U.S. Suspends Trade Relations with Myanmar Following Coup

The United States government has terminated trade relations with Myanmar, a decision made two months after the nation’s military seized power through a coup. This coup resulted in the ousting of both the president and Aung San Suu Kyi, the country’s de facto leader, and has been accompanied by the deaths of at least 200 protestors due to the military’s actions.

Trade Suspension Details

U.S. Trade Representative Katherine Tai announced the trade suspension would take effect immediately. The suspension will continue until a democratically elected government is reinstated in Myanmar.

Tai emphasized the U.S.’s support for the Burmese people in their pursuit of a restored democratic government. She stated that such a government is essential for Burma’s continued economic development and reform.

The statement further condemned the violent actions of Burmese security forces against civilians. The killings of peaceful demonstrators – including students, workers, labor leaders, medical personnel, and children – have provoked widespread international outrage. These acts represent a significant setback to the country’s democratic transition and the aspirations of its citizens for a stable and prosperous future.

Historical Context of U.S.-Myanmar Trade

Trade between Myanmar (also known as Burma) and the U.S. commenced in 2013. This followed the relaxation of U.S. sanctions the previous year, after elections resulted in a landslide victory for Aung San Suu Kyi’s party.

Impact on Internet Access and Companies

The trade suspension is specifically targeted at the ruling military junta. However, it creates uncertainty for the millions of internet users in Myanmar. U.S.-based cloud and internet companies are currently navigating the implications of the U.S. government’s order, particularly as protestors rely on internet access amidst government-imposed shutdowns.

Currently, Myanmar has already blocked access to major social media platforms, including Facebook, Twitter, and Instagram, with no specified date for restoration.

Understanding Sanctions and Compliance

Sanctions are implemented to restrict the transfer of goods, funds, and specific services to designated countries. U.S.-based companies are legally obligated to adhere to these sanctions, facing substantial financial penalties for non-compliance.

A notable example is ZTE, which in 2017 admitted to violating U.S. sanctions against Iran by knowingly exporting products to the country. As a result, the company was required to pay a fine of approximately $1 billion.

Gray Areas for Cloud Providers

Cloud companies often operate within a legal gray area, interpreting sanctions regulations differently. Reports from 2016 indicated that internet users in Syria, Cuba, and Iran – all subject to U.S. trade sanctions – were unable to access websites hosted by IBM, as the U.S. cloud provider blocked access from those countries.

Conversely, other major cloud providers like Rackspace and Linode do not block internet traffic originating from embargoed countries. Instead, they prevent users from those countries from creating new accounts on their platforms.

Myanmar’s Internet User Base

Approximately 17 million people in Myanmar, representing around 30% of the total population, are active internet users.

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