“Domestically, it will also mean more taxes for the government”, he added.
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Some sanctions against Myanmar will remain in place, including a “blacklist” of roughly 100 companies and individuals with links to the former military junta, as well as on the country’s illicit jade and ruby trade. For the United States, rivalry with China has given considerable momentum (and rare cross-party support) to USA engagement.
In part because of the progress that we’ve seen over the last several months, I indicated, after consulting with Daw Suu, that the United States is now prepared to lift sanctions that we have imposed on Burma for quite some time. USA officials said 111 Myanmar individuals and companies will be dropped from a Treasury blacklist and restrictions will be lifted on new investment with military and on imports of rubies and jade.
Soon after the changes, US Secretary of State John Kerry told an audience in Nay Pyi Taw that further sanctions relief would be tied to continued democratisation in Myanmar, including reform of the military-drafted 2008 Constitution. The sanctions did little to stem the rise of crony capitalism, but non-engagement did provide useful political and economic opportunities for neighbouring countries to bolster their influence, particularly China.
But Soe Naung Win, who owns a mobile phone shop in Myanmar’s bustling economic capital of Yangon, had more immediate concerns.
Though many companies will now enjoy lower tariffs, there are some sanctions which remain in place. So-called “smart sanctions” (US Treasury-sanctioned bans on business dealings with specific conglomerates and businessmen) are targeted in nature but operate more as blunt tools in practice, dampening overall US business appetite.
The decision is not just a matter of promoting United States businesses in Myanmar.
A press release from the US Department of State highlighted the country’s desire to “support the democratic aspirations of the people of Burma, and work closely with the government to develop new policies to address challenges, including the disproportionate role of the military in the economy and the need for responsible and transparent investment and business practices, in particular in the jadeite and gemstones sector”.
Corker has been a leading advocate in the Senate against global human trafficking. Now in power, her government is eager to show it can deliver economic dividends.
The treatment of Rohingya Muslims also “remains the great great sticking point internationally for Myanmar”, Schrank said, noting that Aung San Suu Kyi has “put her name on an initiative to resolve a lot of these problems, including the problem with the Rohingya”.
Since then, her National League for Democracy (NLD) has won a sweeping election victory, and the military seems to be retreating from political life.
Some human rights leaders say it is too soon to lift sanctions on Myanmar because the government’s human rights record has been mixed, particularly with regard to the rights of religious minorities and its indifference to the suffering of the Rohingya.
“We’ll want to hear from her directly about how she is viewing our sanctions regime”, said Rhodes. The public concession has been a long time coming, and undoubtedly delivers an enormous favour to the Obama administration.
Some policymakers worry lifting sanctions completely could weaken American leverage and may let the military off the hook.
“Lifting restrictions before the new government’s reforms have borne fruit effectively invites U.S. companies to do business with some of the worst figures from the country’s past”. “By lifting sanctions, there will be better-quality import products”.
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Congressional aides said that Suu Kyi requested the removal of the national emergency with respect to Myanmar – the executive order authorizing sanctions that has been renewed annually by USA presidents for two decades.
