Chairing the 4th meeting of India-Myanmar Joint Trade Commission along with his counterpart U Win Myint, the Indian Commerce and Industry Minister, Anand Sharma on Tuesday said : “I propose that we work towards doubling of bilateral trade by 2015. We also need to work towards broad-basing our trade basket. ….. Let us encourage businesses of both sides need to be encouraged to utilize Duty Free Tariff Preference Scheme and ASEAN FTA channels to diversify trade.”

Sharma said the construction of the Kaladan Multimodal Transit Transport Project comprising of a waterway component and a roadway component by 2013 will completely transform the trade between North East India and the rest of the world. Cost of the project is $ 120 million. The Project envisages a direct trade corridor between Indian Ports on the eastern seaboard and Sittwe Port in Myanmar and then through riverine transport and by road to Mizoram, thereby providing an alternate route for transport of goods to North-East India. The two countries recognized the need to start collaborating to build a Land Customs Station at India-Myanmar Border (at Mizoram) to facilitate the movement of vehicles and goods entering and leaving Mizoram state.

On the issue of border trade it was noted that the border trade point at Moreh, on Indian side, and Tamu, on Myanmaar side, is stabilising and has immense potential for normal trade. Sharma invited his counterpart to inaugurate the second border trade point at Zowkhatar (Mizoram) that will connect to Rhi in Myanmar. Both the ministers stressed the need for working on two additional border trade points – Pangsau Pass (in Arunachal Pradesh) and Avangkhung (in Nagaland). India and Myanmar have also expanded the list of items for border trade from 22 to 40.

Sharma also informed India’s assistance for capacity building in agricultural research and improving the seed variety in Myanmar.

India is keen to participate in the gas sector of Myanmar. Indian companies have shown interest in setting up of gas based units, invest in LNG infrastructure. The Indian Minister pushed for his country’s participation in allocation of gas blocks in Myanmar. Myanmar side showed strong support for the proposal. To strengthen the economic relationship both sides agreed to set up a ’Joint Trade and Investment Forum’ which would include both businessman and Government officials and would meet along with the Joint Trade Committee.

One third of India’s imports of pulses and one-fifth of imports of timber are from Myanmar. With the implementation of India-ASEAN FTA and the Duty Free Tariff Preference Scheme, Sharma expressed the confidence that India can become one of the leading trade partners of Myanmar. Currently, two items – pulses and wood products accounted for 97.5% of Myanmar’s total exports to India. Similarly, buffalo meat and pharmaceuticals accounted for 45% of India’s total exports to Myanmar.