March 26, 1998
Trade Policy Analysis no. 1

U.S. Sanctions against Burma: A Failure on All Fronts

by Leon T. Hadar

Leon T. Hadar is an adjunct scholar of the Cato Institute and a Washington, D.C.-based journalist who covers international politics and economics with a special interest in East Asia and the Middle East.

Published on March 26, 1998

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The U.S. policy of imposing unilateral trade and investment sanctions against Burma has proven to be a failure on all fronts. By forcing U.S. firms to disengage from Burma, that policy has harmed American economic interests and done nothing to improve the living conditions or human rights of the people of Burma.

Leon T. Hadar is an adjunct scholar of the Cato Institute and a Washington, D.C.-based journalist who covers international politics and economics with a special interest in East Asia and the Middle East.

More by Leon T. Hadar

Sanctions have denied Burmese citizens the benefits of increased investment by American multinational companies--investment that brings technoloygy, better working conditions, and Western ideas.

State and local sanctions against Burma have compounded the problem caused by federal sanctions and raised troubling constitutional questions.

Unilateral sanctions have alienated our allies in the region and strengthened the hand of China but achieved none of the stated foreign policy aims. If Washington had allowed the Association of Southeast Asian Nations to take the lead in setting policy toward Burma, the United States could have enjoyed a "win-win" situation--better relations with our allies and more influence over the regime in Rangoon.

As an alternative to the failed policy of sanctions, the United States should allow U.S. companies to freely trade with and investment in Burma. A pro-business approach to engagement would more effectively promote political, civil, and economic freedom around the world. Congress should enact legislation requiring a full accounting of the cost of sanctions and explicit justification on national security grounds before they can be imposed.


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