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Thailand and Myanmar Move To Strengthen Border Trade Ties

Thailand and Myanmar are looking to restore border trade and remove longstanding barriers following years of disruption, according to the Department of Foreign Trade (DoFT).

The visit to Thailand by Myanmar leader Min Aung Hlaing on August 6-7 has been viewed as a potentially significant step towards rebuilding bilateral economic ties, particularly trade along the shared border.

DoFT director-general Arada Fuangtong said the visit could mark a turning point for economic, trade and investment cooperation, which has been hampered by instability and restrictions in Myanmar.

Discussions between the two sides covered a broad range of issues, including trade and investment, infrastructure links, energy, environmental cooperation, labour development and measures to facilitate cross-border commerce.

The Thailand-Myanmar Business Forum 2026, held under the theme “A New Chapter in Thailand-Myanmar Business Partnership”, also brought together companies from both countries to strengthen business connections and explore new commercial opportunities.

Ms Arada said border trade continued to play a crucial role in the economies of both countries despite security concerns and restrictions imposed by Myanmar.

Bilateral trade reached 244.05 billion baht in 2025, of which border and transit trade accounted for 199.11 billion baht, or more than 81%. Mae Sot district in Tak remains one of the country’s key trading gateways, linking Thailand with Myawaddy in Myanmar.

However, businesses continue to face obstacles, including border closures, import licensing requirements, foreign-exchange regulations, transport disruptions and security risks. These challenges have increased operating costs and weakened business confidence.

Thailand has proposed holding a meeting of the Thailand-Myanmar Joint Trade Commission later this year to tackle trade barriers, customs procedures, non-tariff measures, logistics and cross-border connectivity.

ML Pinitbhand Paribatra, head of the International Relations Department at Thammasat University, described Thailand’s engagement with Myanmar’s military-backed government as a “test of trust”.

He said Thailand’s approach was intended to demonstrate that it remained a reliable partner while encouraging Myanmar to deliver concrete progress in return.

Areas such as the suppression of scam networks and the promotion of border trade could offer practical opportunities for cooperation, particularly given existing links between authorities and support from the private sector, he said.

However, ML Pinitbhand cautioned against expecting rapid breakthroughs on Myanmar’s armed conflicts, cross-border pollution and environmental problems, which are deeply connected to the country’s unresolved internal conflicts and stalled peace process.

He said Thailand’s future role could become increasingly important as it prepares to chair and host Asean in 2028, creating an opportunity to support Myanmar’s peace efforts and eventual reintegration into the regional community.

Myanmar’s strategic relationships with China and India also make closer engagement important for Thailand, he added.

At the same time, he warned that expanding ties with Myanmar could create risks for Thailand because Min Aung Hlaing remains under international sanctions and faces potential legal action over allegations of genocide.

Any expansion of trade and investment could leave Thai companies exposed if international sanctions against Myanmar are subsequently broadened, he said.

ML Pinitbhand said Thailand should therefore establish clear expectations and red lines, seeking measurable progress on Myanmar’s domestic political situation, cross-border challenges and peace process.

Engagement with Myanmar, he added, should be judged by tangible outcomes rather than allowing responsibility for the peace process to rest entirely with Myanmar.