TOKYO (AP) Japan and Myanmar on Sunday signed an investment treaty to nurture closer business ties as the once secluded Southeast Asian country opens its fast-growing economy to more foreign commerce.
Prime Minister Shinzo Abe and Myanmar President Thein Sein signed the deal in summit talks following a gathering of leaders from the Association of Southeast Asian Nations in Tokyo.
Japanese businesses have been eager to invest in Myanmar and have stepped up their activities there after Thein Sein's reformist government came to power in 2011 after nearly 50 years of military rule. Japan's trade ministry said the agreement is intended to provide greater protections and a stable legal environment for investors.
Attracting foreign investment and lending is crucial for aiding the expansion of Myanmar's resource-rich economy. The country has significant growth potential but is burdened with an inefficient farm sector. It also lacks a manufacturing base after decades of foreign sanctions and restrictive laws under military rule.
The treaty calls for Japanese investors to receive the same protections provided to other foreign investors under international rules and prohibits the imposition of export, technology transfer or other requirements in exchange for such investments. It is also intended to improve transparency, key for a country struggling with endemic corruption.
