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NEWS - Tiny Indo-Myanmar Free Trade



Subject: NEWS - Tiny Indo-Myanmar Free Trade Zone Thrives

Tiny Indo-Myanmar Free Trade Zone Thrives

               Reuters
               25-MAY-99

               NAMPHALONG, Myanmar, May 26 (Reuters) - Every day,
               buses and cars from the northeastern Indian city of
Imphal
               labour up the hilly, final stretch of India's National
Highway
               39 to the Myanmar border. 

               They drive 110 km (68 miles) to take hundreds of traders
               and shoppers to Namphalong market on the Myanmar side
               of the free trade zone straddling the two countries. 

               There, they can buy everything from colourful plastic
bowls
               and cans of Coca-Cola made in Thailand to car batteries
               and pocket radios. 

               "The free trade zone is very important for Manipur
because it
               is the state's largest trading centre," says P.C.
Lawmkunga,
               commissioner of industries and commerce for the state of
               Manipur. 

               "The prices there are very reasonable. Woollen blankets,
for
               example, are much cheaper than in Delhi." 

               Between December 1995 and September 1997, about 991
               million rupees ($23.2 million) worth of goods were traded
               here, with the balance tilting slightly in favour of
Indian
               exports. 

               "There is only one gate now. We are planning to open a
               second gate at the border in three or four months to
increase
               trade," Lawmkunga said. 

               CLOSER TO BANGKOK THAN NEW DELHI 

               The remote state of Manipur is one of the northeastern
               "seven sister" states linked to the rest of India by a
narrow
               strip of land, sandwiched between Bangladesh and Bhutan. 

               Manipur, with a population of about two million, is
closer to
               Bangkok than it is to New Delhi, some 1,400 km (870
miles)
               away. 

               Most of the population engages in agriculture and the
state
               can feed itself. But economic development in landlocked
               Manipur has lagged behind that of most other states
               because of inadequate communications, difficult terrain
and

               political unrest. 

               Shops in the state capital of Imphal stock all the usual
               household necessities, such as soap and toothpaste, but
it
               takes time for new products to come to town. 

               "We basically have everything, but sometimes when
supplies
               of things which are not in great demand run out, it takes
a
               while for the next batch to come," says one Imphal
               shopkeeper. 

               The railroad does not come to Manipur, and goods such as
               water storage tanks and Indian commodities arrive
strapped
               on top of buses. 

               The vehicles are escorted by army convoys as the highway
               from the neighbouring state of Assam winds its way
through
               hills infested with separatist militants. 

               ASIAN GOODS GALORE 

               "I come to Namphalong three times a month to stock up on
               food," says Bila Sini Devi, a trader from southern
Manipur.
               "There is more variety here than in Imphal and it's much
               cheaper." 

               India and Myanmar signed an agreement to form a free
trade
               zone in 1994. One hundred Indian rupees is equivalent to
               700 kyat at the border market, which is open from dawn to
               dusk. 

               Most of India's exports to Myanmar are medicines, spices
               and textiles, while its imports are mainly food,
electronic
               goods and garments. 

               Dozens of tiny, crammed stalls managed by Myanmar
               nationals and Nepali merchants spread out under a tin
roof
               near the border checkpost. Numerous cafes have also
               sprung up in one corner of the market to cater to hungry
               vendors and buyers. 

               "The most popular item is this pocket radio," says one
               Myanmar merchant, holding up a cigarette box-sized radio
               marked with the brand name "Sunny." 

               "They are 230 rupees ($5.42) each, come in boxes of 50
and
               on a good day, I sell a couple of boxes to Indian
traders," he
               says. "Most of the business is done in bulk." 

               Around him there are clean, new boxes of television sets,
car
               stereos and tape recorders. 

               "Most of the things come from China, but some come from
               Singapore and Malaysia," he says. 

               The goods, which move from Namphalong to Moreh, the
               town on the Indian side of the border, are then sold at a
               clutch of shops in Imphal known as the Moreh bazaar. 

               Locals say goods at the Imphal market are about 10
percent
               cheaper than those sold in New Delhi or other parts of
India. 

               TRADE CENTRE SHIFTING 

               Long before the Namphalong market opened, Moreh was the
               centre of border trade. Everything, from silk thread for
               Manipur's many handlooms to high-quality heroin, was

               smuggled through the town. 

               People from all over India flocked to the town to make
their
               fortunes, giving birth to numerous hotels and
restaurants. 

               Many Tamil traders from southern India, wearing
               blue-checked sarongs and thongs, still saunter up and
down
               the dusty, main street. But they say business is not what
it
               used to be. 

               Shops are closing down and Moreh is changing from an
               unofficial trading centre into a bus depot for shoppers. 

               "Now there are only about 3,500 Tamils in Moreh. There
               used to be double the number before the border opened,"
               says Kambo Madrasi, a Tamil cigarette shop owner.
               "Business is getting worse day by day. Maybe it's time to
go
               home." 

               ($1 - 42.4 rupees)