Myanmar will sign the new ASEAN Framework Agreement on Services (AFAS) which is structured to substantially eliminate restrictions to trade services among ASEAN member states

During the May 23 session, Pyidaungsu Hluttaw, Myanmar highest legislature, approved a request from  the President of Myanmar to sign an ASEAN Framework Agreement on Services (AFAS). The services agreement is structured to substantially eliminate restrictions to trade services among ASEAN Member States, with the goal to improve the efficiency and competitiveness of ASEAN services suppliers.

Some members of ASEAN - such as Myanmar, Philippines and Vietnam - still not signed the AFAS. Myanmar though now has plans to sign the agreement at the 35th meeting of ASEAN, which will be held in November this year.

“By signing the agreement, more investments from ASEAN countries will come into our country creating more jobs and market opportunities, this will create more foreign currency inflow. We will also need an amendment in legal affairs,” said Dr. Aung Htoo, Deputy Minister of the Ministry of Commerce.

ASEAN Economic Community (AEC), envisions ASEAN as a single market and production base, as well as a highly competitive region with equitable economic development that is fully integrated into the global economy. It will come into effect on December 1, 2019. The ASEAN Framework Agreement on Services is part of the ASEAN Economic Community and the signing of the agreement will complement the AEC.

However, Myanmar - in an attempt to protect national interest - will keep its negative list for imported products for the next 15 years, which means importers will have to apply for import license for products, which are the same as locally produced ones. With thime they will gradually relax the negative list.

“By signing the agreement, more investments will come into the allowed services sector and that, in effect, will create more job opportunities for local people,” said U Myo Myint, a lawmaker at Amyothar Hluttaw.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/myanmar-sign-new-asean-framework-agreement )

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