Reforming Export Licenses in Myanmar : Recommendations for Ministry of Commerce
Myanmar is part of the World Trade Organization (WTO) and a signatory of ASEAN Free Trade Agreement (AFTA). These arrangements have a legal obligation which require members to align its overall trade and tariff policies according to the agreement o...
| Main Authors: | , , |
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| Format: | Policy Note |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/440581592888941340/Reforming-Export-Licenses-in-Myanmar-Recommendations-for-Ministry-of-Commerce http://hdl.handle.net/10986/34091 |
| Summary: | Myanmar is part of the World Trade
Organization (WTO) and a signatory of ASEAN Free Trade
Agreement (AFTA). These arrangements have a legal obligation
which require members to align its overall trade and tariff
policies according to the agreement or schedule of
commitment. These steps are also necessary to ensure that
members have equal access to market while safeguarding them
against adverse risk to environment, social cohesion, and
macroeconomic vulnerability. This note recommends that
Ministry of Commerce to review and reduce the number of
products requiring export licenses. First, the use of export
licenses needs a practical justification. For example, it is
not entirely clear why, despite high demand from regional
markets, Myanmar restricts export of live farm animals. For
agriculture products, it is not clear whether export license
is an instrument to ensure compliance for quality (e.g.,
SPS) or to control export volume. In this case there is a
strong case to not to impose restriction than necessary to
achieve policy objective. The absence of a clear criteria
can cost Myanmar to forego export potentials and job
creation. This note also recommends Ministry of commerce to
clarify underlying reasons for imposing export license on
sensitive products. In many cases, trade of these products
can have impact on health, the environment, social norm, and
national security. In many cases market can create
incentives to trade protected wild-life, endangered species,
or lead to overexploitation of natural resources. Export of
contaminated or disease affected products by one exporter
can cost all exporters of similar products. Government, in
this case, may consider license and registration regime to
manage the risk from trade in sensitive products. |
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