BBC-US court overturns Burma trade

[tinkyi@xxxxxxxxxxxxx]

Subject: BBC-US court overturns Burma trade ban 

Wednesday, June 23, 1999 Published at 15:03 GMT 16:03 UK
BBC-World: Asia-Pacific

US court overturns Burma trade ban

Protests against the Burmese Government continue outside its borders

A United States appeals court has ruled that a Massachusetts law barring
state authorities from doing business with companies that trade with Burma
is unconstitutional.
The federal appeals court - upholding an earlier ruling - declared that the
Massachusetts legislation interfered with the central government's right to
decide foreign policy.

The law was passed in 1996 in an effort to tighten sanctions against the
military government in Burma for its alleged human rights abuses.

Aung San Suu Kyi wants support from "ordinary people".
Massachusetts spends about $2bn a year on goods and services from the
private sector, but under the legislation known as the Burma law, none of
this business can be conducted with companies which carry on trade with
Burma.

The law has affected high-profile companies throughout the world, including
Eriksson, Siemens, Apple computers and Unilever.

The opposition National League for Democracy (NLD) in Burma is likely to be
disappointed by the appeals court ruling.

The NLD leader, Aung San Suu Kyi, strongly welcomed the Massachusetts law
when it was passed, saying that in some ways, she believed support from
ordinary people was more important than from governments.

Corporate challenge

The appeals court ruling follows a legal challenge by the National Foreign
Trade Council, which represents more than 500 American corporations.

It accepted the Council's argument that the Massachusetts legislation was
unconstitutional because it interfered with the federal government's right
to decide foreign policy.

Massachusetts' state lawyers say they are considering an appeal to the US
Supreme Court.

The legislation has also run into trouble at the World Trade Organisation,
where a disputes panel is investigating complaints by Japan and the EU that
it contravenes rules on free trade.

More than 20 American states and local governments - including New York City
and San Francisco - have passed laws attempting to punish companies for
dealing with what they consider to be oppressive governments.