President Barack Obama has said that the United States was ready lift economic sanctions against Myanmar.
This was after a meeting with Aung San Suu Kyi on Wednesday, their first at the White House meeting since she became the country's leader.
"The United States is now prepared to lift sanctions that we have imposed on Burma for quite some time," Obama said, with Suu Kyi sitting next to him in the Oval Office.
"It is the right thing to do in order to ensure that the people of Burma see rewards from a new way of doing business and a new government."
Suu Kyi's trip capped a decades-long journey from political prisoner to national leader after her party won a sweeping electoral victory last year.
With Suu Kyi no longer an opposition figure, the United States has been weighing a further easing of sanctions against Myanmar, formerly known as Burma, as Obama looks to normalize relations with a country Washington shunned when it was ruled by a military junta.
"We think that the time has now come to remove all the sanctions that hurt us economically," Suu Kyi said, noting that the US Congress had supported her country by backing sanctions in the past to put pressure for democratic reforms.
As Suu Kyi arrived at the White House, Obama issued a statement saying he would reinstate Myanmar to the Generalized System of Preferences (GSP), which provides duty-free treatment for goods from poor and developing countries.
Myanmar was removed from GSP benefits in 1989 following pro-democracy uprisings a year earlier that were brutally suppressed by the ruling military junta.
That move, combined with the lifting of sanctions, "will give the United States, our businesses, our non-profit institutions greater incentive to invest and participate in what we hope will be an increasingly democratic and prosperous partner for us in the region," Obama said.
The United States eased some sanctions against Myanmar earlier this year to support political reform but maintained most of its economic restrictions with an eye toward penalizing those it views as hampering the democratically elected government.
With Suu Kyi in Washington, officials in Myanmar said the government there was making a push to overhaul rules on new foreign investment this week.
New investment approvals have fallen since Suu Kyi took power in April and some businesses and investors have criticized her for failing to prioritize the economy.
'INCREMENTAL PROGRESS'
Separately, a group of 46 non-governmental organizations circulated a letter they wrote to Obama on Monday expressing concern about reports of plans to ease sanctions on Myanmar while human rights abuses by the military and against Rohingya Muslims persisted.
"While incremental progress is being made in Burma, it is vital that the US continue to act in support of Burma's people, particularly those still suffering under the current government," the letter said.
"To lift sanctions prior to tangible change for suffering communities would be a disservice to those vulnerable peoples who deserve international protection," it said.
On Wednesday, US Senator Bob Corker, the chairman of the influential Senate Foreign Relations Committee, criticized what he described as Suu Kyi's "dismissive" reaction to concerns he had raised about her country's record on human trafficking.
"After witnessing her lack of regard for Burma's dismal track record on this issue, I plan to pay very close attention to her government's efforts to prevent innocent human beings from being trafficked and sold into forced labor and sex slavery," Corker said in a statement released to Reuters after a breakfast meeting with Suu Kyi and Vice President Joe Biden.