US asks for support in sanctions era shift

Jose Fernandez, United States Assistant Secretary of State for Economic and Business Affairs, said that American companies in Myanmar need to be vocal about road bumps as Myanmar shifts from the sanctions era, during the United States-Myanmar Trade and Investment Conference on February 25.


The US Chamber of Commerce, comprising a delegation of 50 American business representatives, signed a Memorandum of Understanding with the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) during the conference.

Fernandez said that US President Barack Obama has provided incentives for further political and economic reform in Myanmar by easing US sanctions; backing Myanmar legislation to protect the freedom of assembly and the rights of workers to form labour unions; and implementing a US-Myanmar joint plan to tackle human trafficking. Myanmar, he said, has taken steps towards socioeconomic reform by increasing transparency in the national budget.

He added that the Foreign Investment Law, enacted in November 2012, has opened significant opportunities for investors. Although it is an improvement from the 1988 law, he said, “There are still some significant gaps between local law and what we consider international best practices around the world.”   

“We remain vigilant about the corruption, lack of transparency and role of the military in this country’s economy …while aiding in the development of an economic and business environment that will provide benefits for all of the people of this country,” he said.

During this time of transition, Fernandez said that communication from companies will be key to stabilising bilateral economic relations.

“We need the help of both companies in this country as well as from US companies. As we shift from the sanctions era to a more normalised trade relationship, I encourage American businesses to let the US government know if there are companies that are encountering particular impediments, be they sanctions related or otherwise, to investing or doing business here so that we can work with you in order to come up with appropriate solutions.

“We’ve heard from both companies and NGOs that specific sanctions on a number of banks were making it very hard for them to get certain basic financial services, such as checking accounts,” he said.

He said that American companies in Myanmar should inform the American embassy in Myanmar and the Chamber of Commerce of any problems that they are experiencing for business operations and investment to move forward. 

The conference opened three days after the US Treasury announced that it had further eased sanctions in Myanmar by allowing American companies to work with four major banks: Myanma Economic Bank, Myanma Investment and Commercial Bank, Asia Green Development Bank and Ayeyarwady Bank.

U Nyan Htun Oo, minister for Electric Power in Yangon Region, said at the conference that Myanmar’s government aims to further industrialise within a short timeframe – and that the Yangon regional government has the responsibility to implement national goals and objectives.

Yangon, with a rapidly increasing population of about six million, will soon be expanded and modernised under national development plans following the establishment of the Thilawa special economic zone, he said.

“These new development activities are being implemented through private-public partnerships,” he said.

“I believe the US Chamber of Commerce can play a very constructive role in the new era of economic development in our country. American science, technology, expertise and financial resources can help our country’s development,” U Nyan Htun Oo added.

UMFCCI president U Win Aung said the MoU is a sign of Myanmar’s political and economic reforms, as the government continues to chip away at trade barriers and unnecessary bureaucratic processes.  

“Our people are longing for a better quality of life, which can only be ensured by the total lifting of sanctions. We request that the US provides our country with the same preferential status this is awarded to other developing countries,” he said.

“We are in urgent need of advanced scientific and industrial technology. We need to develop our financial capacities, management expertise and market access.”

Myanmar’s government officials expect that the US delegation’s visit will boost both countries’ bilateral trade and American investment to Myanmar. The Directorate of Investment and Company Administration shows that US investment in Myanmar stands at about US$243 million until January 31, 2012.

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/4236-us-asks-for-support-in-myanmar-sanctions-era-shift.html