The European Union has said, implementation of the Annan report will be crucial for Myanmar to retain its trade privileges. The report seeks to address a broad range of structural issues that are impediments to the peace and prosperity of Rakhine. Several of its recommendations focus on citizenship verification, rights and equality before the law, documentation, the situation of the internally displaced and freedom of movement. So far, the government has not published any details about which of the recommendations have been put into practice.

The EU is at a stage of enhanced monitoring during which the bloc will decide whether to launch a withdrawal process of the trade privileges it has offered Myanmar. A formal withdrawal process will include a six-month review period for Myanmar to demonstrate progress.

The GSP regulations stipulate that preferential treatment may be withdrawn if Myanmar is found to have systematically violated the principles laid down in the international conventions on human and labour rights, including those on preventing/ punishing the crime of genocide and elimination of racial discrimination.