Sep 27, 2012

Myanmar - U.S. Eases Myanmar Import Ban

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The U.S. said it would begin to ease a long-standing import ban on Myanmar, providing a boost to President Thein Sein as he carries out political and economic overhauls that have transformed the former military state into a hot Asian frontier market.

Washington has already loosened some of its sanctions against Myanmar in recognition of its reforms over the past 18 months, including the release of political prisoners and the introduction of free elections.

"In recognition of the continued progress toward reform and in response to requests from both the government and the opposition, the United States is taking the next step in normalizing our commercial relations," Secretary of State Hillary Clinton said Wednesday before meeting with Mr. Thein Sein at the United Nations General Assembly in New York. "We hope this will provide more opportunities for your people to sell their goods into our market."

Mr. Thein Sein said the move encouraged him, adding, "We still need to continue our path toward democratic reforms."

The U.S. has prepared to lift the import ban for months. Congress in August renewed legislation that left the sanction for another year, but it contained a provision enabling President Barack Obama to waive the law.

Many analysts say the U.S. has been waiting for a signal from Aung San Suu Kyi—the country's Nobel Peace Prize-winning political prisoner-turned-opposition leader—before taking further action. Last week she showed her support for lifting the import ban during a U.S. visit. She had supported sanctions against the previous military regime.The release of more political prisoners this month, nearly 90, also helped lay the ground for the U.S. to act, although human-rights groups say hundreds more are still imprisoned.

The U.S. move also raises Mr. Thein Sein's profile. In the past he often has been overshadowed by Ms. Suu Kyi, who last week met privately with Mr. Obama and received Congress's highest award. Now, U.S. officials appear anxious to emphasize the Myanmar president's importance to the reform process still under way in the country.

Last week, the U.S. Treasury Department had said it removed sanctions on the retired general and the leader of the lower house of Myanmar's parliament, Shwe Mann, that blocks access to property and assets.

Economists such as Sean Turnell, a Myanmar expert at Australia's Macquarie University, describe the lifting of the import ban as providing an economic dividend for the political changes in the country. It also potentially provides a large new market for Myanmar-made products, which could accelerate the flow of foreign investment into the country.

The U.S. has already removed its ban on American investment in Myanmar. The European Union, too, has dropped many of its sanctions.

Now, removing the import ban could help the manufacturing sector, in particular, to create jobs and ease some of the chronic poverty that plagues this country of 60 million people, after decades of military control. Economists suggest that the textiles industry could receive a boost from the latest U.S. measure.

Myanmar was once a major exporter of clothing and other apparel to the West before trade sanctions were imposed in the 1990s. The agricultural and fisheries sectors could also get a boost.

Local business leaders in Myanmar welcomed the U.S. move, saying it would help encourage more democratic reform and potentially sideline conservative hard-liners who were skeptical about the rapid changes in the country.

"Myanmar has earned it!" Maung Maung Lay, vice president of the Myanmar Federated Chambers of Commerce, said by email. "All nations should help us to prevent the 'miscarriage' of our democracy in its embryonic stage."




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