YANGON, Myanmar (AP) — The image was meant to convey growing friendship between the United States and Myanmar, the world's hottest frontier market. Flanked by national flags, Win Aung, the president of Myanmar's main business association, and U.S. Assistant Secretary of State Jose Fernandez shook hands in Yangon and agreed to deepen business ties between their countries.
The awkward part? The United States still dubs Win Aung a "crony" who allegedly used his close ties to Myanmar's old military rulers to build one of the country's biggest business conglomerates. He remains on a blacklist of entities U.S. citizens and companies are banned from doing business with.
Their handshake Monday illustrates the complex and sometimes contradictory path the U.S. is forging as it tries to encourage new business ties with Myanmar while retaining moral sway over powerful economic, political and military interests it has long censured. Many praise the ethical stance taken by U.S. policymakers and hope that the entry of U.S. companies will help forge a more transparent, less corrupt corporate culture. But some question the effectiveness of Washington's chosen tools and the impact they have on the ability of U.S. investors to compete in what has quickly become a hot market.
Unlike the European Union and Australia, which lifted their travel and financial sanctions against Myanmar, the United States has taken what U.S. officials call a "calibrated" approach to retain leverage in case Myanmar's political and economic reforms get derailed. While Washington has suspended most restrictions, the U.S. still maintains its list of targeted sanctions, bans some people from traveling to the U.S. and blocks imports of specific products, such as jade and rubies, for which trade has been dominated by state and military interests.
Fernandez was in Myanmar as part of a U.S. business delegation, the first since President Barack Obama's historic November visit. The delegation was organized by the U.S. Chamber of Commerce and hosted by Win Aung's group, the Union of Myanmar Federation of Chambers of Commerce & Industry. Over 50 representatives of U.S. companies including Chevron, General Motors, Target Corp., ConocoPhillips, Caterpillar, General Electric International, Honeywell and eBay are scheduled to spend the week meeting with leading businesspeople and government officials in Myanmar.
Fernandez, in an interview, declined to comment on Win Aung's inclusion in the list of so-called "Specially Designated Nationals." The list forms the backbone of U.S. sanctions against Myanmar now that general restrictions on investment, imports and financial services have been suspended in response to the sweeping economic and political reforms instated since Myanmar's president, Thein Sein, took office in March 2011.
Fernandez conceded that "maybe some adjustments need to be made" to the list, but praised it as an important foreign policy tool for encouraging responsible investment.