Free Trade Agreement Between India And Myanmar

India is taking measures such as the development of airlines, land and sea routes to strengthen trade relations with Myanmar. It also cooperates with Myanmar in areas such as agriculture, telecommunications, oil and gas sector, etc. While cooperation between the government and the government is intensifying in various areas, the private sector is still reluctant to invest in Myanmar. On the border between India and Myanmar, the smuggling of precious stones is a major problem. Gemstones such as rubies, yellow diamonds and jade are often smuggled from Myanmar and sold to Indian traders. However, due to the lack of knowledge to distinguish between authentic and fake gemstones, smugglers have a day of campaign where they deceive Indian merchants. There are some proposals from traders to improve bilateral trade between India and Myanmar. It is requested to add to the list of the trade agreement items such as mango, bicycles and their parts, life-saving medicines, cosmetics, fertilizers, imitations of jewelry, textiles and pan-masala. The volume of trade between the countries of north-eastern India and Myanmar has not been encouraging. Export growth is about 7% compared to imports of 32%. Border trade between Myanmar and India reached only $2.91 million in the first quarter of 2006/2007 (April-June). India and Myanmar are considering a series of initiatives to expand border trade between the two countries.

India has accepted the signing of a proposed agreement with Myanmar to avoid double taxation and prevent tax evasion with regard to income tax. Upon entry into force, the agreement will boost the flow of investment, technology and personnel from India to Myanmar and vice versa. It should also ensure fiscal stability and facilitate mutual economic cooperation between the two countries. For each vehicle that arrives from China to Sikkim, a homologation fee of Rs. 50 is charged. Similarly, a tax of 5 yuan (Note 5 equals one yuan) is charged for each vehicle that passes from the Chinese side to the Trade Mart Point in Renqinggang. Currently, only 22 items can be exported and imported under the free trade agreement signed between India and Myanmar. These include mustard grains, legumes and beans, fresh vegetables, fruits and soybeans. On the other hand, India delivers clothing, shoes, medicines, wool and technical products to Myanmar….

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