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Myanmar to hedge against slower China trade due to coronavirus
Myanmar wants to expand its exports to other markets to hedge against a potential dip in demand from China, where a new respiratory virus has infected more than 14,000 people and killed more than 300, mostly from Hubei province, where illnesses from the new type of coronavirus were first detected in the city of Wuhan in December.
China is now Myanmar’s largest export market. Already, trading of melons has come to a standstill and prices have halved, said U Naing Win, chair of the Myanmar Watermelon and Muskmelon Producers and Exporters Association.
As such, preparations are being made for Myanmar to send more goods to other markets to avoid any volatility in demand from China.
“As the market has just reopened after the Chinese New Year break, we can’t tell the exact extent of the impact the Wuhan virus has on the export market yet. But we are working on seeking new border markets to export our goods in the event that the spread of the virus continues,” U Aung Htoo, Deputy Minister for Commerce, said in a press briefing on the drafting of the National Export Strategy 2020-2025 on January 31.
Plans have also been made to export more goods via air and maritime routes to offset slower trade at the border.
Since the outbreak of the coronavirus, China has stopped importing melons from Myanmar and stockpiles of fruit are being held in Yunnan province. Around 80 percent of total border trade takes place at the Muse trade gate on the Myanmar-China border.
“The movement of goods in certain provinces in China has been suspended, making it difficult for the melons to be transported from one province to another. This is why the melon traders have been instructed not to accept large shipments at the Muse gate. Many of the farmers are diverting the melon shipments to Yangon now, ” said U Aung Soe, director general of the Myanmar Trade Promotion Organisation.
U Aung Htoo said disease preventive measures are also being carried out at the border gate to prevent the coronavirus from spreading into Myanmar. He added that the ministries have been given directives on the procedures to take should the disease spread.
Border trade volume between Myanmar and China amounted to US$1.6 billion between October 1 and January 24 of the current fiscal year. – Translated
Source: https://www.mmtimes.com/news/myanmar-hedge-against-slower-china-trade-due-coronavirus.html