Burma trade sanctions set for approval

Date: 23/01/1997

By Elizabeth Wise

EU GOVERNMENTS look set to back European Commission calls for Burma's trade privileges to be suspended to punish Rangoon for its human rights abuses.

After the first meeting of member state officials to discuss the proposal to take Burma off the list of countries benefiting from the Union's generalised system of privileges (GSP) late last week, the early indications were that it would be approved.

“Almost everybody was in favour,” said a participant. “There were no strong objections.”

The move would make it harder for Burma's industrial goods to enter the Union, but trade officials suggest that Rangoon will also be hit with another sanction: stiffer import rules for Burma's agricultural produce.

Hot on the heels of its initial proposal, the Commission has also drawn up a plan to reinstate normal, non-beneficial rules for Burma's farm output.

Commission and member state officials are rushing it through so that it can be added to the industrial measure.

However, despite broad support for the plan, some governments have said they need more time to look at the proposal and assess its impact.

Paris is among them. Although the French oil company Total has substantial interests in Burma, these would not be affected by the GSP suspension because oil and oil products enter the EU duty-free. But Paris must decide whether to be politically associated with a sanction which could hurt some of the people French firms do business with in Burma.

Germany also has business interests in the country, but its trade policy leaders appear to favour the Commission proposal.

GSP committee members say they may also consult the European Parliament on the matter. The proposal is due to be discussed by EU foreign ministers at their February meeting.