The Burmese military junta authorities have postponed the construction of a trade zone in Taungbro Sub-town on the western border with Bangladesh following tension escalating between the two countries over maritime boundary.
"We stopped our work on the trade zone after the higher authorities instructed us to postpone the construction on the trade zone," an official from Taungbro said.
Burma was constructing a trade zone in Taungbro in order to promote border trade with Bangladesh after Senior General Maung Aye's visit to Bangladesh last month.
Many senior officials, including Commerce Minister Tin Naing Thein, visited the area recently to inspect the site of the proposed trade zone and invited companies in Maungdaw to invest in business to promote trade with Bangladesh.
Taungbro is a recently constructed sub-town on the western border meant to serve as a trade point with Bangladesh. The town is also the point at which the Bangladesh-Burma friendship road enters Burma.
The town will be connected with the Bangladesh town Khong Don by the friendship bridge that will be constructed on the upper Naff River.
After the Burmese military authorities postponed the construction of the trade zone, it is now uncertain whether other projects like the friendship road and the hydropower projects agreed to by Bangladesh will be implemented in the near future.
"I do not know if the Burmese military authorities will carry out some of the agreements with Bangladesh in the near future, now that one project has been postponed by authorities because of tensions between the two countries is high, "the official said.