Cash-strapped regime loses millions of dollars in unrealised border trade revenues

By Admin 18 Dec 2023

DMG Newsroom
18 December 2023, Sittwe

Ninety-one percent of Myanmar’s border trade with China has halted following Operation 1027 by the Brotherhood Alliance, and Myanmar has lost US$445.5 million in unrealized trade revenues, according to the Institute for Strategy and Policy-Myanmar (ISP-Myanmar).

From October 27 to December 15, Myanmar lost US$336.5 million and US$79 million in unrealized trade revenues through the Muse and Chin Shwe Haw border zones respectively. The loss was nearly US$9 million daily, according to the report.

The regime is taking steps to switch to maritime trade as border trade routes with China are no longer viable. But it is too costly to export Myanmar’s perishable agricultural products by sea, and the average transportation costs can be three times higher, ISP-Myanmar said.

Political analyst U Than Soe Naing said: “This will cut the junta’s foreign currency revenues. On the other hand, Myanmar can’t make exports, and has to rely on exports to make vital imports. People will suffer more serious shortages of goods.”

Meanwhile, the Arakan Army (AA) has been attempting to take control of the Maungdaw border crossing, which is crucial for Myanmar’s border trade with Bangladesh. The regime has been only using Sittwe to make border exports since September.

The Myanmar-Bangladesh border trade has been halted since fighting broke out on November 13. Traders are suffering as a result.

A border trader who did not want to be named said: “The bilateral border trade has been halted since the renewed fighting. We can’t trade because of the road blockade. This has resulted in breach of trust and agreement. So, both traders and labourers have suffered.”

Meanwhile, Myanmar’s border trade with Thailand has been halted as cargo trucks are trapped along the Asian Highway amid fighting in Kayin State’s Kawkareik Township between junta troops and Karen National Liberation Army-led resistance forces since November 30.

The Brotherhood Alliance has seized control of the Chin Shwe Haw and Muse border zones since Operation 1027 was launched on October 27, and Chin revolutionary organisations have also seized control of Rih Kaw Dar town in Chin State, which is on the Myanmar-India border trade route.