MIZZIMA News Group: Indo-Burma Trad (r)

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Subject: MIZZIMA News Group: Indo-Burma Trade, Part Two

INDO-BURMA BILATERAL TRADE

By MIZZIMA News Group
July 1999

PART TWO: Background of Indo-Burma Trade

India and Burma signed a Trade Agreement on 27th March 1970, which
provides inter-alia for according the Most Favoured Nation (MFN) status
under GATT and UNCTAD. The agreement is also supplemented by Agreed
Minutes, which provides for India's participation in all Burma's tenders
and purchase operations besides exploring for potential for economic
collaboration between the two countries. However, there is no regular
Joint Trade Committee in India with Burma at present.

Imports from Burma to India have been enjoying concessional rates of
duty. The genesis of this concessional tariff regime is the Indo-Burma
Trade Agreement, which was signed in 1941 during the British colonial
rule. The agreement guaranteed margins of preference in favour of Burma
in respect of certain specified products. Subsequently, concessions were
extended by the Department of Revenue, Ministry of Finance of India
through two notifications dated 2nd August 1976.

On 21st January 1994, the two countries signed a Border Trade Agreement
(BTA) to legalize the trade, which had been going on for centuries by
the local residents along the border areas of the two countries. The
local residents have enjoyed free movement up to 40 kms on either side
of the border for centuries.

The Government of India in November 1997 offered a US $ 10 million line
of credit to Burma to promote bilateral trade and economic cooperation.
There were two Indian trade exhibitions held in Rangoon: one in February
1995 and another one in November 1997.

A number of high level ministers and officials of both countries have
exchanged visits in the last six years to promote the bilateral trade.
Some of these are:

(a) A 10-member Indian Trade delegation led by Mr. Ashok Jha, Joint
Secretary, Ministry of Commerce visited Burma from 10 to 14 March, 1993,
During the visit, the members of the delegation met with Lt. Gen. Tun
Kyi, the then Minister for Trade, Brig. Gen. D.O. Abel, Minister for
National Planning and Economic Development, Lt. Gen. Sein Aung, Minister
for Industry-I, U. Than Shwe, Minister for Industry-II and discussed
matters of mutual economic cooperation, industrial joint ventures and
counter-trade arrangements. The delegation also discussed a draft Border

Trade Agreement with the officials of Ministry of Trade. The business
members of the delegation in addition met the members of the Union of
Myanmar Chamber of Commerce and Industry and discussed matters of mutual
economic and commercial interest.

(b) U Aye, a senior official in Foreign Ministry of Burma visited New
Delhi in August 1992 to promote the relations between the two countries.

(c) A five-member delegation led by Mr. J.N. Dixit, the then foreign
Secretary visited Rangoon from 29-31 March, 1993. The delegation called
on U Ohn Gyaw, Minister of Foreign Affairs and discussed matters
relating to strengthening of bilateral relations and mutual cooperation.
An arrangement on mutual cooperation in suppression of narcotic drugs
and psychotropic substances was also signed during the visit of the
delegation.

(d) In January 1994, Burma's then Deputy Foreign Minister U Nyunt Swe
arrived at New Delhi and Memorandum of Understanding (MOU) was signed to
promote informal trade across the border areas of the two countries.

(e) The Indian commerce Secretary, Mr. Tejendra Khanna, led an official
delegation to Rangoon on 10-11 June, 1994 in order to review the
arrangement for operationalisation of Border Trade Agreement with Burma.

(f) Another round of official talks was held with Burma side from 10-12
January, 1995 to finalise the arrangements for operationalisation of BTA
with Burma. The Indian side was led by Mr. Ashok Jha, Joint Secretary,
Ministry of Commerce and was accompanied by an inter-Ministerial
delegation. The Burmese side was led by Mr. U Khin Maung Oo, M.D.
Inspection and Agency Services, and was accompanied by a 16 member
official delegation. The talks, which were held at Imphal, included
visits to the border posts of Tamu on the Burmese side and Moreh on the
Indian side to review the arrangements made for commencement of border
trade.

(g) From April 3 to 12 in the same year, at the invitation of the then
Indian Minister of State for Commerce, Mr. P. Chidambaram, a Burmese
trade delegation led by the Member of SLORC, Minister of Trade, Lt. Gen.
Tun Kyi, visited India to discuss matters relating to bilateral
relations, economic and border trade. During their stay in India, the
delegation held discussions with the Chairman and Members of the
Federation of Indian Export Organisations and the Federation if Indian
Chambers of Commerce and Industry in Bombay and Delhi respectively, Lt.
Gen. Tun Kyi also called on the Minster of External Affairs, Mr. Pranab
Mukherjee and discussed matters relating to strengthening friendship,
promotion of trade and economic cooperation of mutual interest between
the two countries.

(h) The Deputy Home Minister of Burma Col. Tin Hlaing, accompanied by
four officials and the Burmese Ambassador in India, called on the
Commerce Minister of India on 17th August 1995 and had a wide-ranging
discussion on various aspects of boosting bilateral trade relations.

(i)  Indian Minister of State for External Affairs Mr. Saleem I.
Shervani visited Burma in November 1997 and he announced that India
offered a $ 10 million line of credit to Burmese government. He

inaugurated the second Indian Trade Exhibition in Rangoon. The first
Indian trade exhibition was held in Rangoon in February 1995 and
inaugurated by then Indian Commerce Minister Mr. P. Chidambaram.

(j) Indian Commerce Secretary Mr. P.P. Prabhu visited Burma in the first
week of November 1998 to promote the trade between the two countries,
during his visit that a proposal for India came out to enter into joint
ventures for exploration and exploitation of nickel and coal deposits in
the upper Burma.

(k) Maj. General Nyunt Tin, Burmese Minister of Agriculture and
Irrigation visited Delhi in August 1998, exploring the possibilities of
India's participation in Burma's agriculture sectors. In February this
year, a 10-member strong delegation from Myanmar Computer Federation
visited Delhi and Bangalore with the arrangement of Confederation of
Indian Industry (CII).

(l)  Indian foreign Secretary Mr. K. Raghunath visited Burma on
25th-28th February this year with the invitation of Deputy Foreign
Minister of Burma.

(m) A delegation from Burma's Ministry of Science and Technology led by
Minister U Thaung is currently in India, travelling Delhi, Bangalore and
Mumbai. He is meeting with Indian industrialists during his tour. On
June 24, he signed an agreement with Indian Human Resources Minister Dr.
Murli Manohar Joshi in cooperation in science and technology between the
two countries.


End of Part Two.