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EUROPEAN COMMISSION
MEMO
Brussels, 11 November 2013
Opening up to democracy, Myanmar
opportunities for EU enterprises
offers
new
After decades of isolation under authoritarian rule, Myanmar recently started opening its
doors to democracy, foreign investment and a liberal economy. To help both European and
Myanmar companies take advantage of new opportunities that will come with Myanmar's
reintegration into the global economy, European Commission Vice President Antonio
Tajani, responsible for Industry and Entrepreneurship, will travel to Myanmar from Nov
13th to 15th. During his visit he will be accompanied by more than 100 companies and
associations from 16 Member States, representing a turnover of 420 billion euros, to help
both Myanmar and European companies form new partnerships and expand into new
markets. He will also sign three letters of intent to strengthen cooperation on SME policy,
sustainable tourism and raw materials.
His visit will take place under the umbrella of the EU-Myanmar Task Force chaired by the
High Representative for Foreign Affairs and Security Policy, Catherine Ashton. Other
members of the task force include Commissioner Andris Piebalgs, responsible for
Development and Cooperation, and Commissioner Dacian Cioloş, responsible for
Agriculture and Rural development. A delegation of the European Parliament will be also
part of the task force and an inter-parliamentary meeting will be held with Myanmar’
parliamentarians. The task force's mission to Myanmar will have three main objectives:
 to support and foster Myanmar’s economic and democratic transition process;
 to reinforce EU-Myanmar development co-operation;
 to promote growth and business opportunities on both sides.
For Vice President Tajani, this visit will also be part of his "Missions for Growth" to help
European enterprises, in particular small and medium sized businesses, better profit from
fast growing international markets.
EU private sector can aid in Myanmar’s development
Decades of economic mismanagement and isolation in Myanmar have led to deep-rooted
structural poverty. Unemployment is very high and GDP per capita is the lowest among
South East Asian Countries. Furthermore, more than 50 years of dictatorship have eroded
state institutions and undermined citizens’ confidence in the state’s capacity to deliver.
The EU recognises the vital contribution that the private sector can play in this country’s
development and that is why an important part of this mission will be to create trade and
investment opportunities for both Myanmar and European companies.
MEMO/13/974
To that effect, on the morning of Nov 14th, Vice President Antonio Tajani will be cochairing a Business Forum in which high-level officials and representatives of the European
and Myanmar business communities will participate. Discussions will focus on five
economic areas: tourism, agriculture business, manufactured goods, energy and
infrastructure as well as business environment support services (e.g. financial services,
insurance). On the same day in the afternoon, a matchmaking event will take place for
European companies interested in contacts with Myanmar entrepreneurs in these five
sectors. In parallel, a Development Forum will take place that morning, with the presence
of Commissioner Piebalgs, to highlight EU's contribution towards the inclusive and
sustainable growth of Myanmar. Further financial assistance to the country during the next
few years will also be discussed at the development forum.
On Nov 15th, Tajani will participate in the task force’s Economic Session, which will focus
on Myanmar’s economic development programme and planned measures to attract private
investment. Participants will also discuss measures that the EU and Myanmar will
implement in close collaboration in order to accelerate sustainable development and
economic cooperation.
On the same day Tajani will meet with several high-level Myanmar officials, and sign
three letters of intent.
1) With the Minister for Industry, U Maung Myint, Tajani will sign a letter of
intent on SMEs
By signing a letter of intent on SME policy, Myanmar and the EU will pledge to work
together to improve the business environment for SMEs by reducing administrative
burdens and encouraging the internationalisation of companies on both sides. Special
attention will be paid to exchanging best practices to create SME friendly legislation;
cooperation between the public and private sectors in research and innovation; and
building strong business associations.
2) With the Minister for Tourism, U Htay Aung, Tajani will sign a letter of intent
on sustainable tourism
For both countries, it is strategically important to develop new tourism initiatives based on
the principles of sustainability, responsibility and competitiveness. The tourism sector
developed in a sensitive and sustainable way could help maintain Myanmar's cultural
heritage and traditions and, at the same time, preserve its natural environment.
Therefore, Myanmar and the EU will strive to establish a dialogue in the tourism field and
exchange good practices, especially in the fields of natural and cultural heritage.
3) With the Minister for Mines, Myint Aung, Tajani will sign a letter of intent on
raw materials
In Both Myanmar and the EU, raw materials – such as minerals and forest-based materials
– are indispensable to industrial production which provides growth and employment. By
signing a letter of intent, Myanmar and the EU will open a dialogue in two main areas:
mining and the forest–based sector. It is hoped that the dialogue will promote mutual
understanding, enhance bilateral cooperation and the exchange of information on policies
related to raw materials.
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Establishing long-term economic dialogue
To further strengthen and promote economic cooperation between EU and Myanmar,
during the mission Vice-President Tajani will also initiate the formation of the EU-Myanmar
Business Advisory Council. The Council would be composed of a limited group of European
business associations and entrepreneurs (big and small), with a wide and diverse range of
expertise. It would maintain a dialogue with a wide-variety of Myanmar and EU enterprises
and provide advice to the Myanmar government on the development of a business-friendly
environment. Furthermore, it would explore new business opportunities for both Myanmar
and European companies, and suggest ways to deepen the industrial cooperation and
promotion of the entrepreneurship.
EU is also in the process of supporting the creation of a European Chamber of Commerce
in Myanmar, which will help boost contacts with Myanmar companies and ensure advocacy
with the authorities.
Data on Myanmar (2012)
Population: 61,2 million
GDP, current prices: € 34 billion
GDP per capita, current prices: € 923
EU exports to Myanmar: € 132 million
EU imports from Myanmar: € 164 million
Inflation rate: 6 %
Myanmar is the largest country on mainland Southeast Asia. Its strategic location - linking
Southeast Asia, China and the Indian sub-continent - makes it the gateway to a potential
market of 2 billion consumers. It is still the poorest country in Southeast Asia, but the
economy is projected to grow 6,8 % this year (up from 5,5 % last year). The pickup
reflects business optimism following the government’s steps since 2011 to liberalize the
economy. Improved economic prospects have drawn interest from foreign investments.
For example, two large gas fields are expected to come online in 2013, more than
doubling gas production and raising exports to China and Thailand (gas represents 38 %
of total exports).
EU And Myanmar: the history of trade
Bilateral trade between Myanmar and the EU has been very limited. From 1990 onwards,
the EU imposed numerous sanctions on Myanmar including a ban on imports, exports and
investment in key sectors such as timber, gems and precious metals. Furthermore, in
1997 the EU withdrew its Generalised Scheme of Preferences (GSP), which allows
developing country exporters to pay lower duties on their exports to the EU. However, in
2012 EU Exports increased by 60 % compared to 2011, reflecting renewed EU confidence
in trading with this country, as well as the increasing need of Myanmar for input for its
industry.
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In recognition of the democratic reforms under way and the progress Myanmar has made
in combating forced labour, the European Council lifted EU sanctions in April 2013 –
except the arms embargo. Furthermore, the Commission doubled development aid to the
country to 75 million per year. In July of 2013, the EU also reinstated Myanmar’s access to
the GSP which provides duty-free and quota-free access for the country’s products to the
European Single Market. Additionally, The EU-Myanmar Task Force is expected to provide
high-level political and business contacts to step-up the EU’s support to the transition
process and help the socio-economic development in Myanmar. Thus, the trade and
investment relations between the EU and Myanmar are bound to be substantially
increased.
More information on the EU-Myanmar Task Force
More information on the Myanmar Mission for Growth
More information on Missions for Growth
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