Myanmar

As a least-developed country (LDC), Myanmar is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. Total EU imports from Myanmar amounted to about €3.4 billion in 2023, and EBA preferential imports to €3.0 billion. The February 2021 military coup has deeply influenced the modalities of the enhanced engagement process (started in 2017) with Myanmar due to its broader impact on bilateral relations between the EU and the country.

What is the EBA?

The EBA arrangement covers all LDCs as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.

At a glance: EU preferential imports from EBA beneficiary countries (2023, € million)

group

54.1M (2023)

Population

account_balance
Parliamentary Republic

Government

trending_up

1.0% (2023)

GDP Growth

equalizer

27.1% (2023)

Inflation

money

$ 66.8B (2023)

GDP

Facts about Myanmar's economy

Strategic Location

Myanmar is an economy in South-East Asia, strategically well located in close proximity to major shipping routes in the Indian Ocean.

Export Products

Important export products of Myanmar are natural gas, articles of apparel and clothing, dried legumes, rice, and fish (2023).

Trade Partners

Myanmar's most important trading partners are neighbouring China and Thailand, followed by the EU and Singapore. China is both the most important source of imports (31% in 2023) and export destination (22%).

Economic Structure

Agriculture is the main pillar of Myanmar's economy in terms of employment, although it ranks third only with respect to its contribution to GDP (23% in 2023, behind services, 40%, and industry, 38%). The cultivation of rice takes up about half of all arable land. The industrial sector remains focused mainly on exploitation of gas and the production of cigarettes, textiles, steel, cement.

Gemstone Production

Myanmar is known as the “land of rubies” and is a major producer of not only rubies but also sapphire and jade. About 90% of the world’s rubies originate from Myanmar.

Trade with the EU

Total trade with the EU amounted to €3.2 billion in 2023. With a share of 11%, the EU is Myanmar's third most important trading partner, which is mainly driven by the importance of the EU market as an export destination. 19.5% of products from Myanmar go to the EU market (whereas the EU only supplies 2.4% of Myanmar's total imports).

Myanmar and the EU

Imports from Myanmar by product section (2023, € million)

Imports from Myanmar over time (€ million)

MYANMAR AND THE EU GSP

Economic Impact

98%

A large majority of Myanmar's exports to the EU were eligible for EBA preferences in 2023.

90%

Myanmar's preference utilisation rate in 2023.

90%

Share of zero-duty imports from Myanmar.

Preference utilisation and export diversification

EU imports from Myanmar (€ million)

Preference utilisation (%) vs. total eligible imports (in € million)

Most EU imports from Myanmar are eligible for EBA preferences, and EBA-eligible imports from Myanmar have shown a clearly positive trend since 2013. Also, since 2014 Myanmar has used EBA preferences to a high degree: preference utilisation rates were constantly above 90% of its eligible exports to the EU. In 2023, they stood at 90%, dropping from 97% a year earlier. All of the major export sections make good use of the preferential access to the EU market, with the slight exception of footwear, the second largest product group, with a preference utilisation rate of 78% in 2023.

The largest product sections under EBA (€ million, 2023)

Despite increasing exports and preference utilisation, the export sector remains highly concentrated on apparel and clothing exports. In 2023, this sector accounted for 74% of overall EU imports from Myanmar and 77% of preferential imports, suggesting limited export diversification. Nonetheless, in more recent years Myanmar substantially increased exports from a number of sectors, including food preparations. The second and third largest sectors, footwear and cereals & oilseeds, also increased above average between 2021 and 2023.

SUSTAINABLE DEVELOPMENT

The trade preferences under the GSP are conditional on the adherence to and the respect of fundamental human and labour rights as specified in the 15 fundamental conventions included in the GSP Regulation. In 2017, the EU started the "enhanced engagement" with Myanmar due to concerns with the country's overall adherence to human and labour rights. The February 2021 military coup has deeply influenced the modalities of the Enhanced Engagement process with Myanmar due to its broader impact on bilateral relations between the EU and the country. The general human rights situation in Myanmar and its significant deterioration since the military coup are of very serious concern to the EU. Prior to the military coup of 2021, key concerns related to the violence perpetrated by the Tatmadaw against the Rohingya community in Rakhine State in 2017 and the persistent discrimination of ethnic minorities, grave human rights violations and abuses amounting to crimes against humanity. These concerns have been exacerbated by the military coup, which has also led to significant deterioration of human rights and labour rights. No progress regarding the human rights and labour rights situation has been recorded. There is clear evidence of a significant deterioration of human and labour rights compared to the EU’s specific concerns formulated at the beginning of the enhanced engagement in 2017. Additional new concerns have arisen since the military coup. The unwillingness of the military regime to engage in constructive dialogue nationally and with the international community further clouds the outlook. The EU continues to consider additional targeted measures on individual and entities to promote progress in all areas of concern. The EU also follows political and humanitarian developments in Myanmar to adapt measures accordingly.

Core international conventions on human rights and labour standards

Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Not Ratified

  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on Persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Myanmar Bilateral Development Cooperation

DG INTPA

Access all info about EU-Myanmar relations on the International Partnerships website.