Japan may join EU talks on Myanmar sanctions

Japan may join EU talks on Myanmar sanctions

TOKYO (AFP): Japan may join the European Union in taking the United States to the World Trade Organization over a U.S. state's sanctions law against Myanmar, a Japanese trade official said yesterday.

"We are considering taking part in the talks as a third country," said the official in charge of international agreements at the ministry of international trade and industry.

"Our status will not be equal to that of the United States or the EU. But it may be close to that of an observer," he added.

The European Union (EU) decided last month to take its complaint about the 1996 Massachusetts law to the World Trade Organization (WTO).

The law bars state-owned entities from buying goods from companies doing business in military-ruled Myanmar. That has led to the black-listing of roughly 150 foreign companies.

"There is the possibility of the law violating the WTO provision on government procurement," said the Japanese official.

"Depending on U.S. action hereafter on the matter, we may consider taking it to the WTO ourselves."

In January, the EU formally complained about the Massachusetts law, while Japan registered its objections more quietly.

The EU claims the law violates a WTO provision committing most states to open all government contracts to international competition.

"We have been getting information on the matter from the U.S. side as the federal government and the state of Massachusetts continue consultation," he said. "It is not that the federal government can unilaterally force the state to scrap the law."

In a letter to U.S. Trade Representative Charlene Barshefsky last month, EU Trade Commissioner Sir Leon Brittan expressed displeasure at the lack of progress made in the consultation.

"On this issue, it would not appear that progress has been made, and there are no indications that Massachusetts is considering amending this law, in spite of the efforts you have been making," he wrote.

Barshefsky replied in a statement she was "surprised and very disappointed" at the European move, given the shared U.S. and European interest in improving the human rights situation in Myanmar.