Brussels, 18/03/2014 (Agence Europe) - On 20 March, European Commissioner for Trade Karel De Gucht will start negotiations with the Burmese authorities for an agreement on the protection of investments.
De Gucht's tour of South East Asia will come to an end on Thursday with a visit to Burma/Myanmar, where he will initiate - with Burma's Minister for Trade Win Mynit - negotiations for an agreement on investment. Long closed due to the sanctions regime against the military junta (which, in 2011, entrusted power to a civilian government led by the former general Thein Sein) the Burmese market is now arousing considerable interest from European companies that want access to protected sectors while guarding themselves against an uncertain political climate. And for good reason - the Burmese market has high agricultural and tourist potential and is rich in natural resources (hydrocarbons, wood, copper and precious stones). However, it is handicapped by a great deal of red tape, a lack of infrastructure and an institutional system in which the political and economic elites are closely linked to the army. “We'll negotiate preferential agreements and special deals, mostly because we have quite a lot to offer them. We are big investors and for a country like Myanmar, it's of the utmost importance to have investors. Our investors must be protected and it's important to Myanmar because if the investments aren't protected, they simply won't happen”, De Gucht stated on 17 March, as reported by Reuters.
In July 2013, Burma/Myanmar was granted preferential access to the European market under the Everything But Arms initiative for least developed countries. In 2013, bilateral trade in goods stood at €569 million, up 41% compared with 2012. Composed mainly of clothing (58.2%), precious stones (11.7%) and wood products (7.8%), Myanmar's exports grew by 35% to stand at €223 million in 2013. (EH)