [28/08/2013]. Under a TRIPS Council 
decision, LDCs do not have to protect or enforc e patents and undisclosed information relating to 
pharmaceuticals until 2016 (WTO document WT/L/478, 12 July 2002). 
30 The contents of the draft intellectual property rights law are also being reviewed by the WIPO.  WT/TPR/S/293 • Myanmar 
 
- 52 - 
 
  3.3.6.1  Copyright and related rights  
3.99.  The Copyright Act, dating back to 1914, does not appear to provide effective copyright 
protection. Currently, the Television and Video Law 1996, and the Motion Picture Law 1996 govern copyright protection. It is not clear whether copyri ght must be registered to be protected, or for 
how long copyright is protected under the current legislation.
31 There is no specific policy on 
copyright protection on the internet.  
3.3.6.2  Patents 
3.100.  The Myanmar Patents and Designs (Eme rgency Provisions) Act 1946, and the Myanmar 
Patents and Designs Act 1945 are outdated. There is currently no legislation on patents in Myanmar, no patent application, registration, or protection, and no compulsory licences. 
3.3.6.3  Trade marks 
3.101.  The authorities state that there is no specific law on trade marks, or specific provision on 
the registration of trade marks in Myanmar. Th e Myanmar Merchandise Marks Act has provisions 
to prevent false trade description of goods. 
3.102.  Trade marks related to all products may be registered and protected under S18 (f) of the 
Registration Act, by the Settlement and Land Re cords Department (SLRD) under the Ministry of 
Agriculture and Irrigation. Registration takes one day to one month. Registration is usually 
followed by an announcement in a daily newspaper, stating that any fraudulent limitation or 
unauthorized use of the trade mark is to be dealt with accordingly. It is not clear how the unauthorized use of trademarks are dealt with. 
3.3.6.4  Enforcement  
3.103.  Some IP disputes are handled in courts. The authorities state that most copyright 
problems are solved through coordination by the parties concerned rather than through legal procedures. Cross-border entry in violation of IPR is dealt with under the Sea Customs Act, the 
Land Customs Act, and other relevant legislation. 
3.104.  Customs is responsible for detecting illegal imports of IPR-related goods and other goods, 
collaborating with national enforcement bodies such  as the police force, the local, and the legal 
authorities. At the international level, Customs has cooperation with the WCO, WIPO, the Regional 
Intelligence Liaison Office, and the International Criminal Police Organization. 
3.105.  In accordance with the Sea Customs Act, any import or export of goods having applied 
counterfeit trademarks (within the meaning of the Penal Code), or false trade descriptions (within 
the meaning of the Merchandise Marks Act), are liable to detention and confiscation. Persons 
involved in any such offence are liable to pay a fine. According to the section 170 and 171 of the Sea Customs Act and the section 9 of the Land Customs Act, customs officers and police officers 
are authorized to stop and search any personal vessels and vehicles for goods, on reasonable 
suspicion. According to the authorities, data are not available on Myanmar's enforcement of IPR protection. 
                                               
31 Only few copyright works are registered in Myanmar. WT/TPR/S/293 • Myanmar 
 
- 53 - 
 
  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.1  Features 4.1.  Agriculture is one of the main sectors of Myanmar's economy; data provided by the 
authorities indicate that agriculture's contribu tion to GDP was approximately 30.5% in 2012/13; 
and that agriculture accounted for around 61.2% of employment in 2010/11 (the most recent year for which data were available). Thus, it would appear that labour productivity in agriculture is less 
than one third of the level in the rest of the econ omy; this is probably due to the high labour/low 
capital structure of the sector with small farms and few machines.
1 Main crops include rice, maize, 
pulses and beans, sugarcane, and cotton. The liv estock sector has been growing, particularly 
poultry. The average farm holding is about 2.4 hectares, and about 58% of the total net sown area 
(13.8 million hectares) is small-scale farms (defined as those below 4 hectares). 
4.2.  Myanmar is a net food exporter. Main exports include pulses, rice and rice products, and 
maize (Chart 4.1). Agriculture accounted for 16.4% of Myanmar's total export earnings in 
2011/12.  
Chart 4.1 Myanmar's main agricultural exports, 2007-12  
02004006008001,0001,200
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012US$ million PulsesRice 
Maize
 
 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
4.1.2  Policy objectives and regulatory framework 
4.3.  The main objective of Myanmar's agricultural policy is to increase crop production. To achieve 
this, the Government aims, inter alia , to: maintain a positive annual growth rate of value-added 
for agriculture; and achieve average yield per acre of 83.2 baskets (one basket = 46 pounds) up 
from the current 74.4 baskets, and total production  of 1,602 million baskets for rice up from the 
current 1,390 million baskets.2 
4.4.  The Ministries of Agriculture and Irrigation , of Livestock, Fisheries, and Rural Development, 
and of Environmental Conservation and Forestry are the main institutions in charge of policy formulation and implementation in Myanmar's agriculture sector. 
4.5.  Agriculture is regulated by a number of laws and regulations, including the Farmland Law 
2012; the Vacant, Fallow and Virgin Lands Management Law 2012; the Fertilizer Law 2002; the 
Seed Law 2011; the Pesticide Law 1990; the Plant Pest Quarantine Law 1993; Myanmar Agricultural and Rural Development Bank Law 1990; the Water Tax and Embankment Tax Law 
                                               
1 Data provided by the authorities.  
2 The authorities consider that, as of 2011/12, 944 million baskets of rice are required for 
self-sufficiency. WT/TPR/S/293 • Myanmar 
 
- 54 - 
 
  1982 and 1987; the Agricultural Produce Markets Act 1941; and the Regulation for Purchase of 
Crops and Agricultural Products 1962. A Biosafety Law is currently being drafted. 
4.6.  Land tenure is lease-based since the State owns all land in Myanmar. The Farmland Law, 
which entered into force on 31 August 2012, sets out procedures for obtaining the lease of land for 
farming.3 The Law is intended to legally confirm rights of individual farmers in regard to the use of 
land; under the lease, the farming household has the right to use the land, "reap the yields", and transfer the rights granted by the lease. There does not appear to be any provision in the law 
limiting the period of the lease, although a breach in the conditions of use could result in the lease 
being rescinded.
4 Permission is required to transfer the rights to foreigners or organizations 
involving foreign investment. 
4.7.  Under the Vacant, Fallow and Virgin Lands Management Law 2012, domestic companies and 
associations in the private sector may be granted rights to develop virgin land and fallow land for 
the cultivation of, inter alia , paddy, pulses, oil crops, industrial crops, oil palm, and other crops for 
commercial farming.5 As of June 2013, 267 private companies and 123 government organizations 
have been granted 1.38 million hectares for co mmercial farming, compared with 0.98 million 
hectares of farmland prior to the entry into force of the Law. 
4.8.  Under the Foreign Investment Law 2012, prior approval is required from the Myanmar 
Investment Commission for FDI in the production and distribution of agricultural crops or seeds. 
FDI is not allowed in: the production and plantation of traditional herbal plants; designated livestock breeding far-distance fishing of sea fish, prawn and other water creatures in Myanmar’s territorial waters; and fishing in ponds, lakes, and other-close-distance fishing. Foreign 
participation is allowed up to 100%: land utilization; agri-based industries; assembly and 
manufacture of light agricultural machinery and small farm implements; manufacturing of agricultural inputs and related support products; and for trading of agricultural commodities, input 
supplies, and machinery.
6 The Law provides incentives to FDI in various sectors including 
agriculture (section 2.7.1.4). 
4.9.  The general structure of import tariffs on agriculture has remained largely unchanged since 
2005/06. Myanmar's simple applied MFN tariff on agricultural products (HS01-24) was 9.0% in 
2013. There is a large gap between the average applied MFN tariff and the average bound rates (110 percentage points). Tariff dispersion stayed within a range of 0% to 40% during 2008-13. Traditionally, agricultural goods, including alcoholic beverages (40% and 30%), tobacco (30%), 
sugar confectionary (20%), and chocolate and other food preparations containing cocoa (20%), 
inter alia , benefit from higher than average protection. Imports of agricultural goods are also 
subject to commercial tax (VAT); the rates for agri cultural products vary between 0% and 200% 
(tobacco). Myanmar does not apply any tariff-rate quotas. 
4.10.  Agricultural products are subject to im port and export licensing requirements, except, 
inter alia , oranges, grapes, apples, and wheat, in accordance with the Export/Import Rules and 
Regulations (2008) and restrictions in accordance with the Plant Pest Quarantine Law and Pesticide 
Law and various liberalization measures introduced in 2012 (sections 3.1.4 and 3.2.3).  
4.11.  Myanmar has not notified the WTO of its state-trading requirements regarding agriculture.  4.12.  According to the notification submitted by  Myanmar to the WTO, it has not used domestic 
support measures or export subsidies on agricultur al products (section 3.2.4.1). According to the 
authorities, Myanmar does not provide any financial support, preferential taxation, or price controls such as minimum purchase price policy, input subsidies (including those for fertilizer, 
irrigation and power), or food subsidies. 
4.13.  The main taxes levied on agriculture have been the land utilization tax, water utilization tax, 
forestry resources tax, rubber tax, fisheries ta x, and commercial tax (VAT). For those leasing 
farmland, exemption of the land utilization tax is granted for two to eight years depending upon 
                                               
3 Chapter II of the Farmland Law. 
4 These conditions include leaving la nd fallow without a good reason. 
5 Commercial farming involves the use of a larger area  of land than that used for subsistence farming. 
6 Ministry of Agriculture and Irrigation online information. Viewed at: 
http://www.moai.gov.mm/index.php/business-opportunities.html  [02.04.2013]. WT/TPR/S/293 • Myanmar 
 
- 55 - 
 
  the type of crops and livestock breeding. Income -tax exemptions may be granted for three years 
or longer from the year of commencement of commercial operations on land developed and invested.
7  
4.14.  The authorities state that there is no restriction in domestic distribution or marketing of 
a g r i c u l t u r a l  p r o d u c t s  i n  M y a n m a r .  O n  7  J a n u a r y  2 0 1 2 ,  t h e  N a t i o n a l  R i c e  R e s e r v e s  S u p e r v i s o r y  
Committee was established to purchase rice from Myanmar's states and regions (based on tender-based systems), donate rice to areas affected by natural disasters, and sell rice to domestic 
consumers or export the surplus when the Committee considers it necessary. 
4.15.  The Myanmar Rice Federation was formed by stakeholders involved in the rice industry; its 
purpose is to maintain sustainable development of  rice production, offer guidance to local rice 
associations and farmers. Under the Federation, Myanmar Agribusiness Public Corporation has 
been established to promote investment in agriculture and agri-based industries. 
4.16.  Government policy is focused on improving technical support to agriculture through better 
research and extension services. Under the Ministry of Agriculture and Irrigation, the Department 
of Agricultural Research operates seven research centres and 17 farms covering all the main food 
crops while the Department of Industrial Crops Development does research in industrial crops such as cotton, rubber, and jute. In addition, the Yezin Agricultural University, also under the Ministry 
provides courses on crop sciences while the University of Veterinary Science under the Ministry of 
Livestock, Fisheries and Rural Development covers veterinary science and fisheries.
8 
4.17.  The Ministry, through the Department of Agriculture also provides extension services which 
are mostly focused on paddy production. 
4.18.  The authorities consider that farmers in Myanmar lack financing, mainly due to the lack of 
national savings that could be channelled to them. Myanmar Agricultural Development Bank (MADB), a state-owned bank, is the main institution providing loans to farmers and entrepreneurs 
engaging in agriculture.
9 Under the MADB Law, which entered into force in July 1990, it provides 
banking services, including short-term and long-term loans to farmers.10 The authorities state that 
no other financial institutions lend to farmers under the same conditions as those applied by the 
MADB. Loans provided by the MADB include: annua l loans (up to 12 months), which are mainly for 
crop cultivation; short-term loans (2 to 4 years); and long-term loans (5 years and above), which are mainly for the purchase of farm equipment, cattle, and integrated farming projects related, 
inter alia , to coffee, rubber, and palm oil plantation. Annual loans are disbursed for seven varieties 
of crops (i.e. paddy, groundnuts, sesame, beans,  long staple cotton, corn, and mustard). Total 
disbursement of annual loans in 2012-13 was K 557.8 billion, covering 1.59 million farmers.
11 
4.19.  Under the programme for the development of border areas and eradication of narcotic 
drugs, the MADB issued loans with special fund s allotted by the Government at concessional 
interest rates for some farming activities in border areas, such as orchards in Chin State and rubber and sugarcane plantations in Shan State to replace opium cultivation. Rural savers are 
allowed to take out farm development loans up to 4-5 times their deposits, at an interest rate of 
15%. 
                                               
7 Ministry of Agriculture and Irrigation online information. Viewed at: 
http://www.moai.gov.mm/index.php/business-opportunities.html  [02.04.2013]. 
8 Cho (2013) . 
9 In 1976, the MADB undertook the roles and functions of the State Agricultural Bank (SAB), which was 
established in 1953. Ministry of Agriculture and Irrigation online information. Viewed at: http://myanmargeneva.org/e-com/Agri/expind/agri-
index/myanmar.com/Ministry/a griculture/Organi/madb.htm  [09.04.2013]. In 2013, the MADB had 15 regional 
offices and 206 branches across Myanmar. 
10 The MADB is authorized to make loans to, inter alia , a state-owned agricu ltural organization 
(Myanmar Industrial Crops Development Department),  livestock organizations, cooperatives, private 
entrepreneurs, farmers, and farm labourers. 
11 The interest rate is  8.5% per annum for lending, and 8%for depo sit. The bank must avail itself of an 
overdraft loan for its loan fund from the Myanmar Economic Bank at the rate of 4% per annum. WT/TPR/S/293 • Myanmar 
 
- 56 - 
 
  4.1.3  Forestry 
4.20.  Myanmar is one of the world's main suppliers of natural teak. It has a total land area of 
676,577 km2, about half of which is forests. Wood an d products thereof accounted for 6.7% of 
Myanmar’s exports in 2011/12. 
4.21.  The applied MFN tariff on timber is 15% in 2013. The state-owned Myanmar Timber 
Enterprise (MTE), (part of the Ministry of Envi ronmental Conservation and Forestry (MOECAF)), 
has exclusive rights to export raw log timber from Myanmar. It also has the monopoly on logging 
(harvesting), milling, and marketing of timber  and its products alone or through private 
contractors.12  
4.22.  The main legislation governing forestry in Myanmar includes the Forest Law (1992), the 
Environmental Conservation Law 2012, the Protection of Wildlife and Wild Plants and Conservation 
of Natural Areas Law, and the Foreign Investment Law 2012. 
4.23.  Under the Forest Law, the private sector requires permission to cultivate and maintain 
forest plantation. Export prohibition and licensing requirements on forestry products are in place 
(section 3.2.3). In 2013, the Ministry of Envi ronmental Conservation and Forestry (MOECAF) 
announced that the export of round logs would be banned with a view to encouraging domestic small and medium-sized manufactures of wood-based products. 
4.24.  The Government intends to ensure the su stainable development of forest resources by, 
inter alia : securing people’s basic needs for fuel, shelter, food, and recreation; and achieving 
efficiency to harness the economic potential of the forest resources. The Government aims to manage 25% of total land area under Permanent Forest Estates (PFEs) and 10% under the 
Protected Area System (PAS).
13  
4.25.  FDI is not allowed in the administration and maintenance of natural forest. According to 
amended Notification No. 1/2013 of the Myanmar Investment Commission, FDI is allowed in the 
following areas, as authorized by the Ministry of Environmental Conservation and Forestry: 
national parks; wood-based industries and related businesses; ecotourism; production businesses aimed at reducing carbon emissions; extraction (logging) on the basis of a long lease (reserved, 
protected public forest); breeding of genetically modified organisms and living modified organisms 
by importing and distributing these organisms; high technology research for the forestry sector, such as production and conservation of good qual ity teak; establishment of forest plantation (e.g. 
teak, hardwood, rubber, bamboo, rattan); developm ent of high technology, research and human 
resources in forestry; extraction of natural resource s in forest land and forest-covered land at the 
disposal of the Government; and importing, expo rting, breeding, and production of plant and 
animal species.   
4.2  Mining, Energy, and Utilities 
4.2.1  Features 4.26.  Myanmar has produced around 400 billion MMSCF of natural gas in recent years. It has not 
imported natural gas; it would appear that most of the gas produced has been exported to China 
through pipelines (Chart 4.2). On the other hand, Myanmar does not export oil or oil products. While it has not imported crude oil in recent years, due partly to domestic constraints in refining, Myanmar imports various petroleum products (e.g. diesel, gasoline, and jet engine fuel) 
(Chart 4.3). 
4.27.  Myanmar's production of coal has been increasing. It has been used mainly for power 
generation and the production of cement; data pr ovided by the authorities indicate that coal 
exports have been less than 10% of production an d that there has been little coal importation. 
4.28.  In line with Myanmar's economic growth, generation and consumption of electricity have 
been increasing, with the growth of consumption being faster than that of generation in recent 
years (Chart 4.4). 
                                               
12 According to the State-owned Economic Enterprise Law 1989, the Government has the sole right to 
carry out extraction, sale, and exports of teak.  
13 At present, PFEs amount to 16,623,294 ha (24.57% of Myanmar's total land area) and PASs to 
3,789,411 ha (5.6%). WT/TPR/S/293 • Myanmar 
 
- 57 - 
 
  Chart 4.2 Production and exports of natural gas, 2006-11  
0100,000200,000300,000400,000500,000600,000
2006/07 2007/08 2008/09 2009/10 2010/11million cubic feetExportsProduction
 
 
Note: Over 98% of natural gas prod uction is suppli ed by pipeline. 
 Source: Central Statistical Organization (2012), Statistical Yearbook 2011, Nay Pyi Taw. 
Chart 4.3 Imports of petroleum products, 2008-13  
01,000,0002,000,0003,000,0004,000,0005,000,0006,000,000
2008/09 2009/10 2010/11 2011/12 2012/13*barrels
GasolineDiesel
Jet fuel
 
 
* Estimates. 
 Source: Data provided by the authorities of Myanmar. 
Chart 4.4 Generation and consumption of electricity in Myanmar, 2007-13  
051015202530
02,0004,0006,0008,00010,00012,000
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13Generation in million kWh Consumption in million kWH
Generation, annual percentage change Consumption, annual percentage changemillion kWh percentage change  
 
 
Source: Data provided by the authorities of Myanmar. WT/TPR/S/293 • Myanmar 
 
- 58 - 
 
  4.2.2  Key subsectors  
4.2.2.1  Metal, precious stones, and coal 4.29.  The policy objectives for the metal, precious  stones and coal subsectors, as stated in the 
Mines Law and the Mineral Resources Policy
14, include: fulfilling domestic demand and increasing 
exports; and promoting domestic and foreign investment in respect of mineral resources. The 
Gemstones Law's objectives include permitting companies and cooperative societies to operate 
freely in the production and marketing of gemstones, and eradicating illegal production of 
gemstones within the country, and preventing and suppressing "unlawful taking out and sale of 
gemstones abroad".15 The Ministry of Mines determines th e tenure of a permit for a gemstone 
block16; determines the floor price for each gemstone block for which tenure of a permit has been 
determined; and invites competitive bids in accordance with bidding terms for the gemstone blocks 
for which the floor price has been determined.17 Promotion of coal production is an objective of the 
current Coal Policy. 
4.30.  The Ministry of Mines is responsible for policies regarding the metal, precious stones, and 
coal subsectors. The Department of Mines, under the Ministry, is responsible for, inter alia : 
scrutinizing the application for mineral exploration and issuing permits in accordance with the Mines Law; implementing measures to protect the environment from pollution related to mining 
and related operations (e.g. environmental impact assessments, social impact assessments, and 
health impact assessments). 
4.31.  The main laws governing mining include the Mines Law 1994, the Mines Rules 1996, the 
Gemstones Law 1995, and the Gemstones Rules 1995. 
4.32.  In accordance with the State-owned Enterprise Law, the Government has the sole right over 
the exploration and extraction of pearl, jade , and precious stones and, exports thereof.
18 
Nonetheless, in the mining sector, domestic companies formed under the Myanmar Companies Act 
or the Special Company Act 1950 and various cooperative societies registered under the 
Cooperative Society Law have also been allowed to  carry out exploration, extraction, and exports 
of pearl, jade, and precious stones after the enactment of the Gemstones Law 1995. In addition, 
the Government has allowed certain individuals or organizations with foreign investment to 
manufacture processed gemstones and jewellery, and/or sell raw gemstones, processed gemstones, and jewellery. 
4.33.  Under the Foreign Investment Law 2012, FDI is "restricted" in "large-scale exploitation and 
the production of non-metallic minerals". FDI is not allowed in the mining of gemstones or metallic 
minerals; small and medium-scale mineral production; and wholesale of semi-finished products and iron ores. 
4.34.  According to the authorities, there is no state ownership in the production of gemstone ore, 
its concentrates, or refined metal, or manufacture of processed products using gemstones. The Myanmar Gems Enterprise, a state-owned company, has certain regulatory responsibilities such as 
issuing permits to domestic private companies and societies to enable the extraction and 
production of gemstones; supervising extraction and production operations; collecting royalties; issuing licences to enable the sale of processe d products of gemstones and jewellery; and holding 
gems emporiums. 
                                               
14 The Mineral Resources Policy aims to, inter alia : fulfil domestic demand and increase exports; 
increase production of minerals;  promote domestic an d foreign investment in resp ect of mineral resources; 
supervise, scrutinize and approve applications submitte d by persons or organizations that wish to conduct 
mineral prospecting, exploration or production; cond uct conservation, utilization and research regarding 
mineral resources; and protect the environm ent from any effects fro m mining operations. 
15 Chapter II, the Gemstones Law. 
16 In accordance with the Law, when a geographical area is found as where gemstones can be produced 
on a commercial scale, the area may be designated as gemstone block. 
17 Under Section 13 (a) of the Gemstones Rules 1995, if local gems companies or cooperative societies 
apply for a mining operation permit, the floor prices are fixed at a minimum of K 500,000 for a new block, and 
K 1 million for renewal of blocks  where permits have expired. 
18 Chapter II.1.3 and 4, the Stat e-owned Economic Enterprise Law.  WT/TPR/S/293 • Myanmar 
 
- 59 - 
 
  4.35.  Exports of raw gemstones are authorized only through gems emporiums, which are usually 
held twice a year. Exports of metal ore produced in Myanmar are not permitted; exports of metal as metal concentrate are allowed. 
4.36.  According to Notification No. 121/2012 of the Ministry of Finance (15 March 2012), all metal 
products, except jade and precious gemstones, are exempt from commercial tax. 
4.37.  The main producers of coal in Myanmar in clude private companies supervised by the No. 3 
Mining Enterprise (ME-3), which was established ba sed on production-sharing contracts. Producers 
must pay 3% of sales as royalty to the Department of Mines and 30% to ME-3. 
4.38.  Prices of coal are set by the Joint Management committee (JMC) composed, inter alia , of 
representatives of ME-3, the Ministry of Mines, an d contractors; the prices must be approved by 
the Ministry of Mines. Prices may be changed by the JMC at its annual meeting. 
4.2.2.2  Petroleum and natural gas 
4.39.  The main objectives of the oil and gas sect or include: fulfilling domestic energy demand; 
promoting energy efficiency and conservation; impl ementing effective utilization of domestically 
produced crude oil and natural gas; and promoting more private participation in the energy sector.  
4.40.  The Ministry of Energy is the regulator fo r petroleum and gas. Activities in the sector are 
regulated by the relevant laws and regulations, and by production sharing contracts conducted 
between the Myanmar Oil and Gas Enterprise (see below) and domestic private and foreign 
investors. The authorities consider that, in order to foster further development of the sector and encourage private investment and competition, a legal framework would need to cover all areas of the hydrocarbon industry and define the roles, ri ghts, and obligations of the different players. 
4.41.  The main laws and regulations governing petroleum and natural gas include the Petroleum 
Act 1934, the Petroleum Rules 1937, the Oilfields Act 1918, the Oilfield Rules 1936, the Essential Supplies and Services Act 1947, the Oilfields (Labour and Welfare) Act 1951, the Petroleum 
Resources (Development Regulation) Act 1957, the Law Amending the Petroleum Resources 
(Development Regulation) Act 1969, and the Myanmar Petroleum Concession Rules 1962. In accordance with the State-owned Enterprise Law, the Government has the sole right to carry out 
exploration, extraction, and sale of petroleu m and natural gas, and production thereof. 
4.42.  All petroleum and natural gas resource s found in Myanmar are owned by the State. 
Exploration of natural gas in inland areas as well as downstream operations are reserved for the Myanmar Oil and Gas Enterprise (MOGE), a state-owned enterprise, and offshore exploration is 
open to foreign investment. Private investment is allowed in refining, and wholesale and retail of 
oil products, provided that agreements or contra cts (e.g. production-sharing contracts) are made 
with the MOGE and the Government approves re levant investment proj ects. However, these 
activities are still largely controlled by the MOGE. Exports of natural gas go mainly to China 
(through pipeline transport) and Thailand. 
4.43.  Prices of natural gas, which are set by the Government, are calculated according to the 
Yadana and Yetagun Gas Sale Agreements; the price may change on a quarterly basis. Prices of oil 
and oil products fluctuate according to basic parameters, such as the Singapore Platt's oil price, the c.i.f. value, actual expenditure (weighted average cost of each refinery), and miscellaneous costs (such as freight, insurance, bank charges, port  dues). In line with the increasing and volatile 
world oil prices, the Government increased the pr ice of gasoline by 20% in January 2012. As of 
1 March 2013, the state energy enterprise Myanmar Petroleum Products Enterprise (MPE) distributed gasoline to private fuel stations at a wholesale price of K 3,300 per gallon. Private fuel 
stations may then sell gasoline to end users at reta il prices. In addition, diesel prices are fixed at 
K 3,500 per gallon, and jet fuel at K 3,864 per gallon. It would appear that some forms of subsidy are given for oil, oil products, and natural gas. 
4.44.  Foreign direct investment is allowed in accordance with the new FDI Law and the Companies 
Act 1914; FDI is not allowed in the extraction of crude oil up to 1000 feet in depth. WT/TPR/S/293 • Myanmar 
 
- 60 - 
 
  4.2.2.3  Electric utilities 
4.45.  In Myanmar, approximately 77% of total elec tricity is generated by hydropower, followed by 
natural gas, which accounts for about 20%. 
4.46.  The Ministry of Electric Power (MOEP) governs electric utilities; it is also a provider of 
electric utilities services. The MOEP's responsibili ties include: regulating the electricity market, 
including generation, transmission, and distribution; setting up electricity trading arrangements; monitoring the operations of the electricity market; and setting electricity tariffs and their 
adjustment. The MOPE aims to increase investment in power generation through its own 
investment, investment by domestic entrepreneur s on a build-operate-transfer (BOT) basis, and 
investment by foreign companies on a joint venture (JV) or BOT basis.   
4.47.  The main laws and regulations governing electric utilities include the Electricity Law 1984 
(currently being amended), and the related Regulation. 
4.48.  Since 2008, private companies have been allowed to participate in power generation, 
especially in hydropower plant projects, base d on JV and the BOT system. Private sector 
participation is allowed not only in generation but also in distribution.
19 On-going hydropower 
projects of Baluchaung-3 (52 MW), Upper Baluchaung (29 MW) are implemented by private local companies under the JV or BOT schemes. About 27% of total generation capacity is owned by the 
private sector. 
4.49.  In accordance with the Foreign Investment Law, FDI is allowed in power generation 
(particularly in the independent power producer (I PP) scheme). FDI must be in the form of a joint 
venture or BOT system; majority Myanmar ownership is not required. FDI is prohibited in the 
"administration of electricity systems or trading of electricity"; thus, no FDI is allowed in electricity 
transmission. 
4.50.  A foreign investor must, inter alia , conclude a memorandum of understanding on a pre-
feasibility study and memorandum of agreement, and a joint-venture agreement with the MOEP, 
and obtain approval from the MIC, the Attorney General’s Office, the Ministry of Finance, the 
Ministry of National Planning and Economic Development, and the Cabinet. Approval of 
environmental impact assessment and social impact assessment by the Ministry of Environmental 
Conservation and Forestry is also required. 
4.51.  The terms of investment in electricity generation, including the location of generators, the 
types of generators to be established, and the price that can be charged, are decided by the 
Government. In accordance with the Foreign Invest ment Law, permission is required from MIC and 
recommendation and comments by the MOEP on policy and technical matters for FDI. Based on the cost of generation and the purchase price of power from the Shweli Hydropower Company and 
local IPPs, the MOEP sells power to end-users and distribution companies, which sell power to end-
users in their permitted area. 
4.52.  The electricity tariff must be approved by the Government. At the retail level, electricity 
rates vary by type of end-user; K 35/kWh for general purposes and K 75/kWh for industrial 
purposes. The authorities indicate that the average cost of generation is K 69-71/kWh. It would appear that subsidies are given to electricity. 
                                               
19 Power generation, transmission, and distribution are largely bundled. The main generators of electric 
power are the MOEP and the Shweli hydropower plant,  which belongs to a joint-venture company with 
investment from Yunnan United Po wer Development Company Limited (China) and the MOEP. The MOEP and 
its subsidiaries dominate transmission and distribution. Some small-scale local organizations and private 
companies handle power generation distribution in ce rtain regions far from the na tional grid, by using, 
inter alia , mini-hydro, diesel, and biomass generators; the MOEP issues permits fo r these activities and 
provides technical assistance. WT/TPR/S/293 • Myanmar 
 
- 61 - 
 
  4.3  Manufacturing 
4.3.1  Features 4.53.  Myanmar's manufacturing sector, accountin g for 19.9% of GDP in 2012/13, is growing but 
still relatively small compared with agriculture and services. 
4.54.  The main manufacturing subsectors include food and beverage processing, and textiles and 
clothing. Data provided by the authorities indicate that about 65% of manufacturing SMEs are in food and beverages. It would appear that most manufacturing firms, in terms of numbers and 
output, are SMEs.  
4.55.  In 2010, manufactured products accounted for 30% of Myanmar's exports and for 67.9% of 
imports.
20  
4.3.2  Policy objectives for the sector 
4.56.  Government policies for the development of the manufacturing sector have been mainly to 
promote small and medium-sized enterprises and to invite FDI, particularly through special economic zones. Myanmar's industrial policy tools consist mainly of the provision of training for 
SMEs.  
4.57.  The Ministry of Industry is the main agen cy responsible for formulating policies related to 
manufacturing.
21 
4.58.  Laws governing the manufacturing sector include the Foreign Investment Law (2012), 
State-owned Economic Enterprise Law, Private Industrial Enterprise Law (1990), the Commercial Tax Law, the Promotion of Cottage Industry La w, and the Myanmar Citizens Investment Law 
(1994). 
4.59.  The simple average applied MFN tariff on manufacturing was 5.5% in 2013, down from 
6.1% in 2008.
22 The change is due largely to the change in tariff classification. An array of  
non-tariff measures, particularly licensing requirements, have been used in some instances to 
restrict imports and exports (section 3.1.4 and 3.2.3). 
4.60.  Under the Foreign Investment Law 2012, FDI is restricted in "manufacturing and marketing 
of most food products, any kinds of spirits or beer, drinking water, plastics, rubber, leather, paper, 
certain chemical products and raw materials for medicines and pharmaceuticals". Prior approval is 
required for FDI in production/distribution of soft drinks, mineral water, and beer. FDI is allowed only in the form of joint ventures in: the production/distribution of certain foodstuff (biscuits, noodles, chocolates); and the production of paper, pharmaceuticals, plastic, and packaging. FDI is 
not allowed in: production of traditional food; manufacture of religious materials and equipment; 
manufacture of traditional and cultural materials and equipment; manufacture based on handicrafts; and manufacture of traditional medicines. 
4.3.3  Textiles and clothing 
4.61.  The textiles and clothing industry has developed particularly in the form of "CMP (cutting, 
making and packing)" businesses, where manufacturers receive fees from foreign contractors, for 
CMP and exporting the finished products. In 2010, clothing accounted for 4.4% of Myanmar's 
exports, and textiles for 7.1% of imports.
23 
4.62.  Employment in Myanmar's textiles and clothi ng sector accounted for about 37% of the total 
workforce in manufacturing. Many textile and clothing factories are owned by the Government or 
the Military; state-owned textile factories em ploy about 15,000 employees, private companies 
                                               
20 UNSD, Comtrade database (SITC Rev.3). 
21 In December 2011, the Ministry of Industry No.1 and the Ministry of Industry No.2 were merged to 
form a new Ministry of Industry.  
22 Manufacturing as classified in ISIC. 
23 UN Comtrade database (SITC Rev.3). WT/TPR/S/293 • Myanmar 
 
- 62 - 
 
  around 5,400 employees, and military-owned fact ories about 5,300 employees. Myanmar's exports 
of garments have been increasing in recent years (Chart 4.5). 
Chart 4.5 Myanmar's exports of clothing, 2006-12 
02004006008001,0001,2001,4001,6001,800
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12US$ million
 
 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
4.63.  The simple applied MFN tariff was 8.9% for textiles and 16.8% for clothing in 2013. Tariff 
exemption is accorded to registered CMP businesses on imports of raw materials for manufacturing 
exports. The authorities state that no licensing  requirements are imposed on exports of CMP 
garments. Import licences and the recommendation of the CMP Association under UMFCCI are 
needed to import CMP products. 
4.64.  Non-SME textile and clothing firms must be registered at the Industry Supervision and 
Inspection Department under the Ministry of Industry. 
4.65.  In accordance with the Foreign Investment Law (2012), up to 100% foreign participation is 
allowed. To date, four wholly foreign-invested companies have engaged in garment 
manufacturing; the Ministry of Industry has also concluded land-lease agreements and contracts with these companies.  
4.66.  Exports of textiles and clothing are exempt  from Commercial Tax. The Ministry of Industry 
provides technical assistance, financial assistance for training, and preferential loans to SMEs through the SME bank and the MADB. 
4.67.  It is the Government's policy to seek foreign and local partners to invest in State-owned 
textile factories in the form of joint ventures and in public-private partnerships (PPPs). Wholly foreign-owned enterprises are allowed in garment manufacturing; currently, four foreign companies are operating.  
4.68.  The Government provides information services to encourage investment in new technology 
and industrial upgrading, and guidance to enterprises on export activities, through, inter alia , 
exhibitions. 
4.4  Services 
4.4.1  Features 4.69.  The services sector accounted for some 37.5% of Myanmar's GDP in 2012/13. In the same 
fiscal year, the major services activities were trade and transport/communications. 
4.70.  Myanmar is a net importer of services. The services trade deficit amounted to approximately 
4.1% of GDP in 2011/12. The main exports and im ports of services in 2012/13 included travel, 
transport, and insurance (Table 1.3).  
4.71.  In general, services are characterized by state involvement through state-owned companies 
and restrictions on private-sector and foreign involvement. There are foreign ownership restrictions or prohibitions for various services. Conversely, in certain services activities, WT/TPR/S/293 • Myanmar 
 
- 63 - 
 
  particularly banking, distribution, and transpor t, there appears to be sizable private sector 
presence, although this is difficult to measure, due partly to the small scale of the operators.  
4.72.  Under the Foreign Investment Law 2012, FDI is  allowed only in the form of a joint venture 
in the ownership of private, specialist or traditional medicine hospitals. Prior approval is required 
for FDI in supermarkets/large-scale retail and courier services. FDI is not allowed in private 
traditional hospitals; trading of traditional herbal raw materials; research and laboratories for traditional medicines; ambulance transportation se rvice; establishment of health-care centres for 
the aged; restaurant contracts, cargo transportation contracts, and cleaning and maintenance 
contracts on trains; agencies; generating electric power below 10 megawatts; and publishing and distribution of periodicals in the language of ethnic peoples, including in the Myanmar language. 
4.73.  In the GATS, Myanmar made specific commi tments in two of the 12 major sectors contained 
in the GATS classification list: tourism and travel-r elated services (hotels; travel agencies and tour 
operators services), and transport services (s ervices auxiliary to all modes of transport).
24 
Myanmar has made no horizontal commitments or listed any Article II (MFN) exemptions. 
4.4.2  Banking, finance and insurance 
4.74.  Banking remains the most important source of credit in the financial sector. Insurance 
services are dominated by a state-owned company.  There are no stock or commodity exchanges in 
Myanmar; the equity and bond markets are yet to  be developed. Another notable feature of the 
financial sector is the high degree of government ownership. Four of the 26 banks and one insurance agency (mentioned above) are majority or fully government owned. There are very few foreign-owned financial services providers.  
4.75.  The authorities consider that banks in  Myanmar have not been exposed to serious 
non-performing loans (NPLs). All domestic banks mu st submit their NPLs positions to the Financial 
Institutions Supervision (FIS) Department of the Central Bank on a quarterly basis. 
4.4.2.1  Banking 
4.76.  As of September 2013, there were 26 banking institutions in Myanmar, of which 4 were 
state-owned and 22 private domestic banks. While FDI in banking is not prohibited, there has been 
no foreign investment in the banking sector (subsidiaries, joint ventures, or direct branches of 
banks established abroad) except for representative offices.
25 
4.77.  The 10 largest banks, ranked by their net assets, held 90.4% of the banking system's total 
assets at the end of March 2012; they controlle d 92.0% of total deposits and 91.3% of total 
liabilities of the banking system in 2011/12. Priv ate banks appear to have been growing faster 
than state-owned banks, which traditionally had a large share of total assets, total deposits, and total liabilities (Table 4.1). 
4.78.  The Central Bank of Myanmar (CBM) has allowed local banks to extend hire purchase 
facilities to customers starting on 21 October 2011. Since 29 September 2011, money exchange counters have been introduced in private commercial banks. The Microfinance Law was enacted on 
30 November 2011 and the Foreign Exchange Management Law was enacted on 12 August 2012.  
4.79.  There are four state-owned banks: th e Myanmar Economic Bank (MEB), the Myanmar 
Foreign Trade Bank (MFTB), the Myanmar Inve stment and Commercial Bank, and the Myanmar 
Agricultural Development Bank. The role of the MEB, the largest bank in Myanmar, is to provide 
domestic and international banking services. The MFTB specializes in international banking. The 
Myanmar Investment and Commercial Bank, which carries out both domestic and international banking business, extends banking services to private companies, including foreign joint ventures. 
The MADB extends agricultural credits to farmers (s ection 4.2.2). According to the authorities, the 
regulatory regime is the same for state-owned banks and private banks; in line with the Central 
                                               
24 GATS document GATS/SC/59, 15 April 1994. 
25 The CBM has allowed 33 representative office s of foreign banks in Myanmar; they may, inter alia , 
distribute business  information to foreign investors. WT/TPR/S/293 • Myanmar 
 
- 64 - 
 
  Bank of Myanmar Law Section 62, the CBM treats all actions and performance of all financial 
institutions equally. 
Table 4.1 Performance of the banking sector, 2010-13  
(K billion and %) 
 2010 2011 2012 2013a 
Total assets      
State-owned banks  1,935.1 2,491.8 3,183.0 14,701.1 
Private commercial banks  1,888.5 3,579.1 5,129.1 7,630.8 
Non-performing loans 
(% of total loans)     
State-owned banks 
(Myanmar Economic Bank)  13.6 7.9 5.3 .. 
Private commercial banks  2.9 1.5 1.6 1.6 
Capital adequacy ratios      
State-owned banks .. .. .. .. 
Private commercial banks 38.5 31.5 27.9 26.6 
 
.. Not available.  a As of October.  Source: Data provided by the authorities of Myanmar. 
4.80.  A number of cooperative credit societies operate under the approval of Ministry of 
Cooperatives. 
4.81.  The CBM is empowered to assume superv isory and regulatory functions for the banking 
sector.26 The CBM's policy objectives include domestic price stability, financial stability, and 
efficient payment systems. The CBM is responsi ble for approving new banks and supervising new 
and existing banks. On 11 July 2013, the CBM was separated from the Ministry of Finance with a 
view to making it an independent central bank wi th greater autonomy in accordance with the new 
Central Bank of Myanmar Law, which entered into force on the same day. 
4.82.  The main legislation regulating the sector includes the Central Bank of Myanmar Law 2013, 
Financial Institutions Law 1990, Rules of Financial Institutions, and the Foreign Exchange 
Management Law 2012, which entered into force on 10 August 2012. The authorities are drafting a new "Financial Institutions Law". They state that the new CBM Law applies uniformly to all actions 
of all financial institutions; all of Myanmar's banks, private or state-owned, are subject to the 
same tax rates, including corporate income tax and a business tax. 
4.83.  Banks in Myanmar engage mainly in conventional commercial banking. There are no legal or 
institutional differences between head offices, inco rporated subsidiaries, branch offices, agencies, 
and other entities. In addition to the regulators, the Myanmar Banks Association (MBA), an 
industry association of banks in Myanmar, is resp onsible according to the authorities for assisting 
and advising the CBM and MOF in ensuring financial stability and modernization of the banking 
sector. 
4.84.  Licensing for domestic financial institutions requires, inter alia , company registration, 
financial statements for the past three years, a list of top management and their CVs (among top 
management, at least one person must be a banker), fit and proper test of top management, a 
feasibility study, and details of the source of f unds. Licence holders must register certain aspects 
of their businesses once banking licences have been  issued by the CBM. No banking licences have 
been issued to foreign banks (subsidiary, joint venture, or direct branching). 
4.85.  The CBM intends to develop the banking sector in three phases: (1) allowing domestic 
private banks to operate joint ventures with foreign banks; (2) allowing foreign banks to establish wholly owned locally incorporated subsidiaries; and (3) allowing foreign banks to open direct 
branches in Myanmar. 
                                               
26 The main departments of the CBM include the Financial Institutions Regulation and Anti-money-
laundering Department and Financial Institutions Supervision Department. The Financial Institutions Supervision Department supe rvises financial institutions by conducting on-site and off-site examinations. WT/TPR/S/293 • Myanmar 
 
- 65 - 
 
  4.86.  The CBM supervises 4 state-owned bank s, 22 private banks and 4 non-bank financial 
institutions (e.g. leasing companies). The Ministry of Finance supervises microfinance institutions. Banking supervision is covered under the new CBM Law and will be covered in the Financial Institutions Law, if adopted. The two main functions of the Financial Institutions Supervision 
Department of the CBM are on-site ex amination and off-site monitoring.  
4.87.  Myanmar Insurance implements a deposit in surance scheme, on behalf of the Government. 
The scheme was launched on 1 October 2011; 60% of the insured deposit amount will be 
reimbursed in the event of bank bankruptcy. Myanmar plans to establish a Deposit Insurance 
Corporation as a separate organization in accordance with international practice. 
4.88.  Recent reforms include: the launch of the deposit insurance scheme on 1 October 2011; 
issuing of money exchange licences to private banks in 2011 and to individuals in 2012; and 
allowing private banks to carry out internationa l banking business in 2012, and the establishment 
of the Yangon Interbank Foreign Exchange Market in 2013 (section 1.2.1)  
4.4.2.2  Insurance 
4.89.  In 2012, total insurance premium income in Myanmar was K 35.8 billion, up 48.5% from 
the previous year (K 24.1 billion, around 0.05% of GDP). 
4.90.  In Myanmar, a company may apply to the Insurance Business Supervisory Board for the 
establishment of a life, non-life or composite (p roviding life and non-life insurance) insurance 
company. Until very recently, Myanmar’s insura nce market was dominated by the state-owned 
Myanmar Insurance, which is a composite insurance company. On 25 May 2013, licences were issued to five domestic private insurance companies.
27   
4.91.  The insurance market in Myanmar is regu lated by the Insurance Business Supervisory Board 
(IBSB), under the Ministry of Finance. The IBSB was first established in 1996, and underwent a major reform in 2011. 
4.92.  The Insurance Law 1993 and the Insurance Business Law 1996 are the main laws regulating 
the industry.  
4.93.  While FDI in insurance is not prohibited, there have been no foreign providers of insurance 
services in Myanmar.
28 Currently, the IBSB only accepts applications for insurance licences from 
domestic companies. The authorities envisage that investors from ASEAN countries will be allowed to operate insurance businesses in Myanmar in acco rdance with the AEC Blueprint, e.g. insurance 
intermediation by 2014, reinsurance and retrocessi on by 2016, direct life insurance by 2018, and 
direct non-life insurance by 2020. 
4.94.  A business licence is required to provide insurance services in Myanmar. Under the 
Insurance Law, an insurer may establish itself either as a limited liability company or a wholly 
state-owned company. The IBSB is responsible for registering new insurance providers, as well as 
new products and activities. Insurers may engage in  life insurance, fire insurance, comprehensive 
motor insurance, cash-in-safe insurance, fidelity insurance, and other insurance permitted by the 
Ministry of Finance. Currently, three life insurance companies are allowed to underwrite the life 
insurance business and nine composite insurance companies are allowed to underwrite both life and non-life insurance. 
4.95.  The minimum paid-up capital required to obtain a licence is K 6 billion for life insurance, 
K 40 billion for non-life insurance, and K 46 billion for composite insurance.
29 Licence applicants 
                                               
27 These are: IKBZ Insurance Public Co. Ltd; Grand Gu ardian Insurance Public Co. Ltd; Aung Thitsar Oo 
Insurance Company; Aung Myint Mo Insurance Company;  and National Finance Insurance (Public) Co. Ltd. 
28 Section 29 of the Insurance Business Law and Section 14-C of the Insurance Business Rules allows 
the entry of foreign insurance intermediaries, underwr iting agencies, and insurance brokers. Although the 
establishment of insurance brokers is not prohibited by  law, the IBSB has not yet decided to permit their 
establishment. The authorities expressed their intention to permit insurance brokers in the near future. 
29 An insurer must have a deposit equal to 10% of paid-up capital (K 6,000 million for life insurance and 
K 40,000 million for non-life insurance), and then purc hase Government Treasury Bonds worth 30% of the 
paid-up capital. WT/TPR/S/293 • Myanmar 
 
- 66 - 
 
  must also submit, inter alia , the curriculum vitae of their principal officer, profile of the company or 
company group, organizational structure, business pl an, and location of the office and its building 
structure.   
4.96.  The IBSB carries out both on-site and off-si te inspections, and supervises private insurance 
companies' compliance with the Insurance Business Law 1996 and Insurance Business Rules 1997 
and relevant orders and directives issued by the IBSB. 
4.4.3  Telecommunications 
4.97.  Data provided by the authorities show that penetration rates for fixed-line services in recent 
years were around 1% (Table 4.2). Substantial increases in mobile service subscribers have been observed. 
Table 4.2 The telecommunications sector, 2007-12  
 2007 2008 2009 2010 2011 2012 
Fixed telephone lines (million) 0.47 0.46 0.55 0.61 0.59 0.60 
Fixed telephone lines per 100 inhabitants 0.84 0.83 0.97 1.03 0.99 0.99 
Mobile service subscribers (million) 0.28 0.51 0.70 1.47 1.98 5.44 
Mobile service subscribers per 
100 inhabitants 0.50 0.91 1.23 2.49 3.31 8.92 
Internet users (million) 0.037 0.040 0.038 0.150 0.500 0.899 
Internet users per 10,000 inhabitants 6.71 7.19 6.83 25.48 82.81 148.93 
 
Note: Data on penetration are based on  population numbers as at year-end. 
 Source: Information provided by the authorities of Myanmar. 
4.98.  Currently, the sole provider of basic telecommunication services is the state-owned 
Myanmar Posts and Telecommunication (MPT). Th e main provider of internet services is 
Yatanarpon Teleport (YTP), a joint venture between domestic private companies and the MPT. 
Provision of value-added services through interconnection with the MPT is not yet developed; the only value-added service, according to the authorities, is a call centre service provided by the YTP. 
4.99.  The Government is in the process of formally issuing two new nationwide 
telecommunications licences. It set up an inter-ministry team “the Telecommunication Operator 
Tender Evaluation and Selection Committee” to oversee the selection of the licensees. The selection process started with the issue of the invitation for the expression of interest (EOI) in 
January 2013 to inform all interested entities, domestic or foreign. It issued the rules for the 
prequalification application, in February 2013, which define requirements to participate in the bid for licences. The Committee shortlisted 12 applicants for the final tendering stage. The Committee 
announced the selection of two successful applicants on 27 June 2013.
30   
4.100.  Currently only the MPT is authorized to provide mobile services. The authorities envisage 
that the ongoing selection process will allow two further international operators and another local operator to provide mobile services.  
4.4.3.1  Regulatory structure and measures 
4.101.  Myanmar has no comprehensive telecommunications law: the authorities are in the 
process of drafting a bill for the new Communications Law. 
4.102.  The Ministry of Communications and Information Technology (MCIT) oversees the 
telecommunications sector. The Posts and Telecommunications Department (PTD), under the MCIT, is the regulator. The PTD provides recommendations to the MCIT on policies. The PTD also 
supervises the operation of telecommunications, manages the radio frequency spectrum, and 
implements telecommunications policy. 
                                               
30 MCIT online information. Viewed at: http://www.mcit.gov.m m/sites/defaul t/files/press_release_-
_licensee_selection_process_results_update_3.pdf  [04.09.2013]. WT/TPR/S/293 • Myanmar 
 
- 67 - 
 
  4.103.  The main laws on telecommunications include: the Myanmar Telegraph Act 1885; the 
Myanmar Post Office Act 1898; the Myanmar Wireless Telegraphy Act 1934 (and its Amendment 1993); the State-owned Enterprise Law 1984; the Computer Development Law 1996; and the Electronic Transaction Law 2004. The main regulations include: the Myanmar Wireless 
Telegraphs Rules 1937; the Myanmar Wireless Receiving License Rules 1940; the Myanmar 
Wireless (Territorial Waters) Rules 1933; the Myanmar Wireless (Foreign Aircraft) Rules 1937; and the Myanmar Wireless Telegraphy Licence Changes Rules 1960. 
4.104.  According to the authorities, telecommunication tariffs in Myanmar are not yet regulated; 
the draft telecommunications law has some clauses on tariff regulation, which will be based on certain tariff standards administered by the PTD and other regulators. 
4.105.  Under the Foreign Investment Law 2012, 100% foreign ownership is allowed in 
telecommunication services. There are no minimum registered capital requirements for a joint 
venture. FDI is prohibited in publishing or media broadcasting. 
4.106.  No universal services requirement exists ; it would appear that the draft communications 
law contains provision on universal services. 
4.4.4  Transport  4.4.4.1  Air transport services 
4.107.  The demand for air transport services in Myanmar has grown substantially in recent years, 
reflecting Myanmar's overall growth. Between 2010  and 2012, the volume of civil air transport 
services grew at an annual average of 22%. Robu st growth is expected to continue, and Myanmar 
faces challenges, including a need to expand capacity to meet increased demand. 
4.108.  As of July 2013, there were eight civil avia tion carriers in Myanmar. Of these, one was a 
state-owned company, one jointly owned by the st ate and a domestic private company, five owned 
by domestic private parties, and one joint venture with 67% foreign equity participation.  
4.109.  The Department of Civil Aviation (DCA), und er the Ministry of Transport (MOT) is the main 
agency responsible for the governance of the civil air transport sector. 
4.110.  The main laws and regulations governing the sector include the Aircraft Act 1934 (XXII of 
1934), the Aircraft Rules 1937, the Aircraft Rules 1920 (part IX), the Carriage by Air Act (XX of 
1934), and the Aircraft (Public Health) Rules.  
4.111.  To engage in air transport services, new carriers need approval from the Myanmar 
Investment Commission, and must obtain safety certificates and traffic rights authorization 
certificates from the DCA.
31 
4.112.  No airlines have been accorded exclusive rights over domestic and international services. 
According to the authorities, no benefits ar e offered exclusively to domestic airlines. 
4.113.  FDI in air transport is allowed under the Foreign Investment Law. In accordance with the 
regulations established under the new Foreign Investment Law, the authorities intend to reduce the foreign equity participation rate to less than 50% in the near future. There is no specified 
minimum level of registered capital under the new Foreign Investment Law. Local representatives 
of foreign airlines that operate to and from Myanmar do not need to be Myanmar citizens.  
4.114.  As of January 2013, Myanmar had signed bila teral aviation transportation agreements with 
46 trading partners; it also participates in 5 regional and multilateral air services agreements. 
These agreements, applied to both passenger and cargo traffic, are concluded on a reciprocal basis 
                                               
31 Conditions to be fulfilled in order to obtain a licence include: economic strength; routes; the use of 
aircraft that meet national safety and security requirements; legally licensed technical staff; possession of 
operation manuals; maintenance and over haul; preparation of schedules, fares,  freight rates; registered capital 
no less than the minimum level specified by the Government; and other conditions specified by laws and administrative regulations. WT/TPR/S/293 • Myanmar 
 
- 68 - 
 
  in terms of capacity and frequency; some agreements are without limitation on capacity and 
frequency.32 On the basis of its bilateral agreements, Myanmar makes specific transportation 
arrangements on, inter alia , airline capacity, traffic rights, and cooperation between enterprises. 
The designated airlines of each party are generally allowed to apply to their respective authorities 
to provide service based upon their respective capacity. Myanmar adopts the practice of "dual 
disapproval" for passenger services. 
4.115.  Under bilateral or regional air service ag reements, airlines may set prices in accordance 
with the relevant provisions. Prices are regulated under these agreements. For domestic flights, 
airlines may, in principle, set their fares without restrictions; the authorities state that fares need 
to be notified ex post to the DCA, for statistical purposes and to prevent unfair competition.   
4.116.  Code-sharing arrangements with foreign carriers is allowed. 
4.117.  No foreign carriers have cabotage rights in Myanmar. 
4.118.  Most airports are operated by the Department of Civil Aviation, while some are operated 
by individual companies under contractual arrangements with the Government.33 The private 
sector and foreign investors (up to 100% ownershi p) may own airports and run airport services, as 
stipulated in the FDI Law. The Government is in the process of establishing a Myanmar Airports Holding Company Limited with a view, inter alia , to providing better services, ensuring safety, and 
reducing the Government’s workload at airports. 
4.119.  According to the authorities, Myanmar has,  as yet, no specific slot allocation system. 
Arrangements for slot allocation to national and fo reign carriers comply with provisions of air traffic 
control services. In other airports, the authorities consider that the number of slots provided 
exceeds demand. There is no difference in slot allocation at peak and non-peak times. 
4.120.  The authorities indicate that Myanmar ha s not yet developed comprehensive legislation for 
auxiliary services. The Ministry of Transport ha s designated three airlines (Myanma Airways, 
Myanmar Airways International, and Air Bagan) for the operation of ground handling services at 
Yangon International Airport. Aviation oil is currently provided by Myanmar Petroleum Products Enterprise under the Ministry of Energy. Auxiliary services do not have to be controlled by 
Myanmar nationals. 
4.4.4.2  Maritime transport services 4.121.  In 2012, around 60% of Myanmar's intern ational cargo was carried by sea. At end 2012, 
21 vessels were engaged in international shipping, accounting for about 0.2 million deadweight 
tonnes (DWT); all were flying the national flag. According to the authorities, no vessels were 
"beneficially" owned by Myanmar operators and registered abroad.  
4.122.  The Department of Marine Administration (DMA) under the MOT is in charge of formulating 
shipping and port policies. The objectives of the DMA's policies include, inter alia : ensuring 
national ships' conformity to safety standards, safe practices and standards of competence; and improving the safety record of Myanmar registered vessels. 
4.123.  As the regulator of maritime transport in Myanmar, the DMA, inter alia : (1) advises higher 
authorities on implementing updated conventions and codes on maritime affairs; (2) administers registration of inland powered vessels; (3) conduc ts examinations and registration of all types of 
newly built powered vessels; (4) conducts examinat ions and issues certificates of competency for 
deck and engineering officers; (5) conducts examinations and issues certificates of competency for 
                                               
32 The coverage of these bilateral agreements incl ude: the number of carr iers; tariffs and fees; 
establishment of representative institutions; employment of staff; airport and flying  facilities; application of 
laws and regulations on crossing bo rders; regulations on airline capacity; income remittance and exchange; 
security; safety-related controls; flight  routes; and a dispute sett lement mechanism; principles such as fair and 
equal opportunities for companies of both parties and ne gotiation of capacity and fre quency with the aviation 
authorities of both parties. 
33 Terminal building operations at Yangon International Airport are conducted by a local company under 
a contractual agreement with the DCA and the company. Nay Pyi Taw International Airport is operated by a 
local company under contractual agreement with the DCA and the company on a BOT basis. WT/TPR/S/293 • Myanmar 
 
- 69 - 
 
  coastal and inland masters, mates, chief engineers, and engine drivers; (6) inspects inland 
powered vessels and imposes administrative penalties and fines on vessels that contravene relevant rules and regulations as prescribed by the Inland Steam Vessels Act 1917; (7) investigates accidents such as collisions in waterways; (8) recruits and provides training to 
new seafarers, and issues certificates of competence, exemptions, and clearance, and carries out 
registration; (9) oversees the welfare of seamen; and (10) arranges bareboat charter. 
4.124.  According to the authorities, there are no monopoly activities, restrictions on: key 
personnel or crew while in Myanmar waters (e.g. nationality); conditions on flying the national 
flag, such as national ownership, management and residence requirements; or incentives for flying 
the national flag, such as exclusivity rights or subsidies. Only Myanmar citizens are allowed to register ships as Myanmar ships according to  the Myanmar Registration of Ships Act 1841. 
Nonetheless, registration on a bareboat charter basis is allowed for the foreign-owned ships. The 
authorities state that domestic and foreign companies receive equal treatment except as indicated in ASEAN horizontal commitments. 
4.125.  The Myanmar Merchant Shipping Act 1923 provides a general regulatory framework for 
maritime transport. Other main laws and regulations pertaining to the sector include: the Myanmar Registration of Ships Act 1841; the Inland Steam Vessels Act 1971; Rules of law relating to 
collision between vessels 1952; Shipping Administration Act 1954; the Bill of Loading Act 1856; 
the Carriers Act 1865; and the Myanmar Carriage of Goods by Sea Act 1925. Currently, the Maritime Transport Act is being drafted and the Myanmar Registration of Ships Act is being amended. 
4.126.  The Shipping Agency Department (SAD) is  Myanmar's international shipping agency for 
international vessels that wish to call at Myanmar ports. The authorities allow most shipping lines to appoint their own representatives to carry out necessary activities such as marketing, 
documentation, transactions, and management operations. Ex ante  notification allowing at least 
one month for approval is needed before starting up international liner services. 
4.127.  Examination and approval by the MOT is required for an international shipping operator to 
engage in international liner services. Myanmar has not signed the United Nations Convention on a 
Code of Conduct for Liner Conferences. No Myan mar shipping company is a member of a liner 
conference. 
4.128.  There has been no FDI in Myanmar's maritime transport services. Up to 100% foreign 
participation is permitted in accordance with the Foreign Investment Law. Cabotage is only open to 
national carriers as specified in the Shipping Administration Act 1954. 
4.129.  The Government encourages enterprises to expand multi-modal transport, including by: 
investing in deep-water container-dock construction and improving the road, railway, coastal, and 
freshwater transport system
34; establishing an internationally competitive container fleet; 
developing container transport information technology, including electronic data interchange (EDI) 
and other electronic business systems; and improving the legal structure for multi-modal 
transport. Foreign investment (up to 100% foreig n equity ownership) in international container 
multi-modal transport is encouraged.  
4.130.  There are nine ports in Myanmar, all of which are permitted to engage in international 
trade. International trade throughput in the po rts was 20.7 million tonnes in 2012, up 19% over 
2011; international container throughput at Yangon port registered 0.4 million TEUs, up 18%. In 2012, goods-handling capacity at Myanmar's ports was 25 million tonnes.  
4.131.  The Myanmar Port Authority handles cargo vessels in two groups: break bulk cargo ships 
and container ships. The authorities state that, for break bulk cargo ships, turnover time depends 
                                               
34 According to information provided by the authoritie s, the average handling capacity of container ports 
is increasing by 25-30% annually, and the proportion of "door-to-door" transportation is also increasing rapidly. Myanmar's policy on multi-modal transport includes: facilitating the expansion of international trade among ASEAN members as well as between an ASEAN member country and third countries; stimulating the 
development of smooth, econ omic, and efficient multi-modal transport services adequate for the requirements 
of international trade; and adopting rules related to  the carriage of goods by international multi-modal 
transport contracts, including provisions concerning the liability of multi-modal transport operators. WT/TPR/S/293 • Myanmar 
 
- 70 - 
 
  on tonnage, cargo type, number of gangs/hook s, and weather conditions; for example, a 
10,000 DWT break bulk cargo can be discharged within 5 to 7 days if weather conditions are good. For container cargo, turnover time for a feeder vessels is 2 to 3 days. 
4.132.  The Myanmar Port Authority regulates port businesses. The main legislation is the Yangon 
Port Act 1905, the Ports Act 1908, the Outpor ts Act 1914, and the Myanmar Lighthouse Act 
1937.
35 The Port Authority is currently planning to integrate the Yangon Port Act, the Ports Act and 
the Outports Act into one single Act (The Ports Law); it is also considering amending the Myanmar 
Lighthouse Act. Laws pertaining to investment in port services include the Foreign Investment 
Law, the Myanmar Citizens Investment Law, My anmar Special Economic Zone Law, and Dawei 
Special Economic Zone Law. 
4.133.  The Myanmar Port Authority's port policy objective is to develop the port sector in 
accordance with the national policy and to comply with international standards. Its operational 
objectives are: to manage port development in a ccordance with the requirements of port services; 
to arrange the handling system of export and im port cargo to be in line with the economic 
development of the country; to promote local and foreign investment in port services and to meet 
ASEAN and international standards with regard to th e capability of ports; and to regulate private 
port terminals so that they comply with the Government's port policy, rules, and regulations. The 
MPA intends to promote domestic and foreign investment by providing incentives in accordance 
with the new Foreign Investment Law. The MPA also aims to reduce dependence on the state budget by exploring sources of income reducing  expenditures, and investing in the development 
and renovation of ports. Port service providers in Myanmar include the MPA and the private sector; 
in terms of berth length, they account for about 25% and 75%, respectively. 
4.134.  To engage in port services, companies must apply to the Company Registration 
Department of the Ministry of National Planning and Economic Development; no licence from the 
MPA is required. The MPA states that it realizes the importance of private sector participation in 
port services, as the process of privatization is  deemed the only way to improve the performance 
of public port organization. The Myanmar Port Authority is now implementing the port reform 
strategy approved by the Government. Accordin g to the strategy, the Myanmar Port Authority 
becomes more financially autonomous and may form joint ventures with local and/or foreign partners. There are two wholly foreign-invested enterprises in the port services sector (i.e. Myanmar International Terminals Thilawa (MITT), and Myanmar Integrated Port Limited (MIPL)). 
4.135.  Standard port charges are set by the MPA; criteria for setting the charges include cost 
recovery. Nonetheless, private terminals may negotiate port charges with their customers, and port operators may set some fees if they are not included in the standard charges. 
4.136.  Myanmar is a member of the International Maritime Organization (IMO). Myanmar has 
concluded one bilateral maritime transport agreem ent, with Bangladesh. The MPA has no bilateral 
cargo-sharing agreements.   
4.4.5  Tourism 
4.137.  Myanmar received about 0.79 million international tourists in 2010 and 0.82 million in 
2011. 
4.138.  The Ministry of Hotels and Tourism oversees tourism policies in collaboration with the 
Myanmar Tourism Federation, a federation of 11 associations of tourism-related service 
providers.
36 Main laws and regulations governing the tourism sector include the Myanmar Hotel 
and Tourism Law 1993, and Government Notification No. 14/93(1993). 
4.139.  Operating a hotel business or lodging-house business requires prior permission from the 
Ministry of Hotels and Tourism. After obtaining ministerial permission and completing the hotel construction, the enterprise must apply for a licence. Licences are not transferable without the 
permission of the authorities. Foreign direct investment, with foreign-equity participation up to 
                                               
35 In accordance with these Acts, the Myanmar Port Authority compil ed by-laws: Work Guidance on 
Traffic Department and Jetty Service Regulations. 
36 Myanmar Tourism Federation online information. Viewed at: 
http://www.myanmar.travel/index.php/abou t-us/36-mtf/myanmar-tourism-federation  [02.09.2013]. WT/TPR/S/293 • Myanmar 
 
- 71 - 
 
  100%, is allowed in the hotels and related businesses. Incentives may be granted in accordance 
with the FDI Law. 
4.140.  A licence is required for tour operator and/or travel agency activities. Applicants must: be 
registered in accordance with the Myanmar Companies Act, if a limited company or joint venture; 
have an office to carry out the business; have sufficient financial means to set up the business; 
and have sufficient skilled labour. Any changes of proprietor or manager or office location within the municipality must be notified in writing. Moving outside the municipality requires a new permit. 
Tariffs must be published, together with the tour programmes and services offered by the 
enterprise. Tour operator and/or travel agency businesses are allowed only in the form of joint ventures with Myanmar citizens; foreign-equity participation is allowed up to 60%. 
4.141.  In order to operate tour guide business, a licence must be obtained from the Ministry of 
Hotels and Tourism. To be eligible for a licence, applicants must have attended and passed the 
tour guide training conducted by Myanmar Hotels and Tourism Services; be assessed by Myanmar Hotels and Tourism Services as qualified to attend tour guide training; or have attended and 
passed a similar training course recognized by the Ministry. Only Myanmar nationals are allowed to 
engage in tour guide businesses. WT/TPR/S/293 • Myanmar 
 
- 72 - 
 
  REFERENCES 
 
ADB (2012a), Overview Greater Mekong Subregion - Economic Co-operation Program, March, Manila. Viewed at: http://www.adb.org/sites/defa ult/files/gms-overview.pdf  [11/04/13]. 
 
ADB (2012b), The Greater Mekong Subregion at 20 - Progress and Prospects", Manila. Viewed at: http://www.adb.org/sites/default/files/pub/ 2012/gms-20-yrs-prog ress-prospects.pdf  
[11/04/2013]. 
 Cho, Khin Mar (2013), Background Paper No.5, Current Situation and Future Opportunities in Agricultural Education, Research and Extension in Myanmar, Michigan State University and 
Myanmar Development Resource Institute. Viewed at:  
http://fsg.afre.msu.edu/Myanmar/myanmar_backgr ound_paper_5_agricultural_institutions.pdf  
[November 2013]. 
 
IMF (2013), Myanmar - 2013 Article IV Consultation and First Review under the Staff-Monitored Programme, IMF Country Report No. 13/250. Viewed at:  
http://www.imf.org/external/p ubs/ft/scr/2013/cr13250.pdf  [25/11/2013]. 
 
Transparency International (2012), Corruption Perception Index 2012 , December, Berlin. Viewed 
at: http://www.transparency.org/whatwedo/pub/co rruption_perceptions_index_2012 [20/03/13]. 
 WT/TPR/S/293 • Myanmar 
 
- 73 - 
 
  5  APPENDIX TABLES 
Table A2. 1 Major trade-related legislation 
Subject Legislation 
Foreign trade Export and Import Law 2012 
 Foreign Exchange and Management Law 2012 
 Contract Act 1872  
Customs clearance Essential Supplies and Services Law 2012   
 Sea Customs Act 1878 (amendment in progress) 
 Land Customs Act 1924 
 Tariff Law 1992 
Standards and 
technical 
requirements Science and Technology Development Law 1994 
Sanitary and 
phytosanitary requirements Pesticide Law 1990 
 
 National Food law 1997 
 National Drug Law 1992 
 Narcotic Drugs and Psychotropic Substances Law 1993 
 Plant Pest Quarantine Law 1993 
 Animal Health and Development Law 1993 
 Regulation for Importation and Exportation of Animals and Animal Products 2002 
 Protection of Wildlife, Wild Plants and Conservation of Natural Areas Law 1994 
Labelling 
requirements Traditional Drug Law 1996 
 National Food Law 1997  
 National Drug Law 1992 
Taxation Myanmar Excise Act 1917 
 Commercial Tax Law 1990 
 Income Tax Law 1974 
State trading or State 
owned enterprises Special Company Act 1950 
 State-Owned Economic Enterprise Law 1989 
Intellectual property 
rights protection Myanmar Merchandise Marks Act 1889 
 Registration Act 1908 
 Penal Code 1860 
 Television and Video Law 1996 
 Motion Picture Law 1996 
 Computer Science Development Law 1996 
Sectoral Agriculture Fertilizer Law 2002 
 Agricultural Produce Markets Act  1941 
 Seed Law 2011  
 Pesticide Law 1990 
 Plant Pest Quarantine Law 1993 
 Farmland Law 2012  
 The Vacant, Fallow and Virgin  Lands Management Law 2012 
Fishing The Fishing Right Of Foreign Fishing Vessels Law 1989 
 Aquaculture Law 1989 
 Myanmar Marine Fisheries Law 1990 
 Fresh Water Fisheries Law 1991 
Forest Forest Law 1992 
Mining Gemstones Law 1995 
 Myanmar Mines Law 1994 
 Myanmar Pearl Law 1995 
Energy Petroleum Act 1934 
 Petroleum Rules 1937 
 Oil Field Act 1918 
 Atomic Energy Law 1998 
 Oil Resources (Development Regulation) Act 1957 
 Electricity Law 1984 
Banking Central Bank of Myanmar Law 2013 
 Yangon Interbank Foreign Exchange Law 2013 
 Foreign Exchange Management Law 2012 
 Financial Institutions Law 1990 
Insurance Insurance Law 1993 
 Insurance Business Law 1996 WT/TPR/S/293 • Myanmar 
 
- 74 - 
 
  Subject Legislation 
Telecommunications Myanmar Telegraph Act 1885 
 Myanmar Post Office Act 1898 
 Myanmar Wireless Telegraphy Act 1934 (and its amendment 1993) 
 Electronic Transaction Law 2004 
Maritime transport Myanmar Merchant Shipping Act 1923 
 Myanmar Registration of Ships Act 1841 
 Shipping Administration Act 1954 
 Bill of Lading Act 1856 
 Carriers Act 1865 
 Myanmar Carriage of Goods by Sea Act 1925 
 Sea Shipping Agreements Act 1952  
Port services Ports Act 1908 
Air transportation Aircraft Act 1934 
 Carriage by Air Act 1934 
 Aircraft (Public Health) Rules 1946 
Tourism Myanmar Tourism Law 1990 
 Hotel and Tourism Law 1993 
Investment  Foreign Investment Law 2012 
 Myanmar Citizens Investment Law 1994 
 Control of Money Laundering Law 2002 
 Myanmar Companies Act 1914 
 Myanmar Partnership Act 1932 
 Arbitration Act 1944 
 Private Industrial Enterprise Law 1990 
 Myanmar Accountancy Council Law 1994  
Road and bridges Highways Law 2000 
 
Source: Information provided by the authorities of Myanmar. WT/TPR/S/293 • Myanmar 
 
- 75 - 
 
  Table A2. 2 Main trade-related ministries and agencies  
Department/Agency Main responsibility 
Ministry of Commerce Policy coordination and implementation for all trade-
related issues   
Ministry of Finance  Budget, taxation, cust oms, revenue appeal 
Central Bank of Myanmara Central bank 
Ministry of National Planning and Economic 
Development Formulation of trade policy and national 
development plan 
Central Statistical Organization Statistics 
Ministry of Foreign Affairs Foreign affairs, regional trading agreements 
Ministry of Cooperatives Regulate and organize cooperatives, facilitate SMEs' 
development 
Ministry of Agricult ure and Irrigation Agricultural polici es and plans, trade and investment 
Ministry of Livestock, Fisheries, and Rural 
Development Livestock development, anim al health care, disease 
control, fisheries 
Ministry of Communications and Information 
Technology Postal and telecommunications services 
Ministry of Transport Maritime transport, civil aviation 
Ministry of Environmental Conservation and 
Forestry Forest management, wood-based industry 
development 
Ministry of Electric Powerb Generation, transmission  and distribution of 
electricity 
Ministry of Energy Petrol and petrochemical sectors 
Ministry of Industryc Industrial development 
Ministry of Health Public health 
Ministry of Mines Mining, issuing licences to mineral explorations, 
conducting environmental impact assessment 
Ministry of Construction Infrastructure construction , urban and housing 
development 
Ministry of Rail Transportation Road and rail transport 
Ministry of Hotels and Tourism Tourism development  
 
a The Central Bank has been separated from the Ministry of Finance since the promulgation of the 
Central Bank of Myan mar Law in July 2013. 
b From September 2010, only the Ministry of Electric Power (MOEP) is responsible for the generation, 
transmission, and distribution of electricity. Between May 2006 and September 2010, two ministries were responsible for elec tric power: the MOEP1 and the MOEP2. MOEP1 was mainly responsible for 
the development of hydropower projects, and oper ation and maintenance of hydropower stations, 
and coal fired thermal power plants. MOEP2 wa s mainly responsible for the planning and 
implementation of transmission lines in compliance with the generation plan, operation and maintenance of thermal power plants and distributi on facilities, and selling power to end users. 
Before 2006, there was only one ministry for electric power (MOEP).  
c The Ministry of Industry was two ministries until 2 December 2011. On 4 April 2012, the Ministry of 
Industry was reorganized with three Directorates , six industrial enterprises, and two centres. 
 Source: Information provided by the authorities of Myanmar.  WT/TPR/S/293 • Myanmar 
 
- 76 - 
 
  Table A3. 1 Tariff lines with MFN applied ra tes that exceed their bound rates, 2013 
HS code Description MFN 
applied 
2013 Bound 
rate 
2013 
2620110000 -- Hard zinc spelter 1.00 0 
2620190000 -- Other 1.00 0 
7904000000 Zinc bars, rods, profiles and wire. 3.00 0 
8432802000 - - Lawn or sports-ground rollers 1.00 0 
8432809000 - - Other 1.00 0 
8432901000 - - Of machinery of subheading 8432.80.90 1.00 0 
8433110000 -- Powered, with the cutting device rotating in a horizontal 
plane 1.00 0 
8433191000 - - - Not powered 7.50 0 
8433199000 - - - Other 1.00 0 
8433902000 - - Other, of goods of subheading 8433.11 or 8433.19.90 1.00 0 
8433903000 - - Other, of goods of subheading 8433.19.10 7.50 0 
8435101000 - - Electrically operated 1.00 0 
8435102000 - - Not electrically operated 1.00 0 
8435901000 - - Of electrically operated machines 1.00 0 
8435902000 - - Of non-electrically operated machines 1.00 0 
8436801900 - - - Other 1.00 0 
8436802900 - - - Other 1.00 0 
8436991900 - - - - Other 1.00 0 
8436992900 - - - - Other 1.00 0 
8701909000 - - Other 1.00 0 
8708991000 - - - For vehicles of heading 87.01 1.00 0 
8708992100 - - - - - Fuel tanks 5.00 0 
8708992300 - - - - - Parts 5.00 0 
8708993000 - - - - Accelerator, brake or clutch pedals 5.00 0 
8708994000 - - - - Battery carriers or trays and brackets therefor 5.00 0 
8708995000 - - - - Radiator shrouds 5.00 0 
8708996100 - - - - - For vehicles of heading 87.02 5.00 0 
8708996200 - - - - - For vehicles of heading 87.03 5.00 0 
8708996300 - - - - - For vehicles of heading 87.04 5.00 0 
8708997000 - - - - Other 5.00 0 
8708999010 - - - - - - Half-shafts and drive shafts and parts thereof 5.00 0 
8708999090 - - - - - - Other 5.00 0 
 
Source: WTO Secretariat calculations, based on da ta provided by the authorities of Myanmar. 
 WT/TPR/S/293 • Myanmar 
 
- 77 - 
 
  Table A3. 2 Domestically produced goods exempt from commercial tax 
Commercial tax exemptions  
Paddy 
Wheat grain 
Maize and other cereals 
Pulses 
Groundnuts 
Sesame 
Mustard seeds, sunflower seeds, tamarind seeds, cotton seeds 
Oil palm 
Raw cotton 
Jute and similar fibres 
Garlic, onions 
Potatoes 
Spices, raw (plants, parts of pl ants, nuts, seeds, barks, etc.) 
Spices prepared 
Fruits, fresh 
Vegetables 
Sugarcane 
Mulberry leaves 
Medicinal plants or herbs 
Animal feed, fresh and dried (farm products only) 
Thatch, reeds, dani and such agricultural products n.e.s. 
Wood, bamboo 
Live animals 
Silk cocoons 
Cane 
Honey and bee's wax 
Lac  
Bran and pollard pulses 
Cake, meal, and residue of groundnuts, sesame, cotton seeds, rice bran, etc. 
Soap stocks (of oil residue) 
Bleaching substances (of oil residue) 
Cotton ginned 
Coir yarn 
Feathers 
Umbrella cloth 
Bandages, gauze, other surgical dressing materials, hospital an d surgical outfit and sundries 
X-ray film, plates and other x-ray surgical and medicinal pharmaceutical apparatus and equipment 
Insecticides, pesticides, fungicides, etc. 
Various kinds of gun powder, various kinds of dyna mites and accessories thereof used by the civil 
departments 
Stamps 
Defence and military stores and equipment 
Sealing wax and sticks 
Textbooks, exercise and drawing books of various kinds and papers for the producti on of such books and all 
sorts of pencils 
Slates, slate pe ncils and chalk 
Shrimp paste 
Shrimp and fish sauces 
Groundnut oil, sesame oil, sunflower seed oil, rice  bran edible oil, other edible oil and oil cakes 
Flour (coarse and fine) 
Pulses, split and powdered 
Rice, broken rice and rice bran 
Fresh fish, fresh prawn 
Sterilized and other pasteurised milk 
Milk powder 
Milk for the use of infants and invalids 
Chili 
Saffron 
Ginger 
Fish paste 
Ripe tamarind 
National flag 
Beads 
Rulers, erasers, and sharpeners 
Fuel sticks 
Coconut oil 
Eggs WT/TPR/S/293 • Myanmar 
 
- 78 - 
 
  Commercial tax exemptions  
Water melon seeds 
Religious clothes  
Graphite to make pencils 
Condoms 
Oil dregs or earth oil 
 
Source: Schedule 1, Commercial Tax Law. 
 WT/TPR/S/293 • Myanmar 
 
- 79 - 
 
  6  ANNEX 1: AID FOR TRADE AND TRADE-RELATED TECHNICAL ASSISTANCE1 
6.1  Overview 6.1.  Decades of isolation from the international community has limited Myanmar's ability to 
access external financing and assistance through which knowledge, expertise, technology, and 
networks are regularly disseminated and updated. The trade sector was no exception, although a 
limited number of partners, including the WTO, continued to provide trade-related technical assistance. Overall, while Myanmar has a high utilization rate of the technical assistance and 
training activities offered by the WTO, it has not built up adequate institutional capacity to deal 
with WTO matters, beyond the Ministry of Commerce, as reflected in the country's low-key participation in the work of the organization. With the recent reforms, enormous opportunities exist for Myanmar to further align its trade policy practice to international norms and standards, as 
well as to receive external support to address its constraints and challenges both on soft and hard 
infrastructure, including through the Enhanced Integrated Framework. 
6.2  Trade in Myanmar's National Development Plan  
6.2.  The Government is currently formulating the National Comprehensive Development Plan 
(NCDP) 2011/12-2030/31, setting out new priorities and reform agendas for the next 20 years. The NCDP, which will be supplemented by five-year,  annual and sectoral plans, is expected to be 
finalized and adopted by Parliament during 2013. The formulation of the Plans is led by the 
Planning Department at the Ministry of Nation al Planning and Economic Development (MNPED), 
which serves as the secretariat for the Planning Commission, chaired by its Minister. Plan Formulation Implementation Committees were established in 2011 at the level of townships, 
districts, and states to ensure broad-based and bottom-up consultative processes. According to 
the authorities, an inter-ministerial consultative process, coordinated by the MNPED, is to ensure 
inputs from other ministries for the preparation and implementation of the plans. 
6.3.  While the 20-year NCDP is being finalized , the Framework for Economic and Social Reforms 
(FESR), adopted in late 2012, has set out ten priority reform areas for the interim period of 2012-15.
2 The FESR stresses the importance of liberalization of trade and investment. The main 
objectives of trade policies stated in FESR are: (i) encouraging the diversification of export 
products while promoting value-added processes for primary commodities, including focusing on 
improving support services for trade financing, market access, and trade facilitation; (ii) exchange rate unification by eliminating the linkage between export receipts and import licensing; 
(iii) liberalization measures such as setting up a national single-window, liberalizing services as 
well as removing all non-tariff barriers in accordance with the 2015 targets for ASEAN integration; (iv) cooperation with the WTO in removing trade barriers, and with international chambers of 
commerce in promoting business-to-business collaboration; and (v) strengthening regulatory 
capacities to improve inspection and quality assurance services for both export and import operations and set up a new public facility on consumer protection. The Government is formulating 
a Trade Sector Plan reflecting these objectives.  
6.3  Financing of Myanmar's developm ent strategy, including Aid for Trade 
6.4.  Myanmar's external financing was limited by years of isolation from the international 
community. According to the authorities, China was the largest provider of foreign aid to Myanmar 
until 2011, and the largest provider of FDI, although no official data are available. According to the 
latest statistics available from the OECD/DAC database, which does not include statistics on aid from China, Myanmar received US$376.11 million of  Official Development Assistance (ODA) in 
2011, 74% of which was bilateral ODA (Table 6.1). While this figure represents an increase over 
the 2002 figure of US$181.94 million, the country's total net ODA disbursements per capita remain 
low (at US$7.78) compared with other LDCs in the region. A large portion of the ODA 
                                               
1 This section is prepared by the Institute for Training and Technical Cooperation (ITTC), following a 
request from the Government of Myanma r to conduct an assessment of th e country's needs in aid for trade 
and trade-related technical assistance, as part of its first Trade Policy Review.  
2 The ten priority areas identified in the FESR 2012-15 are: (i) fiscal and tax reforms; (ii) monetary and 
financial reforms; (iii) liberalization of trade and investment; (iv) private sector investment; (v) health and 
education; (vi) good security and agriculture; (vii) governance and transparency; (viii) mobile phones and 
internet; (ix) infrastructur e; and (x) effective and efficient Gove rnment.   WT/TPR/S/293 • Myanmar 
 
- 80 - 
 
  disbursement was aimed at humanitarian aid and health, linked to the 2008 cyclone Nargis. 
Concessionary financing was not available to Myanmar. 
Table 6.1 Total net ODA disbursement, 2002-11  
(US$ million) 
Year Multilateral  Bilateral  Total Net ODA 
2002 129.71 52.23 181.94 
2003 125.92 48.02 173.94 
2004 112.66 48.61 161.27 
2005 110.80 71.83 182.63 
2006 130.45 48.27 178.72 
2007 157.22 68.29 225.51 
2008 470.26 101.09 571.35 
2009 274.08 118.16 392.24 
2010 242.70 141.76 384.46 
2011 274.38 101.73 376.11 
 
Source: OECD/DAC Database. 
6.5.  With the recent reform in Myanmar, the ai d relationship with the international community has 
gradually been normalized. In January 2013, the Government convened the first Myanmar 
Development Cooperation Forum (MDCF) i.e. a platform for aid coordination with development 
partners, which adopted the Nay Pyi Taw Accord fo r Effective Development Cooperation. According 
to the authorities, the Accord sets out principles  and commitments for aid effectiveness, in line 
with the Paris Declaration and the Busan Partners hip for Effective Development Cooperation. While 
no official data of ODA is yet available for 2012 and 2013, the figure is expected to increase to at 
least US$400-500 million per year.3 In addition, concessional lending by multilateral and bilateral 
donors has been resumed.4 In the same month, the Asian Development Bank and the World Bank 
agreed to clear Myanmar's combined arrears of US$960 million, and announced US$512 million 
and US$440 million of loans to the country, respectively. Myanmar also reached a debt agreement with the Paris Club of sovereign creditors, whic h cancelled 50% of the country's public external 
debt, estimated at US$15.3 billion as at end 2012, and a 15-year repayment schedule for the 
remainder, including a 7-year grace period.
5 
6.6.  The Foreign Aid Management Central Committee, chaired by the President, was set up as the 
state body to manage aid coordination. Reporting to the Central Committee, the Foreign Aid 
Management Working Committee, supported by th e National Economic and Social Advisory 
Council, conducts project appraisal for all foreign aid proposals (grants, aid, TA). The Foreign Economic Relations Department of the Ministry of National Planning and Economic Development, 
serves as the secretariat for the Central Commi ttee and the Working Committee. To ensure policy 
dialogue and coordination with development partners, 15 sector working groups were established and each group is coordinated by a Government  Ministry and two development partners (one 
bilateral and one multilateral). For concessionary loans, the Ministry of Finance and Revenue is 
responsible for approval.  
6.7.  In the area of trade, many development partners, both multilateral and bilateral, have 
committed to support Myanmar's efforts to further integrate into the global economy, especially 
after the lifting of trade and economic sanctions. According to the OECD database, aid for trade to 
Myanmar stood at US$386 million in commitments and US$352 million in disbursements in 2011 (Chart 6.1); the figures are expected to ha ve increased significantly for 2012-13. Various 
development partners provide trade and trade-re lated assistance (Table 6.2). Many of these 
assistance projects are still at the initial phase of implementation or development. In support of 
the Government's reform agenda, they cover a wide range of areas, including private sector 
development; infrastructure; financial sector reform; agriculture; and fisheries. This assistance 
                                               
3 EIU "Myanmar economy: Donors promise to ramp up aid and lending", 25 January 2013. Viewed at 
http://www.eiu.com/index.asp?layout=VWArticleVW3&article_id=1970081581&region_id=1510000351&countr
y_id=1080000308&refm=vwCtry&page_title=Latest+analysis . 
4 Myanmar defaulted in 1998. 
5 Paris Club Press Release, 28 January 2013. Viewed at 
http://www.clubdeparis.org/sections/actualites/myanmar-20130128/viewLanguage/en . The debt owed to Paris 
Club creditors was estimated to be around US$10.3 billion as at 1 January 2013. At the meeting, Norway 
waived US$534 million in debt. Moreover, in May 2013, Japan announced a debt write off of US$1.74 billion. WT/TPR/S/293 • Myanmar 
 
- 81 - 
 
  takes the form of policy support and advice, staff training, and short- to long-term projects. To 
ensure donor coordination in the sector, the Government is preparing to establish a sector working group on trade sector development, which may be consolidated as the EIF process progresses. 
Chart 6.1 Total aid-for-trade commitments and disbursements, 2005-11  
(US$ million) 
135 141 193525
352 382 386
154 165 247523
315346 352
0100200300400500600
2005 2006 2007 2008 2009 2010 2011CommitedDisbursement
 
 
Source: OECD QWIDS Database. 
Table 6.2 Overview of aid-for-tr ade programmes of main donors  
Donor Programme/ 
Strategy Focus Areas Link 
Asian 
Development Bank (ADB) Interim Country 
Partnership Strategy for FY 2012-14 - Building human resources and 
capacities (capacity building in ministries in core areas of ADB involvement, and education) - Promoting an enabling economic environment (macroeconomic and fiscal management; and trade, 
investment, financial sector reform); 
- Creating access and connectivity (rural livelihoods and infrastructure development, especially energy and transport)  http://www.adb.org/sit
es/default/files/icps-
mya-2012-2014.pdf  
International 
Trade Centre 
(ITC) Development of a 
National Export 
Strategy of Myanmar Will include an overarching national 
policy for export development, as 
well as individu al sector and 
functional strategies, developed on 
the basis of a series of diagnostics 
and strategic planning exercises to 
identify various policies, institutional, 
and the enterprise level issues 
affecting sectors Information provided 
by ITC 
OECD Investment Policy 
Review  Will help the Government to assess 
its economic and investment policies and identify priorities for further reform http://www.oecd.org/c
ountries/Myanmar/inve
stmentpolicyreforminm
yanmar.htm  
 Multidimensional 
country review of 
Myanmar - Joint OECD/ESCAP report 
addressing key issues facing 
Myanmar, such as supply-side 
capacity building, industrialization, 
SME development, legal and 
regulatory reforms, and 
administrative reforms http://www.oecd.org/c
ountries/myanmar/my
anmar.htm 
UN Agencies UN Inter-Agency 
Cluster of Trade and Productive Capacity  Coordinated by UNCTAD; provides an 
integrated vision encompassing macroeconomic and sectoral levels, as well as regional and global trade dimensions. First mission was in February 2013 Information provided 
by UNCTAD WT/TPR/S/293 • Myanmar 
 
- 82 - 
 
  Donor Programme/ 
Strategy Focus Areas Link 
UN Economic and 
Social 
Commission for 
Asia and the 
Pacific (UNESCAP) Trade and 
Investment Capacity 
Building Programme  
2013-14 - Strengthening the Trade Training 
Institute  
- SME law and Industrial 
 Development Plan  
- OECD Multidimensional Review Information provided 
by ESCAP 
UNIDO Various projects - Strengthening the National Quality 
Infrastructure for Trade  - Strengthening the legal and industrial metrology institutions for consumer protection and market access - Initiating a country-wide laboratory accreditation programme for food safety and reduction in technical 
barriers to trade  
- Strengthening the food safety framework and law - Strengthening private standards-certification capacity UN Cluster Joint Matrix 
World Bank  Interim Strategy 
Note for FY 2013/14 - Public financial management to 
transparently link budgets to 
development priorities 
- Regulatory reform to provide 
access to finance for microfinance 
borrowers and SMEs 
- Private sector development to 
promote broad-based economic 
growth and job creation 
- Myanmar Reengagement and 
Reform Support Credit (US$440 
million) supports critical reforms in 
macroeconomic stability, financial 
management and investment climate http://www-
wds.worldbank.org/ext
ernal/default/WDSCont
entServer/WDSP/IB/20
12/10/12/000386194_
20121012024925/Rend
ered/PDF/724580ISN0I
DA00Official0Use0Only
090.pdf  
DFID Various projects Include the Business Innovation 
Facility project an d the Investment 
Climate Assessment http://projects.dfid.gov
.uk/Default.aspx?count
rySelect=BU-Burma  
European Union Various projects Includes a €10 million TRTA project, 
covering SPS, customs, etc.  
GIZ Various projects 
 Includes private sector development, 
financial sector development, and strengthening the technical vocational education and training system http://www.giz.de/the
men/en/37983.htm  
JICA  Various projects Includes infrastruct ure (Yangon Port 
and Main Inland Water Transport), 
ICT, agriculture and rural 
development and fisheries http://www.jica.go.jp/
myanmar/english/activi
ties/index.html  
KOICA Various projects Incl udes infrastructure (road 
network) and ICT  
USAID Various projects Includes a Food Security/Agriculture 
Diagnostic to expand the knowledge-
base of food-security-related issues 
to better equip the country over the 
long term 
 www.usaid.gov/burma  
 
Source:  Various sources. 
6.8.  Myanmar joined the EIF in April 2013. A familiarization workshop was held in 
July-August 2013 and the preparation of a Diagnostic Trade Integration Study (DTIS) is scheduled to begin in 2014. The DTIS and its accompanying Action Matrix are expected to identify Myanmar’s 
wider ranging trade-related constraints and challenges in a broader aid-for-trade context. It is 
expected that the EIF would facilitate the donor coordination of various on-going trade and trade-related initiatives, building on the synergies which several UN agencies have been 
collaborating under the UN Inter-Agency Cluster on Trade and Productive Capacity coordinated by 
the UNCTAD. Under the EIF, Myanmar has access to Tier I (support for national implementation WT/TPR/S/293 • Myanmar 
 
- 83 - 
 
  arrangements) and Tier 2 (small-scale project funding for trade-related and supply-side capacities 
in priority areas as identified by DTIS).  
6.3.1  WTO trade-related technical assistance  6.3.1.1  Evaluation of WTO te chnical assistance to date 
6.9.  Myanmar has regularly been invited to, and has participated in, trade-related technical 
assistance and training activities organized by the WTO (Table 6.3). According to the ITTC database, between 1995 and July 2013, Myanmar pa rticipated in 122 Geneva-based and regional 
activities, through which 172 officials were trained.  In addition, a total of 279 officials have been 
trained through various e-learning modules since 2005; this is one of the highest levels of E-learning enrolment/completion among all LDC Members, providing a good basis for implementing the Progressive Learning Strategy in training officials on WTO matters. A further two 
officials were trained in Geneva under internship programmes. 
Table 6.3 WTO technical assistan ce activities, 1995–2013 (end-July)  
Activity Type Number of activities  Number of participants  
Introduction Course 10 12 (2) 
Regular/Regional Trade Policy 
Course 18 18(1) 
Advanced Trade Policy Course 3 3 (0) 
Regional seminar 
workshop/training 68 107 (29) 
Thematic/Specialized Course 9 9 (3) 
Global Seminar/Workshop 24 24 (7) 
Distance Learning 73 279 (87) 
Internships 2 2 
TOTAL 207 454 (129) 
 
Note: The number in parenthesis indicates the number of non-Commerce officials. 
 Source: Institute of Training and Technical Co-operation Database. 
(http://wtotrta/Reports/ReportCountryPeriod.aspx ). 
6.10.  While overall rate of the utilization of tr aining opportunities offered by the WTO is high, a 
small portion (i.e. 13% of the global and regional  face-to-face training and technical assistance 
activities) was attended by officials outside the Mi nistry of Commerce. In the case of E-Learning, 
however, the enrolment of non-commerce officials was much higher than that of face-to-face activities, representing over 30% of the participants trained; in particular, officials from the 
Ministries of Planning and Economic Development, Science and Technology, as well as Agriculture 
and Irrigation, represented over a half of the trai ned participants in the areas of TRIPS, TBT and 
SPS courses (Table 6.4). Myanmar has not taken full advantage of the opportunity to hold national 
activities where a larger number of officials coul d be trained. Since 1995, a total of 10 national 
workshops have been held, on:  the WTO and the MTS in 1998; DDA Negotiations in 2004 and 2006; WTO Notifications in 2004; Trade in Services in 1998 and 2003; TRIPS in 2004; Textiles and Clothing in 2005; Trade Facilitation in 2005; Rules of Origin in 2007, as well as four activities 
associated with the establishment and upgrading of the Reference Centre (1998, 2003, 2007, and 
2013).
6 
6.11.  Overall, Myanmar has not effectively utilized the training opportunities to build up 
institutional capacity on WTO matters beyond the Ministry of Commerce.7 Even within the Ministry, 
the operational knowledge on the WTO is limited, as reflected in the country's low level of engagement in the work of the organization, despite its long-standing membership, as one of the 
original contracting parties to the GATT in 1948. The submission of notifications is also low and 
many are outdated (see Section 2.5.1). Myanmar's participation in the WTO has further been constrained by the lack of a national coordinating mechanism on trade policy matters, at least until the current TPR exercise, as well as the location of trade negotiating and implementing authorities 
                                               
6 As an LDC, Myanmar is entitled to request th ree national TA activities per year from the WTO 
Secretariat.  
7 Insufficient fluency in English has been cited as one impediment to meaningful participation in training 
activities for some participants from Myanmar. WT/TPR/S/293 • Myanmar 
 
- 84 - 
 
  in two different ministries (i.e. MOC on the WTO and MNPED on ASEAN). Once a trade policy 
framework and its objectives are defined and developed into a new Trade Sector Plan, it would be important to devise a comprehensive training strategy to ensure the inclusive nature of trade policy making and implementation, including participation of the private sector, as well as the 
synergies between different trade arrangem ents in which the country is engaged. 
Table 6.4 Selected WTO activities by to pic (including via E-learning), 1995–2013 
(end-July)  
Topic/Theme Number of activities Number of participants  
(E-Learning) 
TOTAL 208 457 (279) 
   
Agriculture 1 1 
Customs valuation - - 
Dispute settlement 3 3 
Government procurement 4 8 
NAMA 12 36 (19) 
Negotiation issues 5 6 
Regional trade agreements 4 4 
Rules 9 18 (16) 
Sanitary and phytosanitary 
measures 9 21 (14) 
Technical barriers to trade 17 40 (27) 
Trade and development 7 13 (8) 
Trade and environment 9 24 (15) 
Trade and investment - - 
Trade facilitation 10 12 
Trade in services 10 27 (23) 
Trade negotiation techniques 5 8 
Trade-related intellectual 
property rights 18 67 (54) 
Competition policy 2 2 
IT/WTO reference centre 2 2 
 
Source: Institute of Training and Technical Cooperation Database. 
6.3.1.2  Assessment of technical assi stance and capacity building needs 
6.12.  Decades of the isolation limited Myanmar's access to trade-related technical assistance and 
other support that is normally available for LDCs in the international community, other than those offered by the WTO and a limited number of partners, including at the regional level. With the 
opening of its economy, Myanmar has a long list of technical assistance and capacity building 
needs to catch up with to achieve its ambition of integration into the global trading system. The authorities indicated that the Government faces various constraints and challenges and has 
technical assistance needs, many of which go be yond the boundary of the WTO (Table 6.5). Major 
constraints and challenges faced by Myanmar are wide-ranging and, overall fall into five areas: (i) law and legislation, (ii) policy frameworks, (iii) institutions, (iv) human resource, and (v) infrastructure. Most relate to the need to change, update or modernize the current regime, 
which had been left untouched for years and decades (or even over a century for some laws and 
legislation) to align the economic system with today's international norms and practices. 
6.13.  Myanmar lacks a comprehensive trade policy framework to guide its participation in the 
WTO and other trade arrangements. Since trade policy making, including the management of 
negotiations and implementation of different tr ade agreements, is fragmented among different 
ministries, there is a risk of overlapping or ev en conflicting policies and their implementation, 
thereby diminishing their full potential and efficiency . At the level of institutions, there is a need to 
formalize a national inter-ministerial committee on WTO, which has been established as part of the TPR exercise, to serve as a regular forum to discuss the country's engagement in the organization. If another similar committee existed, for instance, under the EIF or ASEAN, the country's 
participation in the WTO could be added as one of the mandates or placed on the committee's 
agenda.  
6.14.  As regards staff training needs, which are the main focus of WTO technical assistance and 
training, the authorities consider that workshops and seminars in all areas of the WTO WT/TPR/S/293 • Myanmar 
 
- 85 - 
 
  Agreements, both general and specific, continue to be in demand in Myanmar. In particular, needs 
are very high in the line ministries dealing with agriculture, SPS, and TBT, with a focus on implementation of the agreements, including on no tifications. In addition, line ministries dealing 
with services sectors, such as finance, comm unication, transport and energy, need enhanced 
knowledge on the application of the WTO rules and principles to the on-going legislative reforms, 
as well as the scheduling of commitments in these sectors. In order to meet Myanmar's need to 
train a large number of officials in a short period, national workshops would seem to be a suitable 
format for future training activities. In the case of global and regional face-to-face activities, the 
nomination and participation of non-commerce officials is encouraged, along with the already high level of enrolment from the Ministry of Commerce. Moreover, in organizing future WTO workshops and seminars, it is important to place greater emphasis on the relationship between the WTO 
Agreements and the bilateral and regional trade arrangements to which Myanmar is a party, to 
ensure the synergy and coherence among these initiatives. For Myanmar's infrastructure needs, a comprehensive diagnostic is expected to come out within the context of the EIF through the 
preparation of a DTIS. 
Table 6.5 Main challenges/constraints an d technical assistance needs of various 
ministries 
Ministry Main challenges/constraints Trade-related technical assistance 
and capacity building needs 
Ministry of Agriculture and 
Irrigation (Department of Agricultural Planning and Department of Agriculture) - Limited knowledge and 
understanding of WTO Agreements on Agriculture and SPS, including implementation  - Lack of technical staff - Lack of capacity for quality control  - Seminar on WTO Agreements  
- Training on identification of plant pests and diseases, plant inspection, 
diagnostic methodology, and quarantine techniques - Capacity building on Good Agriculture Practice (GAP) - Upgrading of plant quarantine laboratory facilities, including in border area entry points  
Ministry of Commerce 
 - Weak Institutional structure and 
insufficient technical staff to deal with 
all aspects of WTO issues as a focal 
ministry  - General capacity building on WTO 
related issues 
- Preparation of a comprehensive trade 
policy consistent with WTO obligations 
- Awareness seminar on competition 
and consumer protection issues  
Ministry of Environmental 
Conservation and Forestry (Myanmar Timber Enterprise) - Insufficient knowledge of 
standardization of timber-related products   - Workshop on international trade on 
timber-related products, including standardization, legality, dispute settlement - Market information on timber trade  
Ministry of Finance 
(Customs Department) 
 - Difficulties checking technical 
specification of exporting and 
importing goods - Understanding of the WTO 
Agreements and DDA negotiations 
- Laboratory technical course 
- International auditing practices 
- International commercial and practice 
and supply chains management 
Ministry of Health (Food and Drug Administration) - Inadequate infrastructure for 
quality-control and testing - Development of on-line application 
and certification system 
Ministry of Industry 
(Department of Textile 
Industries) - Lack of capital and technology in 
cotton plantation and textile 
production 
- Lack of market information 
- Lack of export marketing strategies 
- Poor knowledge of trade facilitation - Seminar on WTO notifications 
- Awareness seminar on textile trading  
- Capacity-building for export 
marketing strategies 
- Establishment of a Market 
Information Centre 
Ministry of Livestock, Fisheries and Rural Development - Lack of adequate infrastructure for 
SPS certification  - Lack of competence of inspectors and laboratory personnel  - Lack of laboratory testing equipment - Lack of appropriate technical regulations for fish exports - Capacity-building to implement 
quality management systems such as GAP/GMP/HACCP in supply chain of fishing vessels, landing sites, ice plants, processing establishments, feed plants - Upgrading of disease diagnosis laboratory for monitoring aquaculture farms WT/TPR/S/293 • Myanmar 
 
- 86 - 
 
  Ministry Main challenges/constraints Trade-related technical assistance 
and capacity building needs 
Ministry of National 
Planning and Economic 
Development (Project 
Appraisal and Progress 
Reporting Department) 
 - Lack of experience in privatization 
and private sector development  - Experience-sharing  on regulation, 
framework and competition policy for 
privatization 
- Training in international practice and 
methods of valuation and appraisal of  
tangible and intangible assets 
- Training/upgrading on cost-benefit 
analysis and impact  assessment of 
investment projects 
Ministry of Science and 
Technology - Formulation of new IP laws in line 
with TRIPS - Formulation of a National IP Policy and Strategy in line with national development policy 
- Lack of skilful human resource - Institutional capacity building  
- Special training course on IP-related Agreements 
Ministry of Transport 
(Department of Civil 
Aviation) - Lack of knowledge of air transport 
regulations for policy-making  
- Lack of a comprehensive policy or 
strategy for air transportation sector - Workshop on GATS scheduling of air 
transport services  
- Training and experience-sharing on 
air transport regulation  
 Source: Information provided by the authorities of Myanmar. 
 
__________