JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Elements for an EU strategy vis-à-vis Myanmar/Burma: A Special Partnership for Democracy, Peace and Prosperity
Date: 2016-06-01
Institutions: European Commission, European External Action Service
Subjects: ASEAN, Myanmar/Burma, democracy, human rights, investment protection, peace, poverty, rule of law, sustainable development, the EU's international role

EUROPEAN 
COMMISSION 

HIGH REPRESENTATIVE
OF THE UNION FOR
FOREIGN AFFAIRS AND
SECURITY POLICY

Brussels, 1.6.2016  
JOIN(2016) 24 final 

JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT AND THE 
COUNCIL 

Elements for an EU strategy vis-à-vis Myanmar/Burma: A Special Partnership for 
Democracy, Peace and Prosperity 

EN 

   EN 

 
 
 
 
  
 
1.  MYANMAR/BURMA:  THE  EU’S  ROLE  IN  A  SUCCESFUL  DEMOCRATIC 
TRANSITION  

Myanmar/Burma  has  witnessed  remarkable  change  since  reforms  began  in  2011,  and 
the arrival in office in April 2016 of a new, democratically elected government provides 
a historic opportunity. It is in the strategic interest of the European Union to lend its full 
support  to  a  successful  transition  towards  effective  democratic  governance  and 
sustainable development and mobilise all relevant EU policies and instruments for this 
purpose. 

On 8 November 2015, the people of Myanmar/Burma overwhelmingly voted to leave military 
rule behind, providing the opposition National League for Democracy (NLD) with an absolute 
majority in Parliament. Aung San Suu Kyi's ally, Htin Kyaw was elected on 15 March 2016 
as the country’s first civilian president in more than five decades and she assumed the post of 
state counsellor, foreign minister and president's office minister.  

The  new  administration,  with  limited  governing  experience,  faces  enormous  challenges. 
These include consolidating democracy, promoting ethnic peace and reconciliation, advancing 
constitutional reforms, institution building and security sector reform, and promoting the rule 
of  law  and  human  rights.  The  NLD  government  will  need  to  address  the  people’s  immense 
expectations  to  deliver  higher  incomes  and  quality  basic  services  through  economic  growth 
and inclusive sustainable development.  

The EU has played a crucial role in the country’s transformation 

In the past five years, the EU has been at the forefront of the international community’s re-
engagement with Myanmar/Burma. In recognition of the previous government’s reforms, the 
EU  took  a  comprehensive  approach  to  the  country’s  complex  transition  through  policy 
dialogue  coupled  with  financial  and  other  policy  based  instruments.  The  EU  suspended 
sanctions  and  opened  an  office  in  2012.  In  2013  the  EU  lifted  sanctions,  opened  a  full  EU 
Delegation and restored trade preferences under the Everything But Arms scheme. The same 
year,  the  EU  defined  its  priorities  in  the  so-called  Comprehensive  Framework,1  which  was 
specifically  aimed  at  guiding  EU  policy  in  the  run-up  to  the  November  2015  elections,  for 
which the EU deployed the largest international Election Observation Mission.  

In 2012-2013, the EU increased its development support to the country with an initial package 
of  EUR  150  million,  while  in  December  2014  the  Multiannual  Indicative  Programme 
2014-2020  for  Myanmar/Burma2  under  the  Development  Cooperation  Instrument  was 
adopted with an indicative allocation of EUR 688 million. To promote aid effectiveness, the 
EU  and  its  Member  States  have  since  2013  been  engaged  in  joint  programming  of 
development  cooperation3  which  is  set  to  continue  in  close  consultation  with  the  new 
government to ensure a coherent EU response to the challenges identified.  

1 https://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/138272.pdf  
2 http://eeas.europa.eu/delegations/myanmar/documents/eu_myanmar/eu-multi-annual-indicative-programme-
2014-2020_en.pdf 
3 http://eeas.europa.eu/delegations/myanmar/documents/eu_myanmar/joint-eu-development-partners-
transitional-strategy-for-myanmar-2014-2016_en.pdf  

2 

 
 
 
 
 
 
 
 
 
                                                            
With  the  arrival  of  a  new  democratically  elected  government,  the  EU  must  step  up  its 
engagement 

Against the backdrop of democratisation and significant political change, expectations in the 
EU  are  high.  The  EU  has  taken  a  fresh  look  at  its  strategy  to  review  its  engagement  on 
democracy and human rights, the peace process, the economy and sustainable development.  

The  EU  also  has  an  interest  in  working  with  the  new  government  in  a  regional  context, 
especially on ASEAN integration. A successful democratic transition in Myanmar/Burma will 
serve as a significant and positive example to the wider region.  

It  is  clear  that  the  EU  must  continue  to  play  a  distinct  role  in  promoting  what  is  a  positive 
example of democratisation and reform in a strategically important country within South East 
Asia and the wider Asia Pacific region. Scaling up the EU’s engagement in Myanmar/Burma 
and  working  closely  with  the  government  will  also  be  the  best  way  to  advance  inclusive 
socio-economic reforms and maximise opportunities for EU business, as the country advances 
on its reform path. In short, the EU has a big stake in the success of the on-going transition 
and an interest in helping to ensure its completion.  

The  purpose  of  this  Joint  Communication  is  to  set  out  a  coherent  EU  vision  and  concrete 
commitments  in  terms  of  political,  security  and  development  support  and  economic 
engagement for the years ahead. 

2. AREAS OF ENGAGEMENT 

2.1. Democracy, rule of law and good governance: 

To turn Myanmar/Burma into a sustainable democracy with full respect for the rule of 
law,  the  EU  should  help  build  effective  institutions,  support  the  reform  of  the  security 
sector  and  engage  more  and  differently  with  all  of  society  –  local  governments,  the 
justice sector, parliaments and civil society. The EU should also reach out to the military 
about  their  role  in  a  modern  democracy  and  support  the  modernisation  and 
transformation of the police force.   

The political landscape after the November 2015 election 

Following  its  landslide  victory  in  2015  the  National  League  for  Democracy  has  benefited 
from  unprecedented  democratic  legitimacy,  providing  it  with  a  strong  mandate  for  putting 
forward far-reaching reforms. Over 400 new members of parliament took up their seats on 1 
February 2016 and need to get acquainted with all the aspects of a modern parliament.  

The military continues to occupy 25 % of the parliamentary seats, has a veto on constitutional 
changes and retains three key ministerial posts (home, defence and border affairs). The new 
context calls for the military to redefine its role in a democratic society.  

The  EU  Electoral  Observation  Mission  hailed4  the  November  2015  polls  as  well-run  and 
competitive  but  pointed  out  the  need  for  further  reforms.  Disenfranchisement  of  former 

4 http://www.eueom.eu/files/dmfile/101115-ps-myanmar_en.pdf 

3 

 
 
 
 
 
 
 
 
 
 
 
 
 
                                                            
temporary registration card holders — mostly from ethnic communities — was of particular 
concern5.  EU  electoral  support  for  an  efficient,  independent,  transparent  and  accountable 
election  administration  and  improving  people’s  ownership  of  the  electoral  process  will 
continue based on the recommendations of the EU Election Observation Mission final report.6  

The  rule  of  law  and  good  governance  are  top  priorities  for  the  new  government.  The 
challenges are many, and institutions often lack adequate staffing and expertise in legislative 
processes. Improvements in the rule of law will promote confidence in state institutions, bring 
about  greater  transparency,  fight  corruption  and  increase  the  role  and  independence  of  the 
judiciary. Security sector reform, including police reform, is an integral part of the process.  

From a military-led institutional set-up to a sustainable democracy: the EU’s role 

Constitutional  reform  remains  central  to  consolidating  democratic  governance.  The  2008 
Constitution played a critical role in the transition process and further reforms are expected. 
The  EU  could  share  its  wealth  of  experience  in  the  transition  from  authoritarian  rule  to 
democracy,  with  an  emphasis  on  multi-party  parliamentary  systems  and 
increased 
involvement of civil society and the independent media.  

The EU police training project (2013-2015) helped the Myanmar Police Force to work in a 
more  professional  way,  in  particular  within  their  local  communities.  Simple  but  effective 
measures were taken to improve police work at community level and their relationship with 
the  local  population.  Experienced  police  officers  from  EU  Member  States  showed  how  to 
secure  and  protect  the  democratic  rights  of  citizens  to  assemble.  4  000  police  officers  were 
trained in best international practices to crowd management. The project also addressed police 
relations with the media and civil society to encourage better mutual understanding.  

The  MyJustice  (2015-2019)  programme  enhances  access  to  justice  for  the  poor,  vulnerable 
and  marginalised  across  the  country.  It  equips  communities,  legal  practitioners  and  justice 
institutions  to  use  innovative  approaches,  such  as  community  mediation  and  paralegal 
services.  MyJustice  adopts  a  people-centred  approach  to  encourage  learning,  trust  and 
collaboration among all actors. It empowers communities to deliver appropriate solutions to 
the justice challenges they face and have a lasting impact on the  way  in which disputes  are 
resolved and justice is delivered. 

The EU will work with civil society on implementing the EU Roadmap for Engagement with 
Civil  Society  launched  in  September  2015.  Civil  society  organisations  have  traditionally 
played a crucial role in delivery of basic services, in particular in areas affected by conflict. 
They  are  also  a  central  driving  force  in  promoting  and  protecting  democracy,  including 
involvement  in  domestic  election  observation,  human  rights,  and  cultural  diversity. 
Nonetheless, civil society still faces many restrictions.  

Possible EU initiatives in this area include: 

•  Engaging in a partnership with the government to strengthen political dialogue and 
address  emerging  needs  by  providing  policy  dialogue  and  technical  cooperation  for 

5 These include unreasonable restrictions on the right to vote and the right to stand, as well as the independence 
of the Union Election Commission.  
6 http://eeas.europa.eu/eueom/missions/2015/myanmar/index_en.htm  

4 

 
 
 
 
 
 
 
 
 
                                                            
government institutions as part of a state-building approach. The EU should work with 
a  wide  range  of  partners,  —  from  grass-roots  organisations  to  parliaments  and  from 
advocacy organisations to trade unions and the media — to support local democracy 
efforts; 

•  Reaching out to the military to share EU experience of democratic transition and the 
role  of  the  military  in  a  modern  democracy,  including  promoting  respect  for  human 
rights and the rule of law;  
Improving  access  to  justice  and  legal  aid  for  the  poor  and  vulnerable,  developing 
legal  capacity  of  justice  sector  professionals  and  strengthening  selected  rule-of-law 
institutions to better fulfil their mandates;  

• 

•  Expanding  support  to  the  Myanmar  Police  Force  to  transform  it  into  a  modern 
organisation  serving  the  people  and  enjoying  their  trust,  including  increasing 
accountability in line with international best practices and respect for human rights and 
fundamental freedoms and continued efforts to strengthen its relations with the media 
and local communities;  

•  Working  towards  finalising  and  implementing  a  Democracy  Action  Plan  together 

with the partner country;  

•  Advocating  continued  inter-parliamentary  cooperation  between  the  European 
Parliament  (EP)  and  the  Parliament  of  Myanmar  in  order  to  strengthen  legislative 
capacities,  government  supervision  and  political  parties  through  inter  alia  the  EP’s 
Comprehensive Democracy Support Approach.  

2.2 The peace process 

The recently established peace in Myanmar/Burma is fragile. The EU, the only Western 
witness  to  the  Nationwide  Ceasefire  Agreement,  should  work  with  all  concerned  to 
implement  an  inclusive  peace  architecture,  disarm,  demobilise  and  reintegrate  former 
combatants.  To  sustain  the  peace,  the  EU  will  share  its  experience  of  federalism,  and 
work on building confidence between the parties and fostering reconciliation. 

A milestone agreement to put an end to a troubled past 

Myanmar/Burma  has  been  plagued  by  decades  of  armed  conflict  between  the  Myanmar 
Armed Forces (Tatmadaw) and ethnic groups with distinctive cultures living in remote border 
areas with abundant natural resources. Many of these territories have never been under the full 
control  of  the  central  government  and  enjoy  various  levels  of  self-administration.  There  are 
vested economic interests from illicit activities such as smuggling, the illegal jade and timber 
trade,  opium  production  and  drug  trafficking.  Around  100  000  people  have  been  displaced 
since 2011 in Kachin and Northern Shan States, and ongoing clashes are still causing internal 
displacement and casualties. Some 106 000 mostly Karen and Karenni refugees live in camps 
on the Thai side of the border. Fighting has also resulted in human rights abuses. Continued 
serious  violations  of  international  humanitarian  law  have  had  a  destabilising  effect  on  the 
affected population.  

In 2011 President Thein Sein made peace a key priority. On 15 October 2015 the government 
and eight ethnic armed groups concluded a Nationwide Ceasefire Agreement, which the EU 
signed  as  an  international  witness  alongside  the  United  Nations,  China,  Japan,  India  and 
Thailand. Some groups, including the Kachin, are not yet part of the Agreement. A national 
political dialogue dealing with important and sensitive topics was launched in January 2016.  

5 

 
 
 
 
 
 
 
The  peace  process  is  a  top  priority  for  the  new  government.  Building  confidence  between 
stakeholders and maintaining their commitment will be essential. Ethnic minorities have high 
expectations  of  the  National  League  for  Democracy  to  work  towards  a  democratic  multi-
ethnic federal union offering more equitable access to economic opportunities. Ultimately, a 
comprehensive peace agreement will also require amendments to the constitution. 

Consolidating a lasting peace: the EU’s contribution 

The  EU,  as  one  of  the  largest  donors  to  the  peace  process,  is  well  placed  to  continue 
contributing to a lasting peace. The Myanmar Peace Centre, which the EU supported since its 
establishment in 2012, played a crucial role in bringing the government and the ethnic armed 
organisations to the negotiating table and in providing expert advice to all the relevant parties. 
An  inclusive  and  broad-based  process,  which  includes  the  participation  of  civil  society  and 
women,  will  be  key  to  continued  success.  Most  EU  support  has  benefitted  ethnic 
constituencies.  Activities  focus  on  community  development  in  conflict-affected  areas, 
reconciliation,  peacebuilding,  implementing  ceasefires  and  civilian  ceasefire  monitoring. 
Other  projects  are  working  to  improve  access  to  livelihoods,  poverty  reduction  and 
development  in  ethnic  areas.  The  EU  has  taken  the  lead  in  setting  up  the  new  multi-donor 
Joint Peace Fund to support the peace process in a more coordinated way.  

The new Joint Peace Fund supports nationally-led efforts to achieve a lasting settlement of 
the ethnic armed conflict in a flexible, responsive and coherent manner. It will work together 
with  the  government,  ethnic  constituencies,  civil  society  and  academia  and  encourage  the 
participation  of  women.  Peacebuilding  activities  will  serve  to  increase  inclusion,  trust  and 
participation  in  the  peace  process  and  contribute  to  ensuring  the  safety  and  security  of 
vulnerable  communities.  The  Joint  Peace  Fund  started  operations  in  April  2016  with  over 
USD 100 million pledged by the EU and nine other donors.  

The EU is determined to ensure that all supported activities are conflict sensitive, following 
‘do-no-harm’ principles, and implemented in an inclusive, impartial and transparent manner.  

The  EU  also  continues  to  provide  humanitarian  assistance  in  areas  with  restricted  access 
affected by fighting and displacement. Unfettered humanitarian access to all conflict-affected 
populations is essential. 

Possible initiatives in this area include:  

•  Providing strong political and financial support for an inclusive peace architecture, 
including  implementing  the  Nationwide  Ceasefire  Agreement  while  encouraging 
efforts to include those groups to join who have not yet signed up; 

•  Engaging  in  conflict  prevention  and  peacebuilding  activities  by  supporting,  for 
example,  confidence-building  measures,  community  empowerment,  intercultural 
dialogue, the participation of women, inclusive development and improved livelihoods 
in ethnic areas, where necessary by linking relief, rehabilitation and development;  
•  Developing the capacities of all stakeholders to address the challenges of the process, 
including  security  sector  reform  and  disarmament,  demobilisation  and 
reintegration;  

•  Supporting mine awareness, mine clearance and related activities;  

6 

 
 
 
 
 
 
 
 
 
•  Contributing  to  the  debate  in  Myanmar/Burma  over  the  devolution  of  executive 
powers and decentralisation, on the basis of the experience from the various models 
practised in EU Member States; 

•  Providing  comparative  examples  of  both  EU  and  third  country  experiences  in  post-

conflict national dialogues.  

2.3 Human rights 

Myanmar/Burma  will  need  to  address  several  human  rights  challenges,  not  least  the 
situation 
in  Rakhine  State  where  Muslim  minorities  face  various  forms  of 
discrimination.  The  EU  should  work  with  the  government  to  combat  hate  speech  and 
intolerance. Human rights resolutions should be implemented and legislation brought in 
line with international standards.    

Although  much  progress  has  been  achieved,  human  rights  remain  one  of  the  country’s 
main challenges 

The  country’s  transition  has  undeniably  brought  about  positive  developments  in  terms  of 
human rights. Steps were taken to release political prisoners, advance freedom of expression, 
assembly and association and address forced labour. The country has engaged in human rights 
dialogues  with  the  EU,  Japan  and  the  United  States,  while  expanding  cooperation  with  the 
United Nations,7 including the Special Rapporteur and the Office of the High Commissioner 
for Human Rights and the International Labour Organization.  

Progress  notwithstanding,  activists,  journalists  and  even  ordinary  citizens  faced  arbitrary 
arrest and detention when exercising their civil and political rights. Incitement to hatred and 
hate speech has been targeted against Muslim communities. Despite widespread international 
criticism,  a  set  of  discriminatory  ‘Protection  of  Race  and  Religion  Bills’  covering  religious 
conversion, interfaith marriage, monogamy and population control was enacted in 2015.  

Further  progress  is  required  in  all  fields,  including  accession  to  international  human  rights 
instruments, legal reform, institution and capacity building and raising awareness of general 
human rights. Given the legacy of the past, particular attention should be paid to improving 
the independence of the judiciary and access to justice, women’s rights and gender equality, 
as well as the rights of the child, particularly in view of the continued use of child soldiers.  
The release of over 280 political prisoners by the new government in the first weeks in office 
sends a strong signal of commitment to fundamental freedoms.  

The  main  human  rights  issue  in  Myanmar/Burma  remains  the  situation  in  Rakhine  State, 
where  the  largely  stateless  Muslim  minority  who  identify  themselves  as  Rohingya  faces 
multiple forms of discrimination. They are denied the freedom of movement, and lack access 
to basic services and livelihoods. Some 120 000 Muslims remain confined to camps following 
intercommunal  violence  in  2012.  Only  a  few  have  been  allowed  to  return  or  relocate. 

7 It signed the International Covenant on Economic, Social and Cultural Rights and the Optional Protocol to the 
Convention on the Rights of the Child on the involvement of children in armed conflict in 2015. Progress in the 
implementation  of  the  2012  Action  Plan  to  end  the  recruitment  and  use  of  child  soldiers  by  armed  forces  has 
resulted in the release of some 700 underage recruits since 2012. 

7 

 
 
 
 
 
 
 
 
 
                                                            
Communities  continue  to  live  in  segregation.  Internally  displaced  persons  and  other 
vulnerable populations rely on humanitarian assistance, including from the EU.  

The precariousness of the situation has forced tens of thousands to flee the country by sea or 
land,  falling  prey  to  smuggling  and  trafficking  rings.  The  2015  migration  crisis  in  the 
Andaman Sea resulted in Thailand, Malaysia and Indonesia launching a regional initiative to 
find solutions. Bangladesh provides refuge for up to 500,000 Rohingya. The new government 
will need to demonstrate leadership by bringing inclusive development to the whole State and 
improving  the  human  rights  situation.  If  unresolved,  the  situation  risks  undermining  the 
democratic transition and tarnishing the image of the new Myanmar/Burma.  

A key priority for the EU: action for real impact 

In  addressing  the  complex  challenges  of  Rakhine  State,  the  EU  follows  a  comprehensive 
approach by mobilising all the instruments at its disposal — political dialogue, humanitarian 
assistance  and  development  cooperation,  in  close  coordination  with  local  authorities  and 
communities.  

The EU remains committed to improving the situation of human rights defenders, the rights of 
vulnerable groups and minorities and economic and social rights.  

The  active  involvement  of  the  EU  Special  Representative  for  Human  Rights  underlines  the 
EU’s strong commitment in assisting the country to advance its human rights record. The EU 
has tabled resolutions on the human rights situation in the UN General Assembly and Human 
Rights Council.  

Possible initiatives in this area include: 

•  Working with the government on addressing the human rights concerns presented in 
UN  General  Assembly  and  Human  Rights  Council  resolutions;  on  signing  and 
ratifying key international human rights conventions; establishing an Office of the UN 
High Commissioner for Human Rights; and cooperating with UN Special Procedures 
and the International Labour Organization; 

•  Reaching out to the government and Parliament to bring new and existing legislation 

in line with international human rights standards and repeal outdated laws; 

•  Encouraging  the  government  to  lead  efforts  to  address  poverty  and  inclusive 
development  in  Rakhine  State  and  other  ethnic  areas  through  a  comprehensive 
approach.  Restrictions  on  the  freedom  of  movement  and  local  orders  discriminating 
against  minorities  should  be  lifted.  Humanitarian  and  development  actors  should  be 
given more access to populations of concern;  

•  Furthering general human rights awareness, including the advancement of economic, 
social  and  cultural  rights,  and  the  respect  for  fundamental  rights,  in  particular 
freedoms  of  speech,  expression,  association  and  assembly;  freedom  of  religion  or 
belief;  and  sharing  experience  in  combating  hate  speech  and  intolerance  against 
minorities;  

•  Advocating the elimination of statelessness with equal rights for all citizens and the 

issuing of identification documents.  

8 

 
 
 
 
 
 
 
 
2.4. Poverty reduction and sustainable development  

Myanmar/Burma is one of the world’s poorest countries. The transition paves the way 
for an intensification of EU development cooperation in areas such as education, rural 
development  and  governance,  including  through  substantial  budget  support  actions  in 
2016 and beyond.  Targeted technical cooperation will also be expanded to support  the 
achievement  of  the  Sustainable  Development  Goals  (SDGs)  as  well  as  opportunities 
under the Erasmus+ programme and the Horizon 2020 EU Research programme. 

A country in transition looking to break the poverty trap 

Myanmar/Burma is a Least Developed Country and ranks 148th out of 189 countries in the 
United  Nations  Development  Programme’s  Human  Development  Index  2015.  The  poverty 
rate is estimated to be 37.5 %,8 the highest in South East Asia. 60 % of its inhabitants live in 
rural areas where poverty is disproportionally concentrated. Per capita GDP is USD 1 204.9 
Myanmar/Burma  has  the  lowest  life  expectancy  and  the  second-highest  rate  of  infant  and 
child mortality of all the ASEAN countries. More than one-third of children are chronically 
malnourished. Less than one-third of the population has access to electricity.  

The  country  is  prone  to  natural  disasters  and  is  highly  vulnerable  to  the  impact  of  climate 
change.  Due  to  the  current  low  level  of  disaster  preparedness,  external  shocks  can  have  a 
major impact on the resilience of the population and on the economy.  

The government’s ambition is to achieve lasting peace and put the economy back on track in 
order  to  transform  Myanmar/Burma  into  a  middle  income  country.  The  new  government  is 
expected  to  focus  its  development  efforts  on  poverty  reduction,  job  creation,  sustainability 
and inclusiveness by maintaining high growth rates, building human capital, enhancing social 
services,  reducing  environmental  impacts  and  strengthening  resilience.  Rural  development, 
including  food  and  nutrition  security,  land  reform,  education  and  health  are  top  priorities. 
Disaster  risk  reduction  at  all  levels  should  be  on  the  agenda.  Strengthening  land  rights,  in 
particular  by  addressing  the  injustice  suffered  through  land  confiscation  will  be  another 
challenge for the new government.  

The  EU  should  lead  the  way  with  an  ambitious  and  focused  development  cooperation 
agenda 

The EU is a leading  partner  in  working with Myanmar/Burma towards the  realisation of its 
sustainable development goals as defined in the 2030 Agenda for Sustainable Development.'10 
Through  bilateral  development  cooperation  under  the  Multiannual  Indicative  Programme 
2014-202011  (EUR  688  million),  the  EU  continues  to  support  the  country’s  transformative 
agenda in four sectors: 1) rural development — agriculture — food and nutrition security; 2) 
education;  3)  governance  —  rule  of  law  —  state  capacity  building;  and  4)  peacebuilding 

8http://www.worldbank.org/content/dam/Worldbank/document/EAP/Myanmar/WBG_SCD_Full_Report_Englis
h.pdf  
9 http://data.worldbank.org/indicator/NY.GDP.PCAP.CD  
10 https://sustainabledevelopment.un.org/post2015/transformingourworld  
11 http://eeas.europa.eu/delegations/myanmar/documents/eu_myanmar/eu-multi-annual-indicative-programme-
2014-2020_en.pdf  

9 

 
 
 
 
 
 
 
 
 
 
                                                            
support.12  The  EU  can  provide  additional  flexible  and  targeted  technical  cooperation  to  the 
government on key policies. Effective donor coordination remains vital to avoid duplication 
and fragmentation of aid.  

The multi-donor Livelihoods and Food Security Trust Fund (LIFT)13 was set up to address 
the early recovery and rehabilitation needs in the aftermath of the devastating cyclone Nargis 
(2008). Over the years, LIFT has gradually expanded its scope of activities and adapted to the 
changes  in  Myanmar/Burma  with  the  aim  of  improving  the  lives  of  smallholders  and  the 
landless rural poor. Some EUR 330 million, EUR 115 million of which is from the EU, has 
been committed to support more than three million people through 90 projects. LIFT projects 
contribute  to  better  harvests  and  increased  access  to  credit  and  markets.  As  a  result,  the 
income of targeted households has grown and nutrition and food security improved. LIFT is 
best practice for inclusive rural economic transformation. 

A national Climate Change Strategy and Action Plan, supported by the EU’s Global Climate 
Change  Alliance+  through  the  Myanmar  Climate  Change  Alliance,  is  being  prepared  to 
mainstream  climate  change  adaptation  into  Myanmar/Burma’s  policy  development  and 
reform  agenda  and  promote  evidence-based  planning  and  policy  making.  This  will  help  to 
steer Myanmar/Burma towards a greener and more resilient economy.  

Through  blending  (grants  combined  with  additional  non-grant  resources)  instruments, 
especially the Asia Investment Facility, the EU is making more strategic use of its grants to 
leverage  and  mobilise  financing  from  European  and  other  development  banks  and  financial 
institutions,  as  well  as  the  private  sector  to  give  investment  projects  greater  development 
impact.  The  European 
Investment  Bank  signed  a  Framework  Agreement  with 
Myanmar/Burma in March 2015 and several investment projects are in the pipeline. 

Possible initiatives in this area include: 

•  Boosting aid effectiveness through improved donor coordination and budget support 

as an expression of the EU’s strong support for the new government;  

•  Developing  a  new  EU  joint  programming  document  with  Member  States  which 

aligns with the priorities of the new government; 

•  Promoting the opportunities offered under the Erasmus+ programme, particularly to 
exchange  students,  researchers  and  university  staff,  and  enhancing  cooperation  with 
the line ministry and universities in order to help modernise higher education;  

•  Linking science, research and innovation to the county’s development needs through 
the  Horizon  2020  EU  Research  programme  and  nurturing  research  cooperation  at 
regional level;  

•  Mainstreaming climate change, gender and the Sustainable Development Goals in 

all new development cooperation actions. 

12The  EU’s  regional  and  thematic  programmes  and  instruments  complement  this  in  areas  including  trade, 
infrastructure, environment, climate change, disaster risk reduction, private sector development and governance. 
13 www.lift-fund.org  

10 

 
 
 
 
 
 
                                                            
2.5. Economic engagement 

If Myanmar/Burma can address the important remaining challenges, its transition can 
unlock  vast  economic  and  business  opportunities.  The  EU  is  ideally  placed  to  support 
this  transition  and  help  exploit  these  possibilities.  The  EU  will  seek  to  conclude  the 
negotiations  of  the  Investment  Protection  Agreement,  help  improve  the  regulatory 
framework  and  labour  standards,  and  prepare  for  negotiations  on  a  Forest  Law 
Enforcement, Governance and Trade Voluntary Partnership Agreement (FLEGT VPA).  

A country full of economic potential, waiting to be realised 

Myanmar/Burma is strategically located between India and China. It is blessed with abundant 
natural  resources  (land,  water,  forests,  fossil  fuels,  minerals  and  gems)  and  a  young  labour 
force  (55  %  of  the  population  is  under  the  age  of  30).  With  a  population  of  51.5  million  it 
constitutes a market of significant potential for EU exporters and investors. Myanmar/Burma 
is also a member of ASEAN, home to over 600 million people, and will benefit from the the 
ambitious  economic  integration  process.  There  are  ample  opportunities  to  modernise, 
diversify  and  liberalise  the  economy  in  virtually  all  sectors.  The  country  is  also  the  fastest 
growing tourism market in the region. 

The  attractiveness  of  Myanmar/Burma  as  an  investment  destination  however  presents  a 
number of challenges. The country still ranks 167th out of 189 countries in the World Bank’s 
ease of doing business index for 2016. Legal and regulatory aspects, particularly in the area of 
investor  protection  and  contract  enforcement,  access  to  financial  services  and  starting  a 
business have been identified as challenges. The World Bank’s Myanmar Investment Climate 
Assessment 2014 report considers access to finance, land, electricity, and skilled workers as 
key constraints for business operators. 

Exports are dominated by natural resources, in particular gas (40 %), which provide limited 
scope for job creation and linkages to domestic sectors. Although labour costs are among the 
lowest  in  Asia14  productivity  is  also  very  low.  The  dramatic  pace  of  deforestation15, mainly 
due  to  illegal  logging,  is  of  particular  environmental  and  economic  concern.  Finally  the 
ongoing  ethnic  conflicts  continue  to  significantly  reduce  the  opportunity  for  sustainable 
economic development in large parts of the country. 

Steps  have  been  taken  in  the  last  two  to  three  years  to  carry  out  market-based  reforms  and 
create  a  more  enabling  business  environment,  including  fiscal  and  tax  reforms,  liberalising 
foreign  exchange  controls,  removing  export  licence  requirements  for  about  4  000  products, 
allowing for 100 % foreign ownership in some sectors and the establishing special economic 
zones. As a result of these initial reforms foreign direct investment rose from USD 3.2 billion 
in  2013/2014  to  around  USD  8  billion  in  2014/2015  mainly  driven  by  the  gas  sector, 
telecommunications and manufacturing. In 2014/2015 the economy grew by 8.5 % and annual 
growth for the next five years is forecast to be 7.9 %. The country is well placed to expand its 
low-skill, labour-intensive manufacturing sector, which is vital for job growth, whilst it could, 

14 USD100 compared with USD181 per month for Vietnam according to the Asian Development Bank. 
15 Forest areas shrank from 59 % in 1992 to 48% in 2012 resulting in the loss of species-rich habitats such as 
mangrove forests, wetlands and grasslands, threatening wildlife and ecosystems.  

11 

 
 
 
 
 
 
 
 
 
                                                            
as experienced in other Asian countries, liberalise trade in agricultural markets to accelerate 
poverty reduction. 

The EU promotes a framework for mutually-beneficial trade and investment opportunities 
that protects labour standards 

The EU and Myanmar/Burma have highly complementary economies. The EU played a vital 
role  in  stimulating  the  country’s  trade  and  economic  development  by  removing  sanctions16 
and  reinstating  trade  preferences  under  the  Everything  But  Arms  scheme  in  2013.  Bilateral 
trade reached EUR 1.2 billion in 2015 up from EUR 404 million in 2012. Exports to the EU 
quadrupled  between  2012  and  2015,  from  EUR  165  million  to  EUR  675  million.  Garments 
represent  more  than  60%  of  Myanmar/Burma  exports  to  the  EU.  Machinery  and  electrical 
appliances constitute almost half of EU exports. As the country develops, it will require more 
capital  goods  for  infrastructure  and  manufacturing,  offering  further  opportunities  for 
European companies. Since 2011 EU services exports to Myanmar/Burma have increased six-
fold — though from a very low base. The services sector is likely to expand quickly.  

According to the country’s official statistics (as of January 2016), the EU was the 4th largest 
foreign investor in 2015 but with less than 10% of total investment it still lags behind China, 
Singapore and Hong Kong. The EU is working towards concluding an Investment Protection 
Agreement to enable European businesses to realise the full potential offered by the country’s 
economy. 

Negotiations on an Investment Protection Agreement were launched in March 2014. Once 
in force the Agreement will establish a level playing field for all EU investors and ensure the 
protection and fair treatment of investment from both sides, as well as promote transparency 
and good administrative behaviour for measures that impact investment. The Agreement also 
aims  to  protect  workers’  rights  and  the  environment,  as  well  as  boost  responsible  business 
conduct. Together with other EU initiatives in governance, rule of law and state building, the 
Agreement  will  improve  the  legal  certainty  and  predictability  of  investments,  thus  creating 
business opportunities and much-needed development. A Sustainability Impact Assessment17 
provides  an  in-depth  analysis  of  the  Agreement’s  potential  economic,  social,  environmental 
and human rights impact.  

The EU demonstrated its commitment to work with the government, the International Labour 
Organization  and  other  partners  (e.g.  the  United  States  and  Japan)  on  labour  rights  and 
corporate  social  responsibility  when  joining  the  Initiative  to  Promote  Fundamental  Labour 
Rights and Practices in Myanmar in May 2015. Through the initiative, the EU aims to help 
ensure  respect  for  fundamental  labour  rights  and  decent  work,  and  foster  strong  relations 
between  the  government,  businesses  and  workers  and  other  stakeholders.  It  also  creates 
opportunities  for  local  businesses  and  helping  to  transform  the  country  into  an  attractive 
trading  and  investment  partner.  Multi-stakeholder  approaches  such  as  the  EU  Garment 
Flagship Initiative may contribute to responsible business conduct in the garment sector. The 
EU  also  encourages  the  new  government  to  put  emphasis  on  land  reform  and  improving 
labour  rights,  including  the  labour  conditions  of  some  two  million  migrant  workers  in 
Thailand,  and  combating  forced  labour.  Myanmar/Burma  is  increasingly  becoming  part  of 

16 The EU maintains an embargo on arms and equipment that can be used for internal repression.  
17 http://www.eu-myanmarsia.com/guide.php?id=6  

12 

 
 
 
 
 
 
 
                                                            
global supply chains which makes the promotion of decent work and safer workplaces more 
important than ever. 

The  EU  will,  through  its  specific  support  under  the  EU-ASEAN  programmes  for  example, 
enhance its engagement in trade and private sector development to strengthen capacities with 
regard  to  value  chains,  trade  reform,  trade  facilitation  and  promotion,  export  quality 
management  and  consumer  protection  and  the  production  and  dissemination  of  official 
statistics.  The  EU  intends  to  become  involved  in  vocational  training  to  help  respond  to  the 
needs of the labour market. The recently established Eurochamber can play an important role 
in representing EU business interests in the country.  

Possible initiatives in this area include: 

•  Supporting  reforms  to  improve  the  legal  and  regulatory  framework,  which  will 
accelerate  foreign  direct  investment  and  facilitate  the  country’s  integration  in  the 
ASEAN Economic Community; 

•  Concluding  and  implementing  the  Investment  Protection  Agreement,  thereby 
improving  the  investment  environment  and  strengthening  the  commitment  to 
responsible investment and sustainable growth;  

•  Encouraging efforts in the liberalisation of the agricultural sector; 
•  Developing specific and effective outreach initiatives to foster collaboration between 

businesses; 

•  Supporting  participation  in  global  supply  chains  by  promoting  responsible  business 
conduct,  corporate  social  responsibility  and  decent  work,  as  well  as  adherence  to 
international  labour  and  environmental  conventions.  This  will  contribute  to  an 
enabling environment and sustainable development; 
Improving  the  country’s  labour  policies  and  administration  through  labour  law 
reform, capacity development and stakeholder consultation, including through the 
'Initiative to Promote Fundamental Labour Rights and Practices in Myanmar’; 

• 

•  Working  with  the  government  on  developing  a  vocational  education  and  training 

(VET) system with a view to giving the private sector a strong role; 

•  Preparing  for  possible  engagement  on  a  FLEGT  VPA  process  for  greater 
transparency and sustainability in the trade of timber products. Awareness-raising of 
forest governance and outreach activities to civil society and the private sector started 
in  2014.  Progress  will  depend  on  the  outcome  of  the  peace  process  since  vast  forest 
areas are located in ethnic areas.  

3. MYANMAR/BURMA IN ASEAN AND THE REGION 

The country’s transition offers new opportunities for regional cooperation between the 
EU and ASEAN and between the EU and the Lower Mekong countries.   

From isolation to an active regional player 

Myanmar/Burma  has  fast  become  a  respected  member  of  the  international  community  as  it 
progresses towards democracy and re-engages with the world. It joined ASEAN in July 1997 
and successfully assumed the chairmanship in 2014. During the decades of isolation, ASEAN 
provided  an  important  platform  for  contacts  with  regional  peers  and  other  external  powers. 

13 

 
 
 
 
 
 
 
 
 
The formal establishment of the ASEAN Community in 2015 has the potential to help further 
the country’s economic development and regional integration.  

The opening up of the country has already brought about a re-balancing of its foreign relations 
with  the  overall  effect  of  diversification  in  its  crucial  relations  with  China  and  India.  It  is 
expected  that  the  new  government  will  give  further  impetus  to  the  re-orientation  of  the 
country  in  a  fast  changing  wider  Asia  Pacific  landscape,  seizing  opportunities  while 
safeguarding  its  national  interests  and  autonomy  and  maintaining  good  relations  with 
neighbouring countries.  

A  closer  partnership  will  help  advance  the  EU’s  strategic  interests  in  the  Asia  Pacific 
region 

The EU will work towards implementing the ASEAN Economic Community Blueprint 2025 
with  a  new  EU-ASEAN  flagship  programme,  ARISE+,  focusing  on  trade  facilitation, 
standards,  customs  and  transport,  civil  aviation,  intellectual  property  rights,  statistics  and 
integration  monitoring.  The  EU  actively  supports  cooperation  among  Lower  Mekong 
countries  through  policy  dialogue  and  development  cooperation,  particularly  on  the 
sustainable management of natural resources and the food security-energy-water nexus. 

Myanmar/Burma  and  the  EU  are  members  of  the  ASEAN  Regional  Forum  (ARF),  which 
offers the opportunity for fuller engagement on broad security and defence-related matters in 
the  Asia  Pacific  region.  The  EU  and  Myanmar/Burma  co-chaired  the  ARF  Inter-sessional 
Support Group Meeting on Confidence Building Measures and Preventive Diplomacy and the 
Defence Officials Dialogue in December 2013 in Yangon and in April 2014 in Brussels. This 
provided  a  good  opportunity  to  work  with  the  country’s  diplomatic  leadership  as  well  as 
defence officials, paving the way for further engagement. The Asia-Europe Meeting (ASEM) 
is the other multilateral forum where the EU and Myanmar/Burma cooperate. Both sides will 
have ample opportunity to enhance their cooperation in the future, particularly in view of the 
country’s decision to host the 13th ASEM Foreign Ministerial Meeting in 2017. 

The further repositioning of Myanmar/Burma under the new government inside ASEAN and 
beyond will offer good opportunities for deeper cooperation with the EU. There is for instance 
ample  scope  for  the  country  to  play  a  more  active  role  in  strengthening  EU-ASEAN 
cooperation in priority areas and by raising its profile and strategic significance.  

A  stable  and  prosperous  Myanmar/Burma  will  also  serve  as  an  encouraging  example  of 
successful  political  transition  and  further  strengthen  ASEAN’s  integration  process,  in  line 
with the priorities set out in the 2015 EU Joint Communication on EU-ASEAN relations18 and 
in  the  ensuing  Council  conclusions19  and  the  EU’s  strategic  priorities  in  the  Asia  Pacific 
region.  

Possible initiatives in this area include: 

•  Engaging  Myanmar/Burma  on  jointly  working  on  the  substance  of  a  possible  EU-
ASEAN strategic partnership, including a greater role for the EU in all ASEAN-led 
regional fora;  

18 ‘The EU and ASEAN: a partnership with a strategic purpose’, JOIN(2015)22 of 18.05.2015 
19 http://www.consilium.europa.eu/en/press/press-releases/2015/06/22-fac-asean-conclusions/ 

14 

 
 
 
 
 
  
 
 
 
                                                            
•  Continuing  robust  support  for  ASEAN  integration  which  will  contribute  to  further 
economic  growth  and  development  in  Myanmar/Burma  with  a  special  focus  on 
closing  the  internal  ASEAN  gap  involving  Lower  Mekong  countries,  including 
natural resources management.  

4. CONCLUSION 

This  Joint  Communication  sets  out  clear  priorities  and  key  elements  for  an  ambitious  and 
forward-looking EU engagement with Myanmar/Burma in order to continue effective support 
for  the  new  democratically  elected  government  as  it  seeks  to  consolidate  democracy, 
transform the economy and strengthen social justice. The EU should make full use of all the 
instruments  at  its  disposal  to  address  the  remaining  challenges  of  the  transition  process 
including  statelessness,  discrimination  and  human  rights  violations  which,  if  ignored,  could 
put  progress  in  jeopardy.  New  areas  of  engagement  include  working  directly  with  the 
government  on  reform  and  policy  formulation  through  state  building  initiatives.  The  EU 
intends to reach out to the military, which remains an influential political player, by sharing 
experience  in  democratic  transition  and  the  role  of  the  military  in  a  modern  democracy.  As 
part of the peace process, the national political dialogue offers the opportunity to engage with 
all  stakeholders  on  the  issues  of  federalism,  devolution  of  executive  powers  and 
decentralisation. There will be no lasting peace without an agreement on these principles. Its 
support of peace, through the Joint Peace Fund, will enable the EU to work concurrently with 
the  government  and  ethnic  representatives  to  address  the  needs  of  communities  affected  by 
conflict, including on  new  issues  such as security sector reform. The conclusion of the  EU-
Myanmar/Burma Investment Protection Agreement will stimulate European business interest 
in  a  strategic  region  and  contribute  to  inclusive  and  sustainable  growth.  A  democratic  and 
successful Myanmar/Burma will strengthen ASEAN integration and further the EU’s strategic 
role in the Asia Pacific region.  

The  High  Representative  and  the  Commission  call  on  the  Council  and  the  European 
Parliament  to  endorse  the  initiatives  presented  in  this  Joint  Communication  and  to  work 
together to reinforce EU engagement in Myanmar/Burma’s historic democratic transition. 

15