07/02/2012 (Myanmar Times) - The national trade volume for the 2011-12 fiscal year is expected to grow by more than 30 percent as a result of trade policy changes, Ministry of Commerce officials said last week.

Ministry statistics show the trade volume in the previous fiscal year amounted to $12 billion but that is expected to rise to about $16.1 billion this year. By January the volume of trade had already reached $14 billion.

A ministry official said the likely rise would be driven by increased spending on imports associated with huge foreign-backed infrastructure projects as well as imports of automobiles, fuel and palm oil, which had been restricted markets for many years.

He added that cuts to export taxes on some key commodities to 2pc from 10pc were expected to push export volumes higher as well.

Commerce Minister U Win Myint said during a meeting with government officials in Nay Pyi Taw on January 30 that imports were likely to outweigh exports for the year.

By January, the value of imports stood at $7.3 billion, while exports were worth $7.1 billion and were made by mainly natural gas, fisheries products, rice, minerals and beans and pulses.

He added that the ministry would work to explore new export markets and strategies in February in an effort to reduce the trade deficit.

A Directorate of Trade official, under the Ministry of Commerce, said in the past 12 months the government had made efforts to move away from the business sector.

“The government has eased its control of a number of sectors and opened them up to the private companies, which has increased competition,” he said.

“That has reduced the level of illegal trading as well,” he said, referring to measures announced on December 9 to allow legal imports of five types of foodstuffs, such as fruit juice, seasoning powder, instant noodles, canned food and biscuits.