US relaxes some sanctions on Myanmar to support new govt

The US today said it would lift some of its major sanctions on Myanmar to demonstrate its strong support for the political and economic progress made by new civilian government in the southeast Asian country which underwent over five decades of repressive military rule.
However, US President Barack Obama issued an executive order to continue national emergency with respect to Myanmar arguing that the country continues to "pose and unusual and extraordinary threat" to the national security and foreign policy of the US.
In a major development, the Treasury issued regulatory amendments intended to support trade with Myanmar; facilitate the movement of goods within Myanmar; allow certain transactions related to US individuals residing in Myanmar; and allow most transactions involving designated financial institutions.

Noting that Myanmar has made significant progress across a number of important areas since 2011, including the release of over 1,300 political prisoners, and a peaceful and competitive election among others, Obama in a communique to the Congress said, "despite these strides, the situation in the country continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States."
Obama said 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.

But he noted the US remains committed to working with both the new government and the people of Burma to ensure that the democratic transition is irreversible.

As such the Department of Treasury announced to lift sanctions from seven state-owned enterprises and three government owned banks.
It also added a general license authorising transactions related to US individuals residing in Burma, extended and expanded an existing general license authorising trade-related transactions, and updated an existing general license authorising certain banking services.
"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," said Adam J Szubin, Acting Under Secretary for Terrorism and Financial Intelligence.

Taken in concert with the regulatory amendments to allow most transactions with designated financial institutions, this leaves few US restrictions remaining related to banks in Myanmar.
To incentivise further democratic reforms and maintain pressure on targeted individuals and entities and the military, certain sanctions remain in place, the Treasury said.
As such, the Treasury identified as blocked and added to its list of sanctions six companies that are owned 50 per cent or more by Steven Law or Asia World Co Ltd.