Myanmar junta seizes over 300 cargo trucks, disrupting border trade

Over 300 cargo trucks carrying Thai goods were intercepted in Hpa-an, Karen State, earlier this month, causing a sharp decline in Thai-Myanmar border trade.The Myanmar military has seized the trucks at the Thiri car compound in new efforts to curb illegal trade. Junta officials are inspecting the truck’s supply to check for tax compliance. Those without proper documentation will be confiscated, sources say.Due to regular checks on trucks arriving from Myawaddy at the checkpoint near Hpa-an and uncertainty regarding what actions will be taken against the some 300 seized trucks, local business people are unwilling to import goods at this time, an entrepreneur and member of the central committee of the Myanmar Highway Freight Transportation Service Association, told Myanmar Now. "We are uncertain about the policy under which these actions will be taken against the seized goods, so trade has slowed, though it hasn’t completely stopped,” he said. “Only essential goods and those without issues are still being transported.”Trade between Thailand and Myanmar has faced significant disruptions in recent months, severely impacting the flow of goods across the Myawaddy border. Previously, hundreds of cargo trucks transported consumer products, food, and construction materials daily from Myawaddy to Yangon. Now, only a few dozen trucks remain in operation, highlighting the scale of the slowdown.Despite the decline, Myanmar's junta has prioritised exports to maintain revenue. Although officials have facilitated the smooth transport of trucks carrying onions, chilies, and cassava to Thailand, aiming to sustain export earnings.The town of Myawaddy drew headlines in April last year, when clashes between the Karen National Liberation Army (KNLA), the armed wing of the KNU, and the junta ended in the anti-junta forces taking over much of the strategically important border town. However, by the end of May, 2024, the junta, backed by the Karen Border Guard Forces, had retakan control of the town.Trade between the two nations is vital for both economies. Thailand is one of Myanmar's largest trading partners, with border commerce playing a crucial role in supplying essential goods and generating income for communities on both sides.Disruptions to this trade risk deepening economic instability in Myanmar while affecting Thai businesses reliant on imports from across the border.In late 2023, clashes led to the destruction of several bridges along the Asian Highway, vital for border trade, and trucks have been unable to use those routes since. The highway connects the Thilawa Special Economic Zone in Yangon to the Myawaddy Border Trade Zone.The Hto Kaw Ko-Kyaw Kho road, once a temporary military route, now serves as a key cargo path. Trucks using it face taxes and protection fees from junta troops, the Karen Border Guard Force (BGF), and armed groups like the Karen National Union (KNU).Junta customs and trade officers are stationed at trade posts in Myawaddy and Hpa-an. Sources say imports are processed through the MACCS online system with a trade license, while untaxed goods are seized and inspected at military checkpoints.A Myawaddy-based trader told Myanmar Now that some of the trucks seized in Hpa-an earlier this month may not have proper vehicle or import licenses."I think only vehicles without licenses and goods without proper documentation will be delayed,” he said. “We've heard that all the seized trucks will be sent to Naypyitaw, where the seizures may be treated as an event to celebrate the confiscation of illegal goods.”Myanmar Now contacted Saw Khin Maung Myint, a junta spokesperson based in Karen State, for comment on the seizure, but has yet to receive a response.A junta-controlled state newspaper reported on March 17 that goods from 26 vehicles, lacking proper documentation, were seized near the Hpa-an industrial zone in Hpa-an Town on March 14. The report noted that the seized goods consisted of 58 types of industrial products valued at over 800 million kyat ($380,000 US dollars), 26 types of consumer products, and cars worth more than 2.6 billion kyat, ($1,236,300 US dollars).Since the military coup, ongoing clashes with junta troops in Karen State have caused frequent stoppages in trade at the Myawaddy border.Thai traders have warned that border trade may be affected by the Thai government's ban on imports of some goods, including fuel, electronic devices, and electricity, along the Myanmar-Thai border, to target cyber-scam syndicates.As many border gates in Myanmar, which handle trade with neighboring countries such as Thailand, China, India, and Bangladesh, are under the control of ethnic armed groups, junta-led border trade is now unable to fully operate.

Myanmar junta seizes over 300 cargo trucks, disrupting border trade

Traders hesitant to import goods as junta inspects shipments for tax compliance

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