US restores trade benefits to Myanmar

The United States will reinstate Myanmar’s eligibility for benefits under the generalized system of preferences (GSP) program, which lowers tariffs on imports from poorer countries.

President Obama signed a proclamation on Wednesday allowing the Southeast Asian nation to participate in the program again starting in November after a 27-year-hiatus.

{mosads}“While there is more work to be done, including to address concerns regarding human trafficking, Burma has made important progress in recent years with respect to worker rights,” said U.S. Trade Representative Michael Froman.

“We see Burma’s democratically elected government giving new hope to its people, making commitments to continue implementing reforms that strengthen workers’ voices, and working to combat forced and child labor,” Froman said.

The United States suspended Burma’s benefits during President George H.W. Bush’s administration in 1989 over worker rights concerns.  

The president met with the Burma’s State Counselor Aung San Suu Kyi, the country’s de facto leader, on Wednesday in the Oval Office to announce the lifting of sanctions and the restart of the GSP program.

“At the same time, we’re also going to be restoring the Generalized System of Preferences, which provides very important commercial and trading advantages for poorer countries as they enter into the global economy,” Obama said during joint remarks.

“And if you combine those two efforts, I think this will give the United States, our businesses, our nonprofit institutions, a greater incentive to invest and participate in what we hope will be an increasingly democratic and prosperous partner for us in the region,” he said.

The change will provide that nation with the opportunity to export about 5,000 products to the United States duty-free, according to USTR.

Burma requested reinstatement in 2013 and since then the USTR has led an extensive review of Burma’s compliance with the GSP eligibility criteria, especially the nation’s recent record of labor reforms and strengthened worker protections.

U.S. officials say they are working with the Burmese government and will continue to closely monitor the nation’s progress.