The European Commission adopted a proposal to bring the country back under the so-called 'Everything But Arms' preferential trade regime which would grant duty-free and quota-free access to the European market for all products except for arms and ammunitions. This decision follows the recognition by the international community, country's recent efforts to improve the political, social and labour environments there.

The European Commission believes that, despite the many structural constraints the country continues to face, Myanmar/Burma should see an increase in exports to the EU market under the 'Everything But Arms' preferential trade regime. In June this year, the International Labour Organisation (ILO) concluded that significant progress had been achieved by Myanmar/Burma, although some residual problems with forced labour persist. On this basis, EU law foresees that preferences should be reinstated. In April 2012, the Council decieded to suspend restrictive measures imposed to Burma/Myanmar with the exception of the arms embargo.

'Everything But Arms' is part of the EU's 'Generalised System of Preferences' and an important scheme to help developing countries boost their economy by providing them with tariff preferences when selling on the EU market. Myanmar/Burma would benefit from the 'Everything But Arms' system because it is classified as a 'Least Developed Country' (LDC) by the United Nations. In 1997, the country was suspended from the GSP scheme as a result of the country's serious and systematic violations of core international conventions on forced labour.

Myanmar/Burma exports to the EU totalled €169 million in 2011 which means approximately 3% of the country's total exports to the world, and 0.01% of the EU's total imports. These limited exports to the EU are concentrated on clothing. Now the Commission's Proposal is subject to the ordinary legislative procedure (OLP), hence the proposal will be submitted simultaneously to the Council and the European Parliament (EP) for agreement.