Mizzima
Thailand’s border trade is expected to slow down this year due to the ongoing political conflict in Myanmar and economic problems in other neighbouring countries, according to the Federation of Thai Industries (FTI).
“We trade with these countries which currently face challenges to their economic growth,” said Montri Mahaplerkpong, vice-chairman of the FTI.
The challenges include attempts to deal with an anti-government insurgency in Myanmar and negative economic factors, including high inflation and household debt problems in other countries, he added.
Border trade volumes with most of these countries have already dropped, with trade with Myanmar decreasing by 11.1%, trade with Malaysia falling by 11.7% and trade with Cambodia diving by 19.2%.
Thailand sees its trade with Laos rising by 1.16%.
According to Mr Montri, the neighbouring countries also face the problem of an influx of cheap Chinese products into their countries, affecting local manufacturers.
Thailand is struggling to deal with this problem that has hit its manufacturing sector. The FTI said earlier that up to 20 industrial sectors, including steel, aluminium, plastics, ceramics, petrochemicals and medicine, are struggling to deal with tougher competition, with small and medium-sized enterprises being the most negatively affected.
The FTI suggested that Thai exporters use the baht as a key exchange currency for their trade with neighbouring countries. “The baht value is financially healthier than Myanmar’s kyat, Laos’s kip and Cambodia’s rial, which are weak and prone to fluctuations,” said Mr Montri.
The traders said that they had to suspend their export of agricultural produce as there were difficulties and hurdles in transporting these goods to the Thai-Myanmar border trade zone and the Military Council’s increased commercial taxes on their goods.
The Thai-Myanmar border trade fell sharply after the military coup because of political instability and transportation difficulties.
Myanmar mainly exports agricultural produce and fishery products to Thailand through border trade.
The Thai-Myanmar border trade is being conducted at the border trade zones of Tachileik, Kawthaung, Myeik, Htekhee, Mawtaung and Mae Sae.
