The European Union (EU) has warned to withdraw trade benefits enjoyed by Myanmar owing to the ongoing Rohingya crisis.
The decision is expected to severely hit the economic reforms re-initiated by Myanmar to attract investors from abroad. A lot of overseas investors have been staying away from trading with Myanmar due to human rights issues.
In its bid to lure international investors especially to its garment and textile sector, the Myanmar Government has been implementing policies to ease restrictions on foreign banks besides creating new ministry to promote foreign investment.
Also, in early December, Yangon hosted an exhibition for sewing machine manufacturers and garment sector. One of the participant companies, however, stated that relocation of garment factories to Myanmar have slackened owing to political crisis as well as fast increase of minimum wages.
If EU withdraws all trade benefits it currently provides, it can dismantle the economy of Myanmar.
According to a survey conducted recently by European Chamber of Commerce in Myanmar, 46 per cent of European companies believe the economic conditions of the country are deteriorating.In its latest report, the International Monetary Fund has slashed Myanmar’s economic growth forecast from 7 per cent to 6.4 per cent for the year up to September 2019.
