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Junta-affiliated Border Guard Power troops on the Asian Freeway in Karen State. / Kyaw Kha / The Irrawaddy
By The Irrawaddy 8 February 2023
Myanmar’s commerce with Thailand has steeply declined because the 2021 coup because the junta imposes restrictions to forestall weapons from reaching resistance forces.
Border commerce declined from over US$4 billion in 2019-20 to $3.6 billion within the 2022-23 monetary 12 months, which ends on March 31, in keeping with the junta’s Ministry of Commerce.
Items bought within the Thai border city of Mae Sot are largely out of inventory throughout the frontier in Myawaddy as a result of merchants can solely import if in addition they export to Thailand, in keeping with a dealer in Myawaddy.
“I’ve obtained all of the paperwork wanted to import fertilizers. However I can’t import as a result of I’m operating a commerce deficit of about 4 million baht [$119,000]. We haven’t made exports of that worth. It’s inflicting delays. Many different merchants are dealing with the identical issues,” the dealer informed The Irrawaddy.
The regime imposed restrictions, together with that the worth of imports and exports should be equal, and the funds should be made in {dollars} or baht via a junta-controlled financial institution. It has additionally required merchants to hunt approval from Myanmar’s Meals and Drug Administration to import and export.
In the meantime, commerce is usually delayed by frequent combating alongside the border. Merchants additionally should pay excessive taxes alongside the route.
“That is our dwelling so we proceed to do what we’ve been doing. The dangers are excessive however we proceed,” mentioned the dealer.
The junta closed the Thai border at Htee Khee in Tanintharyi Area in April final 12 months after a resistance assault on a police station on the Dawei-Htee Khee highway.
The border gate was a serious buying and selling level and the closest crossing to Bangkok. Myanmar primarily exports fish, coal, lead and meals to Thailand through Htee Khee and imports diesel, cooking gasoline, meals and shopper items.
A Tanintharyi dealer mentioned: “The Htee Khee gate has been closed since final 12 months. Some are buying and selling through Mawtaung and Kawthoung.”
Commerce via Htee Khee was already in regular decline, falling from $2 billion in 2019-20 to $1.7 billion in 2020-21 and $1 billion in 2021-22, in keeping with the junta’s Commerce Ministry. The ministry claimed that Htee Khee commerce totaled $1.7 billion from April 1 to November 30 final 12 months, regardless of the gate being closed since April.
The dealer mentioned: “I feel it’s the price of gasoline imports. Commerce via Mawtaung and Kawthoung has additionally declined. Commerce is hopeless. It’s unlikely that it’s going to return to pre-coup ranges. And we really feel unsafe.”
Commerce via Mawtaung was $7 million from April 1 to November 30 final 12 months and there aren’t any figures for the Mese border in Kayah State because the coup.
The Thai border crossings are at Myawaddy, Tachilek, Kawthoung, Myeik, Htee Khee, Mawtaung and Mese however solely Tachilek, Myawaddy, Kawthoung, Myeik and Mawtaung at the moment are open.
The regime has restricted imports of fertilizer and meals and Myawaddy’s commerce is presently dominated by development supplies and shopper items.
The junta-controlled Commerce Division this month informed exporters to submit an inventory of their exports and search on-line transport approval. The division will then problem a QR code for transport.
Vans have to indicate the QR code at checkpoints. The system is being trialed this month on the borders at Myawaddy and Muse and Chin Shwe Haw in Shan State.
Myawaddy’s exports are primarily rice, rice powder, rubber and crops like pepper, whereas imports embody meals, shopper items, constructing supplies, industrial uncooked supplies and equipment.
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