Foreign Relations of Burma - European Union and The United States

European Union and The United States

The United States has placed broad sanctions on Burma because of the military crackdown in 1988 and the military regime's refusal to honour the election results of the 1990 People's Assembly election. Similarly, the European Union has placed embargoes on Burma, including an arms embargo, cessation of trade preferences, and suspension of all aid with the exception of humanitarian aid.

US and European government sanctions against the military government, coupled with boycotts and other direct pressure on corporations by western supporters of the Burmese democracy movement, have resulted in the withdrawal from Burma of most U.S. and many European companies. However, several Western companies remain due to loopholes in the sanctions. Asian corporations have generally remained willing to continue investing in Burma and to initiate new investments, particularly in natural resource extraction.

The French oil company Total S.A. is able to operate the Yadana natural gas pipeline from Burma to Thailand despite the European Union's sanctions on Burma. Total is currently the subject of a lawsuit in French and Belgian courts for the condoning and use of Burman civilian slavery to construct the named pipeline. Experts say that the human rights abuses along the gas pipeline are the direct responsibility of Total S.A. and its American partner Chevron with aid and implementation by the Tatmadaw. Prior to its acquisition by Chevron, Unocal settled a similar human rights lawsuit for a reported multi-million dollar amount. There remains active debate as to the extent to which the American-led sanctions have had adverse effects on the civilian population or on the military rulers.