Myanmar is part of the World TradeOrganization (WTO) and a signatory of ASEAN Free TradeAgreement (AFTA). These arrangements have a legal obligationwhich require members to align its overall trade and tariffpolicies according to the agreement or schedule ofcommitment. These steps are also necessary to ensure thatmembers have equal access to market while safeguarding themagainst adverse risk to environment, social cohesion, andmacroeconomic vulnerability. This note recommends thatMinistry of Commerce to review and reduce the number ofproducts requiring export licenses. First, the use of exportlicenses needs a practical justification. For example, it isnot entirely clear why, despite high demand from regionalmarkets, Myanmar restricts export of live farm animals. Foragriculture products, it is not clear whether export licenseis an instrument to ensure compliance for quality (e.g.,SPS) or to control export volume. In this case there is astrong case to not to impose restriction than necessary toachieve policy objective. The absence of a clear criteriacan cost Myanmar to forego export potentials and jobcreation. This note also recommends Ministry of commerce toclarify underlying reasons for imposing export license onsensitive products. In many cases, trade of these productscan have impact on health, the environment, social norm, andnational security. In many cases market can createincentives to trade protected wild-life, endangered species,or lead to overexploitation of natural resources. Export ofcontaminated or disease affected products by one exportercan cost all exporters of similar products. Government, inthis case, may consider license and registration regime tomanage the risk from trade in sensitive products.
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