South Korean tariff scheme to boost Myanmar agri-exports

 

 

South Korea has unilaterally offered duty-free quota-free tariff to 251 more exporting items of Myanmar under its preferential tariff scheme for least-developed countries, bringing as many as 85% of Myanmar's exporting commodities under such status up to January this year.

 

The status was up from 80% in 2009 and 75% in 2008.

 

Korea's preferential tariff scheme for the least-developed countries covers granting duty-free quota-free status for commodities of 4,074 categories at H.S 6 digital level which are outlined such as agricultural produce, marine products and animal byproducts.

 

Of these commodities covered by the scheme, there include some agricultural produce and marines products of Myanmar.

 

South Korea had granted import duty free and quota free on 253 Myanmar goods items for 2009 to boost trade with Myanmar. The 253 goods items include agricultural produce, marines and forestry products.

 

Myanmar has urged exporters in the country to make effective use of the preferences extended by South Korea and boost export to the East Asian country.

 

Bilateral trade between South Korea and Myanmar is expected to grow high following the exemption of tariff on most of the goods imported from ASEAN countries.

 

Since 2007, 63% of items of goods imported by South Korea from countries of the Association of Southeast Asian Nations (ASEAN) have been exempted from tax.

 

The move represented a step forward of South Korea towards establishing the South Korea-ASEAN Free Trade Area.

 

South Korea is reported to continue to cut or exempt tariff up to 95% of items of goods imported from ASEAN nations including Myanmar, while expecting Myanmar to reduce or exempt tariff on goods imported from South Korea beginning 2018.

 

Meanwhile, a total of seven Myanmar companies and 70 Korean companies have sought investment and trade worth of US$31 million in Myanmar, according to reports.