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...

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Main Authors: Rahardja, Sjamsu, Artuso, Fabio, Maw, Aka Kyaw Min
Format: Policy Note
Language:English
Published: World Bank, Washington, DC 2020
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
id okr-10986-34091
recordtype oai_dc
spelling okr-10986-340912021-05-25T09:50:52Z Reforming Export Licenses in Myanmar : Recommendations for Ministry of Commerce Rahardja, Sjamsu Artuso, Fabio Maw, Aka Kyaw Min EXPORT LICENCE TRADE POLICY PROPERTY RIGHTS NON-TARIFF MEASURES QUANTITATIVE RESTRICTIONS EXPORT PROHIBITIONS MINERAL EXPORTS PRECIOUS METALS WORLD TRADE ORGANIZATION ASEAN FREE TRADE AGREEMENT 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. 2020-07-13T21:47:23Z 2020-07-13T21:47:23Z 2020-06-22 Policy Note http://documents.worldbank.org/curated/en/440581592888941340/Reforming-Export-Licenses-in-Myanmar-Recommendations-for-Ministry-of-Commerce http://hdl.handle.net/10986/34091 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Policy Note East Asia and Pacific Myanmar
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic EXPORT LICENCE
TRADE POLICY
PROPERTY RIGHTS
NON-TARIFF MEASURES
QUANTITATIVE RESTRICTIONS
EXPORT PROHIBITIONS
MINERAL EXPORTS
PRECIOUS METALS
WORLD TRADE ORGANIZATION
ASEAN FREE TRADE AGREEMENT
spellingShingle EXPORT LICENCE
TRADE POLICY
PROPERTY RIGHTS
NON-TARIFF MEASURES
QUANTITATIVE RESTRICTIONS
EXPORT PROHIBITIONS
MINERAL EXPORTS
PRECIOUS METALS
WORLD TRADE ORGANIZATION
ASEAN FREE TRADE AGREEMENT
Rahardja, Sjamsu
Artuso, Fabio
Maw, Aka Kyaw Min
Reforming Export Licenses in Myanmar : Recommendations for Ministry of Commerce
geographic_facet East Asia and Pacific
Myanmar
description 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.
format Policy Note
author Rahardja, Sjamsu
Artuso, Fabio
Maw, Aka Kyaw Min
author_facet Rahardja, Sjamsu
Artuso, Fabio
Maw, Aka Kyaw Min
author_sort Rahardja, Sjamsu
title Reforming Export Licenses in Myanmar : Recommendations for Ministry of Commerce
title_short Reforming Export Licenses in Myanmar : Recommendations for Ministry of Commerce
title_full Reforming Export Licenses in Myanmar : Recommendations for Ministry of Commerce
title_fullStr Reforming Export Licenses in Myanmar : Recommendations for Ministry of Commerce
title_full_unstemmed Reforming Export Licenses in Myanmar : Recommendations for Ministry of Commerce
title_sort reforming export licenses in myanmar : recommendations for ministry of commerce
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/440581592888941340/Reforming-Export-Licenses-in-Myanmar-Recommendations-for-Ministry-of-Commerce
http://hdl.handle.net/10986/34091
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