US eases sanctions on Myanmar
WASHINGTON - The United States eased some sanctions on Myanmar on Tuesday to promote trade with the country and enhance economic opportunities for the country. Yet, it retained other measures to ensure further reforms.
In a statement released by the Treasury Department, the amendments were intended to support trade with Myanmar; facilitate the movement of goods within the country; allow certain transactions related to US individuals residing in Myanmar; and allow most transactions involving designated financial institutions. Seven state-owned enterprises and three state-owned banks were also removed from the blacklist.
“Burma reached a historic milestone over the last year by holding competitive elections and peacefully transitioning to a democratically-elected government. Our actions today demonstrate our strong support for this political and economic progress while continuing to pressure designated persons in Burma to change their behavior,” said Adam J Szubin, Acting Under Secretary for Terrorism and Financial Intelligence. “These steps will help to facilitate trade with non-sanctioned businesses and, in turn, help the people and Government of Burma achieve a more inclusive and prosperous future.”
However, it said certain sanctions remain in place, to incentivise further democratic reforms and maintain pressure on targeted individuals and entities and the military.
Six companies owned 50 per cent or more by Steven Law or the company he controls, Asia World Co Ltd, are added into the blacklist.
These actions demonstrate the US government's support for continued political reforms and broad-based economic growth in Myanmar, while also maintaining sanctions pressure where needed, and providing the private sector with further clarity to effectively engage in the country, the Treasury Department said.
In the first quarter of this year, Myanmar-US bilateral trade reached US$124.1 million, with US exports to Myanmar reaching $75.8 million.
Trade numbers have steadily increased since the sanctions were first formally eased in July 2012, from $65.8 million in 2012 to $361.2 million in 2015.
Trade totalled $175.7 million in 2013 and $185.6 million in 2014.
The blacklist
Removed from the blacklist are seven state enterprises - Myanmar Timber Enterprise; Myanmar Pearl Enterprise; Myanmar Gem Enterprise; No. 1 Mining Enterprise; No. 2 Mining Enterprise; No. 3 Mining Enterprise; and Co-Operative Export-Import Enterprise
Added into the list are companies owned 50 per cent or more by Asia World - Asia Mega Link Co Ltd., Asia Mega Link Services Co Ltd., Pioneer Aerodrome Services Co Ltd., Green Asia Services Co Ltd., and Global World Insurance Company Limited. Shwe Nar Wah Company Limited is being identified for being owned 50 per cent or more by Asia World or Steven Law.
Remaining sanctions
Last August, the US announced the six-month easing on sanctions, to allow exports to or from Myanmar through ports involving blacklisted individuals or companies. In the statement, the permission was expanded to cover the movement of goods within Myanmar. This includes transactions such as transporting goods from a warehouse in Myanmar for further distribution to retail outlets in the country.
Together, these amendments will facilitate commerce into and throughout Burma, in turn bolstering trade and commercial opportunities for US and Myanmar exporters, the Treasury Department said in the statement.
As a result of the annoucement, transactions with state-owned Myanma Economic Bank and Myanma Investment and Commercial Bank allowed from May 18 onwards, as well as transactions with private banks Innwa Bank and Myawaddy Bank.
The decision followed the November 8 election.
Earlier this month, US Ambassador Scot Marciel hinted at the possible lifting of some sanctions. To local media, he admitted that while most sanctions were lifted, the remaining ones targeting some individuals and enterprises close to the previous junta - intended to create incentives for further reforms - had side-effects on American companies and Myanmar's economy.
"We recognised that even the limited target sanctions occasionally had unintended effects on the broader economy," he said. "When I talked about the unintended consequences, the sanctions particularly so-called specially-designated nationals list, which target particular entities and individuals."
He noted that for all sanctions to be lifted, Myanmar should focus on enforcement of democracy, respect for human rights and a peace process that would result in the reduction of conflicts and human rights violations.
