Myanmar’s government is signing an increasing number of international treaties and investment accords. Singapore, Israel, the Republic of Korea, the United States of America, Indonesia, Japan, China, India, Kuwait, Laos, the Philippines, Thailand, and Vietnam are among the countries with whom it has signed bilateral investment protection agreements. Myanmar is a member of the ASEAN Free Trade Area, to eliminate tariffs across the board by 2018. Myanmar is a signatory to a slew of multilateral trade accords and initiatives as an ASEAN member. Hong Kong, China, Japan, Korea, India, Australia, and New Zealand have all signed free trade agreements.
Myanmar and Asean
Myanmar is a member of ASEAN, a political and economic organization of 10 Southeast Asian countries founded on August 8, 1967, by Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Brunei, Myanmar, Cambodia, Laos, and Vietnam have all been members since then. Its objectives include promoting economic growth, social improvement, cultural development, regional peace and stability, and the opportunity for member countries to amicably debate disagreements.
Regional Comprehensive Economic Partnership (RCEP
Myanmar and 14 other Asia-Pacific nations signed the Regional Comprehensive Economic Partnership (RCEP) on November 15, 2020. It is a memorial to the world’s largest free trade agreement, which includes 10 ASEAN member states, including Myanmar, as well as China, Japan, South Korea, Australia, and New Zealand. It is considered a timely solution for all countries afflicted by the COVID-19 outbreak, which accounts for roughly 30% of the global population, 30% of global GDP, and about 28% of worldwide trade. The very first trade pact integrating Japan, China, and South Korea into a single free trade agreement will be for the countries – Japan, China, and South Korea – that are experiencing difficulties in bilateral relationships. Unlike other accords, it has the potential to establish a single rule of origin system in Myanmar, which will appeal to many investors that require labor-intensive supply chains.
Initiative for Bay of Bengal Technical and Economic Cooperation on a Multi-Sectoral Basis
Myanmar is also a member of the Initiative for Bay of Bengal Technical and Economic Cooperation on a Multi-Sectoral Basis, which aims to create a free trade zone between Bangladesh, Bhutan, India, Nepal, Sri Lanka, and Thailand by 2017; the Ayeyawady – Chao Phraya – Mekong Economic Cooperation Strategy, which aims to bridge the economic gap between Cambodia, Lao, Myanmar, Thailand, and Vietnam, as well as other ASEAN member nations, and promote welfare in the Mek.
US- Myanmar
Myanmar and the United States signed a historic Trade and Investment Framework Agreement on May 21, 2013. Myanmar was readmitted to the European Union’s trade preference scheme, the GPS, on June 12th. The GPS gives developing countries preferential treatment – in the form of lower tariffs – when selling certain products into the EU.
Myanmar and The New York Convention
The government also ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which was established in 1958 to stimulate foreign investment (Convention). The Convention’s goal is to establish uniform legal criteria for the recognition of arbitration agreements as well as the recognition and enforcement of international and non-domestic arbitral judgments by courts. Signing the convention is becoming more and more of a requirement for attracting foreign investment.
Myanmar joined the Convention as the 149th member of the United Nations. Myanmar’s accession was formalized on April 16, 2013, when the government filed an instrument of accession with the United Nations Secretary’s office. General’s The Convention entered into force under Myanmar legislation on July 15, 2013, 90 days after the instrument was lodged, in conformity with the requirements of accession. The government must now pass or change existing legislation for the Convention to be fully operational in Myanmar.
