Myanmar’s democratic transition and the consequent dynamics between Naypyidaw and Washington have commanded strategic priority for America’s Asia policy. China’s long years of influence in Myanmar and the latter’s new overtures to diversify its relationships lend geostrategic significance to US-Myanmar ties. As the Obama years come to a close, and the White House prepares for its new President, how the US-Myanmar relationship pans out will be of interest to America’s strategic competitors and partners alike.
On 14 September, during Myanmar State Counsellor Aung San Suu Kyi’s official visit to the US, President Obama returned Myanmar to the status of a “least-developed beneficiary developing country.” This allows the US to restore trade benefits by reinstating preferential treatment to Myanmar under the Generalised System of Preferences program. Calling Myanmar’s transition “remarkable”, President Obama scrapped those sanctions that could be lifted without congressional authorisation in order to reward the Southeast Asian nation for the progress made so far.
But not all sanctions could be removed immediately with an executive order of the President. Under the Bush Administration, the US Congress passed the Burma Freedom and Democracy Act to ban all imports from Myanmar. In 2013, the Obama administration relaxed some provisions of the Act, but continued the ban on imports of precious stones. It was believed that the trade in rubies and gems was run by corporations controlled by the military and clandestine businesses which in turn promoted corruption and human rights abuses. Additionally, the Office of Foreign Asset Control (OFAC) of the US Treasury Department maintains a Specially Designated Nationals (SDN) list, which prohibits American companies from having business associations with the entities and individuals mentioned. The list includes “individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries” as well as “terrorists and narcotics traffickers designated under programs that are not country-specific”.
Source: http://www.policyforum.net/us-new-myanmar-dragon-background/
