US vows end to sanctions on Myanmar

MYANMAR cheered a US promise on Thursday to end sanctions, with residents in its commercial capital clamouring for American brands while politicians and business moguls heralded a new era of transparency and trade.

US President Barack Obama vowed to scrap the trade limits during Nobel laureate Aung San Suu Kyi’s first visit to the White House since her party took power in March, ending decades of military domination.

But Soe Naung Win, who owns a cellphone shop in Myanmar’s bustling economic capital of Yangon, had more immediate concerns. “I want Apple to officially come to Myanmar. I am crazy about the Apple brand.”

While iPhones are widely available in Myanmar, one of the world’s fastest-growing cellphone markets, there are no official Apple stores there.

The US sanctions, imposed 20 years ago in a bid to put pressure on the former military regime, bar Americans from dealing with anyone on its blacklist of more than 100 people and companies linked to the former junta. Some major US brands have already jumped in, but many have stayed away saying the sanctions make investment too expensive and dangerous.

Coca-Cola was left red-faced in 2015 when watchdog Global Witness discovered its local partner was linked to a sanctioned military holding company, while a dealer for machinery giant Caterpillar had ties to jade companies controlled by a major drug lord.

Although some curbs on ties to the military will probably stay in place, Obama’s move is expected to bring greater clarity to US companies considering business there.

In Myanmar, key business players said the end of sanctions would usher in new investment and help drive the country’s rise from decades of poverty.

“This is very significant and signifies a new chapter in our country’s economic development,” said Serge Pun, who runs several companies, including First Myanmar Investment, one of Myanmar’s biggest conglomerates. “I have never been so optimistic about Myanmar’s future as I am now.”

Khin Maung Lwin, permanent secretary from the ministry of commerce, said the changes would help to shine a light on shadowy industries such as the jade trade, worth billions of dollars and run by illicit gangs and corrupt military officials.

“Removing sanctions on the jade industry is important, and more transparency is needed on production and trading.”