Canada takes a closer look at Myanmar

After meeting with Win Aung, president of the Union of Myanmar Federation of Chamber of Commerce and Industry in Nay Pyi Taw last week, Fast said discussions were underway to include Myanmar in a generalised system of preferences (GSP) programme for least developed countries.

Such a programme provides Myanmar exporters greater access to the Canadian market. The minister also said Ottawa also plans to increase investment and trade with Myanmar. 

Canada has drafted a Global Market Plan and Myanmar is one of 25 countries that will gain preferential treatment, he said.

Fast, officials from Canada’s International Trade Ministry, the Canadian ambassador to Myanmar and economic consul attended the event with Win Aung and other members of the federation.

Myanmar once enjoyed preferential tariffs from the European Union, but these were withdrawn in 1997 after complaints about forced labour in the country. However, GSP benefits resumed in June last year, after Myanmar’s democratic reforms. Myanmar is among 77 countries in the least developed states’ category.

Under the GSP with the European Union, Myanmar is allowed to export any product except arms to EU states with no duties or quotas imposed.

Other matters were discussed at the meeting with Fast last week, such as financial support for small and medium enterprises in Myanmar, boosting markets and technology for the garment and food industries, as well as requirements for transportation and warehousing of crops. Local tycoons have agreed to cooperate on such matters with the Canadian government.

Fast said more investment would come from Canada if Myanmar improves its governance system.

When considering trade and investment in Myanmar, Canadian companies want a transparent business environment and clear rules and regulations, he said. “As the governance in Myanmar improves, more investments will come here,” he said.

Myanmar ministers told the Canadian minister that the country welcomes investment in mining, energy, agriculture, manufacturing and telecommunications, saying that Canadian firms played leading roles in those sectors.

Currently, trade between the two countries is minuscule. Last year, Canadian exports to Myanmar reached US$8.03 million (Ks 7.81 billion), while imports totalled $8.05 million. 

Canada has had diplomatic ties with Myanmar since 1958. It opened the Canadian Embassy and Trade Commission Office in Yangon last year. Early this month Canada opened an embassy in Myanmar for the first time, with their foreign minister John Baird attending the opening ceremony on August 8. 

Fast said the Canadian government was satisfied with Myanmar’s democratic, social and economic reforms, as well as its peace process. He would report that there are many business opportunities in Myanmar upon his return, he said.