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Myanmar benefits from China's import tariff cut
(Xinhua)
Updated: 2004-06-08 14:19

Myanmar has benefited from China's cut of import tariff on its products in one way when the ASEAN market is opening for Myanmar products under the ASEAN Free Trade Area (AFTA).

China decided early this year to unilaterally cut import tariff on over 100 Myanmar products along with those of Cambodia, Laos and Vietnam under a framework agreement of the Association of Southeast Asian Nations (ASEAN) and China initiated in November 2002.

The Myanmar Ministry of Finance and Revenue has recently called on entrepreneurs in the country to make use of the opportunities to reap more benefits from the cut.

According to Chinese official statistics, China-Myanmar bilateral trade, including the border trade, reached US$1.07 billion in 2003 with China's exports to Myanmar amounting to US$900 million and its imports from Myanmar US$170 million. China has proposed an increase of bilateral trade volume to US$1.5 billion by 2005.

ASEAN and China are heading for the establishment of a free trade area between the two regions.

Meanwhile, the six older ASEAN members -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- had reduced their import tariffs with a wide range of products to zero percent in 2003, the ministry said.

Under the AFTA, the four newer members -- Cambodia, Laos, Myanmar and Vietnam (CLMV)-- are to lower their tariffs to between zero and 5 percent by 2005. The reduced tariffs apply to products with ASEAN Certificate of Origin.

According to the Customs Department of the ministry, Myanmar's exports to ASEAN members amounted to US$1.22 billion in the fiscal year 2002-03, of which those using the ASEAN certificate of origin accounted for only 2.5 percent.

Meanwhile, the country's imports from regional members reached US$1.19 billion during the fiscal year, of which those using such certificate represented almost zero.

ASEAN plans to totally remove all import duties in the region by 2010 for the six original members and by 2015 for the four newer members.

 
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