Japan, Myanmar start investment treaty talks
2012-05-21 17:31:29
Japan said on Monday it is in talks with Myanmar on an investment treaty, with Tokyo eyeing terms to help its companies establish themselves in the isolated nation as it embraces democratic reforms.
A second round of the negotiations, which began in February, will start in Myanmar's capital Naypyidaw on Wednesday between officials from the countries' foreign and trade ministries, a Japanese trade ministry official said.
"We hope to support Japanese firms' investment in Myanmar" by preparing investment terms that are non-discriminatory to foreign firms, he told AFP.
"We hope to seal a deal by later this year, hopefully by the ASEAN (Association of Southeast Asian Nations) summit in November," he added.
The move comes as Myanmar prepares for an economic resurgence following the end of decades of military rule, which in turn is attracting attention from firms all over Asia seeking a piece of the potentially lucrative market.
Investment rules for foreign firms are hazy in Myanmar, said Yoshihiro Araki, a researcher at the Japan External Trade Organisation.
"I don't know of any laws that clearly stipulate rules such as domestic procurement and technological transfer, so it is difficult for companies to pour in a huge amount of money without an investment treaty," he added.
Ministop, one of Japan's convenience store chains, has struck a deal with Myanmar's largest retailer City Mart "on a possible business tie-up to open convenience stores in Myanmar," a company spokesman said Monday.
Tokyo has said it would forgive about $3.7 billion of Myanmar's debt and resume suspended aid as Japanese firms continue a push into the country, formerly known as Burma.
Myanmar has largely untapped natural resources, including minerals, metals and fossil fuels, and a potentially huge tourism sector, although challenges abound with the rule of law weakly enforced and a major infrastructure deficit.
The United States last week eased investment sanctions on Myanmar and named the first US ambassador to the country in more than two decades.
Group of Eight leaders gathered for talks in the United States at the weekend praised the "remarkable efforts" of President Thein Sein and pro-democracy leader Aung San Suu Kyi in delivering democratic reforms.