The government has signed provisional ceasefires with several armed ethnic groups in recent months as part of political reform in the country.
But attempts to end the fighting in Kachin state have proved difficult.
Western nations say the lifting of sanctions depends on progress being made towards national reconciliation.
Conflicts between Burma’s central government and rebels from the various ethnic minority groups have flared sporadically over the decades since the country gained independence.
Tens of thousands of people have been displaced by fighting and there are many reports of human rights abuses.
The civilian government, backed by the military, which came to power in 2010 is attempting to sign ceasefires with rebel groups in preparation for further political discussions.
On Wednesday, they signed a preliminary ceasefire with the ethnic Karenni rebels in the east of the country.
But the BBC’s South-East Asia correspondent, Rachel Harvey, says that after decades of mistrust, many of the groups which have agreed a truce have done so with extreme caution.
The Kachin have so far refused to sign any agreement before political issues are resolved but are now entering into talks.