Impacts of Thailand-Cambodia Border Measures on Daily Trade
Increasing border closure between Thailand and Cambodia may result in a daily economic loss of 500 million Thai Baht for trade activities.
Tensions along the Thailand-Cambodia border may cause a daily trade loss of up to 500 million baht, according to the Federation of Thai Industries (FTI). However, it's essential to understand that not the entire amount is at risk—only a portion is potentially affected [1].
These border disruptions stem from ongoing disagreements and a territorial dispute, resulting in the partial closure of checkpoints. This has, in turn, led to problems in transporting essential goods [1][3].
In a conversation with Thansettakij, FTI president Kriengkrai Thiennukul underscored the gravity of the situation. He explained that the Aranyaprathet checkpoint of Sa Kaeo province, the busiest trading point between the two nations, handles approximately 110 billion baht worth of trade annually—roughly 64% of the total [1]. Nevertheless, at present, it's challenging to gauge the extent of the damage to this trade [2].
The military implements the border closure measures on an adjustable schedule. Essential needs such as trade, transport of goods, and labor will still be allowed, albeit with heightened scrutiny of high-risk individuals [3]. Other measures include reduced operating hours at border points and the temporary closure of high-risk or insecure border points, or all border points if a crisis or clear acts of aggression arise [3].
It's apt to keep an eye on these developments, as a prolonged delay can amplify the economic impact [1][4]. The Thai government, led by Prime Minister Paetongtarn Shinawatra, is taking steps to address the issue. The Thai-Cambodian Joint Boundary Commission (JBC) is scheduled to meet on June 14. Meanwhile, Cambodia continues to advocate for resolving the border issue through the International Court of Justice (ICJ) [5].
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- Sources:
- https://www.nationthailand.com/news/30402428
- https://www.bangkokpost.com/business/2079401/some-fti-members-feeling-border-impact
- https://www.nationthailand.com/news/30406652
- https://www.nationthailand.com/business/2079401/some-fti-members-feeling-border-impact
- https://www.bangkokpost.com/news/1969231/jbc-to-meet-on-june-14-to-resolve-border-issue
Tags:* Thailand* Cambodia* economy* Border Trade* FTI* Federation of Thai Industries* border disputes* conflict resolution* global economy* international trade* Thai-Cambodian relations
- The ongoing disagreements and territorial dispute between Thailand and Cambodia could pose an risk to the international business sector, particularly the trade and industry sector, as estimated losses could reach up to 500 million baht daily.
- Tensions along the border have led to problems in the transport sector, causing difficulties in moving essential goods between the two countries.
- The Aranyaprathet checkpoint in Sa Kaeo province, a crucial hub for trade between Thailand and Cambodia, handles approximately 110 billion baht worth of trade annually, accounting for roughly 64% of the total trade.
- The financial and economy implications of the border disruptions remain unclear, but prolonged delays could magnify the overall effect, raising concerns within the business community.
