ILLEGAL trade poses a threat to the economic growth of countries across the world, including Myanmar.
Illegal or illicit trade is the main obstacle to Myanmar’s economic development. As long as illicit trade remains strong, legal businesses will continue to suffer.
Myanmar was listed near the bottom of the 2018 Global Illicit Trade Environment Index produced by The Economist Intelligence Unit. The index evaluates countries on their structural capability to protect against illicit trade, highlighting their specific strengths and weaknesses across 25 policy, legal, regulatory, economic, trade, institutional, and cultural indicators. The 2018 index evaluated 84 countries on the extent they enable or prevent illicit trade. Myanmar ranks 82nd, with an overall score of 23, out of 100, above Iraq and Libya.
Myanmar’s annual trade totalled US$29.209 billion in the 2016-2017 fiscal year, $33.537 billion in the 2017-2018 fiscal year, and $26.223 billion in the 2018-2019 fiscal year (October to June).
The annual figures show that maritime trade rose, while border trade declined. The fall in border trade was found to be connected to an increase in illegal trade.
A look at the border trade figures of Myanmar and Thailand in June, 2019 reveals a gap of more than $150 million, which indicates the magnitude of illegal border trade. Furthermore, illegal timber exports are affecting the economy as well as damaging the environment. Fake products, especially medicines and liquor, are hurting the economy as well as endangering consumers.
Besides, illegal imports through the border are threatening the existence of small and medium enterprises (SMEs).
To overcome the challenges in fighting illegal trade, illegal trade control and prevention groups have been formed in the regions and states sharing a border with neighbouring countries.
The authorities in the concerned regions are urged to step up efforts for stamping out illegal trade as it hinders economic growth. For this, the cooperation of the people and neighbouring countries is very important.
The situation demands that we work more closely with our neighbouring trade partners to resolve immediate cross-border illicit trade issues, while raising people’s knowledge and awareness of the dangers of illegal trade.
Besides, strengthening the enforcement of intellectual property rights to stop counterfeiting, including measures such as increasing criminal penalties and the effectiveness of customs procedures, must also be made a priority for preventing illegal trade.
