Doug Barry is a Senior International Trade Specialist in the International Trade Administration’s Global Knowledge Center.
After decades of political and economic isolation, Burma is slowly opening to the world. The U.S. government has issued a general license making it easier for American companies to do business there.
While a trade relationship formalizes between the United States and Burma, the International Trade Administration office in Bangkok,
an hour’s flight away, will assist U.S. companies with market
intelligence and business matchmaking in Burma. Senior Commercial
Service Officer Mike McGee
recently met with U.S. business leaders interested in exporting to
Burma. While in town, he talked with International Trade Specialist Doug
Barry of the Global Knowledge Center.
Barry: What are opportunities that you see now in Burma for U.S. companies?
McGee: Burma has a wealth of needs. After 50 years of
stagnation and isolation, pretty much everything that the country and
the people desire is in need of updating or introducing. So you have a
huge opportunity there for everything from consumer goods to
infrastructure to medical equipment. There’s almost no sector that does
not have tremendous need for introducing new companies and products into
the market.
Barry: What are the major challenges of doing business there?
McGee: You can imagine the challenges with a country that has
been of off the map, so to speak, for 50-plus years. There are a lot of
challenges in the regulatory and legal framework. There are so many
areas where the legislation is 50 to 100 years old, and for a better
part of the last 40, 50 years, it hasn’t been enforced. Updating these
statutes regarding introducing a product into the country, getting it
registered, and getting protection for intellectual rights, are all
challenges that we’re doing our best to try to support.
Barry: It sounds like an uphill climb.
McGee: The good side is that in many ways Burma is a wealthy
country; it is very rich in resources. It is geographically located in
one of the most important places in the world, and will have a huge
bearing for many years in the Southeast Asia and East Asia Pacific
regions. It is, in many ways, the linchpin for so many things.
Barry: The opportunity to get in on the ground floor in this market can be a pretty exciting prospect for U.S. companies, right?
McGee: Yes. We have been advising companies that are
interested in this market to identify distributors that can help them
introduce their products into the country – and most of them are doing
this. One of the big sanction difficulties was financial services. With
the recent easing of sanctions by the U.S. government, financial
services are now available and U.S. companies can get paid.
Barry: What about distributors?
McGee: Finding the right distributor, finding the right
representative for businesses is a little bit of a challenge, but we’re
doing our best to try to provide some of the services that people need
in order to find the right kind of partner.
The biggest element that we have going is the due diligence process
because there still is a fairly sizeable list of people who are
prohibited from doing business with us. It’s called the Specially Designated Nationals List
managed by the U.S. Treasury Department. We offer our clients an
International Company Profile service that allows us to ensure potential
Burmese partners are credible and have the appropriate abilities and
experience.
Our goal is to help U.S. companies steer clear of partners that may end up causing more problems than assistance.
Barry: What’s the private sector like now? We hear a lot
about businesses that are run by the Burmese military. Then there are
people of Indian ancestry. There are ethnic Burmese, as well as other
ethnic groups.
McGee: The Burmese are a very resourceful people. While there
were many sanctions that inhibited doing business with the country,
exports from the United States were only sanctioned in certain elements.
There’s a lot of effort on the part of our embassy and the U.S.
government in general to persuade the Burmese military to get out of the
formal economy because they do manage a huge chunk of it. But there are
a lot of other areas where there are businesspeople who are looking for
the best products at the best price and the quality that the Burmese
people need and want.
Barry: How is the U.S. perceived?
McGee: There’s the highest level of receptivity for U.S.
products. We have a very, very positive image in the country. So you’re
finding people – whether they’re ethnic Burmese, one of the minority
groups, or from the Indian population – they are all seeking the best
product lines and want to represent U.S. companies as quickly as
possible.
Barry: What was it like for you on your first visit there? Plane lands, door opens…
McGee: It was a lot more vibrant than I expected. There is a great sense of pride among the Burmese people.
However, nearly 75-80 percent of the country is without electricity.
Large portions of the nation’s agricultural farms are worked with no
machinery. There are beautiful sections of the country – like Bagan in
the north – that are ripe for travel and tourism development. The
opportunities for U.S. companies to showcase their products and services
are limitless.
Barry: What’s your advice for U.S. small- and medium-sized
enterprises? Wait a while until things play out and settle down a bit?
Or cautiously enter? Or forget about it entirely?
McGee: Begin to learn about it. Visit our website, export.gov/thailand.
There’s a section on Burma. We continually update a database that
provides links to resources and information our team has gathered about
doing business in Burma. You can contact my team through the website to
learn about the market, its opportunities, and how to get started. We
want to work with U.S. companies to be able to give them the advice from
our experience and to make sure that their business is successful and
that they don’t run afoul of something problematic.
Barry: Can people contact you directly?
McGee: We are 12 time zones ahead of Washington, and so email me – that’s the best thing to do.
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