Value of single trade transaction between BD-Myanmar increased

The maximum limit of each transaction under the Bangladesh-Myanmar Border Trade Agreement in the case of essential commodities is set to be increased to $50,000 from the existing $20,000 soon to boost the bilateral trade through banking channel. The planned measure will be applicable only to import and export of essential goods to and from the countries concerned. The maximum value of each transaction of the common products, other than essential ones, is going to be fixed at $30,000 from the current threshold of $10,000, a top official in the Ministry of Commerce (MoC) said. The move has come after the Sonali Bank Ltd and the Myanmar Economic Bank have recently signed an agreement to increase the thresholds of bank draft values. "The MoC will soon issue a statutory regulatory order (SRO) in this connection through amending the current import policy," a top official at the MoC said. "Two-way trades between the countries, which are insignificant now, will be enhanced notably after the introduction of new bank draft criteria," he added. Sonali Bank Ltd Managing Director Humayun Kabir said the enhanced draft value would help both the countries increase their export-import activities to a great extent. "The trade between the two countries will go up, after the banking agreement is signed between the two countries," he told the FE. The bilateral trade between Bangladesh and Myanmar has been taking place under the General Trade Agreement and Border Trade Agreement, signed in 1973 and 1994 respectively. The two-way trade volume is very low and the balance is tilted to Myanmar. However, a review shows that the trade balance was in favour of Bangladesh from 1991-92 to 1995-96. But it tilted in favour of Myanmar since 1996-97. Dhaka exported goods and commodities worth only $9.17million to Yangon in 2008-09, while its import during the period was $66.65 million, according to data available with the Export Promotion Bureau (EPB). Currently, exporters and importers of Bangladesh and Myanmar face problems due to the absence of direct LC opening facility between banks of the two countries. As Myanmar is not a member of the International Chamber of Commerce (ICC), the country follows strict foreign exchange regulations, trade officials said. The scheduled banks of Bangladesh usually open LCs with Myanmar banks via third country banks. As a result, transaction costs and time turn out very high. Trade officials said a commerce secretary-level meeting between Bangladesh and Myanmar would be held after couple of months. It would try to find ways to launch direct LC opening system between the two countries. Until the country to country LC system is not introduced, the need of the businessmen of both the countries would be met through enhanced value of bank drafts to a great extent, an official added.