Du Kaikai, Secretary of the Myanmar Settlement Association, said that due to the outbreak of the epidemic outbreak of the new crown pneumonia, some EU brands decided to partially cancel the purchase of clothing and clothing from Myanmar due to the reduction of sales.
Du Kaikailuo said that as the shortage of raw materials is solved, brand owners have suspended the purchase of garments, which is another challenge for garment factories. Due to the suspension of garment imports, the garment industry, including garment factories and workers, may face difficulties.
U Min Soe, chairman of the Myanmar Garment Association, said that because Myanmar has received Generalized System of Preferences (GSP) treatment from the EU, 65-70% of Myanmar’s clothing exports are based on the EU.
It is understood that the EU has provided GSP/EBA treatment to Myanmar since 2013. In 2018, the EU allowed 2.3 billion euros of goods imports from Myanmar. The EU said the preferential trade treatment allowed Myanmar to reduce tariffs worth 250 million euros.
It is reported that Myanmar mainly exports garments, shoes and rice to the EU. 80% of the garments produced in Myanmar are exported to the EU. Myanmar’s largest exports to the EU are garments, followed by rice.
