A meeting of European and Asian finance ministers in Belgium next month is in doubt because of major divisions over Burma's human rights record.
The Association of Southeast Asian Nations (ASEAN) wants Burma's finance minister to attend the meeting, but the European Union (EU) has imposed sanctions against the military government, including a visa ban.
ASEAN members are threatening to block 10 new members of the EU from attending an Asia-Europe (ASEM) summit in Vietnam in October, unless Burma is allowed to participate in the July sixth meeting in Brussels.
The EU has indicated that the release of pro-democracy leader Aung San Suu Kyi from house arrest would break the deadlock. The Noble peace prize winner has been under house arrest for more than a year.
Information for this report is provided by AFP.