The jade trade is worth billions of dollars that flow through tangled channels to shady interests, including illicit gangs and corrupt military officials.
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At the invitation of President Barack Obama, Daw Aung San Suu Kyi, State Counsellor of the Republic of the Union of Myanmar, is on an official visit to Washington, D.C.in September 2016. “And because, in part of advocacy by the United States and others in the worldwide community, but more importantly, because of the courage and strength and resilience of the Burmese people, what we’ve seen over the last several years is a transition to elections…”
US economic trade sanctions on the once-isolated Southeast Asian nation of Myanmar are being eased to support the country’s transition toward democracy and a market economy. However, Washington kept in place penalties on military-owned companies, as well as dozens of associates of the former military government.
“As a result of the SDN list and major investment annual reporting requirements, American companies are at a disadvantage when it comes to speed and cost of investing in Myanmar”, he said, noting that any further easing by the USA government would be “gratefully accepted”.
“In Myanmar, there are no businesses which are not related to cronies or military”.
Obama did not say when he would rescind an executive order underpinning broader sanctions that declares Myanmar a “national emergency”.
Coca-Cola was left red-faced previous year when watchdog Global Witness discovered its local partner was linked to a sanctioned military holding company, while a dealer for machinery giant Caterpillar had ties to jade companies controlled by a major drug lord.
Suu Kyi applauded the decision, inviting American companies and investors to come to her country and “make profits”.
Her government is believed to support extension of U.S. duty-free benefits to help spur still meager trade with the U.S. Two-way goods trade with Myanmar totaled just $227 million in 2015, and U.S. companies account for less than 1 percent of total foreign investment. As the generals loosened their grip in recent years, the US did likewise.
Furthermore, the leaders announced a partnership whereby, after dialogue on the ministerial level, the two countries would broaden their cooperation across a range of sectors, read the statement.
Suu Kyi is also expected to meet with Vice President Joe Biden, Secretary of State John Kerry and senior members of Congress.
Some restrictions remain in place.
Penalties meant to block the drug trade and bar military trade with North Korea via Myanmar would still apply. “This is what we are trying to do in Rakhine (State)”, she added. U.S. President George W. Bush imposed new sanctions, banning the import of products from Myanmar and the export of financial services, placing a freeze on the assets of certain Burmese financial institutions, and extending visa restrictions on Burmese officials.
In 1997, the USA government prohibited new investment in Myanmar by US persons or entities.
Deputy National Security Adviser Ben Rhodes said the USA wants to balance concerns about the “outsized” role of the military in politics and the economy without impeding growth and offering a “democratic dividend” for an impoverished population.
Myanmar’s transition still faces imposing obstacles.
The US imposed sanctions first in 1990 to weaken the regime of military power.
“Before it was very much encouraging her (Suu Kyi) and supporting her in her role as someone pushing for increased democracy”.
She said top priority was national reconciliation. “Its record on human rights has really been mixed”.
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But human rights groups say there are powerful reasons for retaining sanctions.
