US Sanctions on Jade Hurting Myanmar Reform Efforts

Jade traders in Myanmar say sanctions imposed by the US government force them into dodgy deals with Chinese buyers and investors. Almost all of Myanmar's mined jade, considered by many the best in the world, presently goes to China.

Industry leaders quoted in the MyanmarTimes (link here) said lifting sanctions would have helpful results such as encouraging development of finished jade products for export. At present, Chinese buyers seek only the rough stone for processing back home. There is also the belief that trade with the US would be open to regulation and taxation that do not currently exist. Critics say, basically, there is about $30-billion in annual activity in Myanmar's jade market with only $1-billion reported to the government for tax purposes.

Merchants need new markets due to China's economic troubles and a crackdown on corruption there, resulting in the closing of many shops. At the same time, Chinese miners with heavy equipment are said to be stripping the mining area ahead of installation of a new government. The new government is expected to institute reforms in the trade.

Further complications include deadly landslides blamed on unregulated mining, and recently published reports of extensive drug sales and use as well as other criminal activity such as money laundering. Critics trace that activity to the military, drug lords and cronyism.

The newspaper contacted a US embassy spokesman whose response was not exactly positive regarding lifting of sanctions. He listed a number of factors which have to improve, including "the political transition following the recent elections, the peace process, support for and protection of human rights, and constitutional reforms."