EU to step up sanctions on Myanmar

(LUXEMBOURG) - European Union foreign ministers on Monday approved new sanctions against the Myanmar regime, including an embargo on the export of wood, gems and metals.

"In view of the seriousness of the current situation and in solidarity with the people of Myanmar, the EU deems it necessary to increase direct pressure on the regime through stronger measures," the ministers said in a joint statement.

The EU already has broad sanctions in place against Myanmar's leadership and their families -- with 375 people on a visa-ban, asset-freeze list.

Further measures up to an all-out ban on new investments may also be considered.

That will be implemented "if the regime does not go along with the initiative... for an inclusive set of political talks" proposed by UN envoy Ibrahim Gambari, said David Miliband, foreign secretary of former colonial ruler Britain.

"The situation in Burma (Myanmar) is of huge concern to the people of the UK and across the European Union," Miliband said.

Britain is among the most vocal critics of the Myanmar military regime, and refuses to refer to it by the name its rulers chose in 1989, choosing instead to call it Burma, the name preferred by the country's pro-democracy movement.

The import bans will notably affect Myanmar's teak and jade trade.

The European Union at the same time confirmed the continuation of "substantial humanitarian aid programmes aimed at the most vulnerable populations."

If the Myanmar regime creates "a political process involving all the parties in Burma ... then there will be economic incentives and economic support for the people of Burma," Miliband said.

"If the regime refuses then obviously there will be further sanctions," he added.

"Our measures aim to reinforce the message of Mr Gambari ... Indeed he is the only one who has a chance for leverage at this moment," said EU External Affairs Commissioner Benita Ferrero-Waldner

"I think he should have sticks and carrots in order to be able to work," she added.

The foreign ministers' statement "strongly condemns the brutal crackdown on demonstrators" led by Buddhist monks in Myanmar and urges the regime to exercise restraint.

The EU measures, for the moment anyway, spare the energy sector and therefore the activities of the French group Total in the country, though a new investment ban would not.

The statement stipulates that the EU "stands ready to review, amend or reinforce the measures" in view of Gambari's progress.

The clear message to the regime is "that they must engage with the process being led by Ambassador Gambari," said Miliband.

The UN envoy demanded on Monday that Myanmar's ruling junta immediately stop arresting pro-democracy activists and targeting dissidents, saying the crackdown was "extremely disturbing."

While flagging their intentions to boost sanctions in recent weeks, EU officials have stressed that they have a limited effect on a regime already greatly isolated by the West.

More than 90 percent of Myanmar's business is done with Asian nations, especially China and India.

General Affairs and External Relations Council (GAERC), 15 October 2007