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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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