New Thai-Burma border trade zone on anvil

Monday, 01 March 2010 22:00 Sai Zuan Sai

Chiang Mai (Mizzima) – A new border trade zone will be opened in Mae Hong Song Province on the Thai-Burma border, according to the Chiang Mai Chamber of Commerce.

It will facilitate the first ever air trade between Thailand and Burma.

"Following a cabinet meeting at the Government House, it has been decided to set up a new border trade zone in Huay Tun Nung, 80 kilometres from the Tax Office," Mr. Narong Khum Prasad Chairman Chiang Mai Chamber of Commerce told Mizzima.

The new border trade zone will facilitate both land route based and air-freight trade between Thailand and Burma. Air Bagan owned by business tycoon Tay Za will be used for air freight.

"This will be the first ever air trade between the two countries and Air Bagan will pitch in. For the land based trade, a new highway from the border to Pyinmana will be built at the end of 2010 for smooth flow of goods," Mr. Narong Khum Prasad added.

The new highway will start from Mae Hong Song and will pass Loikaw, Naypyitaw, Taungyi, Taungoo, Pyi (Prome) and Thantwe (Sandoway).

The objectives of the new trade zone is to open more border trade zones, elimination of illegal border trade routes, stability in border regions, and development of infrastructure and the tourism industry, according to the Myanmar Federation of Chamber and Commerce and Industry (MFCCI).

The new border trade zone is in the area of operations of an ethnic armed group the 'Karenni National Progressive Party' (KNPP).

KNPP Secretary 1 Khu Oo Reh said that similar news relating to opening of a new trade zone had been heard earlier but it never materialized.

"The area is not conducive for a trade route and communication facilities. There are only small traders in the area. It will take a long time to have a big-scale trade zone," he said.

Building and opening of new border trade zones in the areas being controlled by ethnic armed groups mean containing these groups one way or another, he added.

"I think this will contain ethnic armed groups in some ways. If it is not cent per cent true, it must be at least 50 per cent true," Khu Oo Reh said.

Analyst Aung Thu Nyein said the reason Thai authorities have taken the decision of the trade zone could be for the promotion of trade in Mae Hongsong as it is a landlocked region.

Most goods such as textiles, footwear, coffeemakers are being exported to Burma through illegal trade routes as contraband so exact export-import statistics are not available, the Chiang Mai Chamber of Commerce Chairman said.

But the trade value through the new border trade zone may touch Baht 10 billion, he estimated.