Officials from Myanmar and China hold an online meeting on October 14 to re-opening of border trade gates in Myanmar-China border.

In the meeting China discussed that trucks carrying loads are allowed to pass from China from Myanmar but China didn’t allow trucks from Myanmar entering China. Myanmar officials didn’t accept their discussion and said that if 1000 trucks from China enter Myanmar, they will have to accept the entry of 1000 trucks from Myanmar entering China to have a trade balance. China said they will submit the matter to superiors and the meeting concluded. Vice-chair of Muse rice wholesale market Min Thein said that Myanmar traders from border areas welcomed the discussion made by Myanmar side that they were not accepting the China’s proposal.

At present, on the pretext of COVID-19, China has closed all border trade zones apart from Pangsaing from Wa Region. Only COVID-19 prevention materials are allowed to do business in trade zones. 

As a result of closure of border trade gates, main export commodities such as agricultural products, forestry products, natural gas, mineral products, marine products, garments, jade were stopped while major import items such as machinery and its spare parts, materials use in transportation and construction sectors, fertilizer, cement, edible oil, food stuff, yarn and plastic seeds, commodities, beauty products and related materials may face out of stock in the marker. At the same time, local market prices of paddy, beans and pulses, corn and sesame are declining.

“As farmers lost the chances of exporting when the new rice appeared, they couldn’t get profit from it. If we compare oversea trade and border trade, export from border trade earns more and faster. Now that border gates in China are closed, farmers didn’t get profit from it. Although oversea buyers bought rice, it depends on dollar prices. Farmers get benefit when the new rice appears in market.  Last year, agricultural cost has risen. Previously, a bag of fertilizer cost nearly Ks.20, 000 and suddenly jumped to Ks.50,000. Therefore, farmers face loses,” said Min Thein.

In the past, about 50,000 bags of rice were transported via Muse border trade daily. But now, border trade has closed and nearly 3000 trucks of paddy, beans and pulses, corn and sesame were stranded and some were transported back to lower Myanmar.

As China has closed their border gates, traders are in anxiety of shortage of Chinese commodities in the local market.

“In the past, China made matches cost Ks.150 per match but now it reached to Ks.500. Edible oil prices also increased. In February, it cost Ks.2000 per viss. But now, it cost Ks.5500 per viss. As the prices in fuel oil increases, dry commodities such as dry noodle price also increased. A bag of sugar price jumped to Ks.20,000. Foreign currency exchange and prices of fuel oil need to be stabilized. Otherwise, many difficulties may occur among basic people. Traders may also face losses even they are doing their businesses,” said Cho Aye, wholesale and retail dealer from Muse.

More than 50,000 tons of agricultural products such as rice, beans, maize and sesame were stranded in Muse which is waiting for transporting to China. During COVID-19 lockdown period, there are nearly 50,000 tons of various commodities trapped in Kyegaung in China.

Myanmar traders desire systematic re-opening of border trade gates and they desire China to pay special attention to have trade balance between Myanmar and China.