US strategy links Myanmar peace talks to rare-earth access

Washington seeks to leverage peace negotiations in Myanmar as a means of bolstering US influence and potentially securing access to the nation's rare-earth deposits, according to a recently released strategy document by the State Department. Earlier this month, Reuters revealed that US officials have been quietly engaging with Myanmar's civilian government, led by a former general who orchestrated a 2021 coup, sparking a civil war that has reportedly claimed 100,000 lives and displaced over 3.5 million people.

This renewed engagement, involving the State Department's chief intelligence official, Michael Vance, represents a shift from previous US policy that favored isolating the military.

During these talks, discussions have encompassed strategies for gaining access to rare-earth minerals predominantly situated in conflict-affected regions and currently exported to China. However, the comprehensive country strategy for the US mission in Myanmar, formerly known as Burma, provides a more explicit outline of how Washington intends to facilitate US companies' involvement in negotiations with the country's diverse armed groups, which include pro-democracy factions and ethnic insurgents who have, in some instances, been at odds with the military for decades, striving for autonomy.

The mission aims to facilitate a ceasefire that "paves the way for a lasting peace agreement by 2030," it asserts. This includes organizing "at least three multistakeholder forums producing concrete agreements or policy proposals focused on fiscal federalism and territorial demarcation in Burma, potentially unlocking opportunities to access the country's abundant rare-earth resources and curtail scam centers."

The strategy document, approved on August 31 but recently posted on the department's website, does not clarify whether the US plans to lift sanctions or address other compliance issues that hinder investment in Myanmar.

The State Department declined to comment on the document, which was posted without response to a request for clarification. While the US enforces financial sanctions on coup leader-turned-president Min Aung Hlaing and others in the military-backed government and affiliated businesses, it has historically advocated for responsible business practices in Myanmar. Under the Trump administration, several Myanmar nationals and companies were removed from the sanctions list.

The strategy emphasizes the mission's goal to boost US exports to alleviate Washington's trade deficit with the impoverished nation. To this end, the embassy seeks to secure "at least three major commercial or investment deals valued above $5 million each" for US companies. Additionally, the document prioritizes law enforcement collaboration to combat online scam centers targeting Americans and expanded cooperation with authorities to repatriate Myanmar nationals residing in the United States.