By ending most of the remaining sanctions Obama has cleared the way for them to invest and trade more freely with Myanmar’s fast-growing economy, and for companies there to do business with the U.S. The restoration of Generalized System of Preferences trade privileges, such as lower import tariffs, will open the way for more exports from Myanmar of garments and textiles, core products of its nascent manufacturing sector.
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US President Barack Obama listens to State Counsellor Daw Aung San Suu Kyi (left) deliver remarks to the media during their meeting in the Oval Office of the White House on September 14.
President Barack Obama, in the closing months of his presidency, and Hillary Clinton, in the final stretch of her presidential campaign, both heralded the visit by a democratic Myanmar leader as proof their engagement strategy (initiated in 2012 when Clinton was secretary of state) has paid off. Normalising ties with Myanmar (along with Washington’s lifting of its arms embargo on Vietnam) has been one of the few concrete diplomatic coups achieved under the overall USA strategy of “rebalancing” to Asia.
Myanmar was formerly known as Burma, a name the U.S. government still uses when referring to the country.
Obama commended Myanmar’s initiatives to address the longstanding concerns of all communities in Rakhine State, including the establishment of the Advisory Commission on Rakhine State chaired by former United Nations chief, Kofi Annan.
He said it was “the right thing to do” to ensure Burma benefits from its transition. Formerly the country was known as Burma.
“We are very interested in successful businesses” entering Myanmar, Suu Kyi said after the White House meeting.
Suu Kyi noted there are 135 ethnic groups in Myanmar and it is imperative they unite to achieve prosperity.
After almost 20 years of sanctions against Myanmar, U.S. President Barack Obama said it’s time for a change.
“It’s a good news story in an era when so often we see countries going the opposite direction”, he said, acknowledging that much work remains ahead.
The policy change will not affect a ban on weapons trading and will not normalize relations with the Burmese military, which ruled the country with an iron grip for more than four decades.
The announcement came following a White House meeting with Aung San Suu Kyi, a democracy advocate who spent years under house arrest before being elected state counselor.
Obama had moved in May to ease a broad array of sanctions that barred American citizens and companies from doing business with Myanmar, loosening restrictions on state-owned banks and entities. Some sanctions, including “a black list of at least 100 companies and individuals” with connections to the former military junta and the jade and ruby trade will continue.
While the latest lift was celebrated in the business world, rights groups cautioned Obama was forgoing crucial leverage over the military, which still holds a quarter of parliament seats and controls several powerful ministries.
Of particular concern is the country’s infamous jade industry, dominated by former junta members, their associates, and the military holding company Union of Myanmar Economic Holdings Limited.
“To lift sanctions prior to tangible change for suffering communities would be a disservice to those vulnerable peoples who deserve worldwide protection”, the letter stated, according to Reuters.
Delphine Schrank, journalist and author of the Rebel of Rangoon, said that the United States has been “phasing” out sanctions, and while the business community in Myanmar and the U.S. would like them removed entirely, there is an understanding within Aung San Suu Kyi’s party and the USA government that the “game is not over” yet in the transition process.
“This is what we are trying to do in Rakhine (State)”, she added.
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“We have reached at a point where people did not expect us to reach five years ago”, she said. The military still retains power in the government, in part through a constitution that effectively bars Suu Kyi from the presidency.
