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Saturday, 21 April 2012 - In easing Myanmar sanctions, U.S. seeks to boost reforms |
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Wed, Apr 18 2012 Great white shark kills man in Cape Town waters Thu, Apr 19 2012 Thousands march in Auschwitz to commemorate Holocaust Day Thu, Apr 19 2012 Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  Weird world records From who can wear the most bees to who can unicycle the longest.   Slideshow  Protests in Bahrain Anti-government demonstrations continue in Bahrain.  Slideshow  In easing Myanmar sanctions, U.S. seeks to boost reforms Tweet Share this Email Print Related News Gunfire and wrangling cloud U.N. Syria mission Wed, Apr 18 2012 Exclusive: Suu Kyi to visit Norway, Britain after 24 yrs in Myanmar: party Wed, Apr 18 2012 U.S. eases Myanmar sanctions to boost NGO projects Tue, Apr 17 2012 U.N. condemns North Korea launch, warns on nuclear test Mon, Apr 16 2012 Iran, big powers agree - to keep talking Sun, Apr 15 2012 Analysis & Opinion America’s decline – myth or reality? Does America still want to lead the world? Related Topics World » Myanmar » Myanmar's pro-democracy leader Aung San Suu Kyi smiles at supporters as she celebrates Thingyan, Myanmar's new year water festival, in front of her home in Yangon April 16, 2012. Credit: Reuters/Soe Zeya Tun By Andrew Quinn WASHINGTON | Fri Apr 20, 2012 4:57pm EDT WASHINGTON (Reuters) - The United States is moving to ease bans on U.S. companies investing in and providing financial services to Myanmar, and will first target those sectors that could support democratic reforms in the country, a senior U.S. official said on Friday. The official said that final reviews were under way following Secretary of State Hillary Clinton's pledge earlier this month to begin unwinding U.S. business sanctions, with decisions expected in coming weeks. "It will be a matter of weeks to months to actually implement all that, but we are not looking long term," the official, who spoke on condition of anonymity, told Reuters in an interview. The United States has repeatedly promised to review sanctions in response to dramatic political reforms in Myanmar that have seen veteran pro-democracy leader Aung San Suu Kyi elected to parliament and a raft of other repressive measures lifted. Myanmar, also known as Burma, was run by the military for five decades until a year ago. But the complex web of U.S. sanctions has proved hard to unravel, leaving some companies fretting they will be left out of a potential economic boom in the country. "It has taken a lot of our time to figure out how to navigate them and therefore how to use them to send the signals that we want to send," the official said. Certain sectors of the Southeast Asian country's economy, notably industries such as mining, oil and timber, remain riddled with cronyism, making them less appealing candidates for immediate sanctions relief, the official said. But he said greater U.S. involvement in other sectors could help Myanmar transform its economy and establish new standards for transparency, accountability and corporate social responsibility. "We still are concerned about the reversibility and the sustainability of reform. But we also believe it is time that we also relieve some of the restrictions that are getting in the way of our ability to partner on reform," he said, stressing no specific decisions had yet been made. 'LOW-HANGING FRUIT' The United States has already eased some limits on Myanmar, announcing this week it would permit financial transactions to support humanitarian and development projects - a boon to non-governmental organizations that hope to expand operations there. The United States has also moved to support normal U.N. Development Program, or UNDP, operations, and is working to set up a local office of the U.S. Agency for International Development. Government contacts are also expanding as the United States drops visa bans on senior Myanmar leaders. The country's health minister was in Washington last week, and its foreign minister is due in May. The United States is also expected soon to return a full ambassador to Myanmar after an absence of two decades. But U.S. businesses are watching closely for steps to ease sanctions on investment, which have helped keep the country isolated and pushed it deeper into the economic embrace of its powerful neighbor China. The U.S. official said that banking services, the agricultural sector and telecommunications were all areas where U.S. companies could make contributions to Myanmar's economic reforms and the welfare of its people. "These are low-hanging fruit," said Suzanne DiMaggio, vice president for policy at the Asia Society, adding that a step-by-step strategy could help preserve U.S. leverage but also ran the risk of allowing other countries to steal the march on one of Asia's most promising, yet undeveloped economies. "It is really going to be hard for the United States to compete with the Chinese in the immediate future, especially if it takes a sector-by-sector approach," DiMaggio said. 'FIRST, SECOND AND THIRD LOOK' The U.S. official said Washington remained leery of Myanmar's extractive industries, saying they were "riddled with cronyism," deeply involved with corrupt elements of the military and focused in restive areas where ethnic minority groups say they have long been oppressed. "That sector probably shines brightest in terms of having to give it a first, second and third look," the official said. He also said the United States had broader concerns over the commitment of military leaders to reform, and their ties to North Korea. U.S. officials and economic analysts have cautioned that, despite its progress, Myanmar will likely remain a challenging business environment. Corruption, shaky investment protections and infrastructure problems promise to slow international investment and trade even as sanctions fall away. But China already has extensive economic interests in Myanmar, Australia has eased sanctions, and the European Union is expected to suspend its economic sanctions next week, opening the country to more competition. Washington hopes that as it opens its own door to economic ties, U.S. companies will benefit from the halo effect of strong U.S. support for the reform process and Nobel Peace laureate Aung San Suu Kyi herself. "I think our companies will have an equal, level playing field when they go in," the official said. "They want to buy American. They want to engage with America." (Reporting By Andrew Quinn; Editing by Peter Cooney) World Myanmar Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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