Last week was an active one in the development of US-Myanmar bilateral trade. The US Burma [Myanmar] Responsible Investment Reporting Requirements was finalized on May 23—applying to investments of more than US$500,000—and will come into effect as of July 1.
This new legislation will require US citizens investing in Myanmar to report on: "a range of policies and procedures with respect to their investments in Burma, including human rights, labor rights, land rights, community consultations and stakeholder engagement, environmental stewardship, anti-corruption, arrangements with security service providers, risk and impact assessment and mitigation, payments to the government, any investments with the Myanma Oil and Gas Enterprise (MOGE), and contact with the military or non-state armed groups," according to a statement released by the US Department of State.
Along with the new requirements came the announcement that the Myanmar US Trade Council had established offices in Washington, New York and Yangon to promote US-Myanmar trade and the signing of a Trade and Investment Framework Agreement to encourage economic dialogue.
Meanwhile, Human Rights Watch (HRW), on Friday warned American companies investing in Myanmar to not allow these new measures to encourage complacency in relation to human rights concerns.
“Companies investing in Burma should disclose how they plan to deal with the very serious human rights risks they face,” said Lisa Misol, senior researcher on business and human rights at HRW. “But the real test will be how companies on the ground actually address the abuses that have frequently accompanied major investments.”
HRW warned about "the lack of rule of law and an independent judiciary, major tensions over the acquisition and use of land, and disregard of community concerns in government-approved projects. The military’s extensive involvement in the economy, use of forced labor, and abusive security practices in business operations heightens concerns.
They also highlighted continuing corruption throughout the country.
“Investors in Burma need to act cautiously to avoid becoming involved in rights abuses and corruption,” Misol said. “Investments should only proceed on the basis of independent and credible risk assessments, thorough consultations with affected communities, and clear plans to minimize risk factors and remedy problems.”
Natural resource industries, such as oil and gas, and the telecommunications industry—both of which have tenders being awarded in June—are particularly vulnerable to human rights issues, warned HRW.
Bilateral trade between the two countries remains small, but is increasing. There was a total of US$90 million of trade during the first three months of this year.
