Myanmar regime aims to shift Thai border trade away from Myawaddy

In a bid to deprive its opponents of tax revenue, Myanmar’s military junta looks set to keep a key border crossing with Thailand closed and shift trade south to a port under its control, according to a senior regime official. The Myawaddy-Mae Sot Friendship Bridge 2, used to transport billions of dollars worth of goods across the border each year, has been closed since Monday, as the regime continues to face challenges to its hold over this crucial section of the border. Although the Myanmar military has forces stationed in the border town of Myawaddy, parts of the Asian Highway passing through Karen (Kayin) State are under the control of anti-regime groups that impose taxes on goods transported along the trade route. According to Saw Khin Maung Myint, the junta’s economic affairs minister for Karen State, this situation now has the regime looking to Kawthaung, some 460 miles to the south, as an alternative. “If it comes through the sea route, inspection and implementation is much easier than the land route,” he said, speaking to Myanmar Now earlier this week. He added that another reason for the closure of the Myawaddy-Mae Sot crossing is the dissolution of about 200 committees, including the illegal trade prevention committee, following the junta’s rebranding as the “State Security and Peace Commission” late last month. In April 2024, when the Karen National Union and its allies captured army bases in Myawaddy, the junta arranged for goods travelling to and from Yangon to be routed by ship through Kawthaung, a seaport located at the southern tip of Myanmar. Kawthaung is situated just across the Kraburi, or Pak Chan, River from the Thai port city of Ranong. According to a leaked document seen by Myanmar Now, the regime now prioritises Kawthaung as the main point of entry for trade with Thailand. While details of the junta’s plans for Kawthaung were not available, a businessman engaged in the transport industry in Karen State confirmed that the flow of goods across the Myawaddy-Mae Sot Friendship Bridge 2 has come to a complete halt, with devastating consequences for the local economy. “When the bridge is closed, business stops. When business stops, there are no job opportunities. And when there are no job opportunities, no one has an income,” he said. There are currently about 500 transport vehicles stranded on the Thai side of the bridge due to its closure. Saw Khin Maung Myint said the regime and Thai government officials were meeting to discuss this situation, but it was still unclear when the bridge would reopen. As the regime gears up for elections slated to take place later this year, it is also tightening restrictions on the transport of fuel and other basic commodities into resistance-held areas as part of its ongoing effort to weaken its enemies and reclaim lost territory. At the end of July, the regime regained control over a 15-mile stretch of the Asia Highway between the towns of Kyondoe and Kawkareik, west of Myawaddy. During a meeting of senior figures of the regime held on August 12, junta chief Min Aung Hlaing declared that any trade that enabled resistance forces to generate income was illegal.

Myanmar regime aims to shift Thai border trade away from Myawaddy

The move to prioritise the southern port town of Kawthaung comes as trade through Myawaddy continues to generate income for resistance forces

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