The European Union formally reinstates preferential trade terms for Myanmar on Friday following the country's efforts to improve the political situation as well as its labor and social systems.

"Trade is fundamental to supporting political stability and the EU's trade preferences mean we will give this reform-minded country priority access to the world's largest market," said the EU's trade commissioner Karel De Gucht.

Exports from Myanmar to the 28-nation bloc last year totaled a mere 164 million euros ($214.93 million), largely made up of clothing.

The EU will also help firms to make use of the new opportunities, De Gucht said.

Myanmar's membership of the EU's preferential scheme was withdrawn in 1997 due to concerns over the use of forced labor.

AFP