Myanmar is one of Bangladesh’s closest neighbors with their historic connectivity going back centuries. The 271-km long Bangladesh-Myanmar border is very important for Bangladesh because of its strategic position, although at present the area is militarized due to Myanmar’s ongoing internal conflicts. Were this to be resolved, Bangladesh could develop routes via Myanmar to access China to the east, and other Southeast Asian countries to the south.

Myanmar can also use Bangladesh as a transportation route to reach markets such as Nepal, Bhutan, and India. Both Bangladesh and Myanmar are members of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), an organization comprising Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand that seeks to foster regional and economic cooperation.

Bangladesh is a South Asian country and can be used as an important hub to connect the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC) members. Myanmar too, as an ASEAN member, can access the SAARC free-trade bloc through Bangladesh. Thus, most of the Southeast Asian and South Asian countries would benefit economically with their trade ties getting a boost. From Indonesia, Malaysia, Brunei, Singapore, Philippines, Laos, Cambodia, Vietnam, Thailand and Myanmar to Bangladesh, India, Pakistan, Sri Lanka, Maldives, Nepal, Bhutan, and even Afghanistan, all states will be able to promote their maximum business interests.

There are other routes to bilateral cooperation. Myanmar is rich in natural resources such as tin, zinc, copper, tungsten, coal, marble, limestone, natural gas, and hydropower, etc. Myanmar could thus be a major source of energy for Bangladesh to ensure its energy security.

Furthermore, grains such as rice are produced in large quantities in Myanmar which can also be exported to Bangladesh. Rice production in the country accounts for approximately 43 percent of its total agricultural production, making it the seventh-largest producer of rice in the world. Out of Myanmar’s 67.6 million hectares of land, 12.8 million hectares are used for cultivation. In 2019 alone, Myanmar accounted for 13,300 million metric tons of milled rice production. Rice production in Myanmar is heavily dependent on the traditional methods of cultivation.

Agriculture, wood, hydropower, energy

Myanmar is also a large producer of agricultural products. During Bangladesh’s onion crisis in 2019 after India – the world’s second-largest producer of the bulb – discontinued exports following a low harvest, Myanmar provided onions to Bangladesh. Bangladesh understood the importance of bilateral trade with Myanmar at that time.

If Bangladesh improves its relations with Myanmar, its dependence on India could be reduced leading to an increase in trade with other countries in Southeast Asia.

Myanmar is also a major supplier of natural wood to the world. While it has traditionally eyed foreign investment in the oil and gas sector, the country has recently shifted its focus to attracting production-based investment. The country is well ahead in power generation following a good investment in hydropower generation. The tourism industry is also a promising sector of the country.

Through the import of gas and electricity, Bangladesh can obtain its future energy security. The two countries can jointly explore oil and gas fields in the Bay of Bengal. Bangladesh can also contribute to the development of Myanmar’s infrastructure.

Wide-ranging trade potential

Both countries have also resolved a dispute over their maritime borders through the International Court of Justice. As a result, the rights of Bangladesh have been established in an area spread over 1,11,000 square kilometers. Myanmar’s waters have also been properly identified.

The proposed construction of the Asian Highway, funded by the Asian Development Bank, can increase land connectivity between the two countries and increase trade in products such as fertilizers, plastics, cement, and furniture, etc.

Myanmar, which at present does have sophisticated manufacturing, can import electronics and pharmaceutical products that are readily produced from Bangladesh and benefit from the technology transfer.

China and ASEAN

China is now the biggest investor in Myanmar. China has invested over USD 3 billion since 2016-2017 fiscal. One of the highly strategic components of these investments is the USD 1.3 billion Kyaukphyu deep-sea port on Maday Island in the Rakhine state of western Myanmar. Once the port is completed, it can provide China’s Yunnan province a shortcut to the Indian Ocean.

Myanmar’s biggest economic advantage is it is a member of ASEAN, which controls about 24 percent of world trade with the share growing yearly. ASEAN’s trade relations with China, Japan, and South Korea are deepening following the increase in trade volume and the upcoming RCEP (Regional Comprehensive Economic Partnership, in which China and ASEAN are the two major stakeholders) agreement. ASEAN countries account for more than 50 percent of the total trade between themselves and these three countries.

Bangladesh is keen to assist Myanmar. Covid-19 vaccine distribution and counter-terrorism training are some areas for cooperation. The Rohingya refugee problem has, however, created some tension between the two countries, and finding a solution can serve the longer-term interests of Bangladesh and Myanmar. Myanmar should understand that it is a regional issue. The whole of South Asia and Southeast Asia may become unstable if the Rohingya issue is not resolved.

However, the two countries can also increase agricultural production through joint ventures. Apart from adopting joint investment projects, Bangladesh can increase imports of various agricultural products including pulses, spices, fish and rice.  Enhanced bilateral ties between Bangladesh and Myanmar could contribute to the growth of trade and investment relations with ASEAN and BIMSTEC countries. This will create an opening to solve the Rohingya problem and stop militant activities.

(The writer is a Dhaka, Bangladesh, based NGO activist and researcher-writer on international relations. The views expressed are personal. He can be contacted at pathikhasan1141@gmail.com)