WT/TPR/M/293/Add.1 11 June 2014 (14-3387) Page

94 Pages·2014·0.5 MB·English

WT/TPR/M/293/Add.1

11 June 2014
(14-3387) Page: 1/94
Trade Policy Review Body Original: English/Spanish
11 and 13 March 2014 anglais/espagnol
inglés/español

TRADE POLICY REVIEW
MYANMAR
MINUTES OF THE MEETING
Addendum
Chairperson: H.E. Mr. Joakim Reiter (Sweden)
This document contains the advance written questions and additional questions by WTO
Members, and replies provided by Myanmar.1

Organe d'examen des politiques commerciales
11 et 13 mars 2014
EXAMEN DES POLITIQUES COMMERCIALES
MYANMAR
COMPTE RENDU DE LA RÉUNION
Addendum
Président: S.E. M. Joakim Reiter (Suède)
Le présent document contient les questions écrites communiquées à l'avance par les
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Myanmar.1

Órgano de Examen de las Políticas Comerciales
11 y 13 de marzo de 2014
EXAMEN DE LAS POLÍTICAS COMERCIALES
MYANMAR
ACTA DE LA REUNIÓN
Addendum
Presidente: Excmo. Sr. Joakim Reiter (Suecia)
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por
Myanmar.1

1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.
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Explanatory Note

This document contains Myanmar's answers to Members' advance written questions. As roughly one
quarter of these questions concerned various aspects of Myanmar's new foreign investment regime,
particularly the legal framework, rather than provide each Member with similar written answers to
their questions on this subject, a general answer is found on the next page. With this general answer
providing background to recent developments regarding the legal framework, more specific
individual answers to each Member's questions on foreign investment are then provided elsewhere in
this document.

WTO Secretariat Report:
General Answer on Investment
Myanmar has initiated a broad reform process to improve its legal and regulatory framework since
the new Government took office in 2011. In line with the wide-ranging reform program of the new
Government, there were considerable expectations from stakeholders concerning a rapid
improvement of Myanmar's investment framework. In order to create a more open and secure
investment environment, the New Foreign Investment Law (FIL) was enacted in November 2012,
followed by its accompanying implementing rules (Notification No 11/2013) as well as Notification
No 1/2013 in respect of the negative list of prohibited activities (see Table 1 below). The
investment framework for domestic investors was also updated and enacted in July 2013 with the
New Myanmar Citizens Investment Law (CIL). Although the 2012 FIL offers undeniable
improvements over the earlier 1988 law, there were shortcomings, notably with respect to
investor protection and procedures for business entry.

Table 1 Investment-related Laws and Regulations
Date Investment-related Laws & Regulations
November 2012 New Foreign Investment Law (FIL)
January 2013 Foreign Investment Rules, Notification No: 11/2013
January 2013 Notification No: 1/2013 (Negative list of prohibited activities)
July 2013 New Myanmar Citizens Investment Law (CIL) (Domestic enterprise
investment)
January 2014 New Myanmar Special Economic Zone Law (Unified law for SEZs)
[March/April 2014] Revised FIL Notification No: 1/2013 (Reduced list of prohibited activities)
[March/April 2014] FIL Notification No: 2 (Clarification of conditions attached to tax exemptions)
[March/April 2014] FIL Notification No: 3 (Clarification of Environmental and Social Impact
Assessments)
[May 2014] New Myanmar Companies Act
[End of 2014] Myanmar Investment Law (Merging the New FIL and New CIL)

In terms of investor protection, some of the core standards, such as MFN and national treatment,
expropriation with fair market value compensation and dispute settlement, remained absent from
the new legal framework.

In view of the urgency in reforming Myanmar's investment framework, the draft New FIL was
formulated without the assistance of international technical expertise or a broad-based
consultation process of stakeholders (other than Parliament). However, the shortcomings of the
new legal investment framework were quickly recognized and the New Government welcomed
offers of technical assistance from several international organizations, notably the Organization for
Economic Cooperation and Development (OECD), the Asian Development Bank (ADB), the
International Finance Corporation of the World Bank Group (IFC), the Japanese and German
international agencies (JICA and GIZ) and others.

The ongoing legislative work program on investment is now focusing on: the imminent adoption of
three sets of FIL regulations; the formulation of an overall Myanmar Investment Law that will
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merge the New FIL and New CIL into one coherent investment framework, thereby removing the
perception that foreign and domestic investors were treated differently; and a New Myanmar
Companies Law.

Concerning the adoption of FIL regulations, three Notifications are awaiting adoption by
Parliament:

1) Revised Notification No.1 aims at addressing a number of weaknesses in the activities that
were initially reserved for domestic investors and thus prohibited for foreign investors. It is
now proposed to reduce the number of activities on the "negative list" of prohibited
activities closed to foreign investors from 21 to 11, thereby considerably reducing the
scope for discretion. It is also proposed to reduce the scope of economic activities in which
joint ventures between foreign and domestic partners are required.
2) Notification No. 2 aims at clarifying the tax incentives and conditions attached to them.
3) Notification No. 3 aims at clarifying the activities subject to environmental and social impact
assessments.

As regards formulation of an overall Myanmar Investment Law, several ambiguities have emerged
as a result of the enactment of two parallel laws: one for foreign investment, i.e. New FIL, and one
for domestic investors, i.e. New CIL. Myanmar's authorities are now actively working with the
assistance of international experts with a view to merging these two laws into a single coherent
investment law that will address the shortcomings of the existing legal framework, notably matters
concerning MFN and national treatment, expropriation with compensation at fair market value,
transparency, the alleged discretionary authority of the Myanmar Investment Commission, and
dispute settlement, all of which are under consideration. The aim is to finalize the draft law during
the fall 2014, carry out consultation with stakeholders and, ultimately, submit the draft law to
Parliament at the end of 2014.

The Ministry of National Planning and Economic Development is also responsible for two other
important economic laws: the Myanmar Companies Act (1914); and the recently enacted New
Myanmar Special Economic Zone Law.

The Myanmar Companies Act of 1914 contains a number of complicated provisions that are out of
step with today's operating environment. With ADB technical and financial assistance,
modifications are underway to align its provisions with the current economic environment and
comply with international standards. The aim is to finalize the draft in May 2014.

In respect of Special Economic Zones, two parallel laws, the Myanmar Special Economic Zone Law
and Dawei Special Economic Zone Law were enacted shortly before the new Government took
office in 2011. However, the two laws were found to be deficient in inducing foreign and domestic
investors to locate their investments in these SEZs. Moreover, the two laws raised doubts about
the harmonization of the regulatory framework across zones. Therefore, the two laws have been
merged into a new Myanmar Special Economic Zone Law, which was enacted in January 2014.

Chapter I. Economic Environment

Page 11, para 1.9, Exchange Rate Policy, China Q1-2:
Are the rules on lifting restrictions on current payments and transfers abroad and those on
holding and use of foreign exchange applicable to trade in services and other forms of
trade?
If so, what are those other forms of payments that are permitted for transfers abroad
besides those transactions through letter of credit?

Answer:
The Foreign Exchange Management Law stipulates as follows:
Article 2 (1) Payments for current transactions means payments which are not for the
purpose of transferring capital:

(i) All payments due in connection with foreign trade, other current business,
including services, and normal short-term banking and credit facilities;
(ii) Payments due as interest on loans and as net income from other investments; and
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(iii) Payments of moderate amounts for amortization of loans or for depreciation of
direct investments.
Article 24. No restriction shall be imposed, directly or indirectly, on inward payments and
transfers for current international transactions.
Article 25. No restriction shall be imposed, directly or indirectly, on the making of
payments and transfers for current international transactions.

On the whole, there is no restriction on the current payments and transfers such as
payments for imported goods and payments for invisibles no matter how the authorized
dealers (AD) execute the payments and transfers. Such payments and transfers like these
transactions can be conducted after the scrutinizing of the authorized dealers.
Nonetheless, the transactions like investing abroad or seeking loans abroad shall be
subjected to scrutiny by the Central Bank of Myanmar.

Page 12, para 1.14, Monetary Policy, China Q3:
Are all market entities, no matter state-owned enterprises or private enterprises or
individuals, permitted to purchase foreign exchange according to their needs?
If so, whether there are any specific foreign exchange requirements on the purchasing
procedures or maximum quotas?
How long does it typically take to finalize one foreign exchange transaction of such?

Answer:
Individual resident may purchase the maximum amount of US$10,000- or equivalent
foreign currency from ADs or money changers by showing the identity card, and if an
individual intends to purchase more than the said amount, he/she may purchase that
amount by submitting documents relating to the objective of purchasing to the ADs or
money changers. As these transactions can be done by the judgment of the ADs or money
changers, it usually takes very short time. This practice is also the same for all market
entities and in addition there is no quota or specific amount for business entities to
purchase foreign exchange from ADs.

Page 12, para 1.15, Fiscal Policy, China Q4:
Please comment on the accessibility of financing services to private sectors in general.
What are those main criteria for the banks to calculate and determine their credit
extension to private enterprises?
Are there more stringent collateral requirements to private enterprises, comparing to
state-owned enterprises?

Answer:
The private sector can seek financing services due to the type and value of collateral and
their credit worthiness accessed by financial institutions.
If a private institution applies financing services by using their own real estate, gold,
Government Treasury Bond, immovable assets or machineries as the collateral, financial
institutions will generate loans or other financing services about 70% of appraised value of
that collateral by the bank officials.
Although SEEs do not need to apply with secured collateral, private enterprises still need
to apply with the said collaterals to get financing services.
If the SEEs require the working capital, Government will support the working capital with
the approval of the Union Cabinet meeting.

Page 17, para 2.3, NCDP export of agri. & pharmaceutical, Argentina Q1: (NPED-
Planning)
Cuáles son las condiciones para la exportación de productos de los sectores de la
agroindustria, tecnología en fármacos y medicina nuclear en el marco del Plan Nacional de
Desarrollo Global y Nacional (2011-12 y 2030/2031) y del proceso de liberalización de las
importaciones de Myanmar?
Unofficial translation "What are the conditions for the export of products from the agro-
industry, pharmaceutical and nuclear medical sectors in the context of the National
Comprehensive Development Plan (NCDP) 2011/12-2030/31 and the import liberalization
process of Myanmar?"
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Answer:
National Comprehensive Development Plan (2011/12 to 2030/31) (NCDP) is a framework
for a sequence of 4 medium-term and that will specify particular strategies, programs and
projects building on each other and intended to take Myanmar to successive stages of
development and structural transformation.
The NCDP is being development in two parts. The initial part sets out the scene in the
context of development challenges that is being faced by Myanmar and establishes the
goals and strategic directions. The second part concentrates upon the sectoral and regional
foundations for Long-Term-Development.
Using a participatory approach the NCDP formulation process has involved consultation
with private sector, academia, citizens, and international donor partners as well as various
level of Government.
Hence, NCDP is under formulation and hoping to be complete in draft by early 2015. It will
be published after discussion at Hluttaw (Parliament) and also available on MNPED website
www.mnped.gov.mm.
Concerning Myanmar's import liberalization, the Government made a first significant
change to the import license regime in June 2012 by replacing the former non-automatic
import license regime by a new automatic regime covering all imports. Under the new
regime, importers must submit: an application on the company's letterhead; the original
pro-forma invoice or original sales contract; and, if required, recommendations from
relevant Government Departments and/or organizations. Most licenses are now authorized
within a period of 8 working hours.
In March 2013, the Government further eased licensing requirements by eliminating
import license requirement for 166 commodities classified in over 1,900 HS tariff lines and
representing about 35% of total import. A consultation process is underway involving the
Ministry of Commerce, the Customs Department and representatives from the private
sector to make recommendations about the identification of additional imported goods for
which import license requirement will be removed. The Government intends to gradually
phase out the license regime through a series of announcements in 2014 and 2015 that
would each represent about 10 to 15% of total import. By the end of 2015, there will still
be few products subject to import license requirement.
Following the election of the New Government in 2011 and the implementation of its
reform agenda, the Ministry of Commerce removed six items on the restricted list of both
land border and sea trade out of 15 items on 23 December 2011. Moreover, on
4 February 2013, the Ministry of Commerce further reduced the scope of the restriction by
maintaining only four items subject to import restriction (liquors, beer, cigarette and
prohibited products as per existing laws and international conventions) and also a
temporary restriction items (seasonal fresh fruits) for both land border and sea trade.
With a view to further the trade liberalization agenda, a consultative process has been
established regrouping the Ministry of Commerce, National Planning and Economic
Development, the Customs Department and representatives of the private sector,
including both national and foreign participants. The consultation covers not only the issue
of import restriction but also related-issues, such as taxation, duties, national treatment
and standards for the protection of consumers. The consultative group is expected to
submit its recommendations in mid-2014 for future actions by the Government.

Page 17, para 2.5, Legal framework, EU Q1:
Is the Parliament approval necessary for the conclusion of international trade and
investment agreements?
Can the government elaborate more on the list and the scope of the laws which are
subject to the Parliament's consideration?

Answer:
In Sections 21 (a) of the Law amending the law relation to PyidaungSu Hlutaw,
International Conventions and Agreements, regional treaties and agreements shall be
submitted by the President for the decision of the Hluttaw (Parliament). According to this
provision, Parliament approval is necessary for the conclusion of international trade and
investment agreements.
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Pages 18 & 26, para 2.7 & 2.41, International agreement, EU Q2:
Can the government confirm that in the country's legal order, international Agreements/
Treaties prevail over the domestic legal framework or is this the case only for bilateral
investment treaties as reported in paragraph 2.41 page 26?

Answer:
Though in Britain and in the United States, International law is deemed to be part of the
land, the position is different in Myanmar. Even an international agreement, as such is not
part of Myanmar municipal law save as may be determined by Parliament. Myanmar legal
system is practicing the combination of common law and civil law legal system. So, if
Myanmar entered into International Convention (or) Treaties, domestic law will be enacted
to undertake the obligation of this International Convention (or) Treaties. Therefore
International Agreements/Treaties cannot prevail over the domestic legal framework.

Chapter 2. Trade Policy Regime: Framework and Objectives

Pages 20-22 and 28-30, para 2.24, 2.51-52 and Tables 2.2 and 2.6, Notifications, USA
Q1:
The Secretariat's report notes many notifications are outstanding and that the Government
faces significant capacity constraints, which we recognize. What plans does the
Government have for submitting the required notifications?
Is the Government seeking assistance from the Secretariat or other donors in this regard?

Answer:
The new Government has intention to set up necessary plan for submitting the required
notifications. However, the Government faces significant capacity constraints as mentioned
in the question. In this regard the Government wishes to request WTO's secretariat to
provide any assistance for us.

Pages 22-24, ASEAN chair, New Zealand Q1-4:
Myanmar is chairing ASEAN this year.

Q1: What are Myanmar's priorities during its chair year in 2014 for the economic agenda
of ASEAN?
Answer:
Priority areas during Myanmar's chairmanship in 2014 for the Economic agenda of ASEAN
are as follows: 1) Strengthening regional cooperation for SME development; 2) Enhancing
public private partnership for infrastructure development; and 3) Moving ASEAN and AEC
beyond 2015.

Q2: How has Myanmar's membership of ASEAN contributed to its own economic reform
measures?

Answer:
Myanmar has embarked on a Government-wide ranging reform agenda covering fiscal,
monetary, trade and investment areas, which has contributed to revitalize the economy
and already lead to an increase in foreign direct investment flows. Capacity building
activities offered under the ASEAN's program designed to narrow the development gap has
already contributed to make a great support to Myanmar's reform agenda. Therefore,
Myanmar participation within ASEAN has been of a great support in the implementation of
its reform agenda.

Q3: How will Myanmar as ASEAN chair advance the undertaking of ASEAN members to
realise the ASEAN Economic Community by 2015?

Answer:
Myanmar, as a Chairmanship of ASEAN 2014, has been implementing AEC measures
incorporated in Strategic Schedule of AEC Blueprint which will be revealed and take in
action 2014-15 that AEM key deliverables and AEC key deliverables for 2014.

Q4: What steps does Myanmar plan to take as ASEAN chair to advance the negotiation of
the RCEP?
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Answer:
According to Section 43 of Foreign Investment Law, if any dispute arises in respect of the
investment business:

a) Dispute arisen between the disputed persons shall be settled amicably;
b) If such dispute cannot be settled under sub-section (a):
(i) It shall be complied and carried out in accord with the existing laws of the Union if
the dispute settlement mechanism is not stipulated in the relevant agreement;
(ii) It shall be complied and carried out in accord with the dispute settlement
mechanism if it is stipulated in the relevant agreement.
The above dispute process also applies in respect of commercial disputes between foreign
companies and SEEs. In the upcoming Myanmar Investment Law, some dispute settlement
provisions will likely be modified.

Page 25, para 2.35, Border agreements, Chinese Taipei Q1:
According to the Secretariat Report, Myanmar has signed five separate border trade
agreements with China, India, Bangladesh, Thailand, and Lao PDR. Could Myanmar please
explain the concrete steps that have been taken by Myanmar to encourage border trade
with each neighbouring country and specific details of such border trade agreements?

Answer:
The main objectives of Border Trade agreements are: 1) to enhance bilateral friendship
with neighbouring countries; 2) to promote trade and keep it on the track of conventional
trade; 3) to ensure the full realization of revenues to be levied by the state; 4) to provide
favourable condition for private businessmen by which to earn reasonable benefit; and
5) to help facilitate the flow of goods. The Ministry of Commerce (known as Ministry of
Trade at that time) had issued the Notification for the establishment of the Department of
Border Trade on 28 August 1996.
Since that time, Myanmar had signed three border trade agreements with India, Thailand
and Bangladesh, one MoU with China and one protocol with Laos. Apart from Laos,
Myanmar had opened the respective border trade posts in border areas.
In order to promote border trade, the Ministry of Commerce has been performing the
transaction by promulgating the separate vision, mission, strategies and tactics.
Generally, opening border trade posts, as expressed in signed agreements, and organizing
the integrated team called One Stop Services (License, Bank, Tax and Duty, Immigration
and Police), consisting of the concerned Departments as the initial steps to encourage
border trade. Installation of Border Trade Online System (BTOS) has also begun as a trade
facilitation measure.
The establishment of border trade related committees, such as Joint Border Trade
Coordinating and Cooperating Committee with China in 2006; Border Trade Committee
with India in 2012; Joint Working Group Border Trade Official with Bangladesh in 2011 are
one of the concrete steps taken to discuss border trade-related matters.
Also annual border trade fairs have been jointly organized with China since 2000.
Discussions are ongoing to organize similar fairs with other border partners.
In addition, new border trade posts were established in addition to the designated posts
mentioned in trade agreements/ MoU and protocol in accordance with the seven
fundamental points: (Myeik, Maw Taung and Htee Khee border trade posts in Myanmar-
Thailand border; Chin Shwe Haw, Kan Pyke Tee posts in Myanmar-China border; and
Sittwe post in Myanmar-Bangladesh border).

Page 25, para 2.36, Trade disputes and consultations, EU Q3-5:
Q3: Are local companies allowed to resolve commercial disputes with foreign companies
through arbitration and, if so, can they chose the applicable law, the seat of arbitration
and the applicable rules (for example, International Chamber of Commerce, Stockholm
Chamber of Commerce, London Court of International Arbitration, Singapore International
Arbitration Court, etc.)?

Answer:
Commercial disputes between local companies and foreign companies can be resolved by
arbitration. The agreement of contracting parties can chose the applicable law, the place of
arbitration, the number of arbitrators and applicable rules. Arbitration between companies
and person is subject to the Arbitration Act 1944 as a domestic law. The law sets out
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provisions dealing with appointment of arbitrators, the enforcement of award in the civil
court and appeal from an award to the Supreme Court. As a matter of commercial disputes
and consultations, the Methods of settlement of dispute are referred to UNCITRAL Rules,
Singapore International Arbitration Centre and other international Arbitration rules which
are agreed by the parties to the Contract. In practice at the present time, some disputes
between the contracting parties in Myanmar are settled by the UMFCCI in Yangon, when
both parties of the dispute are members of the UMFCCI.

Q4: What is the legal framework applicable to resolve commercial disputes between
foreign companies as well as commercial disputes between foreign companies and
State-Owned Economic Enterprises (SEEs)?

Answer:
According to Section 43 of Foreign Investment Law, if any dispute arises in respect of the
investment business:
a) Dispute arisen between the disputed persons shall be settled amicably;
b) If such dispute cannot be settled under sub-section (a):
(i) It shall be complied and carried out in accord with the existing laws of the Union if
the dispute settlement mechanism is not stipulated in the relevant agreement;
(ii) It shall be complied and carried out in accord with the dispute settlement
mechanism if it is stipulated in the relevant agreement.
In the upcoming Myanmar Investment Law, some dispute settlement provisions will likely
be modified.

Q5: Does the government plan to become a signatory to International Convention for the
Settlement of Investment Disputes in order to increase investors' confidence? If not, why?

Answer:
Myanmar has become the 149th State party to the 1958 Convention on the Recognition
and Enforcement of Foreign Arbitral Awards, or the New York Convention, having
deposited its instrument of accession on 16 April 2013. The New York Convention entered
into force on 15 July 2013. So far, we have not yet prepared to access the International
Convention for the Settlement of Investment Disputes (ICSID).

Page 25, para 2.37, New York Convention, EU Q67:
"In April 2013, Myanmar became a party of the New York Convention" (New York
Convention on the Recognition and Enforcement of Foreign Arbitral Awards). What
measures has the government taken or considers taking to ensure that arbitral awards can
be recognised and enforced promptly and effectively? Please detail.

Answer:
Myanmar's accession to the New York Convention demonstrates the Government's intention
to establish a friendly environment for foreign investment by enabling foreign investors to
resolve commercial and investment-related disputes offshore and enforce foreign arbitral
awards within Myanmar. Office of the Union Supreme Court is drafting domestic law to
enforce foreign arbitral award.

Page 25, para 2.38, Foreign investment regime, EU Q6-7:
Q6: Are there any restrictions in foreign capital remitted into/ repatriate outside Myanmar?
If the answer is yes, what are they?

Answer:
There are no restrictions on repatriation outside Myanmar. Provisions of the right to
transfer the foreign currency mentioned in Chapter XVII of Foreign Investment Rules. In
the upcoming Myanmar Investment Law, some related provisions will likely be modified.

Q7: Does the government consider establishing more transparent conditions as to what is
restricted in terms of FDI and what is allowed?

Answer:
See General Answer on Investment.
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Page 26, para 2.42, Foreign investment, China Q5-6B:
Q5: Comparing to previous FIL (Foreign Investment Law), what are those exact sectors or
activities on which the new FIL lessen its restrictions or lift its bans?

Answer:
The previous Foreign Investment Law of 1988 uses a positive list and the new Foreign
Investment Law uses a negative list. The list of those activities is available from the
following website: http://www.dica.gov.mm/includes/FIL-notification%20_English_%20
A4.pdf.

Q6A: Whether there are any measures taken to reduce equity restrictions and/or grant
more tax incentives to foreign investors?

Answer:
According to Foreign Investment Law, only prohibited or restricted activities have equity
restrictions. If the volume of investment is increased and the original investment business
is expended during the permitted period, exemption or relief from custom duty or other
internal taxes or both may be granted on machinery, equipment, instruments, machinery
components, spare parts and materials used in the business which are imported as they
are actually required for use in the business expanded. If the goods produced for export
are exported, exemption or relief from commercial tax. If investor invests in the region
where the economy is less developed and difficult to access, he is allowed to enjoy extra
land lease period for a maximum of 10 years than the use term for the investors who has
invested in the region where the economy is less developed and difficult to access.

Q6B: Does the Government have plans to increase the list of restricted or prohibited
sectors, or to impose more equity restrictions in future?

Answer:
We are revising Notification No. 1/2013. It is envisaged that about half of the existing
activities will be eliminated from the existing negative list.

Pages 26 & 63, para 2.44 & 4.72, Foreign investment, China Q18:
Please clarify that what is the definition of traditional medicine in the law of Myanmar, and
whether FDI are allowed to deal with traditional medicines that do not originate from
Myanmar, for instance Chinese traditional materia medica and Chinese traditional
medicine?

Answer:
Traditional drug means a local concoction for use either directly or indirectly, whether
internally or externally, in the diagnosis, prevention and treatment of diseases, promotion
of health or for any beneficial effect in human begins and animals. This expression also
includes substance determined as a traditional drug by the Ministry of Health by
notification from time to time.
Traditional medicine means medicine for the physical well-being and longevity of people in
accordance, with anyone of the four naya (systems) of traditional medicine, namely:
Desana naya (systems); Bethitsa; Netkhata veda naya; and Vissadara naya.

Pages 25, 26, 48, para 2.43-44, 4.8, FIL agriculture products, EU Q8:
Could the authorities provide details as to the extent of this reservation and whether it
covers the transformation and processing of agricultural or plantation goods?

Answer:
In the proposed revision to Notification No. 1/2013, it is envisaged that these prohibited
activities will be liberalized.

Pages 25-26, para 2.38, 2.40, 2.43, FDI, New Zealand Q5:
New Zealand welcomes Myanmar's efforts to increase inward FDI. We commend Myanmar
on the promulgation of a new Foreign Investment Law in 2012 and the shift of its approach
from a positive list to a negative list of sectors where investment is allowed. What further
measures does Myanmar intend to introduce to further increase FDI and remove
restrictions on the sectors open to foreign investment?
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Answer:
It is envisaged that about half of the existing activities will be eliminated from the existing
negative list.

Page 26, para 2.43-44, Investment, ASEAN Q1:
We applaud Myanmar for the significant change of the foreign investment regime from the
positive list approach for the sectors allowed for foreign investors to the current list
indicating prohibited sectors for foreign investment. Does Myanmar plan to further open its
investment regime by reducing the list of prohibited sectors or adjust other rules and
restrictions with regard to foreign investment?

Answer:
Yes. Myanmar has plans to further open its investment regime. It is envisaged that about
half of the existing activities will be eliminated from the existing negative list.

Pages 26-27, para 2.44-45, Myanmar citizens & MIC Notification, EU Q9:
How does Myanmar reconcile the two sets of list and which one prevails in case of
contradiction?

Answer:
In the context of revised Notification No. 1/2013, it is envisaged to remove these
inconsistencies. In the case of reserved joint venture activities for Myanmar Citizens, these
activities will be eliminated. Moreover, in any event, the Foreign Investment Law takes
precedent over other Laws.

Page 27 para 2.45, MIC notifications, EU Q10-15 (no Q11):
Q10: Could the authorities provide details as to the scope of this prohibition and what is to
be considered an "environmentally hazardous activity"?

Answer:
In the context of revised Notification No. 1/2013, it is envisaged to remove this restriction.

Q12: What are the sectors in the reserved list in which the authorities have allowed or
plan to allow Joint Ventures with the private sector, including with foreign companies?

Answer:
Rules 7, 8, 9 & 10 of Foreign Investment Rules (Notification No. 11/2013) prescribe
reserve activities for local citizens. So far, Myanmar has no plan to allow those activities to
joint ventures with private sector. This Notification No. 11/2013 is available from the
following website: http://www.dica.gov.mm/includes/FIL%20RulesEnglish%20Versions__
31.5.13__Latest_.pdf.

Q13: How can foreign investors be aware of the opening of a given sector? Are legal
services supplied by foreign providers allowed? If so, under which modalities?

Answer:
MIC Notification No. 1/2013 provides details lists of economic activities for foreign
investors. This MIC Notification No. 1/2013 is available from the following website:
http://www.dica.gov.mm/includes/FIL-notification%20_English_%20A4.pdf.

Q14: In the State-owned Economic Enterprises (SEEs) reserved list, "extraction and sales
of teak may be permitted for a JV between SEEs and foreign entities (up to 80%) in the
interest of the government of Myanmar". However, according to Foreign Investment Rules
(11/2003), activities related to natural forest is permitted only to Myanmar citizens.

Answer:
Extraction and sales of teak is a different activity from the administration and maintenance
of natural forest activity. The second activity is reserved to Myanmar Citizens. Whereas
extraction and sales of teak activity is covered by the SEEs Law and therefore it is
reserved for the Government. However, the Government may enter into joint venture with
private participants whether or not there are foreign or national. Moreover, both activities
are subject to the Environmental Conservation Law and the Forest Law.