Economic sanctions against Burma’s military government by the European Union were expanded when EU foreign ministers met this week.

The sanctions include bans on imports of timber and gemstones, a travel ban and assets freeze on top junta leaders and their relatives and an arms embargo.

The EU’s current sanctions against Burma were imposed following last year’s violent military crackdown on mass demonstrations calling for reforms.

The sanctions came up for review in Brussels on Monday and Tuesday.

NGOs campaigning for regime change in Burma and some members of the European parliament have been putting pressure on the EU to increase sanctions.

British MEP Richard Howitt wants Europe to copy the United States by imposing banking and other financial curbs on regime leaders and their key business backers.

The US-based Human Rights Watch has petitioned Brussels to block all financial transactions by Burmese junta members with the EU’s jurisdiction. At present, it is only known assets in Europe held by the generals that are frozen.

HRW urged the EU to liaise closely with the US, Australia and other Western sanctions operators on action against the junta generals to “target their ability to access international financial networks to hide their profits, to buy arms and other repressive tools.”

US financial curbs include penalizing third parties that do business with the junta.

Malaysian Firm Quits Palm Oil Venture in Burma

Malaysian palm oil producer Astral Asia has cancelled plans to invest US $200 million in palm plantation development in southern Burma.

The Kuala Lumpur stock exchange-listed company announced less than six months ago that it had signed a memorandum of understanding with two Burmese-based companies, Myanmar Combiz Services Limited and Green Future.

The companies said they planned a joint venture to develop more than 60,000 hectares (170,000 acres) of virgin land at the southeastern tip of Burma near its border with Thailand at Ranong.

Astral’s chairman Lim Kang Poh told The Star newspaper in Malaysia last December it was planned to spend $200 million over 15 years and first planting of palm was expected in late 2008.

The joint venture was to be 85 percent held by Astral and the rest shared between the other two companies.

Astral has given no reason for its decision to terminate the MoU.

Indian State’s Burma Farm Projects Help ‘Basic Needs’

The Indian state-owned investment vehicle Projects-Equipment-Commodities Limited is seeking to increase its activities in Burma.

PEC, as it is more commonly known, plans to supply machinery and equipment for small and medium scale factory developments in the electrical and textile sectors, the New Delhi-based organization says.

PEC has been engaged in several agricultural projects in Burma for some years. These are part of a region-wide investment in developing countries catering to “the basic needs of the people living there,” said a PEC statement.

Produce from the Burmese farming schemes are currently being advertised for bids on PEC’s website.

The agency says it is looking for Indian bidders to buy and import about 9,000 metric tons of pulse crops this year from its Burma schemes.

The likely value of the Burmese produce is unknown. PEC says it had a sales turnover of US $1.07 billion in 2006-2007 from 50 projects in 22 countries.

Military Curbs Rice Sales across Thai Border

The Burmese military at the Three Pagoda Pass border crossing with Thailand has banned the export of rice.

The move follows a sharp increase in rice prices in Burma’s Mon State which has been blamed on traders choosing to sell to Thai buyers, reported the Independent Mon News Agency.

Local rice in Mon has recently risen in price by 10 percent because supplies were being smuggled across the border instead.

Thai demand for cheaper Burmese rice in the border areas increased dramatically in the wake of rising prices within Thailand.

Analysts say there is no rice shortage within Thailand but a sudden increased overseas demand for Thai rice had a knock-on effect on domestic prices.

Singapore has recently begun buying cheaper Burmese rice because Thai prices have rocketed in the last two months.