The Foreign Trade Association (FTA) has issued a position paper supporting a strong investment framework for EU retailers and importers, in view of renewed political and economic development in Myanmar. The position paper outlines the current climate and future challenges for foreign investment, which were stimulated by the EU’s 2013 decision to reintroduce Myanmar into EU Generalised System of Preferences (GSP). These developments unfold against the backdrop of the visit of EU Trade Commissioner, Karel De Gucht to Myanmar (19 - 20 March 2014).
Opportunities to invest in Myanmar are clear, but impediments will only be overcome through a modernised legal framework and active dialogue that would improve the business environment, in a country that is rising as a potential market.
"Currently, Myanmar is still a minor sourcing country but the interest of European retailers in strengthening trade ties is significant. The business dynamism of the country and its many economic assets make Myanmar a very promising market for manufacturing garments and other consumer goods", said Jan Eggert, FTA Director General. This positive outlook should, however, not ignore the remaining high concerns about human rights and labour conditions as well as various barriers that deteriorate the domestic business environment. Protection of human rights, stronger institutions, increased transparency and improved legal and financial systems are necessary to encourage European distribution companies to operate in the country. FTA will continue to provide necessary monitoring and analysis of the situation to its members, as the situation unfolds.
To download the position paper, please click here.