The ban on U.S investment in Burma has been formally lifted, allowing investment by American companies.
The act was one of the most substantial steps taken by the US on their path of normalising relations with Burma.
These steps come in the midst of calls for caution from human rights groups and Burmese activists.
US President Barack Obama said in a statement that the US remained concerned about the Burmese economy.
“The United States Government remains deeply concerned about the lack of transparency in Burma’s investment environment and the military’s role in the economy.”
Obama also issued an order that expanded existing sanctions against human rights violators to include those who threatened Burma’s political reformation process.
While opposition leader Suu Kyi has generally supported the lifting of restrictions in response to government reforms, she has asked for caution until the reforms have fully taken place.
Many activists have focussed their concerns on Burma’s state owned energy company , which lacks transparency and has strong connections with the military.
Commenting on the lifting of sanctions, business and human rights director at Human Rights watch, Arvind Ganesan, said:
”The U.S government should have insisted that good governance and human rights reform be essential operating principles for new investments in Burma,
"By allowing deals with Burma’s state-owned oil company, the U.S looks like it caved to industry pressure and undercut Aung San Suu Kyi and others in Burma who are promoting government accountability.”
The US energy sector in particular argued that business was being lost to international competitors due to the sanctions.
