WASHINGTON – The White House has formally eased sanctions on Burma, signalling support for its recent governmental reforms and officially opening the door to American investment in the deeply impoverished Asian nation.
Secretary of state Hillary Clinton announced plans in the spring for a “targeted easing” of sanctions to allow American dollars to enter the country, for decades one of the most authoritarian in the world. American businesses will now be able to move forward with investment.
The US still will not allow investment in entities owned by Burma’s armed forces or ministry of defence. It also bolstered its ability to sanction “those who undermine the reform process, engage in human rights abuses, contribute to ethnic conflict or participate in military trade with North Korea”.
It will also require American companies pouring money into Burma to make disclosures about their activities.
“Individuals who continue to engage in abusive, corrupt or destabilising behaviour going forward will not reap the rewards of reform,” President Barack Obama said, while praising the country’s progress. The announcement came on the day Derek J Mitchell, the first US ambassador to Burma since 1990, arrived at his posting.
Relations between the US and Burma have thawed remarkably since the election of President Thein Sein last year. The government has released some political prisoners and opened peace talks with opposition groups, among other changes.
While the administration has praised the changes in Burma, Mr Obama said the United States “remains deeply concerned about the lack of transparency in Burma’s investment environment and the military’s role in the economy”, using an alternative name for the country.
The United States will continue to block businesses or individuals from making transactions with any “specially designated nationals” or businesses that they control – allowing Washington, for example, to stop money from flowing to groups disrupting the reform process. Mr Obama also created a new power for the government to impose “blocking sanctions” on any individual threatening peace in Burma.
Canada, Australia and the European Union have also eased sanctions. Many American businesses have pushed for the quick relaxation of sanctions, so that US companies would not be left out of a possible investment boom.
Burma is the second poorest country in Asia on a per-capita basis, richer only than war-torn Afghanistan. – (New York Times)