The United States has suspended part of an American investment agreement with Myanmar following the military coup two months ago. In the former Burma, the democratically elected leader, Aung San Suu Kyi, and other politicians from her National League for Democracy have been arrested.
The U.S. action comes after years of increasing trade in agricultural products with Myanmar, but this progress is now under threat. The military coup on February 1 led to a movement for civil disobedience and many protests, which resulted in violent military responses.
Many Myanmar citizens are also striking at businesses owned by (the families of) military leaders. The country’s economy has largely been controlled by the generals for decades. The new U.S. trade representative Katherine Tai said the U.S. is halting its participation in the 2013 trade and investment framework agreement with Burma.
The United States is imposing sanctions on two major conglomerates of the Myanmar military. These are two holdings, MEHL and MEC, which encompass dozens of companies. They can no longer trade with Americans, and their U.S. bank accounts are frozen. The United Kingdom is imposing similar sanctions; the European Union has not yet made a decision on this.
According to the USDA, U.S. exports of agricultural products to Myanmar have increased eighty-fold over the past nine years, to about $167 million in soymeal, soybeans, distillers grains, wheat, and other commodities. Soymeal is now the largest product sold by the U.S. to Yangon — exports were estimated at $92.3 million in 2020; there was no trade at all in 2011.