The Obama administration on Tuesday announced an easing of some USA economic sanctions on Myanmar, a move created to foster greater trade ties with the once-isolated Southeast Asian nation that is undergoing a fitful democratic transition.
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The U.S., however, is keeping in place restrictions on trade and investment by Myanmar’s powerful military, which ruled the country for a half-century until 2011 when the army-backed Union Solidarity and Development Party (USDP) came into power.
The U.S. Treasury Department said Tuesday it removed seven state enterprises and three state-owned banks from its economic blacklist. In November a year ago, Myanmar held a landmark general election that swept the party led by long- time political detainee Aung San Suu Kyi into power. But the military retains political clout and major economic interests.
“More broadly, these actions demonstrate the Administration’s support for continued political reforms and broad-based economic growth in Burma, while also maintaining sanctions pressure where needed, and providing the private sector with further clarity to effectively engage in Burma”, OFAC said. The U.S. also prohibits arms trading and business with companies majority-owned by the military.
“Renewing the sanctions authority while easing some sanctions sends a clear message that the United States continues to stand in support of true democratic reform in Burma”, the lawmakers said in a statement.
Sen. Ben Cardin (D., Md.), who sits on the Foreign Relations Committee, said he supported the broad renewal of sanctions because Myanmar’s “future remains uncertain”, despite political and economic progress.
Since many prominent Myanmar businessmen remain sanctioned, businesses “will still have to do significant due diligence and will still have to make sure they aren’t engaged with many of these major players”, she said, all of which has served as major impediments to entry.
Under the current, junta-era constitution, the military controls three key government ministries and 25 percent of parliamentary seats. Rights groups say stateless Rohingya Muslims and other minorities still face repression.
Six companies identified as owned 50 percent or more by Asia World or Steven Law were named as Asia Mega Link Co, Asia Mega Link Services Co, Pioneer Aerodrome Services Co, Green Asia Services Co, Global World Insurance Co, and Shwe Nar Wah Co. Ltd, a conglomerate he heads.
OFAC also lifted a ban on most transactions with Burmese financial institutions and authorized some personal transactions, like paying rent and other living expenses, for US persons living in Burma.
Asia World port terminal seen in Yangon December 8, 2015.
Dealings are now permitted with all Myanmar banks which have either been removed from the SDN list or been covered by waivers.
“The transition is not yet complete”, a senior administration official said, adding that there remain “spoilers” in Myanmar who seek to undo the country’s move to democracy.
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