Myanmar Border Closure Cripples Thai Exports Worth Billions
The Myawaddy-Mae Sot border gate has been shut to all heavy vehicles and large goods, as Myanmar’s military government attempts to redirect trade revenue away from ethnic armed groups
- Myanmar authorities abruptly closed the Second Thai-Myanmar Friendship Bridge, the primary route for large goods, in an effort to seize control of trade revenues from ethnic armed groups.
- The closure has crippled Thai exports, causing their value to plummet from nearly 50 billion baht per quarter to just over 10 billion baht and threatening trade worth an estimated 130 billion baht.
- The crisis for Thai businesses is compounded by new, stricter inspection rules from Thai authorities, which are expected to create further delays and potentially paralyze the entire border trade system.
Exporters and businesses along the Thai-Myanmar border are facing a severe crisis after Myanmar authorities suddenly closed the Second Thai-Myanmar Friendship Bridge.
The closure, reportedly ordered to seize control of trade revenues, has brought the flow of large goods to a halt and is threatening trade worth an estimated 130 billion baht.
On 18 August 2025, officials in Myawaddy, Kayin State, opposite Thailand's Mae Sot district, unexpectedly shut the border crossing to all large vehicles and commercial goods.
The move came without any prior warning to Thai authorities, including customs officials in Mae Sot.
According to reports, the order originated from the capital, Naypyidaw, as part of a crackdown aimed at redirecting border trade profits to the central government.
For years, a significant portion of this revenue has benefited various ethnic armed groups, including the Border Guard Force (BGF), the dominant military force in the area.
Myanmar's government is now seeking to re-establish control and increase its own income.
While the main trade bridge remains closed, the First Thai-Myanmar Friendship Bridge is still operating for pedestrians and small-scale local trade.
However, the Second Bridge is the primary route for large-scale imports and exports, and its closure has caused significant disruption for shipping companies, hauliers, and merchants.
In response to the crisis, the Tak Chamber of Commerce held an emergency meeting on Monday to discuss the impact of the closure. The meeting proposed that Thailand's Ministry of Commerce urgently negotiate with the Myanmar government to find a solution.
The situation is further complicated by new, stricter measures from Thai authorities. From 20 August, the Governor of Tak province has mandated that exporters provide two days' advance notice for all goods, which will then be inspected by military, administrative, and customs officials.
Business owners fear this will create further delays and potential damage to goods, raising concerns that the entire border trade system could be "paralysed."
Official data from Mae Sot Customs reveals the severity of the export slump. The value of Thai exports to Myanmar via this channel has plummeted from nearly 50 billion baht per quarter to just over 10 billion baht.
Recent figures show the volatile nature of the border economy. For the 2025 fiscal year (1 October 2024 to 31 July 2025), total trade value reached 138.6 billion baht, a 78.94 per cent increase from the previous year.
However, this growth was driven by a staggering 142.34 percent rise in imports, primarily antimony ore. Over the same period, the value of exports actually fell by 21.34 percent.
Top exports from Thailand include mobile phones and accessories, motorcycles, and palm oil, while imports from Myanmar are dominated by antimony ore, followed by dry and fresh chilies.
Data from Mae Sot Customs also highlights the challenge of unofficial trade, with 68.71 per cent of imports and 61.85 per cent of exports conducted through "unapproved channels" during the current fiscal year.
The ongoing closures are expected to further disrupt these unofficial trade routes, impacting local economies on both sides of the border.
