The US eased some sanctions earlier this year to support political reform, but maintained most of its economic restrictions with an eye towards penalizing those it views as hampering Aung San Suu Kyi’s democratically elected government.
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Business advisory BMI Research wrote in May that USA businesses remained reluctant to enter the local market after the incremental easing of sanctions, given the difficulty of “steering clear of the military and related tycoons” on the SDN list still in control of an outsized share of the national economy.
And yesterday, as she began her first trip to the U.S. as Myanmar’s leader, Ms Suu Kyi will be accountable for what her government has accomplished, and what it has not, since she took office six months ago.
“It is the right thing to do to ensure the people of Burma see rewards from a new way of doing business, and a new government”, he said.
“Soon”, Obama said when asked when these sanctions would be lifted.
“If the issue was growing Burma’s economy, there are plenty of other ways to do that without pulling off all of these important restrictions, which have given Suu Kyi much-needed leverage over the military, with whom she still has battles ahead”, said John Sifton, the deputy Washington director of Human Rights Watch.
Senator Bob Corker, chairman of the U.S. Senate Foreign Relations Committee, criticized what he described as Suu Kyi’s “dismissive” reaction to concerns he had raised about her country’s record on human trafficking.
A full scrapping of sanctions is only likely to come when the constitution is changed to allow civilian control of the military and rules that guaranteed a quarter of legislative seats of officers. Penalties meant to block the drug trade and to bar military trade with North Korea would still apply, as would a visa ban barring some former and current members of the military from traveling to the U.S.
The official and aides spoke on condition of anonymity as they are not authorized to discuss the matter ahead of Obama’s formal announcement.
After the meeting between the two leaders, White House spokesman Josh Earnest pushed back against allegations that the U.S. would lose crucial leverage to press the Burmese government on human rights abuses if it removed the sanctions. Massive illegal trade in goods including jade and timber continues, as does civil war with many ethnic minorities. Thousands of Rohingya Muslims have been either targeted by sectarian violence or have attempted to flee on boats to Thailand and Malaysia. The military and its associates still have huge stakes in the economy.
The US first imposed economic sanctions on Myanmar in 1990 in an attempt to weaken the ruling military regime and its business interests. It estimates the industry is worth almost half of the nation’s economic output.
Suu Kyi’s visit to the White House signals another significant step in Burma’s worldwide rehabilitation and her transition from democratic idol to politician.
Suu Kyi concurred it was time to remove all the sanctions that she said had hurt the country economically as it was now in a position to open up to investment.
The White House also notified Congress on Wednesday it would be reinstating in November trade benefits to Myanmar because of its progress on workers’ rights.
That may be tacit acknowledgement that the White House believes Suu Kyi – like her father, a military officer who steered Burma toward independence from Britain – can best navigate some perilous political shoals.
At the same time, a number of business entities associated with Mr. Steven Law were belatedly added to the US Treasury’s list of Specially Designated Nationals.
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Some policymakers worry that lifting sanctions completely could weaken United States leverage and perhaps let the military off the hook. Lawmakers engaged on Myanmar policy are deeply suspicious about opening up engagement between the USA and Myanmar militaries.
