Thursday, October 4, 2018

The Irrawaddy Magazine

The Irrawaddy Magazine


Government Building More ‘Model Villages’ to House Rohingya Returnees

Posted: 04 Oct 2018 07:19 AM PDT

YANGON—To house Rohingya refugees expected to return from Bangladesh, the Myanmar government this month began building 12 additional "model villages" in strife-ridden northern Rakhine's Maungdaw Township.

In August last year, the Arakan Rohingya Salvation Army (ARSA), also known as Al-Yaqin ("faith movement"), staged coordinated attacks against several dozen government border outposts. The series of attacks prompted the Myanmar Army to launch a security clearance operation that caused nearly 700,000 Rohingya to flee to Bangladesh's Cox's Bazar district, which has become home to the world's largest refugee camp.

The UN said the Army's clearance operations had "genocidal intent" and called for the commander-in-chief of the Myanmar military (or Tatmadaw), Senior General Min Aung Hlaing, to be prosecuted at the International Criminal Court for his role in the handling of the Rohingya crisis. The EU recently imposed targeted sanctions against a number of Tatmadaw generals and is currently considering imposing trade sanctions on Myanmar over the crisis.

To facilitate the return of hundreds of thousands of refugees, the Myanmar and Bangladesh governments signed repatriation agreements in early 2018, but not a single refugee has entered Maungdaw through official channels so far. Meanwhile, government ministers keep saying they are ready to accept the refugees. Government representatives including Union Minister U Kyaw Tint Swe and Social Welfare Minister Dr. Win Myat Aye reiterated this position at the ongoing UN General Assembly in New York.

Rohingya rights defenders including Prof. Waka Uddin of Pennsylvania State University, who serves as the director general of the Arakan Rohingya Union (ARU), have claimed in interviews with several news outlets that the government has failed to prepare facilities for the return of the refugees.

According to Maungdaw District administrative official U Ye Htoo, local authorities are working on two projects: building modest houses for the refugees under the supervision of the Union Enterprise for Humanitarian Assistance, Resettlement and Development in Rakhine (UEHRD); and a new "model village" plan, which is still in progress.

He said that under the management of UEHRD, structures are being built in 19 locations, some of which are earmarked for ethnic Arakanese people. He declined to elaborate on specific numbers of houses being built for Rohingya and non-Muslim groups. At the moment, U Ye Htoo said, the government has 12 prioritized sites and each village will include a market, school, public park and clinic.

While the National League for Democracy (NLD)-led government has been implementing resettlement step-by-step on the ground, Arakanese nationalists and politicians have demanded that the Muslim and Rakhine communities be segregated, with southern Maungdaw being declared a "Muslim-free" zone. According to U Ye Htoo, authorities will restore the Muslim communities in both northern and southern Maungdaw.

He explained that northern Maungdaw has more room for people to live in than the south. It's unclear whether the affected areas would contain the same population balances as existed before the 2017 crisis. The refugees will initially be housed at refugee reception camps like Hla Phoe Khaung and Taung Pyo, before being transported to the model villages.

Meanwhile, two UN human rights and development agencies conducted initial assessments of 23 villages in the middle of September. Officials declined to provide details about the assessments, but said the agencies would report the results to the government as agreed in a memorandum of understanding.

A United Nations High Commissioner for Refugees (UNHCR) communications official confirmed the existence of the survey via email on Wednesday. She said initial assessments had been done in 26 locations chosen by the government in the 23 villages. The site officials met with people and carried out consultations focused on understanding the needs on the ground and also to identify possibilities to work with the government to improve the life of all communities who have been affected, she said.

A UN press official declined to disclose the exact number of Rohingya and non-Muslim villages mentioned in the identified locations. Nor did she discuss the physical arrangements being made by local authorities on the ground.

She wrote in an email: "UNHCR and UNDP are in the process of analyzing the data gathered for the assessment, however it remains too premature to draw any conclusions as of yet."

According to her, the UN agencies plan to start a second round of assessments in new areas soon. They also plan to implement some projects recommended to them by members of the conflict-affected communities during the UN officials' first assessment trips to the area.

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Suu Kyi, Military Chief, EAO Leaders to Sit Down Together This Month

Posted: 04 Oct 2018 05:01 AM PDT

State Counselor Daw Aung San Suu Kyi, Myanmar military chief Senior General Min Aung Hlaing and selected leaders of the country's ethnic armed organizations will meet this month to discuss ways of resolving the deadlocks that have left the peace process stalled, an official from one of the EAOs said.

Saw Mra Yazar Lin, a peace negotiator for the Arakan Liberation Party (ALP), told The Irrawaddy on Thursday that the government had proposed a date of Oct. 15 for the meeting, but discussions with the EAOs to finalize the date were ongoing.

She was not authorized to disclose the location of the meeting.

"At the meeting, we will mainly discuss how we can find a solution to resolve the deadlock facing the peace process," she said.

"To find a solution, it is important to bring together decision-makers at the meeting," she said. These included people with the authority to make political decisions on behalf of the Myanmar Army (or Tatmadaw), the government and the  EAOs, she said.

This will be first time that leaders of the three main stakeholding groups in the peace process—the government, the military, and the EAOs—will sit at one table since the country's peace process was launched in 2011 under then-President Thein Sein. The meeting was proposed by the EAOs to the government last month.

The EAOs have proposed 12 points of discussion, while the government has at least four points to discuss at the meeting, she said.

One issue on the agenda is the Tatmadaw's insistence that EAOs promise not seek to secede from the Union. Another will be how the Myanmar Army can share power with EAOs, given that the country can have only one army. Snr-Gen. Min Aung Hlaing said at the third session of the 21st Century Union Peace Conference earlier this year that the peace process will be complete by 2020. The EAOs intend to ask him how this can be achieved.

The EAOs also want to discuss how the Myanmar Army and government plan to allow self-determination in their respective regions. They will also discuss proposed amendments to the military-drafted 2008 Constitution.

"Our ethnic leaders will engage in the discussions at the meeting based on a future federal system [for Myanmar]," she said, referring to the political system that EAOs have already proposed for the country's future.

The EAO leaders will meet in Chiang Mai, Thailand on Oct. 11 to decide who will meet with the Army chief and Daw Aung San Suu Kyi.

Ten EAOs have signed the Nationwide Ceasefire Agreement (NCA). At least another 10 with strong armed forces, included the United Wa State Army, have not signed and are closely observing the current peace process between the NCA signatories and the government.

The Myanmar Army did not allow EAO leaders to discuss political issues at the third session of the Union Peace Conference earlier this year because the ethnic leaders refused to promise never to seek secession from the Union. According to the ethnic leaders, this is the main reason for the deadlock in the peace process.

Ethnic leaders say the current political system in the country is not a genuine democracy, and their people still do not have equal rights. Therefore, they continue to stand together in their refusal to disavow secession as a right.

The EAO leaders said the Army should reconsider this policy, because peace negotiations cannot move forward otherwise.

The post Suu Kyi, Military Chief, EAO Leaders to Sit Down Together This Month appeared first on The Irrawaddy.

Police in Yangon Seize Nearly 10,000 Bullets, Make Arrest

Posted: 04 Oct 2018 03:47 AM PDT

MANDALAY — Police in Yangon have arrested a man in connection with the seizure of some 9,500 bullets in Hlegu Township on Monday, according to the Ministry of Home Affairs.

On Tuesday the ministry announced that U Zaw Zaw Htet Lu, 45, was apprehended with about 100 bullets at his home in Sanchaung Township. It said the case was filed at the Hlaingtharyar Township police station under articles 19 (d) and 19 (f) of the Weapons Act, which covers illegal weapons possession.

"We received information that he was connected to the seized bullets, but we can't share the details yet because the case is still under investigation," said the duty officer at the Hlaingtharyar police station.

The officer said a man had tried to ship the 9,500 bullets to Muse Township, Shan State, in two boxes by bus from Hlegu.

"The highway bus line contacted us when it found the bullets in one of the boxes, so we investigated and found the connection we used to arrest U Zaw Zaw Htet Lu. There may be other people involved and we are still investigating," the officer said.

Some of the bullets seized by police shortly before U Zaw Zaw Htet Lu’s arrest. / Facebook / Ministry of Home Affairs

Such seizures connected to civilians are uncommon in Myanmar, though Monday’s incident is the second of its kind in the past year.

In October 2017, U Phyo Ko Ko Tint San, owner of the ACE Company and son of the former sports minister, was arrested in the possession pistols, bullets and drugs at Naypyitaw Airport. Police found more drugs and weapons at his home and business properties.

Police have reportedly charged 15 suspects in connection with U Phyo Ko Ko Tint San’s case with illegal weapons possession and drug abuse.

U Phyo Ko Ko Tint San was also charged with Article 67 of the Telecommunications Law for keeping walkie-talkies, Article 8 of the Export/Import Law for keeping drones, Article 61 (a) of the Official Secrets Act for unauthorized use of the National Security Council logo on cars, and possession of bulletproof and camouflage jackets with SWAT badges similar to those worn by the bodyguards of then-President U Htin Kyaw and State Counselor Daw Aung San Suu Kyi.

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Gov’t Seeks Investors for Economic Zones on Chinese Border

Posted: 04 Oct 2018 03:23 AM PDT

YANGON—The Ministry of Commerce will invite local investors to back "economic cooperation zones" on the China-Myanmar border in Shan and Kachin states as part of Beijing's ambitious Belt and Road Initiative (BRI).

"The invitation to local investors will be done in a transparent manner," the ministry's assistant secretary, U Khin Maung Lwin, told The Irrawaddy.

"We expect to conclude our final discussions with China regarding the exact locations very soon. After that we will invite local investors," U Khin Maung Lwin said.

According to Kachin State Chief Minister U Khet Aung, Myanmar in July approved three economic cooperation zones on the Myanmar-China border. The zones are in Kanpiketi town, in Kachin State's Special Region 1 (currently under the control of the New Democratic Army-Kachin militia, a border guard force allied with the Myanmar military; Chinshwehaw, in Shan State's Laukkai Township (part of the Kokang Self-Administered Zone); and in Shan State's Muse Township.

U Khin Maung Lwin said the discussions are ongoing and that China has the right to give final approval for the locations.

Each economic cooperation zone will include a taxation center, trade procedure office and currency exchange center, he added.

The two countries plan to construct industrial zones near the economic cooperation zones. The industrial zones will house trade and processing areas, small and medium-sized industrial facilities, a trade logistics center and a quality packing center, according to the ministry.

According to Union Minister of Commerce U Than Myint, the government also plans to build a repackaging factory for agricultural products bound for export to China.

The zones would create local jobs, boost small and medium-sized businesses and support the peace process by promoting stability, he said.

China and Myanmar have signed five memorandums of understanding (MoUs) since 2017, agreeing among other things to build the economic cooperation zones on the border. The plan to build the zones was agreed by the two countries' respective commerce ministries during a visit by State Counselor Daw Aung San Suu Kyi to Beijing to attend a forum on the BRI.

In July, after U Than Myint returned from a trip to China, the ministry convened the first meeting of the Economic Cooperation Zones Central Committee in Naypyitaw. Myanmar's team was headed by U Than Myint, with the chief ministers of Kachin and Shan states and the president of the Kokang Self-Administered Zone serving as his deputies. During the meeting, the minister pushed team members to start the projects as soon as possible.

During the minister's trip to China, Chinese officials said the zones would not only boost border trade, but also help bring "peace and stability" to Myanmar's restive regions.

Last month, Beijing and Naypyitaw signed an MoU on the China-Myanmar Economic Corridor, a part of the BRI. The corridor will reach from Yunnan Province to Mandalay in central Myanmar, from where it will stretch south to Yangon and west to the Kyaukphyu Special Economic Zone in Rakhine State.

Launched in 2013, the BRI is Chinese President Xi Jinping's signature foreign policy project. It aims to build and expand roads, rail lines and shipping lanes linking at least 70 countries from China to Europe through central Asia, the Middle East and Russia to boost trade and investment.

Under the MoUs, the two governments have agreed to collaborate in many sectors including infrastructure, construction, manufacturing, agriculture, transportation, finance, human resource development, telecommunications, and research and science.

The post Gov't Seeks Investors for Economic Zones on Chinese Border appeared first on The Irrawaddy.

Fifth Airline Launches Flights Between Mandalay and Guangzhou

Posted: 04 Oct 2018 02:32 AM PDT

MANDALAY—The launch of Chinese airline 9 Air's direct flight between Mandalay and China's Guangzhou on Tuesday brings the number of airlines flying directly between Mandalay and China to five, said Assistant General Manager U Nyan Tun Oo of the government's Civil Aviation Department.

Apart from Myanmar Airways International, all other airlines are Chinese, namely China Eastern, Sichuan, Donghai and 9 Air.

"Travelers from the mainland are very interested in Mandalay, which is home to a big jade and amber market, so we have chosen Mandalay as our first international destination," said Ji Guangping, president of the Guangzhou-based low-cost airline at an event to celebrate the launching of the inaugural flight at Mandalay International Airport on Tuesday.

Regular flights will be operated using 180-seater planes every Tuesday, Thursday and Saturday, and the travel time is around 1 hour and 40 minutes.

The airline expects to expand its operations in November with a new route between the commercial capital Yangon and Guangzhou.

Around 3,500 foreigners arrive and depart from Mandalay International Airport daily, and most of them are Chinese tourists, according to the Mandalay Region Directorate of Hotels and Tourism.

"The number of travelers between China and Mandalay is high and we expect to see more trips and more travelers in the future," said Takahashi, director of MC-Jalux Airport Services, the operator of Mandalay Airport.

Ten international airlines and four domestic airlines are currently operating at Mandalay International Airport.

On Monday, the Ministry of Hotels and Tourism introduced visa relaxations for Asian travelers to Myanmar, giving visa fee exemptions to travelers from Japan, South Korea, Macao and Hong Kong and visa-on-arrival allowances for Chinese travelers who enter through international airports.

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Trust Building – The Only Solution to ‘Trust Deficit Disorder’

Posted: 04 Oct 2018 02:24 AM PDT

It seems fair to say that the world has an oversupply of problems but in short supply of solutions. Under the circumstances, it came as no surprise when the UN secretary-general portrayed the current global state of affairs as a "trust deficit disorder." But it is no time to despair. Every cloud has a silver lining. Recent developments on the Korean peninsula provide a glimpse of hope.

Key to recent remarkable achievements on the Korean peninsula are the Korean government's tireless efforts to build trust. Trust building and winning hearts are defining factors of the Korean government's peace initiative and its new diplomatic initiative – namely, the New Southern Policy. The policy is about collaborating to strengthen peace and shared prosperity in the region in a way that benefits the people. I laid out why our policies will have a far-reaching impacts around the region and beyond at the recent National Day reception that was help, for the first time, in Naypyitaw on Thursday.

The leaders of South Korea and North Korea sealed another significant deal, the Pyongyang Joint Declaration, at their 3rd summit meeting during on Sept. 18-20. What makes this summit particularly remarkable is that, by agreeing on a set of confidence-building measures in the military domain, it effectively makes our dream of creating a Korean peninsula free of any fear of war come true. A new chapter in our efforts to forge a permanent and sustainable peace has begun. As the world applauded, the most important driving force was the relentless effort of President Moon Jae-in to build trust at the highest level. Tectonic shifts on the Korean peninsula can also inspire Myanmar as it galvanizes collective strength to move its peace process forward.

It is not just peace that strikes a cord between our two countries. As demonstrated in Hanoi during the World Economic Forum on ASEAN, Korea and Myanmar work hard to shape the future path in the age of the 4th industrial revolution. Korea's New Southern Policy provides a timely platform, in this regard, to create a win-win partnership. Particularly, Myanmar's mid- and longer-term economic strategy, the Myanmar Sustainable Development Plan, is well placed to yield mutually beneficial effects.

As Korea aims to expand its trade volume with ASEAN to $200 billion and the volume of mutual visitors to 15 million by 2020, next year will be another important turning point in our journey. To commemorate the 30th anniversary of the Republic of Korea-ASEAN dialogue partnership, our government will host a special summit in 2019. It is highly likely to have mutual visits at the highest level next year, which will in turn provide important momentum in trust building in the relationship between Korea and Myanmar.

Lee Sang-hwa is the Republic of Korea’s ambassador to Myanmar.

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Change the Cabinet, Not the Constitution: USDP

Posted: 04 Oct 2018 01:42 AM PDT

NAYPYITAW—There is no need to change the 2008 Constitution in order to achieve the reforms people have anticipated in Myanmar—simply changing the cabinet will do, said Union Solidarity and Development Party (USDP) chairman U Than Htay during his party's election campaign in Chin State on Wednesday.

"There is no need to amend or rewrite the constitution. What should be changed is the people," he said, referring to existing cabinet members.

"Just assign those who are able to work according to that constitution in their place. [I guarantee] there will be immediate change," said the chairman in a live broadcast feed on social media during the opposition party's election campaign in Chin State's Kanpetlet Township.

In Myanmar, only the USDP can bring about national development by exercising the 2008 Constitution, he said, adding that his party does not accept the ruling National League for Democracy (NLD) holding the Constitution as an excuse to defend its shortcomings.

"The USDP was able to spur national development with the existing constitution," he said.

The NLD came to power with its campaign promises to amend the 2008 Constitution, achieve rule of law and national peace. The USDP will never achieve success as long as it clings on the 2008 Constitution, said the NLD's information officer, Monywa Aung Shin.

"There are certain restrictions imposed by the 2008 Constitution. We can get around some restrictions, but others we can't. That's why we are talking [about amending it]. As long as they cling to the 2008 Constitution, they will never win the support of the people, I am sure," Monywa Aung Shin told The Irrawaddy.

Daw Aung San Suu Kyi and her NLD party accepted the 2008 Constitution and contested in the 2012 by-elections and 2015 general relations. Rather than blaming the restrictions it imposes, they should find ways and means to achieve better results out of it, said political commentator and writer Zarni Soe Htut.

"It is because of the 2008 [Constitution] that U Than Shwe stepped down, and U Thein Sein came to office. [The NLD] should gradually march toward their goal, and move closer and closer to it over time. The army and the USDP won't like it if [the NLD] says the 2008 Constitution is not good. So rather than saying 2008 Constitution is not good, [NLD] should work for the betterment of all," he said.

Citizens should vote for the USDP in November's by-elections if they want a brighter future, said U Than Htay.

"We are not inexperienced people. We have proper experience of running the government so we understand how to manage the country," said the chairman claiming that the country saw more progress under the previous government.

"There are a number of factors—goodwill, willingness and sympathy from those in power toward the public, as well as their knowledge, industry, diligence and many other things. The magnitude of these will decide the outcome. It is nothing to do with the constitution," said U Than Htay.

Amending the constitution requires a minimum 76 percent of votes in the Union Parliament where the military holds 25 percent of the seats.

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Driest Ever September Deepens Australia’s Drought

Posted: 03 Oct 2018 09:50 PM PDT

SYDNEY — Australia had its driest September on record last month, and though spring rains are forecast this week across parts of the continent’s east that has seen the worst drought in years, the season is predicted to offer little relief from the dry weather.

The country’s east coast has recorded less than a fifth of its typical rainfall over the last three months to September and is barren, with winter crops having failed and large-scale sheep and cattle farmers buying in grain to feed their herds.

Wheat production has been cut to its lowest in a decade, the wool clip and wine crush are set to drop and the drought has already swung crop protection company Nufarm Ltd to an annual loss.

Australia’s Bureau of Meteorology said on Wednesday the year so far is the second driest recorded in the country’s biggest river catchment, the Murray-Darling, since records began in 1900, and last month was the driest September logged.

That’s pushed soil moisture, which can take months to replenish, "very much below average" across a vast swathe of the continent stretching from the outback Kimberley region in Western Australia to cropping and pastureland in the southeast.

Rain falls of up to 25 millimeters (1 inch) are forecast in drought-wizened central New South Wales state on Thursday, with lighter rain predicted lasting until Saturday, the bureau said, though the coming three months are still forecast to be drier than average.

"For the grain side of things it’s too little too late and I’d imagine it’s probably the same for sheep areas," said Matt Dalgleish, trading manager at agricultural consultant Mecardo.

"There might be some cattle producers, if they’ve still got stock, to get a little bit of growth in pasture but it’s probably not going to be enough to carry them through summer."

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Myanmar Military Shuts Down Chinese-Contracted $500M High-Rise Project

Posted: 03 Oct 2018 09:44 PM PDT

YANGON — The Myanmar military shut down a Chinese-contracted US$500 million high-rise project after the developer breached the memorandum of understanding signed between the two sides.

The Myayeik Nyo high-rise project on more than 13 acres of land in Yangon owned by the military was slated to have 12 buildings with heights ranging from 382 to 412 feet built by the Zaykabar Company. The company chairman U Khin Shwe said the project, scheduled for completion in 2020, was a landmark investment for Yangon and would feature both hotel space and serviced apartments. The project contractor was the China State Construction Engineering Corporation.

On Wednesday, the military announced during a press conference that it had informed the developer since May not to carry out construction-related work, as the project was terminated.

The announcement came more than a week after Hunan Province Vice Governor He Baoxiang and a delegation visited the site late last month and the company suddenly changed the project name to Yangon New World Project. During the visit, U Khin Shwe said 40 percent of the investment was to come from Zaykabar while 60 percent was from the Chinese company.

U Moe Min Win, the secretary of the Yangon Cantonment Board, which manages military-owned land in the city, said Zaykabar Company didn't follow the agreement signed in January 2014 with the Quartermaster's Office.

He explained that in spite of its agreement with the military to pay the land use premium five times in two years in different amounts in order to meet the total US$41.328 million, the developer had only made two payments.

"Even with all of our repeated warnings, they still have not finished the payments," U Moe Min Win said.

The Mayor's Residence being torn down in February by the Zaykabar Company to make way for its high-rise project. / Khin Zaw Latt / The Irrawaddy

Apart from the payment failure, the secretary added that the developer had demolished two heritage buildings on the project site, a breach to the memorandum of understanding that only allowed soil tests rather than site clearing upon the second payment toward the land use premium. He added that no foreign investment for the project was allowed yet.

"We haven't signed a build-operate-transfer agreement yet but the company already built a project-related building on the site. So, we informed them that we have rejected their actions to date and they are no longer allowed to develop land owned by the military," U Moe Min Wi added.

U Khin Shwe was not available for comment on Wednesday evening.

Apart from breaching the agreement, the Myayeik Nyo high-rise project was a source of public concern since the beginning. The site clearing early this year sparked public fears that the construction would collapse the 92-year-old reservoir nearby. At the press conference on Wednesday, the Cantonment Board secretary said the military had mentioned that it was aware of the public's concerns.

U Khin Shwe's Zaykabar Co. Ltd. is one of Myanmar's largest construction companies. His daughter is married to the son of U Shwe Mann, the third most influential person in the former military regime but now an important ally of Daw Aung San Suu Kyi, leading the military to reportedly see him as a turncoat.

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EU Considers Trade Sanctions on Myanmar Over Rohingya Crisis

Posted: 03 Oct 2018 09:34 PM PDT

BRUSSELS — The European Union is considering trade sanctions on Myanmar over the Rohingya crisis, potentially stripping the country of tariff-free access to the world’s largest trading bloc, three EU officials said.

The sanctions, under discussion at the European Commission, would include Myanmar’s lucrative textile industry and potentially put at risk thousands of jobs there but would not come into effect immediately, giving the EU leverage to stop what the West says is ethnic cleansing of Muslim Rohingya.

Even by triggering a six-month review process on whether to impose trade sanctions, which could be reversed if Myanmar met humanitarian and democratic targets, the bloc would mark a significant shift in policy.

The impetus for the move was a UN report in August that accused Myanmar’s military of carrying out killings of Rohingya with “genocidal intent.” That, and the rare US step of putting sanctions on two entire military units, have put an onus on the European Union to act, officials said.

“We are concerned about the impact on the population from our potential measures, but we cannot ignore a UN report describing the military campaign as genocide,” said one EU official of the debate within the European Commission, the EU executive responsible for the bloc’s trade policy.

Until now, the EU has imposed travel bans and asset freezes on several members of the Myanmar military, but has shied away from slapping sanctions on Myanmar’s commander-in-chief, Senior General Min Aung Hlaing, who the United Nations said should be prosecuted along with five others for genocide and crimes against humanity.

Myanmar has rejected the UN findings as “one-sided.” It says military action which followed militant attacks on security forces in August last year was a legitimate counterinsurgency operation.

Myanmar government spokesman Zaw Htay did not answer telephone calls seeking comment on the possible EU move on Wednesday. He said last month he would no longer speak to the media over the phone, only at a biweekly conference.

EU officials believe the formal threat of losing tariff-free access would quickly hit foreign investment in the apparel industry, where European manufacturers take advantage of relatively low labor costs in Myanmar.

“Removing this duty-free access is a measure of last resort, but we must act if other measures are not delivering,” said one EU official involved in the discussions.

“In light of the deteriorating situation on the ground, the Commission is currently assessing possible ways of escalating its political and economic response,” a Commission source said.

European firms sourcing apparel from Myanmar include retailers Adidas, C&A, H&M, Inditex, Next and Primark.

Rights groups say the targeted EU sanctions so far have not forced the military or civilian leader Daw Aung San Suu Kyi to protect civilians, resettle refugees or stop attacks on press freedoms that have included the imprisonment of two Reuters reporters for breaching a law on state secrets.

The European Parliament last month called for the Commission to review Myanmar’s trade preferences.

Sixth-largest trade partner

Within the Commission there are differences, with the EU Trade Chief Cecilia Malmstrom leaning towards starting the process of imposing trade sanctions while the EU’s top diplomat, Federica Mogherini, is more cautious because of EU policy to avoid economic sanctions that can hurt ordinary citizens, the officials said.

Commission President Jean-Claude Juncker has yet to take a position, they said. A Commission spokesman declined to comment.

Myanmar’s exports to the European Union were worth 1.56 billion euros ($1.81 billion) in 2017, nearly 10 times their value in 2012, after which the bloc gave Myanmar “Everything But Arms” trade status.

That status means it can sell any goods tariff-free to the bloc, except weapons. The EU is Myanmar’s sixth-largest trading partner and an important source of foreign direct investment.

Mynamar’s clothing industry is its top export earner after oil and gas, generating more than $2 billion in exports and 450,000 jobs last year, according to the Myanmar Garment Manufacturers Association.

Trade sanctions would end an economic opening granted to support Myanmar’s transition to democracy after Daw Aung San Suu Kyi emerged from 15 years of house arrest under military rule and led her party to take both the Parliament and the presidency.

One more limited option for the EU could be to exempt textiles, an official said, but given the size of the sector, that would significantly reduce the impact of EU sanctions. Clothing and footwear are worth more than three-quarters of Myanmar’s exports to the bloc.

Both the United States and the European Union want to spur economic development to underpin democracy and diminish China’s influence. Crushing the economy with trade sanctions could allow China to dominate Myanmar, officials said.

Washington imposed sanctions on four military and police commanders and two army units in August. New sanctions are under consideration for half a dozen other individuals and at least two military-run businesses, US officials have said.

A US State Department report released last week accused Myanmar’s military of waging a “well-planned and coordinated” campaign of mass killings, gang rapes and other atrocities against the Rohingya, but stopped short of calling it genocide or crimes against humanity.

Senior State Department officials told Reuters, however, that those findings could be used to justify further targeted US sanctions or other punitive measures.

There appears to be little US appetite, though, for re-imposing broad economic sanctions lifted by former President Barack Obama as the country shifted from decades of direct military rule toward a democratic transition.

Some European companies have already cut business with Myanmar, with Cartier stopping purchasing gemstones from the country on Dec. 8, citing abuses against the Rohingya.

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India, in a First, Sends Seven Rohingya for Deportation to Myanmar

Posted: 03 Oct 2018 09:26 PM PDT

GUWAHATI — Indian police bused seven Rohingya Muslims to the border on Wednesday to be deported to neighboring Myanmar for illegal entry, officials and activists said, the first such move against the community.

An estimated 40,000 Rohingya, a largely stateless Muslim minority, live in India after having fled violence and persecution in Buddhist-majority Myanmar’s Rakhine State over the years. The seven men being sent back had been held in prison since 2012 for illegal entry.

Prime Minister Narendra Modi’s Hindu nationalist government has described illegal Rohingya immigrants as posing a national security threat, and ordered state governments last year to identify and deport them.

Bhaskar Jyoti Mahanta, additional director general of police in the northeastern state of Assam, said that the seven men would be handed over to Myanmar authorities on Thursday.

“This is a routine procedure, we deport all illegal foreigners,” Mahanta said.

But a UN human rights official said the forcible return of the Rohingya was a violation of international law.

“The Indian government has an international legal obligation to fully acknowledge the institutionalized discrimination, persecution, hate and gross human rights violations these people have faced in their country of origin and provide them the necessary protection,” the UN’s Special Rapporteur on racism, Tendayi Achiume, said in a statement.

An official at the UN refugee agency said conditions in Rakhine were not conducive for the safe, dignified and sustainable return of the Rohingya.

More than 700,000 Rohingya, according to UN agencies, have escaped Rakhine to neighboring Bangladesh over the past year, bringing accounts of mass killings, arson, and rapes by the Myanmar army.

UN officials described the Myanmar military’s action as ethnic cleansing. Myanmar has denied the charges, saying its military launched a counter-insurgency operation after attacks on security forces by Rohingya militants in August last year.

Many continue to flee, saying conditions in Rakhine are no better than last year.

India’s move comes as its top court hears a case filed against the government order calling for the deportation of the Rohingya.

Cheryl D’souza, a lawyer for the petitioners, said it was important that such deportations “aren't allowed to happen under the cover of darkness."

“Many more Rohingya may share this fate.”

Nearly 200 Rohingya are known to be detained in India on charges of illegal entry, according to the UN.

Myanmar's government spokesman, Zaw Htay, did not answer telephone calls on Wednesday from Reuters seeking comment on the handover of the men. Last month, he said he would no longer speak to the media over the phone but only at a biweekly conference.

The Supreme Court in New Delhi has agreed to hear the matter of the seven Rohingya on Thursday, D’souza said.

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