US retailers back import ban on Burma

International agencies such as the International Labor Organization have long advocated sanctions against Burma to protest its record of human rights violations and "disregard for democracy." In spite of a United States government ban on US investments in Burma, the US remains one of the country’s largest trading partners. However, US clothing manufacturers and retailers recently issued a complete ban on all imports from Burma – a decision that will adversely affect the Burmese economy. According to the Financial Times article, "the actions on Burma are the strongest example yet of how pressure from anti-sweatshop and other human rights activists has forced retailers to change their buying practices even while governments have continued to encourage trade." Whether the ban runs afoul with the World Trade Organization – Burma is a member – remains to be seen. – YaleGlobal.

US retailers back import ban on Burma

Edward Alden
Tuesday, April 15, 2003

US clothing makers and retailers announced on Tuesday their support for an "immediate and total ban" on all imports from Burma, a decision that could cripple one of the Burmese regime's largest sources of foreign currency earnings.

The American Apparel and Footwear Association called on the US government to declare an import ban because of continued human rights violations in Burma, and said the issue "should be met with condemnation not only from the international public community but from private industry as well".

The move follows decisions over the past year by more than 40 of the largest US clothing sellers to end their purchases of apparel made in Burma. May Department Stores, which owns chains such as Hecht's and Lord & Taylor, became the latest company to do so last month, following decisions by groups such as Wal-Mart and Federated Department Stores, which owns Macy's and Bloomingdales.

The actions on Burma are the strongest example yet of how pressure from anti-sweatshop and other human rights activists has forced retailers to change their buying practices even while governments have continued to encourage trade.

In 2000, the International Labour Organisation called on countries to consider new sanctions against Burma, urging members to ensure that their trade with Burma did not "perpetuate the system of forced or compulsory labour in that country".

But the ILO's call resulted in no new measures against Burma, despite a deterioration in its human rights record. Lorne Craner, assistant secretary of state for human rights, said in February the Burmese regime's "disregard for human rights and democracy extends to every conceivable category of violation".

The US government imposed a ban on US investment in Burma in 1997, but the US remains one of the country's five largest trading partners. From 1994 to 2000 apparel exports to the US grew by 800 per cent, accounting for about 65 per cent of Burma's clothing exports. While the US administration says it supports sanctions against Burma, an outright ban on trade would probably fall foul of World Trade Organization rules, because Burma remains a WTO member.

Some members of the US Congress have called for a ban on trade with Burma, but the measure has yet to be put to a vote.

Despite Washington's reluctance, actions by US retailers have hampered trade with Burma. Burmese clothing exports to the US dropped 27 per cent, from $411m to $303m (?280m, £193m), between 2001 and 2002.

© Copyright The Financial Times Ltd 2003.