Obama Says U.S. Is Prepared To Lift Sanctions Against Myanmar

Enlarge this image toggle caption Carolyn Kaster/AP Carolyn Kaster/AP

President Obama has announced that the U.S. is ready to lift economic sanctions against Myanmar in light of political reforms in the Southeast Asian nation.

It's going to happen "soon," Obama said, but he did not indicate a specific timeline during a joint news conference Wednesday at the White House with Myanmar's de facto leader, Aung San Suu Kyi.

Lifting sanctions "is the right thing to do in order to ensure that the people of Burma see the rewards from a new way of doing business, and a new government," Obama said. (The country is also known as Burma.)

The sanctions were imposed in 1997, and as NPR's Michele Kelemen explains, they were "originally put in place to isolate Myanmar's former military junta." The military, she says, "still controls much of the economy and retains great political power."

In 2012, the Obama administration began to ease some financial and investment sanctions following political reforms, according to the Treasury Department. But it "retained more targeted restrictions on military-owned companies and dozens of officials of the former ruling junta," as The Associated Press reports.

In March, the country elected its first civilian president in decades.

Obama and Suu Kyi said in a joint statement Wednesday that the U.S. will also give preferential trade status to Myanmar "in light of progress on a number of fronts, including strengthening protections for internationally recognized worker rights."

These changes are designed to create incentives for U.S. businesses and nonprofits to invest in the country, Obama said.

The president characterized the changes in Myanmar as a "remarkable social and political transformation" after decades of authoritarian rule.

Suu Kyi, the Nobel laureate who spent years under house arrest, is barred from running for president under the terms of the country's military-penned constitution. But as The Two-Way has reported, the winner of this year's election is one of her most trusted confidantes, and she considers herself to be "above the president."

Here's more from Obama on Myanmar's transition:

"When I was first elected, Daw Suu was still under house arrest. ... What we've seen over the last several years is a transition to elections, a representative legislature that still has significant constraints from the previous military government but is giving voice to the hopes and dreams of a new generation of Burmese people."

The U.S. remains "concerned about the outsized role the military plays in Myanmar, as well as the country's treatment of ethnic and religious minorities," as NPR's Scott Horsley tells our Newscast unit.

And Ben Rhodes, a top adviser to Obama, told Michele that the U.S. hoped to strike a delicate balance as it changed its policy on sanctions against Myanmar. "The question is, how do we balance the need to continue to demonstrate that this transition is not complete with the fact that we don't want to shut ourselves and responsible investment out of the country?" Rhodes says.</s>YANGON: Myanmar cheered a US promise to end sanctions on Thursday, with residents in its commercial capital clamoring 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 Aung San Suu Kyi’s first visit to the White House since her party took power in March, ending decades of military domination.

The move marks a milestone in the country’s rapid transformation from an international pariah into Asia’s fastest-growing economy under the leadership of the Nobel laureate.

But Soe Naung Win, who owns a mobile phone shop in Myanmar’s bustling economic capital of Yangon, had more immediate concerns.

“I want Apple to officially come to Myanmar,” the 32-year-old told AFP. “I am crazy about the Apple brand and I want Apple to come here as an American brand.”

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

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 into the frontier economy, but many have stayed away saying the sanctions make investment too expensive and dangerous.

Coca-Cola was left red-faced last year 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 in the emerging nation.

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 punishing 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 shine a light on shadowy industries like the jade trade, worth billions of dollars and run by illicit gangs and corrupt military officials that has fuelled decades of violence in Myanmar’s borderlands.

The sanctions currently ban US imports of jadeite.

“Removing sanctions on the jade industry is important, and more transparency is needed on production and trading,” he told Agence France-Presse.

“Domestically, it will also mean more taxes for the government,” he added.

Washington started paring back sanctions in 2012 under the previous quasi-civilian regime, led by former president Thein Sein, and rolled them back further in May after Suu Kyi’s party took office.

While the latest lift was celebrated in the business world, rights groups cautioned Obama was forgoing crucial leverage over the military, which still holds a quarter of parliament seats and controls several powerful ministries.

“Lifting all sanctions now will embolden the Myanmar military and its partners,” said Matthew Smith, chief executive at Fortify Rights.

“This decision was hasty and fails to recognize political realities on the ground.” AFP</s>'I want Apple': Myanmar abuzz over end of US sanctions

Myanmar cheered a US promise to end sanctions on Thursday, 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 Aung San Suu Kyi's first visit to the White House since her party took power in March, ending decades of military domination.

The move marks a milestone in the country's rapid transformation from an international pariah into Asia's fastest-growing economy under the leadership of the Nobel laureate.

But Soe Naung Win, who owns a mobile phone shop in Myanmar's bustling economic capital of Yangon, had more immediate concerns.

"I want Apple to officially come to Myanmar," the 32-year-old told AFP. "I am crazy about the Apple brand and I want Apple to come here as an American brand."

While iPhones are widely available in Myanmar, one of the world's fastest-growing mobile phone markets, there are no official Apple stores in the country.

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 into the frontier economy, but many have stayed away saying the sanctions make investment too expensive and dangerous.

Coca-Cola was left red-faced last year 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 in the emerging nation.

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 punishing 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 shine a light on shadowy industries like the jade trade, worth billions of dollars and run by illicit gangs and corrupt military officials that has fuelled decades of violence in Myanmar's borderlands.

The sanctions currently ban US imports of jadeite.

"Removing sanctions on the jade industry is important, and more transparency is needed on production and trading," he told AFP.

"Domestically, it will also mean more taxes for the government," he added.

Washington started paring back sanctions in 2012 under the previous quasi-civilian regime, led by former president Thein Sein, and rolled them back further in May after Suu Kyi's party took office.

While the latest lift was celebrated in the business world, rights groups cautioned Obama was forgoing crucial leverage over the military, which still holds a quarter of parliament seats and controls several powerful ministries.

"Lifting all sanctions now will embolden the Myanmar military and its partners," said Matthew Smith, chief executive at Fortify Rights.

"This decision was hasty and fails to recognize political realities on the ground."</s>The White House is lifting economic sanctions and restoring trade benefits to former pariah state Myanmar, officials said Wednesday, as Aung San Suu Kyi, a former political prisoner and now the nation's de facto leader, met with President Obama.

Suu Kyi's party swept historic elections last November, and the visit by the 71-year-old Nobel peace laureate, deeply respected in Washington, is a crowning occasion in the Obama administration's support for Myanmar's shift to democracy, which the administration views as a major foreign policy achievement.

The U.S. has eased broad economic sanctions since political reforms began five years ago but has retained more targeted restrictions on military-owned companies and dozens of officials and associates of the former ruling junta in Myanmar, also known as Burma. U.S. companies and banks have remained leery of involvement in one of Asia's last untapped markets.

Human rights groups, however, say there are powerful reasons for retaining sanctions. Military abuses continue in ethnic minority regions. Rohingya Muslims remain displaced by sectarian violence and denied citizenship.

Congressional aides said that Suu Kyi had requested the removal of the national emergency with respect to Myanmar — the executive order authorizing sanctions that has been renewed annually by U.S. presidents for two decades.

A U.S. official says that by terminating the emergency, 111 Myanmar individuals and companies will be dropped from a Treasury blacklist and restrictions will be lifted on new investment with the military and on the imports of rubies and jade.

The official and aides spoke on condition of anonymity as they were not authorized to discuss the matter before it was expected to be announced after Obama's meeting with Suu Kyi.

The move does not remove all economic sanctions. Penalties intended to block the drug trade and to bar military trade with North Korea would still apply, as would a visa ban barring some former and current members of the military from traveling to the U.S.

The move does not normalize relations with Myanmar's military. The U.S. does not intend to provide weapons, military equipment or other support for the military, the official said.

The White House notified Congress on Wednesday it was offering preferential trade benefits to Myanmar that were suspended in 1989, a year after the bloody crackdown on democracy protesters by the military. The U.S. had cited Myanmar's refusal to recognize workers' rights.

Suu Kyi's visit to Washington signals her transformation from long-imprisoned heroine of Myanmar's democracy struggle to a national leader focused on economic growth.

She last visited Washington in 2012 when she was still opposition leader. On that occasion, she was presented with the Congressional Gold Medal, the legislature's highest civilian honor, which she had been awarded in 2008 while under house arrest.

Now she meets Obama as the de facto leader of the country with the title of state counsellor, although a junta-era constitution still enshrines the military's role in politics and bars her from the presidency. When Obama last visited Myanmar in November 2014, he voiced support for constitutional reform.

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Nearly 50 million children uprooted: A global crisis by the numbers</s>WASHINGTON, D.C.: President Barack Obama moved to restore trade benefits to Myanmar, saying broader sanctions would soon be scrapped as he hosted the country’s de facto leader Aung San Suu Kyi at the White House on Wednesday (Thursday in Manila).

Welcoming her for the first time since her historic election victory last year, Obama announced a series of steps to coax the rapidly transforming southeast Asian country — also known as Burma — from decades of economic isolation.

“The United States is now prepared to lift sanctions that we have imposed on Burma for quite some time,” he said, adding that the move would come “soon.”

“It is the right thing to do to ensure that the people of Burma see rewards for a new way of doing business,” he added.

In a letter to Congress, Obama also announced plans to reinstate preferential tariffs for Myanmar that were suspended more than two decades ago amid rights abuses by the ruling junta.

The White House is keen to help the country’s economy and Suu Kyi’s administration — which is managing a difficult transition from military-run pariah to full-fledged democracy.

Although its constitution technically bars the 71-year-old Nobel Peace Prize laureate from heading Myanmar’s government, she received a leader’s welcome in Washington.

After talks with Obama, Suu Kyi took part in a coveted Oval Office grip-and-grin photo shoot.

Obama turned to the once-imprisoned former opposition leader, offering his “congratulations on the progress that has been made.”

“It’s a good news story in an era when so often we see countries going the opposite direction,” he said, acknowledging that much work remains to be done.

Suu Kyi is officially foreign minister and self-appointed state counsellor — a role akin to prime minister.

After spending much of the last few decades under arrest, she is now de facto leader of a skeletal government, an economy hollowed out by decades of kleptocratic dictatorship and a country riven with ethnic and religious violence.

The veteran campaigner must tackle all those problems while keeping an eye on generals who may have second thoughts about reform.

US officials, who acknowledge Suu Kyi is working under some very tough political constraints, dare not push the military or the public too far or too fast.

“She has to tackle problems one by one” said Ben Rhodes, a key Obama aide who has spearheaded the administration’s Myanmar policy.

Leverage and sanctions

 Obama did not say when he would rescind an executive order underpinning broader sanctions that declares Myanmar a “national emergency.”

Although some curbs on ties to the military and some individuals will probably stay in place, scrapping the order would bring clarity to US companies considering business there.

Washington lifted a host of financial and trade embargoes on state-owned banks and businesses in May, but US firms have remained cautious.

Some policymakers worry lifting sanctions completely could weaken American leverage and may let the military off the hook.

There is still no civilian control of the military and officers are guaranteed a quarter of legislative seats.

Global Witness and other human rights groups have criticized Obama’s move as “a major setback for efforts to clean up Myanmar’s notoriously corrupt and abusive business environment.”

“Lifting restrictions before the new government’s reforms have borne fruit effectively invites US companies to do business with some of the worst figures from the country’s past,” it added.

Suu Kyi has disappointed some of her more zealous Western supporters by following the junta’s lead on some issues, especially refusing to recognize the Rohingya — a persecuted Muslim minority group in the overwhelmingly Buddhist country.

Tens of thousands of stateless Rohingya have spent the past four years trapped in bleak displacement camps with limited access to health care and other basic services.</s>AP Explains: US lifting of economic sanctions on Myanmar

U.S. economic trade sanctions on the once-isolated Southeast Asian nation of Myanmar are being eased to support the country's transition toward democracy and a market economy.

President Barack Obama announced the plan to lift remaining sanctions and restore trade benefits after meeting at the White House with Aung San Suu Kyi, a former political prisoner who is now Myanmar's foreign minister and the country's de facto leader.

Here is a look at some details and implications of the plan to lift most sanctions:

WHAT SANCTIONS ARE BEING LIFTED

The U.S. eased broad sanctions since Myanmar began political reforms five years ago, but kept in place targeted restrictions on military-owned companies and officials and associates of the former ruling junta. The White House also notified Congress it will reinstate trade benefits to Myanmar that the U.S. provides to least developed countries. They were suspended in 1989, a year after the bloody crackdown on democracy protesters by the military.

U.S. companies and banks have remained leery of involvement in one of Asia's last untapped markets. By ending most of the remaining sanctions Obama has cleared the way for them to invest and trade more freely with Myanmar's fast-growing economy, and for companies there to do business with the U.S. The restoration of Generalized System of Preferences trade privileges, such as lower import tariffs, will open the way for more exports from Myanmar of garments and textiles, core products of its nascent manufacturing sector.

For two decades, U.S. presidents have renewed an executive order declaring a "national emergency" with respect to Myanmar annually. Obama must issue a new executive order to end the emergency. U.S. officials said 111 Myanmar individuals and companies will be dropped from a Treasury blacklist and restrictions will be lifted on new investment with military and on imports of rubies and jade.

Penalties meant to block the drug trade and bar military trade with North Korea via Myanmar would still apply. A visa ban will still bar some former and current members of the military from traveling to the U.S.

Human rights groups favor keeping sanctions due to military abuses in ethnic minority regions. A top concern is for Rohingya Muslims, who remain displaced by sectarian violence and are denied citizenship. The military elite, U.S.-sanctioned drug lords and crony companies have huge stakes in the economy, especially in the jade trade, which is worth nearly half Myanmar's economic output.

For ordinary Burmese, better job opportunities thanks to increasing investment and trade with the U.S., and access to more, better quality imported products. For the U.S., wider access to a resource-rich economy of 54 million people whose annual growth is estimated to average over 8 percent for the rest of this decade. Removing barriers to trade and investment also will give U.S. business more leverage vis a vis China, which has been Myanmar's chief source of foreign investment for years.</s>U.S. senator wants Congress consulted on Myanmar sanctions -documents

WASHINGTON, Sept 14 (Reuters) - U.S. Republican Senator Cory Gardner will introduce legislation on Wednesday, coinciding with the visit to Washington of Myanmar democracy leader Aung San Suu Kyi, that would require close consultation with Congress on lifting of any sanctions.

According to documents seen by Reuters, Gardner planned to introduce the "Empower Burma Act of 2016," which also includes several provisions seeking to boost the economy of Myanmar, formerly known as Burma.

Gardner, the chairman of a Senate subcommittee that focuses partly on relations with South Asia, told Reuters he remained concerned that the military continues to hold "tremendous power and grip," over key parts of Myanmar's economy and politics.

"Hopefully the military continues to loosen its grip," Gardner said.

Unelected military officers still hold 25 percent of the seats in Myanmar's Parliament and control three key ministries.

Through two sprawling conglomerates, the military has business interests ranging from real estate development to cigarette and beer production.

Gardner said he was concerned an easing of sanctions done without "adequate filtering or monitoring," could further enrich the military and cronies who profited from a close relationship with the former military junta.

The legislation also asks for a comprehensive, multi-year strategy to promote development and supports extending the country preferential treatment under the U.S. Generalized System of Preferences program, as long as it meets relevant conditions.

The bill follows a measure introduced on Tuesday by two other senators, Democrat Ben Cardin and Republican John McCain, seeking to preserve a focus on human rights in Myanmar as the United States moves toward easing or lifting sanctions.

Obama is expected to decide on the extent of the sanctions relief after consultations between Suu Kyi and his administration to gauge how far she wants Washington to go in loosening the screws on Myanmar's military.

Suu Kyi met Obama at the White House on Wednesday on her first visit to the United States since her party won a sweeping victory in last year's election, capping a decades-long journey from political prisoner to national leader.

She is trying to strike a balance between showing her people the economic rewards of a democratic transition while keeping pressure on the country's generals for further reforms.

Human rights groups also remain deeply concerned about the oppression of the Rohingya Muslim minority, who remain stateless and largely confined to camps near Myanmar's western coast. (Reporting by Patricia Zengerle and Timothy Mclaughlin; Editing by Paul Simao)</s>Washington (AP) — President Barack Obama said Wednesday the U.S. is lifting economic sanctions and restoring trade benefits to former pariah state Myanmar as he met with Aung San Suu Kyi, a former political prisoner who is now the nation’s de facto leader.

Obama hailed a “remarkable” transformation in the country, which spent five decades under oppressive military rule. Suu Kyi’s party swept historic elections last November, and the visit by the 71-year-old Nobel Peace Prize laureate, deeply respected in Washington, is a crowning occasion in the Obama administration’s support for Myanmar’s shift to democracy, which the administration views as a major foreign policy achievement.

The U.S. has eased broad economic sanctions since political reforms began five years ago and Obama has visited the country twice. But the U.S. has retained more targeted restrictions on military-owned companies and officials and associates of the former ruling junta. U.S. companies and banks have remained leery of involvement in one of Asia’s last untapped markets.

“The United States is now prepared to lift sanctions that we have imposed on Burma for quite some time,” Obama said as he sat alongside Suu Kyi in the Oval Office. He said it was “the right thing to do” to ensure Myanmar benefits from its transition. Asked by a reporter when sanctions would be lifted, Obama said “soon.”

Suu Kyi concurred it was time to remove all the sanctions that had hurt the economy. She urged Americans to come to the country and “to make profits.”

Congressional aides said that Suu Kyi requested the removal of the national emergency with respect to Myanmar — the executive order authorizing sanctions that has been renewed annually by U.S. presidents for two decades.

The Treasury Department said that Obama’s decision will be legally effective when he issues a new executive order to terminate the emergency. A U.S. official said that 111 Myanmar individuals and companies will be dropped from a Treasury blacklist and restrictions will be lifted on new investment with military and on the imports of rubies and jade. But penalties intended to block the drug trade and to bar military trade with North Korea would still apply, as would a visa ban barring some former and current members of the military from traveling to the U.S.

The official and aides spoke on condition of anonymity as they were not authorized to discuss the matter publicly.

The U.S. Chamber of Commerce hailed the announcement as “historic.” But human rights groups say there are powerful reasons for retaining sanctions. Military abuses continue in ethnic minority regions. Rohingya Muslims remain displaced by sectarian violence and denied citizenship. The military and its associates still have huge stakes in the economy.

“Obama and Suu Kyi just took important tools out of their collective tool kit for dealing with the Burmese military, and threw them into the garbage,” said John Sifton, deputy Washington director for Human Rights Watch.

Transparency watchdog Global Witness says Myanmar’s jade industry, based in a northern region plagued by civil conflict, is dominated by a military elite, U.S.-sanctioned drug lords and crony companies. It estimates the industry is worth nearly half of the nation’s economic output.

Suu Kyi addressed problems in western Rakhine state, where more than 100,000 Rohingyas remain stuck in camps, separated from Buddhists who are the majority in Myanmar. She said everyone entitled to citizenship in Myanmar should get it.

“We are sincere in trying to bring together the different communities,” Suu Kyi said.

The White House also notified Congress on Wednesday it would be reinstating in November trade benefits to Myanmar because of its progress on workers’ rights. The benefits were suspended in 1989, a year after the bloody crackdown on democracy protesters by the military.

Suu Kyi last visited Washington in 2012 when she was still opposition leader. On that occasion, she was presented with the Congressional Gold Medal, the legislature’s highest civilian honor, which she had been awarded in 2008 while under house arrest.

Now she is de facto leader of the country with the title of state counsellor although a junta-era constitution still enshrines the military’s role in politics and bars her from the presidency.

White House spokesman Josh Earnest pushed back on the notion the U.S. was undercutting its leverage over Myanmar on human rights and constitutional reforms by lifting sanctions. He said greater U.S. engagement would promote its ability to promote change.</s>YANGON, Myanmar (AP) — Myanmar economists and businessmen on Thursday welcomed President Barack Obama's announcement that the U.S. will lift economic sanctions and restore long-lost trade benefits to the Southeast Asian country as it emerges from half a century of oppressive military rule.

The nation of more than 50 million is rich in natural resources, and before a military coup in the early 1960s it was among the region's stronger economies. Today it's among Asia's least developed and poorest countries, with more than a quarter of the population living in poverty. Experts hope the lifting of sanctions helps change that by making it easier for U.S. companies to invest and do business here.

"There will be more trading and investment as the result of lifting sanctions on our country. It will really benefit the citizens of this country and be a great hope for Myanmar's economic development," said Khin Maung Nyo, a Myanmar economist.

The United States first imposed sanctions on Myanmar in 1997, when the military junta ruled. In 2011, the junta gave way to a quasi-civilian government that was dominated by former military officials but still ushered in some democratic reforms, leading the U.S. to restore full diplomatic relations and ease sanctions.

Myanmar's new government took power in April after the party led by pro-democracy leader Aung San Suu Kyi won a landslide election victory late last year. The military still retains power in the government, in part through a constitution that effectively bars Suu Kyi from the presidency. She is formally state counselor and foreign minister but is universally viewed as the country's leader.

Sitting beside Suu Kyi in the Oval Office on Wednesday, Obama said the U.S. will "soon" lift restrictions on military-owned companies and officials and associates of the former ruling junta.

Suu Kyi said it was time to remove remaining sanctions, which have kept U.S. companies and banks leery of involvement in one of Asia's last untapped markets. But the military still retains major political and economic interests, and some rights groups said the U.S. should continue applying pressure on Myanmar to change. Massive illegal trade in goods including jade and timber continues, as does civil war with many ethnic minorities.

"Lifting all sanctions now will embolden the Myanmar military and its partners," said Matthew Smith of Fortify Rights. "This decision was hasty and fails to recognize political realities on the ground."

Khin Maung Nyo, however, said it is impossible to single out Myanmar military interests without making the entire country suffer.

"In Myanmar, there are no businesses which are not related to cronies or military. But we do hope that they change according to the political changes, not only for their own profit but also benefiting the country and its people," he said.

Ye Hein Aung, a member of Myanmar Center for Responsible Business, said the lifting of sanctions will improve not only imports and exports but banking, and would make Myanmar less dependent on regional trade.

"When we have more economic development, grassroots-level people will have more hope to have a better life in the future. The current economic situations really hurt the grassroots-level people right now," Ye Hein Aung said.

Khin Maung Lwin, a 60-year-old who sells snacks on the roadside in Yangon, Myanmar's biggest city, hoped the changes would be not only wealth but more choices for consumers.

"This is really good, and the economy will grow," he said. "By lifting sanctions, there will be better-quality import products. We don't have good medical products and it affects people's health."</s>WASHINGTON, D.C.: President Barack Obama moved to restore trade benefits to Myanmar, saying broader sanctions would soon be scrapped as he hosted the country’s de facto leader Aung San Suu Kyi at the White House on Wednesday (Thursday in Manila).

Welcoming her for the first time since her historic election victory last year, Obama announced a series of steps to coax the rapidly transforming southeast Asian country — also known as Burma — from decades of economic isolation.

“The United States is now prepared to lift sanctions that we have imposed on Burma for quite some time,” he said, adding that the move would come “soon.”

“It is the right thing to do to ensure that the people of Burma see rewards for a new way of doing business,” he added.

In a letter to Congress, Obama also announced plans to reinstate preferential tariffs for Myanmar that were suspended more than two decades ago amid rights abuses by the ruling junta.

The White House is keen to help the country’s economy and Suu Kyi’s administration — which is managing a difficult transition from military-run pariah to full-fledged democracy.

Although its constitution technically bars the 71-year-old Nobel Peace Prize laureate from heading Myanmar’s government, she received a leader’s welcome in Washington.

After talks with Obama, Suu Kyi took part in a coveted Oval Office grip-and-grin photo shoot.

Obama turned to the once-imprisoned former opposition leader, offering his “congratulations on the progress that has been made.”

“It’s a good news story in an era when so often we see countries going the opposite direction,” he said, acknowledging that much work remains to be done.

Suu Kyi is officially foreign minister and self-appointed state counsellor — a role akin to prime minister.

After spending much of the last few decades under arrest, she is now de facto leader of a skeletal government, an economy hollowed out by decades of kleptocratic dictatorship and a country riven with ethnic and religious violence.

The veteran campaigner must tackle all those problems while keeping an eye on generals who may have second thoughts about reform.

US officials, who acknowledge Suu Kyi is working under some very tough political constraints, dare not push the military or the public too far or too fast.

“She has to tackle problems one by one” said Ben Rhodes, a key Obama aide who has spearheaded the administration’s Myanmar policy.

Leverage and sanctions

 Obama did not say when he would rescind an executive order underpinning broader sanctions that declares Myanmar a “national emergency.”

Although some curbs on ties to the military and some individuals will probably stay in place, scrapping the order would bring clarity to US companies considering business there.

Washington lifted a host of financial and trade embargoes on state-owned banks and businesses in May, but US firms have remained cautious.

Some policymakers worry lifting sanctions completely could weaken American leverage and may let the military off the hook.

There is still no civilian control of the military and officers are guaranteed a quarter of legislative seats.

Global Witness and other human rights groups have criticized Obama’s move as “a major setback for efforts to clean up Myanmar’s notoriously corrupt and abusive business environment.”

“Lifting restrictions before the new government’s reforms have borne fruit effectively invites US companies to do business with some of the worst figures from the country’s past,” it added.

Suu Kyi has disappointed some of her more zealous Western supporters by following the junta’s lead on some issues, especially refusing to recognize the Rohingya — a persecuted Muslim minority group in the overwhelmingly Buddhist country.

Tens of thousands of stateless Rohingya have spent the past four years trapped in bleak displacement camps with limited access to health care and other basic services.
The Obama administration plans to lift sanctions against Myanmar.