“It is the right thing to do to ensure that the people of Burma see rewards for a new way of doing business”.
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Washington has been seeking closer relations with a number of Asian countries, including Myanmar, India and Vietnam, in an effort to counter Beijing’s growing economic and military influence.
Myanmar cheered a USA promise to end sanctions on Thursday, with residents in its commercial capital clamouring for American brands while politicians and business moguls heralded a new era of transparency and trade.
Privately, US officials acknowledge Suu Kyi is working with some very tough political constraints and dare not push the military, or the public, too far or too fast.
“I think this will give the United States, our businesses, our nonprofit institutions greater incentive to invest and participate in what we hope will be an increasingly democratic and prosperous partner for us in the region”, said President Obama.
CNBC reveals that although lower tariffs with Myanmar will be re-instated, there still remains a blacklist of sorts that prevents some 100 companies from becoming involved with USA trade.
Caterpillar, a US heavy machine giant, has pushed since 2012 for fewer restrictions on activity in Myanmar.
Separately, a group of 46 non-governmental organizations circulated a letter they wrote to Obama on Monday expressing concern about reports of plans to ease sanctions on Myanmar while human rights abuses by the military and against Rohingya Muslims persisted.
The US imposed sanctions first in 1990 to weaken the regime of military power. Global Witness found ties between a Caterpillar dealership in Myanmar and a USA -blacklisted drug lord. However, Washington kept in place penalties on military-owned companies, as well as dozens of associates of the former military government.
Welcoming her for the first time since her historic election victory previous year, Obama announced a series of steps to coax the rapidly transforming southeast Asian country – also known as Burma – from decades of economic isolation.
She also stressed that Myanmar welcomes global investment to help promote strong, inclusive, and long-term economic growth.
Ms Suu Kyi called on the US Congress to eliminate all remaining sanctions against Myanmar.
USA companies are prohibited from doing business with these companies which are on the White House blacklist. US entities investing more that $500,000 in Myanmar must file paperwork every year on issues from human rights to anti-corruption measures.
President Obama announced his intention to terminate the “national emergency” order in respect to Burma -which has authorized sanctions since 1997-and said it would happen “soon”.
And crucial political changes have yet to be made, like amending Myanmar’s Constitution to remove the military’s control over 25 percent of parliamentary seats, its ability to dissolve parliament in times of national emergency and its control over the nation’s security, defense and border ministries.
Rights groups have also urged the U.S.to maintain the remaining sanctions, saying they are still needed to make sure more reforms are carried out and those in place become entrenched.
White House Press Secretary Josh Earnest said after the meeting with Obama that the administration was encouraged by Suu Ky’s comments on human rights. The US-ASEAN Business Council estimates 70% of Myanmar’s economy is still considered off-limits to American companies.
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Myanmar’s leader Aung San Suu Kyi steps from her vehicle as she arrives at the West Wing of the White House in Washington, Sept. 14, 2016, for a meeting with President Barack Obama in the Oval Office.
