Myanmar’s military regime has intensified its crackdown on smuggled goods, further slowing border trade with Thailand, according to traders at the frontier.
The regime is restricting traffic to just two trucks per day on the key trade route from Myawaddy, Karen State’s main border hub, to Yangon.
The junta tightened security after deputy junta chief Soe Win complained at a March 1 meeting of the Anti-Illegal Trade Steering Committee, which he chairs, that illegal import and export of goods had not declined despite the arrest of corrupt officials.
A border trader told the Irrawaddy: “Social media reports of policemen demanding bribes [from cargo trucks] in February resulted in arrests. However, following the deputy regime chief’s order to the Steering Committee, junta officials in Hpa-an are now allowing only two vehicles per day to pass even if hundreds are queuing.”
The trade restrictions threaten to exacerbate shortages caused by Thailand’s decision to cut supplies of electricity and fuel to five border locations in Karen State – including Myawaddy, Tachilek and Paya Thonzu – as part of its crackdown on scams. Meanwhile the regime, under pressure from China to clamp down on the scam operations, has banned transportation of fuel to Myawaddy from other parts of the country.
Junta officials are checking if goods are imported legally with a license that requires tax payment, said the border merchant.
“A license costs tens of millions of kyats and few are issued. Due to this and other restrictions, legal imports are not profitable, so most goods enter illegally. Only two tax-paying trucks are allowed to pass a day.”
Transport costs from Myawaddy to Yangon total around 7 million kyats for a six-wheeled truck and 9.5-12 million kyats for a 12-wheeler, according to merchants.
The junta has also tightened checks on vehicles passing through Hpa-an Township from the Dawna Hills to the east, the site of fierce clashes with Karen resistance forces.
“They don’t check private vehicles much. But they carefully inspect large vehicles and vehicles arriving from the mountains,” the merchant said.
Merchants believe that the heightened security measures are also linked with the crackdown on scam operations in Myawaddy.
Locals fear the tight checks will lead to price hikes and shortages as Myanmar grows increasingly dependent on Thai imports following a year of border trade disruption with China due to fighting in Shan State.
The junta’s Anti-Illegal Trade committee reported 450 billion kyats worth of smuggled goods were seized between January 2022 and January this year.
Last month, Thailand restricted the export of 11 consumer goods, including phones, inverters, batteries, generators, solar panels, and engine oil, as part of its scam crackdown. In response, Myanmar traders have shifted to importing these items through the maritime border at Kawthaung in Tanintharyi Region.
