• Burmese
Tuesday, July 15, 2025
No Result
View All Result
NEWSLETTER
The Irrawaddy
29 °c
Ashburn
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
No Result
View All Result
The Irrawaddy
No Result
View All Result
Home Business

US Eases Sanctions on Burma in Bid to Promote Reforms

The Irrawaddy by The Irrawaddy
May 18, 2016
in Business
Reading Time: 4 mins read
0 0
A A
US Eases Sanctions on Burma in Bid to Promote Reforms

A view of the Asia World port at the Hlaing River in Rangoon on May 14

4k
VIEWS
Share on FacebookShare on Twitter

WASHINGTON — The United States eased some sanctions on Burma on Tuesday to support ongoing political reforms, but maintained most of its economic restrictions in an effort to punish those Washington sees as hampering the country’s newly elected government.

US officials said they were easing sanctions to encourage the “historic” progress in Burma, including the formation of the country’s first democratically elected government in more than 50 years.

The moves included removing Burmese state-owned banks from a US blacklist and the lifting of sanctions against seven key state-owned timber and mining companies.

RelatedPosts

Paranoid Junta Turns to Foreign Expertise After 4 Years of Chaos; and More

Paranoid Junta Turns to Foreign Expertise After 4 Years of Chaos; and More

May 10, 2025
1.6k
Myanmar Junta Boss Returns to China’s Embrace After Russia Trip

Myanmar Junta Boss Returns to China’s Embrace After Russia Trip

March 12, 2025
5.4k
India Curries Favor; Junta Boss Showers Titles – Hail ‘King Putin’; and More

India Curries Favor; Junta Boss Showers Titles – Hail ‘King Putin’; and More

March 8, 2025
4.2k

Officials said they hope the actions will eliminate key obstacles to trade in Burma. Potential investors in Burma have long complained that the blacklisting of some of the country’s biggest banks made business in the country too risky.

Major firms including General Electric, Western Union Co., Gap Inc., and Coca-Cola have made business forays into Burma, and the moves announced on Tuesday will ease their and other companies’ ability to operate there.

The US Treasury Department also extended indefinitely a sanctions exemption that allows banks to finance shipments coming in through Burmese ports, even though key terminals are controlled by blacklisted businessman Steven Law. The issue had forced Western banks to cut financing of trade into the country until the US Treasury granted a six-month exemption in December.

But the United States also strengthened measures targeting Law, who was blacklisted for alleged ties to Burma’s military. Six companies owned 50 percent or more by Law or the company he controls, Asia World, were added to Treasury’s blacklist.

The announcement highlighted a key challenge for Washington, as it seeks to both encourage political reform while maintaining pressure on those it sees as spoilers. More than 100 individuals and groups remain on Washington’s sanctions blacklist for Burma, making them radioactive to the international community and barring US banks or companies from making deals with them.

“There can be a tension here,” a senior administration official said on condition of anonymity. “Some of these actors are key economic players.”

Tuesday’s announcement reflects what will be a stilted process of bringing back trade into Burma, said Peter Harrell, a former senior State Department official who was part of the first efforts to lift sanctions on Burma in 2012.

“I think this is a significant step. I don’t think it’s a massive step,” said Harrell, now a senior adjunct fellow at the Center for a New American Security. “The practical reality is if you can’t do business with military-owned companies, chunks of the economy are going to remain off limits.”

The US moves followed a landmark November election in which the party of Aung San Suu Kyi, the country’s Nobel Peace Prize laureate, won a landslide victory. A Constitution drafted by the country’s former military rulers bars her from becoming president.

US officials began lifting trade and financial sanctions against the country after military leaders launched reforms that led to a civilian government being formed in 2011, beginning its transformation from a half-century as an international pariah.

The sanctions decision, reported by Reuters on Friday, came before a visit to the Southeast Asian nation by Secretary of State John Kerry on May 22.

President Barack Obama, in a letter to Congress, said he was extending for one year the legal underpinnings for those sanctions that remain and provided his justification for doing so.

He said Burma had made significant progress on reforms since 2011, but that “concerns persist regarding continued obstacles to full civilian control of the government, the ongoing conflict and human rights abuses in the country, particularly in ethnic minority areas, and military trade with North Korea.”

Despite the sanctions lifting, Washington has deep concerns about alleged human rights violations in predominantly Buddhist Burma, particularly violence against the minority Rohingya Muslims, the officials said.

Reluctant to Re-Engage

The US actions on Tuesday removed three state-owned banks from the US blacklist, and authorized transactions with two other banks that are still blacklisted. The changes mean that most transactions with all Burmese financial institutions will be allowed as of May 18.

“The adjustments we are making today are to try and facilitate a broadening of the aperture so that the investment that’s intended can take place,” a senior US official said.

Though the United States began unwinding sanctions on Burma years ago, US banks have been reluctant to re-engage with the country because of concerns that key sectors of the economy are still controlled by businessmen linked to the military. No US bank has yet opened a correspondent banking relationship with a Burmese bank, considered an important step in accessing the global financial system.

While the moves on Tuesday help pave the way for basic transactions necessary for investment, US citizens are still barred from striking deals with individuals and companies on the blacklist.

“Businesses are going to look for more,” said Erin Murphy, a former State Department official who worked on Burma sanctions issues. “They still have to conduct extensive due diligence, not just on reputational concerns but also whether or not who they’re dealing with is blocked.”

The United States is also easing restrictions on Americans living in Burma, allowing them to conduct everyday transactions like renting apartments.

The State Department also loosened its requirement that US companies investing in Burma disclose their dealings. Previously, companies had to make those disclosures if their total investment reached $500,000 or more. That cap has now been raised to $5 million.

The requirement was intended to promote greater transparency in Burma. But it had a chilling effect on companies wanting to avoid criticism from human rights and other groups for dealing with the country, said Murphy, now a principal at Inle Advisory Group, which advises businesses investing in Burma.

The $5 million cap will likely mean major corporations will still have to disclose their business there, but will allow for modest investments without the disclosures.

Your Thoughts …
Tags: Foreign Relations
The Irrawaddy

The Irrawaddy

...

Similar Picks:

Myanmar Junta Counteroffensives Failing Across Country: Analysts
Analysis

Myanmar Junta Counteroffensives Failing Across Country: Analysts

by Hein Htoo Zan
September 20, 2024
16.8k

Three major operations to retake territory from ethnic armies and their allies are being hampered by troop shortages, experts say.

Read moreDetails
Myanmar Junta Boss Returns to China’s Embrace After Russia Trip
Myanmar-China Watch

Myanmar Junta Boss Returns to China’s Embrace After Russia Trip

by The Irrawaddy
March 12, 2025
5.4k

Min Aung Hlaing hosts Chinese envoy for talks on Beijing’s Shan intervention and support for regime’s planned poll.   

Read moreDetails
Rakhine War: Dozens More Defeated Myanmar Junta Troops Flee to Bangladesh
Myanmar’s Crisis & the World

Rakhine War: Dozens More Defeated Myanmar Junta Troops Flee to Bangladesh

by Muktadir Rashid  
June 13, 2024
5.3k

Latest exodus from battle with Arakan Army comes just days after Dhaka repatriated 134 regime runaways. 

Read moreDetails
India Curries Favor; Junta Boss Showers Titles – Hail ‘King Putin’; and More
Junta Watch

India Curries Favor; Junta Boss Showers Titles – Hail ‘King Putin’; and More

by The Irrawaddy
March 8, 2025
4.2k

Also this week, the regime chief strengthened ties with Russia and Belarus during a goodwill tour of his key allies.

Read moreDetails
Blaming Ex-Dictator for Blackouts; Leading Tatmadaw’s Historic Humiliation; and More
Junta Watch

Blaming Ex-Dictator for Blackouts; Leading Tatmadaw’s Historic Humiliation; and More

by The Irrawaddy
January 18, 2025
3.5k

Also this week, the Air Force chief urged escalation of a campaign that has killed over 1,000 civilians, and the...

Read moreDetails
Allies Rush to Back Sham Poll; Min Aung Hlaing Finally Confesses
Junta Watch

Allies Rush to Back Sham Poll; Min Aung Hlaing Finally Confesses

by The Irrawaddy
December 7, 2024
3.1k

Also this week, a study showed the regime has arrested over 1,800 netizens for criticizing military rule, and the junta...

Read moreDetails
Load More
Next Post
China’s State Media Make Rare Remarks on Cultural Revolution

China’s State Media Make Rare Remarks on Cultural Revolution

Militant Attacks Force Bangladesh’s Gay Community Into Hiding

Militant Attacks Force Bangladesh’s Gay Community Into Hiding

No Result
View All Result

Recommended

Trump’s Tariffs to Hit Myanmar’s Garment Manufacturers Hard

Trump’s Tariffs to Hit Myanmar’s Garment Manufacturers Hard

6 days ago
1.3k
China’s Surveillance State Watches Everyone, Everywhere

China’s Surveillance State Watches Everyone, Everywhere

7 days ago
1.1k

Most Read

  • Myanmar Junta’s ‘Living Fence’ on Thai Border Falls to Karen Resistance

    Myanmar Junta’s ‘Living Fence’ on Thai Border Falls to Karen Resistance

    shares
    Share 0 Tweet 0
  • ‘Las Vegas in Laos’: the Riverside City Awash With Crime

    shares
    Share 0 Tweet 0
  • Myanmar Junta Launches Space Agency With Russian Help

    shares
    Share 0 Tweet 0
  • TNLA Invites Investment in Ruby and Mineral Towns Amid Myanmar Junta Onslaught

    shares
    Share 0 Tweet 0
  • Myanmar Junta Chief Thanks Trump for Shutting Down VOA and RFA

    shares
    Share 0 Tweet 0

Newsletter

Get The Irrawaddy’s latest news, analyses and opinion pieces on Myanmar in your inbox.

Subscribe here for daily updates.

Contents

  • News
  • Politics
  • War Against the Junta
  • Myanmar’s Crisis & the World
  • Conflicts In Numbers
  • Junta Crony
  • Ethnic Issues
  • Asia
  • World
  • Business
  • Economy
  • Election 2020
  • Elections in History
  • Cartoons
  • Features
  • Opinion
  • Editorial
  • Commentary
  • Guest Column
  • Analysis
  • Letters
  • In Person
  • Interview
  • Profile
  • Dateline
  • Specials
  • Myanmar Diary
  • Women & Gender
  • Places in History
  • On This Day
  • From the Archive
  • Myanmar & COVID-19
  • Intelligence
  • Myanmar-China Watch
  • Lifestyle
  • Travel
  • Food
  • Fashion & Design
  • Videos
  • Photos
  • Photo Essay
  • Donation

About The Irrawaddy

Founded in 1993 by a group of Myanmar journalists living in exile in Thailand, The Irrawaddy is a leading source of reliable news, information, and analysis on Burma/Myanmar and the Southeast Asian region. From its inception, The Irrawaddy has been an independent news media group, unaffiliated with any political party, organization or government. We believe that media must be free and independent and we strive to preserve press freedom.

  • Copyright
  • Code of Ethics
  • Privacy Policy
  • Team
  • About Us
  • Careers
  • Contact
  • Burmese

© 2023 Irrawaddy Publishing Group. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Business
    • Economy
    • Business Roundup
  • Books
  • Donation

© 2023 Irrawaddy Publishing Group. All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.