Myanmar will strive to implement RCEP trade deal, says State Counsellor

A factory worker in Yangon. Photo: Zarni Phyo/The Myanmar Times

 

The Regional Comprehensive Economic Partnership (RCEP) agreement will bring investments into Myanmar and create jobs but is expected to heighten competition for small enterprises, business people say.

 

The RCEP, the world’s largest free trade agreement, was signed by Myanmar and 14 other Asia-Pacific countries on Sunday. It covers the 10 member states of the Association of Southeast Asian Nations (ASEAN), of which Myanmar is part of, as well as the People’s Republic of China, Japan, South Korea, Australia and New Zealand. The deal represents around 30 percent of the world’s population, 30pc of global GDP and about 28pc of international trade.

Myanmar will try its best to implement the RCEP provisions, said State Counsellor Daw Aung San Suu Kyi.

U Than Aung Kyaw, director-general of Foreign Economic Relations Department, said the RCEP will play a key role in establishing free trade areas and will boost reforms in e-commerce, government procurement and intellectual property rights.

The Union of Myanmar Federation of Chambers of Commerce and Industry’s (UMFCCI) vice president U Maung Maung Lay said the deal will bring about more attractive tax rates for businesses, benefit consumers and pave the way for globalization.

“Living standards will improve and there will be more competitive measures. It will reduce corruption and create more job opportunities,” he said.

There will be a better supply chain and prices of products will be cheaper for high import volume, U Maung Maung Lay said, adding that it could at the same time affect small businesses. Myanmar needs to support small enterprises to develop and become more competitive, he said, or else outside players will dominate the local market.

“We can only produce raw materials and it is hard to compete with them. We would have opportunities if we can make things via joint ventures,” said businessman U Soe Tun.

“Myanmar’s manufacturing capacity and worker skills need to improve and have a good [business] environment,” said U Maung Maung Lay. “Get rid of red tapes and welcome businesses with red carpet.”

 

- Myanmar Times