Arakan-Bangladesh border trade at standstill

By Admin 12 Jul 2025

DMG Newsroom

12 July 2025, Maungdaw

Traders and local authorities say that almost all trade activities between Arakan State and Bangladesh have come to a standstill as Bangladeshi authorities have imposed restrictions on border trade gates between Arakan State and Bangladesh.

Since early July, Bangladeshi authorities have tightened security at border trade gates, seized goods imported from Arakan State, and banned goods exported to Arakan State, bringing trade to a standstill.

"Bangladesh has been tightening border trade restrictions. The Kanyin Chaung economic zone has not yet reopened, Bangladesh has increased security and is intercepting goods destined for Arakan State, and exports from Arakan State to Bangladesh are also not allowed," said a source close to the Arakan Army (AA), which controls the Myanmar side of the border gates with Bangladesh.

Although trade between AA-controlled Arakan State and Bangladesh is not official, trade activities between traders from both sides have begun since the end of 2024.

Through a jetty at the Kanyin Chaung economic zone, goods such as rice, betel nuts, dried fish, crabs, and timber are exported from Arakan State to Bangladesh, and basic consumer goods are imported from Bangladesh to Arakan State.

However, trade through the Kanyin Chaung economic zone has been suspended since April, with trade operations conducted from Taungpyo town, Bandoola Village and other locations.

Traders say that trade activities through Taungpyo and Bandoola Village have now also stopped, with no goods entering or leaving the Maungdaw border.

"Bangladesh has been increasing security along the border for a long time. These days, trade between Arakan State and Bangladesh has completely collapsed. The trade between Arakan State and Bangladesh has been suspended due to bad weather, and it is said that the trade is not even 5 percent. The import and export of goods between Arakan State and Bangladesh has almost completely stopped," said a local merchant in Maungdaw.

The exact reason for the halt in trade between Arakan State and Bangladesh is not known, but political analysts believe it may depend on the relationship between the AA and the Bangladesh government.

Since the start of the latest fighting, the military regime has blocked trade routes to Arakan State, leading to trade with Bangladesh and India.

But as trade between Arakan State and Bangladesh has been halted and the trade route with India is also experiencing difficulties transporting goods during the rainy season, local product shortages and rising prices have locals concerned.