US secretary of state John Kerry has said Myanmar must change its constitution to guarantee civilian power if Washington is to lift remaining American economic sanctions on the country.

The easing of sanctions on Myanmar in 2012 has enabled a certain amount of letter of credit (L/C) business since then, but some US sanctions remain in place because of the influence of Myanmar's military in its political system.

Military influence

"It is very difficult to complete that journey [to lift remaining sanctions], in fact impossible to complete that journey, with the current constitution," Kerry said after a meeting with Myanmar's foreign minister, Aung San Suu Kyi.

The US secretary of state said the key to lifting the remaining sanctions would be for Myanmar to show more progress in reducing the military's influence in the political arena.

Easing sanctions

The US, Europe and Japan, began to ease long-standing sanctions on Myanmar after the country's former military government began ceding power to a civilian administration in 2011.

Investment and trade were allowed in 2012, and L/C transactions resumed, albeit hampered by concerns over links with major traders and port facilities with links to politically exposed persons.

Sanctions against scores of companies and individuals were retained because of their ties to the previous regime.

Political change

Washington recently lifted sanctions imposed on seven state-owned enterprises and three state-owned banks, and introduced more waivers to make it easier for US firms to trade with Myanmar.

The US wants to see Myanmar's army - which still controls the defence and interior ministries and is guaranteed 25 per cent of the seats in parliament - reduce its considerable influence over its political system.

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