Burma:
Battle for Democracy
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| International investors are eager to invest in Burma's untapped markets |
US
President Barack Obama has announced that US companies will now be allowed to
"responsibly do business in Burma".
He enacted
promises given last month to ease investment restrictions but he warned that
the US remained "deeply concerned" over a lack of transparency.
Mr Obama
was rewarding the Burmese government for its recent reforms and release of
political prisoners.
Burmese
President Thein Sein urged Western countries to scrap all sanctions against his
country.
"It is
extremely important that sanctions be lifted - both financial and other
economic sanctions - to make possible the sort of trade and investments that
this country desperately needs at this time," he said in an interview with
the Financial Times.
The US has
imposed an arms embargo on Burma, as well as bans on investment and financial
services.
Announcing
the easing of sanctions on Wednesday, Mr Obama said it sent "a strong
signal of our support for reform, and will provide immediate incentives for
reformers and significant benefits to the people of Burma".
But he said
that entities belonging to the army or ministry of defence would not be covered
by the move.
"In
addition, US companies will be asked to report on their activities in line with
international corporate governance standards," the statement added.
Controversial
The
Associated Press reports that US firms have been given the go-ahead to invest
in projects with state-owned Myanma Oil and Gas Enterprise.
The move
would be controversial because Nobel laureate Aung San Suu Kyi last month
explicitly urged foreign firms not to do business with the enterprise.
Meanwhile,
the first US ambassador to Burma in 22 years, Derek Mitchell, has arrived in
the country and met President Thein Sein.
The
upgrading of diplomatic relations is part of the process of greater recognition
for the Burmese government.
Since 2010,
the government has overseen a transition from authoritarian rule to a more
inclusive system.
The EU,
Australia and other countries have already eased sanctions against the country.
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