The value of Myanmar’s border trade, which accounts for the majority of the country’s foreign trade, dropped by over US$100 million in the first nine months of the current fiscal year compared to the same period of the previous fiscal year, according to data from the junta’s Commerce Ministry.
Myanmar recorded border trade value of $6,062.554 million from April 1 to Dec. 29, 2023, a decline of $121.995 million compared to the same period in 2022, according to Commerce Ministry data.
Myanmar’s border trade fell with all five of its neighbors—China, Thailand, Bangladesh, India and Laos. Total export value to those countries declined by $351.617 million.
With the exception of China, Myanmar’s imports from those countries have also steadily declined. Imports from China manage to increase by $682.995 million in the period—despite the fact that trade came to a sudden halt in late October when the Brotherhood Alliance comprising the Arakan Army (AA), Myanmar National Democratic Alliance Army and Ta’ang National Liberation Army launched an offensive against the regime in northern Shan State near the Chinese border.
A trader in Shan State’s Muse bordering China told The Irrawaddy: “Border trade has declined because border gates in the northeast of the country are closed. The trade has been halted.”
Muse is the key hub in Myanmar’s cross-border trade with China. Before the launch of the Brotherhood Alliance’s offensive, dubbed Operation 1027, Myanmar exported hundreds of truckloads of agricultural produce and marine products daily through Muse.
The Brotherhood Alliance has seized both the Chin Shwe Haw and Muse border crossings on the Chinese border.
In western Myanmar, the regime has blockaded Rakhine State as it is fighting the AA there. Myanmar’s border trade with Bangladesh through Rakhine has been halted as a result.
To the north, in Chin State, Chin resistance forces have seized Rihkhawdar, a key border trade town with India.
Meanwhile, Myanmar’s trade with Thailand through the key border hub of Myawaddy in Karen State has been almost entirely halted as fighting in Kawkareik has forced disruptions to transportation, pushing up transportation costs, according to merchants.
A merchant who trades with China and Thailand said: “The prices of crops have fallen as we can’t transport them for export. We can’t export to China, nor can we export to Thailand via Myawaddy. The pepper harvest is due next month in Ayeyarwady Region. Farmers have asked us how we will be able to export it. They don’t know what to do.”
Currently, merchants are exporting watermelons via the Mongla crossing on the Chinese border. But because of unexpected delays along the road, most watermelons are spoiled by the time they get there. In some cases, entire truckloads arrive perished.
Transportation costs for border trade through Myawaddy have surged, and cargo trucks are required to pay “taxes” at junta checkpoints along the way. Traders are therefore only importing vital items like building materials, pharmaceuticals, machinery and industrial materials, and exporting food.
Junta boss Min Aung Hlaing met chairpersons of associations under the umbrella of the Union of Myanmar Federation of Chambers of Commerce and Industry on Sunday in Naypyitaw, and said his regime would reopen roads to facilitate trade.
At a separate meeting with leaders of political parties the same day, Min Aung Hlaing admitted that his regime was struggling due to economic sanctions, and a lack of access to foreign loans, adding that his regime relied on export earnings to operate.
