Myanmar rebuilds export link with EU

After more than a decade of isolation from the West, exporters in Myanmar are reconnecting with the European Union, which is considering the import of all commercial goods from the country free of tax - a preferential treatment the manufacturers in the Pearl River Delta could only dream of.

"We are now starting to sell flip-flop sandals to Italy since the sanctions from the EU have been suspended," said a proud Kyaw Zin Htet, a second-generation Chinese migrant to Myanmar who now manages Reva, which produces 12,000 sandals a day.

The export order comes at a time when domestic sales of sandals and slippers are in a downturn because farmers in Myanmar are losing their land over conflicts with property developers and local governments. Sandals are a national apparel for even top officials, who wear them for formal occasions as well.

"The European Commission has given the green light to the lifting of sanctions for good," said Deputy Minister for Commerce Pwint San on the sidelines of a meeting with delegates from the Hong Kong Trade Development Council.

Trade sanctions have been suspended for a year from June last year, which provides a window for resuming trade between the EU members and the then military-governed nation.

The European Parliament will decide whether to lift the sanctions permanently in June and give Myanmar preferential trade treatment - duty-free imports for everything but armaments, Pwint San added.

In a historic visit to Europe, Myanmar President Thein Sein led a mission to five nations in the bloc last week. Pwint San, who also took part in the visit, said it was productive and had received good responses. He had high hopes of winning the preferential trade conditions from the EU.