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 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