EU slaps economic sanctions on Burma

The EU’s foreign ministers have agreed to ban trade and investment in Burmese timber, metals and precious stones, in response to a violent crackdown on protesters last month. Doubts were expressed about the likely effectiveness of the sanctions, however.

• Limiting trade

After their meeting in Luxembourg on Monday (15 October), EU foreign affairs ministers said they will “adopt a package of measures that do not harm the [Burmese] population but that target those responsible for the violent crackdown and the overall political stalemate in the country”, according to an official statement from the External Relations Council.

The measures agreed include “an export ban on equipment to the sectors of logs and timber and mining of metals, minerals, precious and semi-precious stones; an import ban of products of the sectors mentioned before; and an investment ban in these sectors”, the statement said.

A ban on new investments in the country is also being considered by the Council, and may be imposed if conditions in the country do not improve. The EU is awaiting the outcome of a visit to Burma and the wider region by UN Special Envoy Ibrahim Gambari. His visit is designed to encourage other Asian nations such as Thailand, Indonesia and Malaysia to apply pressure on the Burmese regime.

Deputy Dutch Foreign Minister Frans Timmermans called the measures “a considerable sharpening of our sanctions”. And UK Foreign Secretary David Miliband told reporters after the Luxembourg meeting that “if the regime refuses” to cooperate with Gambari, “then obviously there will be further sanctions”. 

Japan has also suspended aid to Burma, following the shooting of a Japanese journalist during the military’s crackdown. The US, which already imposed sanctions on Burma in 2003, is also said to be considering further restrictive measures.

• An effective response?

But EU sanctions, even in combination with sanctions by Japan and the US, may be limited in their overall effectiveness. According to the US State Department, much of Burma’s raw materials are exported illegally, through black market trade along the country’s porous border. In addition, China has so far refused to levy any sanctions.    

The country’s natural gas sector has also been left untouched by EU sanctions. Western energy firms such as Total have invested considerably in the extraction of Burmese natural gas reserves, estimated at over 280 billion cubic meters, according to CIA figures. 

“Unfortunately, the world’s oil and gas reserves are not necessarily located in democracies”, Total states in a special webpage devoted to Burma. 

The company has come under criticism for its continued activities in the country, but has defended its activities on the grounds that it also invests considerably in local development efforts. “Rather than respond to the unwarranted criticism, we want to restore balanced debate on whether a responsible multinational company can contribute positively to the economic and social development of a country that faces sharp internal divisions”, the company says. 

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