Private entrepreneurs yet to join Bangladesh-Arakan border trade

By Admin 29 May 2026

DMG Newsroom

29 May 2026, Maungdaw

Although border trade between Bangladesh and Arakan State resumed in April, trade activities remain limited and have yet to attract participation from private entrepreneurs, according to border traders.

Bilateral trade between Teknaf in Bangladesh and Kanyin Chaung Jetty in Maungdaw Township, Arakan State, resumed on May 1.

However, border traders said trade operations remain limited to a merchants' association formed by the United League of Arakan (ULA), with little interest so far from private business owners.

“Although trade has resumed, business activities are not yet active. Timber from Arakan State is being exported to Bangladesh, while Bangladesh exports only small amounts of potatoes and onions to Arakan State. There is still no private entrepreneur participation in border trade. Only traders from the merchants’ association are currently involved,” a border trader in Maungdaw said.

According to traders, the timber currently being exported consists of shipments that had been scheduled for export before 2023. Small-scale private trade is reportedly taking place only in Taungpyo Letwe Town and Bandoola Village.

Sources close to the merchants’ association said the Bangladesh government is treating the arrangement as Myanmar-Bangladesh trade and has not officially recognized trade relations with the ULA.

“The trade situation is still unsatisfactory as it remains in an early stage. Efforts are being made to promote trade activities. Bilateral relations will also need to improve further for trade to expand,” another trader in Maungdaw said.

According to figures released by the Myanmar military regime, annual trade between Bangladesh and Arakan State reached nearly US$260 million during the 2022-2023 fiscal year before fighting erupted in Arakan State.

Border trade between Bangladesh and Arakan State was halted after armed conflict intensified in Arakan State and only resumed in May 2026.

Meanwhile, the Saw route in Magway Region, which had been a major trade route into Arakan State, has been disrupted due to ongoing fighting, leaving the route through India’s Mizoram State as the main remaining trade corridor for Arakan State.

Businesspeople are also urging authorities to place greater emphasis on Bangladesh-Arakan trade, citing concerns that transportation delays and difficult travel conditions could worsen during the upcoming rainy season along the India route.

On May 26, the ULA stated that although Bangladesh and Arakan State do not yet have official diplomatic relations, both sides have achieved mutual understanding and cooperation regarding socio-economic, healthcare and humanitarian matters affecting border communities.