Improved access to letters of credit (L/Cs) for cross-border traders in India and Myanmar is under discussion as buyers and sellers on each side of the two countries' border look to boost trade.

The discussions took place during meetings in the north eastern Indian state of Manipur which on 3 September welcomed a trade delegation from Myanmar.

Participants

Issues related to boosting Indo-Myanmar border trade were discussed between the governments of India and Manipur as well as representatives of Indo-Myanmar Border Trade Union and the Indo-Myanmar Export-Import Association.

Amongst the issues raised was the possibility of introducing L/Cs between the United Banks of India and Myanmar Economic Bank.

The meeting also discussed ways to increase the number of items traded across the two countries' border.

Difficulties

Cross-border trade between Manipur and Myanmar has become difficult over recent months, even though trade between the two countries has been relatively buoyant over the last twenty years considering Myanmar's isolationist stance.

Recent difficulties centre on security concerns and obstructions on some of the important highways between the two countries.

Trading conditions

Major security considerations include insurgency in the north-eastern states of India, with some insurgent groups operating from Myanmarese territory as well as smuggling of arms and drugs.

India's imports from Myanmar are primarily agricultural and forest-based products, while its main exports to Myanmar are primary and semi-finished steel and pharmaceuticals.The balance of trade is heavily in favour of Myanmar.

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