US sanctions extended for another year

US President Barack Obama told the Congress on Thursday that the step is needed despite some progress on reforms made by the country.

Obama notified leaders of Congress in a letter that he was renewing for another year the National Emergencies Act, which prohibits US businesses and individuals from investing in Myanmar or doing business with Myanmar figures involved in rep.ession of the democracy movement since the mid-1990s.

Obama said the Myanmar government had made advances in critical areas such as the release of more than 1,100 political prisoners, progress toward a nationwide ceasefire, the legalisation of unions and taking steps to improve the country's labour standards.

However, he said, "Despite great strides that Burma has made in its reform effort, the situation in the country continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.

"The political opening remains nascent, and concerns persist regarding ongoing conflict and human rights abuses in ethnic minority areas, particularly in Rakhine State, and the continued role of the military in the country's political and economic activities," Obama said.

A year ago Obama lifted a 1996 ban on granting US entry visas to Myanmar's military rulers and their business partners and immediate family.

A spokesman for the White House National Security Council, Patrick Ventrell, said significant challenges remain in Myanmar including a dire humanitarian situation in Rakhine State and incidents of violence toward Muslims and other minorities.

He said Obama extended the penalties for another year "in order to maintain the flexibility necessary to sanction bad actors and prevent backsliding on reform even as we broadly ease sanctions."

The decision followed visits by two American politicians. 

In his visit late April, Under Secretary of State for Public Diplomacy and Public Affairs Richard Stengel expressed his concern on press freedom.

During her her visit May 9-10, Under Secretary of State for Civilian Security, Democracy, and Human Rights Sarah Sewall addressed the challenge of inter-communal violence and combating hate speech, progress in talks between the Union government and armed groups to achieve a durable peace, solutions for combating human trafficking, efforts to encourage the country’s membership in the Open Government Partnership, and support for ongoing efforts to advance democracy, justice and accountability, good governance, and respect for human rights.

The sanctions were imposed in May 1997, following the junta government’s large-scale repression of the democratic opposition. In July 2012, the US government issued a general licence to authorise the exportation of US financial services to Myanmar, permitting the first new US investment in the country in nearly 15 years. 

In November 2012, the US’s decision to lift some sanctions injected a new life into the economy, with an exception that jadeite and rubies mined or extracted from Myanmar cannot be imported to the US. 

A number of US companies have explored business opportunities in the country, alongside European nations following the European Union’s decision months before that.

Myanmar has been eagerly awaiting the lifting of all sanctions by the US, the world’s largest economy, as the country desperately wants to boost its exports.

Recently, Maung Aung, senior adviser to the Ministry of Commerce, told Myanmar Eleven that many products – mainly textiles and agricultural products - would prosper if that happens.

 “In the past, we exported a lot of our garment products to the US. After lifting all the sanctions imposed on Myanmar by the US, I believe trading with the US and FDI from US businesses will significantly increase,” Muang Aung said.