U.S. slams ASEAN over Myanmar

By Neil Chatterjee

SINGAPORE (Reuters) - The United States criticised the ASEAN group of Southeast Asian nations on Monday over its handling of military-ruled Myanmar as the group prepared to sign a charter that calls for respect of democracy and human rights.

U.S. Trade Representative Susan Schwab said that a free trade deal between Washington and the Association of South East Nations (ASEAN) was unlikely because of "the political situation in the region" and said ASEAN credibility had been called into question.

Schwab met ASEAN officials, including Myanmar, on Monday and said she had expressed concern on the "special responsibility" of ASEAN, the only international group to have Myanmar as a member.

"The credibility and reputation of ASEAN has been called into question because of the situation in Myanmar. Business as usual can't be business as usual," Schwab told reporters.

The United States expanded its sanctions against Myanmar's rulers in October, adding 11 more military leaders to a list facing sanctions and tightened U.S. export controls. The U.S. Senate voted unanimously on Friday to urge ASEAN to suspend Myanmar until the regime showed respect for human rights.

But ASEAN has unanimously rejected calls for a suspension, saying there was a better chance that Myanmar would take the road to democracy if it stayed within the group. ASEAN has criticised sanctions, saying they would only hurt Myanmar's civilians.

"It's been tried in Iraq and nobody wants to have an Iraq in Southeast Asia," Singapore Prime Minister Lee Hsien Loong was quoted as saying, echoing China, Myanmar's closest ally.

ECONOMIC FALLOUT?