Canada Loosens Sanctions on Burma; Trade & Investment Prohibitions 'Mostly' Removed
Changes to Canada’s unilateral economic sanctions on Burma, including suspension of some sanctions, were announced on April 24 by Canada Foreign Affairs Minister John Baird. Among other things, changes include lifting most prohibitions on imports, exports, and investment, and removal of Burma from Canada’s Area Control List.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
(Canada’s Special Economic Measures (Burma) Regulations were imposed in 2007 in response to human rights violations in that country. These sanctions included comprehensive trade and investment prohibitions, as well as provisions relating to financial services, technical data, transiting and docking of ships and aircraft, and transactions with designated persons and entities. Also, in 1997, Burma was added to the Area Control List, requiring that all those wishing to export from Canada to Burma obtain an export permit under the Export and Import Permits Act.)
Prohibitions on Imports, Exports & Investment “Mostly” Removed
Canada says that, since imposition of the sanctions, and particularly in the last year, there have been several positive developments with respect to basic rights and reforms in Burma. As a result of these developments, Canada said it's increasing its engagement with Burma and has made changes that ease sanctions against it. Canada said prohibitions on imports, exports and investment have for the most part been removed, as have those related to technical data and financial transactions.
However, according to Canada, a few prohibitions remain: trade in arms and related material is still forbidden, along with technical and financial assistance related to military activities. An asset freeze and prohibition on transactions also remain in place against designated individuals and entities. The list of designated persons will be reviewed and updated over the coming weeks in light of changes that have taken place in the Burmese power structure since the list was created.
Burma Removed from Canada Area Control List Permit Requirements
Canada also removed Burma its Area Control List, which required that all those wishing to export from Canada to Burma obtain an export permit under the Export and Import Permits Act. However, Canada said permit requirements for items included on Canada’s Export Control List remain in effect.
Canada Ready to Re-Impose Sanctions if Necessary; Urges More Progress
Canada said it stands ready to re-impose sanctions if progress is reversed and the situation in Burma deteriorates once again, and urges those in power to go even further and continue to improve conditions for human rights and democratic development. This would include, among other things, the release of all remaining political prisoners and the halting of all conflict in ethnic-minority areas.
(See ITT's Online Archives 12040608 for summary of U.S. Secretary of State Clinton's remarks on easing U.S. sanctions on Burma / Myanmar, and 12041805 for summary of new OFAC license loosening U.S. investment restrictions for Burma. See also 12042530 for summary of ASEAN reaction to the European Union's easing of Burma sanctions.)