Canada is suspending its sanctions against Burma in recognition of its moves towards democracy.

Foreign Affairs Minister John Baird says he has seen encouraging steps in Burma, also known as Myanmar, after former political prisoner Aung Sang Suu Kyi won a parliamentary seat in historic elections there earlier this month.

Baird says Canada's sanctions on imports, exports and financial transactions will be suspended, although an embargo will be maintained on sales of arms and military technology.

The minister visited Burma, last month and personally conferred honorary Canadian citizenship on Suu Kyi, a Nobel laureate.

Baird also visited Burma's new, reform-minded civilian leadership, and though impressed, said at the time he wanted to wait before easing restrictions on the repressive South Asian country.

Earlier this week, the European Union suspended some sanctions against Burma for a year, but retained an arms embargo.