Chiang Mai (Mizzima) – In a bid to give a leg up to border trade, Thailand’s Ministry of Commerce will be developing a logistics system at main border checkpoints, particularly in the Mae Sot border with Myawaddy in Burma.
Alongkorn Polbut, Thailand’s Deputy Minister of Commerce visited Mae Sot and Myawaddy on July 31 and August 1 in support of Thai border business ventures.
Alongkorn said in a conference in Mae Sot that the Ministry will develop a “Logistics Hubs Project”. It will help in ASEAN economic cooperation and may include a free trade area agreement in the future. “Last year, border trade between Thailand and Burma was high at about 156,000 million baht [4,727 million US$]. It is expected to be 10 per cent higher this year,” he added.
“The government will develop a route from Vietnam, Lao, and Thailand to Burma’s Myawaddy and Moulmein. In addition, the ministry will propose to the Thai cabinet to approve Tak Province as a special border economic zone. This will include Mae Sot, Mae Ramad and Pob Phra districts (border with Karen State),” the minister said, according to a report by the Thai National News Bureau website.
The economic zone in Tak Province project was started three years ago with the objective of boosting trade and checking the problem of illegal migrant workers by providing more job opportunities near the border. This was expected to stop workers migrating to big cities such as Bangkok or nearby provinces.
The project will have the support of the law that will allow business ventures to hire workers from Burma on special conditions such as lower registration fees or lower tax rate.
Komsan Ekkachai, Tak Governor said trading in Mae Sot this year is about 17,000 million baht [515 million US$] and it is expected to touch 20,000 million baht [606 million US$] in 2010.
On Wednesday, a businessman in northern Thailand urged the government in a conference in Ranong, border with Kawthoung in Burma to spell out the budget for linking routes between South Asia and Southeast Asia and China.
Bunika Jamsai, Director of South Asia Sector, Department of Trade Negotiation, Ministry of Commerce said given the prevalent economic crisis, Thai business should change its target from the US and Japan to India and China, which has registered rapid economic growth. The location is also closer which will help transportation.
“Currently, Thailand and India has a free trade agreement for 82 products and tax tariff has decreased from 40 per cent to 0 per cent. In addition, transportation from Ranong to India takes only four days,” she said.
However, the political situation in Burma has affected border trade. Recently, Burmese authorities imposed restrictions in major border checkpoints both in Kawthoung and Myawaddy apprehending trouble from anti-government groups following the postponement of the verdict in Daw Ang San Suu Kyi’s trial to August 11.
