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Roundup: Myanmar Endeavors for Reducing Foreign Trade Deficit
As deficit in foreign trade has become a major economic problem puzzling the Myanmar government for a longed period, the government has in recent years made great efforts to solve the problem and scored some achievements to certain extent.
According to the latest figures published by the country's Central Statistical Organization, in 2000, Myanmar's foreign trade totaled 4.086 billion U.S. dollars, of which imports amounted to 2.567 billion dollars, while exports were valued at 1.519 billion dollars, the trade deficit being 1.048 billion dollars.
The first measure taken by the government in bringing down trade deficit is that it adopted the "sell more, buy less" and "export more, import less" strategies, encouraging its people to use home-made goods, use less foreign goods and substitute imported goods with domestic products as much as possible.
Secondly, it greatly supported enterprises engaged in producing export goods, providing privileges in accordance with its policy.
Thirdly, it added more border trade points, simplified related formalities, appropriately adjusted its standard of charge collection, strictly controlled the import of high-grade consumers goods and luxury ones.
Fourth, it strove for the promotion of production, ensured goods supply and tackled the phenomena of shortage of locally-manufactured commodities.
The main reasons for Myanmar to cause foreign trade deficit for consecutive years could be as follows:
Myanmar is an agricultural country. The majority of its required capital goods including machines and equipment depends on import, whereas such goods mostly contain high degree of technology and highly-added value, and the prices are relatively costly in comparison.
In 2000, Myanmar imported capital goods worth of over 600 million dollars, accounting for 28.2 percent of the country's total imports.
In addition to relying on import of capital goods, Myanmar still has to spend much foreign exchange annually, importing a large quantity of consumers goods to ease the phenomena of shortage of locally-manufactured consumers goods.
In 2000, Myanmar's import value of consumers goods took up 44.2 percent of the country's total import.
Myanmar's main export goods are primary products such as agricultural products, marine products and timber. The prices of these primary products in international market are low, constituting a great contrast against capital goods which contain high degree of technology and highly-added value.
For a long period, the structure of Myanmar's export goods has been unitary and commodities available for export has also been much limited.
Besides, Myanmar products lack good quality and competitiveness in the world market.
Total settlement of the deficit problem could not be brought about overnight. The realization of the target is up to the adjustment of the structure of Myanmar's export goods, improvement of products in quality as well as the uplifting of the degree of industrialization and level of science and technology.
The number of countries and regions having trade links with Myanmar is only over ten, of which the main trading partners are Singapore, China, Thailand, the Republic of Korea and Malaysia.
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