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AP: Court Nixes Burma Trade Ban
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Court Nixes Burma Trade Ban
By Erica Noonan
Associated Press Writer
Wednesday, June 23, 1999; 5:46 a.m. EDT
BOSTON (AP) -- A Massachusetts law barring the state from doing business
with companies that trade with Myanmar is unconstitutional, a federal
appeals court held.
The decision released Tuesday by the 1st U.S. Circuit Court of Appeals
could affect dozens of states and local governments with economic boycotts
protesting social or political injustices in foreign lands.
The 1st Circuit upheld a decision by a lower federal court that struck down
the so-called Burma law -- the former name of Myanmar.
While the ruling found that ``human rights conditions in Burma are
deplorable,'' the court said the Massachusetts law ``interferes with the
foreign affairs power of the federal government and is thus
unconstitutional.''
Massachusetts, which purchases $2 billion in goods and services annually,
enacted its law in 1996 because of human rights violations by Burma's
military dictators.
The decision could impact 20-plus states and local governments -- including
New York City, San Francisco and Portland, Ore. -- that have Burma boycott
laws.
The 1st Circuit also ruled that Massachusetts had no right to single out a
particular trading partner for a boycott and no authorization to regulate
activities in Burma through economic sanctions.
The lawsuit was brought by the National Foreign Trade Council, which
represents 580 major U.S. corporations. The Massachusetts law affected more
than 30 member companies, but NFTC officials refused to name which ones for
fear consumers will boycott them.
Massachusetts had argued that Congress must decide whether a state or local
government may enact legislation that affects foreign affairs.
Congress, the state argued, enacted federal sanctions against Myanmar
several months after Massachusetts enacted its law -- and chose not to
override the state law. Furthermore, the state isn't regulating conduct, it
is merely choosing how to spend taxpayers' money, attorneys said.
NFTC President Frank Kittredge applauded Tuesday's decision, calling it a
``full and sweeping'' rejection of Massachusetts' right to impose its own
economic sanctions.
Attorneys for the state said they were disappointed.
``We wish it had come out the other way. We're reviewing the decision and
considering options,'' said Assistant Attorney General Thomas Barnico.
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