(VOVworld) – Twenty seven EU Foreign Ministers agreed in Luxembourg on Monday to lift all economic and trade embargos and sanctions imposed on Myanmar’s citizens. The move is considered an important breakthrough, opening a new chapter in EU – Myanmar relations. VOV’s Hong Van comments….

Myanmar President, U Thein Sein and EU High Representative for Foreign Affairs, Catherine Ashton

The EU’s decision was made one year after the bloc decided to loosen most of the economic and trade sanctions imposed on Myanmar’s citizens, with the exception of arms sanctions. The EU will lift sanctions on 800 businesses operating in the timber and mining industries. Investment will now be allowed in 50 pro-government companies and travel restrictions on 500 individuals will be lifted.

Myanmar’s impressive reform in both politics and economics is the reason behind the decision. Catherine Ashton, EU High Representative for Foreign Affairs, said the EU’s goal is to support Myanmar’s reforms and open the way for foreign companies to invest in the country.

EU’s lifting of its sanctions illustrates its commitment to encouraging democratic reforms in Myanmar and helps the EU enter this new market. Japan has said it will forgive Myanmar’s 3.7 billion USD debt and resume Official Development Assistance to Myanmar as a way to support its economic reforms. Australia has said it will lift its travel and financial sanctions on Myanmar’s President and more than 200 Myanmar citizens. Earlier, the US announced a gradual loosening of financial restrictions on Myanmar.

European companies will now be allowed to invest in Myanmar’s rich natural resources, which are needed for industrial development. Myanmar recently put its 30 oil and gas fields out to tender. Myanmar’s banking and telecommunications are also attractive to European businesses. Ahead of the EU’s decision, many European companies expressed a wish to invest in Myanmar. For instance, the Danish brewer Carlsberg said it was returning to Myanmar following the easing of international sanctions.

Myanmar’s business community welcomed the EU’s decision. Myint Soe, Vice chairman of Myanmar's Federation of Chambers of Commerce and Industry and head of the Myanmar Garment Manufacturers Association, said the move will open the important commodities market.

Lifting sanctions is just the first step however, as Myanmar still lacks the infrastructure and legal foundations investors will want. Lack of transparency in the country’s governance also worries investors. Myanmar ranks 172 out of 174 countries in lack of transparency and corruption, not to mention the sectarian violence there.

Although it will take some time to see the full results of the EU’s lifting of its sanctions, the decision certainly opens a new chapter in the EU’s ties with Myanmar and offers an opportunity to build a lasting partnership.  

Hong Van