Challenges in Cross-Border Trade Between Myanmar and Thailand: A Case Study of Myawaddy Border Trade Zone

Abstract

This study investigates the challenges in cross-border trade between Myanmar and Thailand, focusing on the Myawaddy Border Trade Zone. It aims to identify and study in detail the present challenges to cross-border trade in the Myawaddy Border Trade Zone and to explore feasible solutions. Using a qualitative research approach, data was collected through semi-structured interviews and analysed using a thematic analysis method. A total of six traders and two government representatives were selected to provide diverse perspectives on the challenges faced in the Myawaddy Border Trade Zone. The findings reveal four main issues: transportation difficulties, fluctuations in exchange rates, changes in export policy, and border instability and security challenges. To address transportation issues, traders have started using alternative routes and maritime options. To address exchange rate fluctuations, traders suggest implementing advanced payment methods and adopting bilateral currency usage. To address changes in export policy, traders suggest delaying policy implementation until the end of the 2024-2025 fiscal year. To address border instability and security concerns, traders have opted for war risk insurance and collaborated with local authorities. The study recommends that the Ministry of Commerce maintain consistent trade policies, stable export and import regulations, and enhance trade facilitation. The Central Bank of Myanmar should focus on stabilizing exchange rates and addressing inflation. Traders should adopt advanced payment systems, expand supply chains, and collaborate with local authorities.