VZCZCXRO7748
RR RUEHCHI RUEHDT RUEHHM RUEHNH RUEHTRO
DE RUEHGO #0118/01 0450610
ZNR UUUUU ZZH
R 140610Z FEB 08
FM AMEMBASSY RANGOON
TO RUEHC/SECSTATE WASHDC 7187
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 1730
RUEHBY/AMEMBASSY CANBERRA 0907
RUEHKA/AMEMBASSY DHAKA 4767
RUEHLO/AMEMBASSY LONDON 2008
RUEHNE/AMEMBASSY NEW DELHI 4467
RUEHUL/AMEMBASSY SEOUL 7998
RUEHTC/AMEMBASSY THE HAGUE 0662
RUEHKO/AMEMBASSY TOKYO 5559
RUEHCN/AMCONSUL CHENGDU 1352
RUEHCHI/AMCONSUL CHIANG MAI 1385
RUEHCI/AMCONSUL KOLKATA 0219
RUEATRS/DEPT OF TREASURY WASHDC
RHHMUNA/CDR USPACOM HONOLULU HI
RUEHGV/USMISSION GENEVA 3512
RHEHNSC/NSC WASHDC
RUCNDT/USMISSION USUN NEW YORK 1339
RUEKJCS/SECDEF WASHDC
RUEHBS/USEU BRUSSELS
RUEKJCS/JOINT STAFF WASHDC

UNCLAS SECTION 01 OF 03 RANGOON 000118 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, EB/TRA 
PACOM FOR FPA 
TREASURY FOR OASIA:SCHUN 
 
E.O. 12958:N/A 
TAGS: ECON ETRD EINV PREL BM
SUBJECT: 2007 BURMESE IMPORTS AND EXPORTS RISE DRAMATICALLY 
 
 
RANGOON 00000118  001.2 OF 003 
 
 
¶1.  (SBU)  Summary.  The Burmese Government recorded a substantial 
increase in both exports and imports in 2007 compared to previous 
years.  Bolstered by a 71 percent increase in the value of natural 
gas exports, Burmese overall exports rose to $5.9 billion in 2007, a 
44.1 percent increase over 2006 levels.  Burmese imports also 
increased by 25 percent, from $2.2 billion in 2006 to $2.7 billion. 
While oil and diesel products remain Burma's largest import, imports 
of cars increased a dramatic 242 percent during the past year. 
These trade figures do not include border trade.  Thailand remains 
Burma's largest official trading partner, followed by India, Hong 
Kong, and China.  Most Burmese imports originate in Singapore, as 
traders use Singaporean companies to ship products from the U.S., 
Europe, and Australia.  End Summary. 
 
Emphasis on Trade and Exports 
----------------------------- 
 
¶2.  (SBU)  We spoke to researchers from local consulting company 
Business Information Group (BIG) about Burma's trade figures.  BIG 
officials explained that the Burmese Central Statistical Office 
compiles trade figures from Customs, as well as incorporates 
import/export information listed on trade licenses issued by the 
Ministry of Trade.  This combination results in overinflated 
figures, they told us.  Instead, BIG uses only Customs data when 
compiling its trade statistics.  It does not include border trade, 
which often does not go through Customs inspection, in its figures. 
 
 
--------------------------------------------- ------- 
         Burma Import/Export Figures, 2005-2007 
                  Value in USD 
--------------------------------------------- ------- 
Year      Exports      Percent    Imports    Percent 
                       Change                Change 
--------------------------------------------- ------- 
2005    3,526,596,300   --      1,937,053,055  -- 
2006    4,122,772,276   16.9    2,236,682,990  15.5 
2007    5,939,407,654   44.1    2,788,692,103  24.7 
--------------------------------------------- ------- 
Source:  BIG, 2008 
 
¶3.  (SBU)  2007 was a record year for Burmese trade, totaling more 
than $8.7 billion.  According to BIG, Burma's exports rose by 44.1 
percent in 2007, up from $4.1 billion in 2006 to $5.9 billion in 
¶2007.  Exports of natural resources, including natural gas, timber, 
and gems, accounted for the majority of overall exports.  Natural 
gas exports alone were worth $2.8 billion, an increase of 78 percent 
over 2006 figures due to higher world prices.  Exports of 
agricultural products, including rice, onions, garlic, and beans and 
pulses, also increased in 2007, up approximately 41 percent from 
2006 figures.  The regime also earned more revenues from sales and 
exports of precious and semi-precious gems; exports increased 38 
percent, up from $406 million in 2006 to $561.6 million in 2007. 
 
--------------------------------------------- ------ 
            Burma's Exports, 2006-2007 
                 Value in USD 
--------------------------------------------- ------- 
Category      2006 Value      2007 Value    Percent 
                                            Change 
--------------------------------------------- ------- 
Natural Gas   1,515,520,847   2,703,165,496    78.4 
Ag Products     733,843,272   1,032,896,547    40.8 
Timber Prod.    549,743,572     572,913,157     4.2 
Gems            406,128,702     561,637,794    38.3 
Textile/Appl    272,584,119     286,802,745     5.2 
 
RANGOON 00000118  002.2 OF 003 
 
 
Marine Prod.    259,597,321     366,308,384    41.1 
Minerals        126,573,378      94,084,869   -25.7 
Other           258,781,165     321,699,662    24.3 
--------------------------------------------- ------- 
Total         4,122,772,376   5,939,407,654    44.1 
--------------------------------------------- ------- 
Source: BIG, 2008 
 
¶4.  (SBU)  Approximately half of Burma's exports went to Thailand, 
which is the main importer of Burmese natural gas.  Burmese exports 
to Thailand rose 66 percent in 2007.  Exports to Burma's top five 
export destinations - Thailand, India, Hong Kong, China, and 
Singapore - increased overall in 2007, although exports to China 
rose a significant 84 percent last year.  BIG officials predicted 
that China will become one of Burma's top three trading partners by 
2010, due primarily to future Burmese exports of natural gas from 
the offshore Shwe Gas Fields to China. 
 
--------------------------------------------- ------- 
         Burma's Export Partners, 2006-2007 
                  Value in USD 
--------------------------------------------- ------- 
Country        Exports       Exports         Percent 
                2006           2007          Change 
--------------------------------------------- ------- 
Thailand    1,683,451,981   2,804,260,801      66.6 
India         669,632,429     743,517,185      11.0 
Hong Kong     422,839,597     575,935,831      36.2 
China         257,759,570     475,579,468      84.5 
Singapore     189,946,153     347,141,440      82.8 
Japan         157,643,070     186,707,607      18.4 
Indonesia      90,559,628      88,125,977    -  2.7 
Malaysia       82,383,382     113,509,099      37.8 
Germany        76,584,272      67,812,545    - 11.5 
Other         491,972,295     536,817,701       9.1 
--------------------------------------------- ------- 
Total       4,122,772,376   5,939,407,654      44.1 
--------------------------------------------- ------- 
Source:  BIG, 2008 
 
Rising Imports 
-------------- 
 
¶5.  (SBU) Burmese imports in 2007 also increased substantially, by 
24.7 percent over 2006 levels.  Imports of oil and diesel fuel, 
primarily from Malaysia and Indonesia, continued to account for the 
majority of imports in 2007, again due primarily to higher world 
prices.  Customs officials also noted a marked increase in the 
import of new cars, up 242 percent since 2006.  The GOB tightly 
restricts the imports of new cars, granting licenses to Embassies, 
NGOs, select businesses, and those close to the regime.  Many of the 
new cars imported in 2007 belong to regime cronies who built the new 
capital, Nay Pyi Taw.  Instead of paying them in cash, the regime 
issued car import licenses, worth an estimated $200,000 each. 
 
--------------------------------------------- ------- 
            Burma's Imports, 2006-2007 
                  Value in USD 
--------------------------------------------- ------- 
Product        2006 Value       2007 Value   Percent 
                                             Change 
--------------------------------------------- ------- 
Oil/Diesel    498,383,556      471,960,839    - 5.3 
Machine Parts 242,304,396      243,894,103      0.7 
Textile       220,392,058      275,915,696     25.2 
Steel/Iron    137,215,212      177,684,589     29.5 
 
RANGOON 00000118  003.2 OF 003 
 
 
Food/Beverage  89,204,014      107,582,695     20.6 
Medicine       86,712,805      112,013,679     29.2 
Plastic        85,992,859      139,991,354     62.8 
Car            56,304,268      192,746,223    242.3 
Palm Oil       54,304,268      251,242,458    362.3 
Chemicals      28,113,850       30,922,209     10.0 
Tires          24,308,795       43,484,500     78.8 
Computers      22,773,852       12,194,900    -46.5 
Other         690,436,772      792,057,859     14.7 
--------------------------------------------- ------- 
Total       2,236,682,990    2,788,692,103     24.7 
--------------------------------------------- ------- 
Source:  BIG, 2008 
 
¶6.  (SBU) Most of Burma's imports came from Singapore ($811 
million), as traders used Singaporean companies to bring in products 
from the U.S., Europe, and Australia.  China was second, with $564 
million in exports to Burma, followed by Japan ($238 million) and 
Thailand ($227 million). 
 
¶7.  (SBU) According to business contacts, the regime in 2007 pledged 
to make it easier for companies to trade by improving the 
import/export license process.  Since 2005, companies had to travel 
to Nay Pyi Taw to apply for individual import and export licenses, a 
process that took anywhere from two weeks to a month, depending on 
the company and the products for trade.  In October 2007, the GOB 
introduced a one-stop service in Rangoon and Mandalay for 
import/export licenses for marine products and medicines. 
Businessmen tell us that for these products, companies may obtain 
licenses in as little as two days. 
 
Comment 
------- 
 
¶8.  (SBU) Burma's higher export earnings are due primarily to higher 
world prices for its natural resources.  Sadly, the Burmese people 
do not benefit from the increased revenues.  Instead, Than Shwe and 
his senior generals pocket most of the revenues, while Burmese 
people find it increasingly difficult to feed their families.  As 
long as world demand for Burma's natural resources remains high, 
Than Shwe will enjoy an ample income and will use the country's 
resources to gain political support from his neighbors. 
 
 
 
 
VILLAROSA