Burma’s Deputy Commerce Minister Pwint San told the Bangladesh’s The Daily Star that Burma will create a wholesale market and hold trade fairs along the Bangladeshi border of Arakan State in a bid to increase bilateral trade. But he cautioned that there were “some communal problems” in the area that are delaying “the enhancement of border trade”. “When the conditions improve our border trade will also increase.”
After the murder and alleged rape of a young Buddhist woman by 3 Muslim men, and the subsequent murder of 10 Muslims dragged from a commuter bus by Buddhists, communal violence erupted in the state in the months of June and October.
Burma already has wholesale markets and trade fairs in states bordering with China and Thailand, which San credits for increasing trade with the two nations. He hopes similar business ventures in Arakan State will also lead to economic growth.
Currently, San is leading an 11-member Burmese business delegation for the 6th annual Joint Trade Commission (JTC) two-day meeting in Bangladesh.
Bangladesh’s Commerce Secretary Mahbub Ahmed said both parties will discuss issues pertaining to gas and power, agriculture and fisheries, and direct air flights between Dhaka and Yangon.
After decades of military rule Burma is finally opening up its economy for foreign investment, making it easier for Bangladeshi businessmen to pursue trade with the neighboring country. Letters of credit with Burma can now be opened directly. Previously it had to be done through a third-party country like Singapore.
“At present, there is no restriction of product coverage for border trade with Burma. Still, only 25 commodities are traded, and it is down to lack of promotional activities,” said Ahmed.
KB Ahmed, president of Bangladesh-Myanmar Chamber of Commerce and Industry, suggested that the infrastructures of Teknaf Land Port should be improved. He also said both governments should build warehouses along the bordering areas of the respective countries.
At present, the balance of trade between the two countries is still weighed towards Burma. Bangladesh imports many food items from Burma. During the 2011-12 fiscal year, Bangladesh exported goods with an estimated worth of $11.05 million to Burma but imported goods worth $45.10 million, according to Burma's commerce ministry.
