On the Thai-Myanmar border, COVID-19 closes a billion-dollar racket

Sub-title: 

The closure of dozens of illegal trade gates along the border with Thailand to prevent the spread of COVID-19 is causing shortages of everything from beer and energy drinks to detergent and cosmetics, highlighting the vast scale of informal trade with Thailand.

Description: 

"For decades, billions of dollars of goods have crossed the Thai-Myanmar border through dozens of illegal trade gates in Kayin State’s Myawaddy Township that are run by armed groups. Each day, hundreds of trucks drive to the Thai side of the Thaung Yin (or Moei) River in Mae Sot, where their cargo is processed by Thai Customs, unloaded by hand onto small boats, ferried across the narrow stretch of water to Myawaddy and stored in warehouses for distribution throughout Myanmar. Most of this happens in broad daylight, and is legal on the Thai side and tacitly approved in Myanmar. Through conflict, natural disaster and political instability, these “boat gates” have nearly always remained open, providing a steady stream of imported goods to markets around the country. Not only do the gates provide a financial lifeline to the armed groups that control them, they enable businesses to skirt trade regulations – and Customs duties – on everything from fabric and liquor to cars and used refrigerators, costing the country hundreds of millions of dollars a year in lost tax revenue. Government officials acknowledge the gates are illegal, but insist they are powerless to close them. Support independent journalism in Myanmar. Sign up to be a Frontier member. But then came COVID-19. For the past two months the illegal gates have been closed, and cross-border trade has been limited to a single official crossing, the No 2 Thai-Myanmar Friendship Bridge. Although some traders have tried to switch to legal channels, many of the goods, such as liquor, that cross through the illegal gates cannot be imported legally. Trade has fallen from about US$10 million a day in February to as little as $3 million a day in April, according to the Myawaddy Chamber of Commerce. Stocks of imported goods have run out, while exports to Thailand have also been hit hard..."

Creator/author: 

Naw Betty Han, Thomas Kean

Source/publisher: 

"Frontier Myanmar"

Date of Publication: 

2020-06-08

Date of entry: 

2020-06-08

Grouping: 

  • Individual Documents

Category: 

Countries: 

Myanmar, Thailand

Language: 

English

Resource Type: 

text

Text quality: 

    • Good