Regional Trade Agreements and Cross- Border Trade in the Greater Mekong Sub-region

1
Choen KrainaraChoen Krainara 11
A Guest LectureA Guest Lecture
onon
Trade Agreements andTrade Agreements and CrossCross--Border TradeBorder Trade
in the Greater Mekong Subin the Greater Mekong Sub--regionregion
atat
Regional Economic Integration and the People in theRegional Economic Integration and the People in the
Greater Mekong SubGreater Mekong Sub--region Interregion Inter--Semester Course,Semester Course,
SERD, AITSERD, AIT
byby
Choen Krainara,Choen Krainara, PhD CandidatePhD Candidate
Regional and Rural Development Planning Field of StudyRegional and Rural Development Planning Field of Study
SERD, AITSERD, AIT
2 July 20092 July 2009
ContentsContents
Consist of 2 major partsConsist of 2 major parts
1.Trade agreements in the GMS1.Trade agreements in the GMS
2.Cross2.Cross--border trade in the GMSborder trade in the GMS

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1.Trade agreements in the GMS1.Trade agreements in the GMS
1.1 Regional (Macro) trade agreements e.g. AFTA1.1 Regional (Macro) trade agreements e.g. AFTA
1.2 Subregional (Micro) trade agreements e.g1.2 Subregional (Micro) trade agreements e.g
AyeyawadyAyeyawady -- Chao PhrayaChao Phraya -- Mekong EconomicMekong Economic
Cooperation Strategy (ACMECS)Cooperation Strategy (ACMECS)
1.1 Regional (Macro) trade agreements1.1 Regional (Macro) trade agreements
1) ASEAN Free Trade Area (AFTA)1) ASEAN Free Trade Area (AFTA)
The old six member countries of ASEAN compriseThe old six member countries of ASEAN comprise
Brunei, Indonesia, Malaysia, the Philippines, SingaporeBrunei, Indonesia, Malaysia, the Philippines, Singapore
and Thailandand Thailand, while the new members, while the new members’’ countries arecountries are
Vietnam, Laos PDR, Myanmar and CambodiaVietnam, Laos PDR, Myanmar and Cambodia..
The old member countries will reduce import duties ofThe old member countries will reduce import duties of
Inclusion List (IL)Inclusion List (IL) within the Common Effectivewithin the Common Effective
Preferential Tariff Scheme (CEPT) to 0Preferential Tariff Scheme (CEPT) to 0--5 % within 20035 % within 2003
andand to become zero (0) % within 2010to become zero (0) % within 2010..
Whereas the newer member countriesWhereas the newer member countries will lower importwill lower import
duties of IL within CEPT to 0duties of IL within CEPT to 0--5% in 2006 for Vietnam;5% in 2006 for Vietnam;
Laos PDR and Myanmar in 2008; Cambodia in 2010Laos PDR and Myanmar in 2008; Cambodia in 2010 andand
all four countries to become zero (0)% in 2015.all four countries to become zero (0)% in 2015.

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The list of commodities under CEPT covers 105,123The list of commodities under CEPT covers 105,123
items, (ASEAN Secretariat, 2008).items, (ASEAN Secretariat, 2008).
Export commodities must totally be used local contents.Export commodities must totally be used local contents.
In any case, it do not wholly obtain local contentIn any case, it do not wholly obtain local content
materials from an ASEAN member country;materials from an ASEAN member country; a minimuma minimum
of 40% of local content of F.O.B prices will be acceptedof 40% of local content of F.O.B prices will be accepted
as ASEAN product origin.as ASEAN product origin.
In addition, it can also be calculated cumulative rules ofIn addition, it can also be calculated cumulative rules of
origin within ASEAN with required minimum oforigin within ASEAN with required minimum of
combined local content at 20 %.combined local content at 20 %.
It is also compulsory among member countries toIt is also compulsory among member countries to
concurrentlyconcurrently phase out nonphase out non--tariff barrierstariff barriers so that it canso that it can
help advance towardshelp advance towards ASEAN Economic CommunityASEAN Economic Community
(AEC) within 2015(AEC) within 2015..
2) ASEAN Integration System of Preferences (AISP)2) ASEAN Integration System of Preferences (AISP)
It is a measure to grant special treatment from old sixIt is a measure to grant special treatment from old six
countries of ASEAN to new members comprisingcountries of ASEAN to new members comprising
Cambodia, Laos PDR, Myanmar and VietnamCambodia, Laos PDR, Myanmar and Vietnam underunder
Initiative for ASEAN Integration: IAI which is bilaterallyInitiative for ASEAN Integration: IAI which is bilaterally
given One Way Free Trade basis of import without priorgiven One Way Free Trade basis of import without prior
negotiation,negotiation,
Its main objectives wereIts main objectives were to promote and expand trade andto promote and expand trade and
investments within intrainvestments within intra--ASEAN region, as well asASEAN region, as well as
reducing development gaps between old and newreducing development gaps between old and new
ASEAN member countries.ASEAN member countries.
Key commodities were agricultural produces, textiles,Key commodities were agricultural produces, textiles,
wood products, aquatic products, leathers and somewood products, aquatic products, leathers and some
intermediate goods.intermediate goods.

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638503003402005
341601873092004
197227492003
197226482002
VietnamMyanmarLao PDRCambodia
Cumulative Numbers of Commodity that Thailand granted
AISP treatment
Year
Cumulative Numbers of Commodity that Thailand Granted AISPCumulative Numbers of Commodity that Thailand Granted AISP
Treatment to CLMV CountriesTreatment to CLMV Countries
Unit: CommodityUnit: Commodity
3) ASEAN3) ASEAN--China Free Trade AgreementChina Free Trade Agreement
Agreement on Trade in Goods of the FrameworkAgreement on Trade in Goods of the Framework
Agreement on Comprehensive Economic CooperationAgreement on Comprehensive Economic Cooperation
between the ASEAN and China has been signed onbetween the ASEAN and China has been signed on
29 November 2004, leading to gradual trade29 November 2004, leading to gradual trade
liberalization of both parties for two major categories.liberalization of both parties for two major categories.
1) The Early Harvest Program1) The Early Harvest Program consisted of agriculturalconsisted of agricultural
products within the customs Harmonized Standardproducts within the customs Harmonized Standard
numbers 01numbers 01--08 comprising livestock, meat and other08 comprising livestock, meat and other
edible parts of animal, fish, dairy products, eggs ofedible parts of animal, fish, dairy products, eggs of
chicken and duck, animal products, trees, vegetables andchicken and duck, animal products, trees, vegetables and
fruits and edible nuts, including specific products whichfruits and edible nuts, including specific products which
were effective only on bilateral basis.were effective only on bilateral basis.

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China and old ASEAN member countries startedChina and old ASEAN member countries started
reducing import tariffs on 1 January 2004, and werereducing import tariffs on 1 January 2004, and were
lowered to zero (0) % by 1 January 2006.lowered to zero (0) % by 1 January 2006.
The rest of newer ASEAN member countries wereThe rest of newer ASEAN member countries were
given flexible treatment on tariff lines and time framegiven flexible treatment on tariff lines and time frame
for tariffs reduction,for tariffs reduction, but there must bebut there must be zero (0) % byzero (0) % by
20102010.. It was conditionally reduced tariffs only withinIt was conditionally reduced tariffs only within
import quotas particularly on onion and garlicimport quotas particularly on onion and garlic..
Furthermore, Thailand and China bilaterallyFurthermore, Thailand and China bilaterally
accelerated tariff elimination for the Early Harvestaccelerated tariff elimination for the Early Harvest
Program of the customs Harmonized StandardProgram of the customs Harmonized Standard
number 07number 07--08 consisting of vegetables and fruits08 consisting of vegetables and fruits toto
become zero (0) % by 1 October 2003.become zero (0) % by 1 October 2003.
Tariff Reduction for GeneralTariff Reduction for General
Commodities ProgramCommodities Program
Normal TrackNormal Track
Tariff rate of all commodities will be reduced to zero (0) % byTariff rate of all commodities will be reduced to zero (0) % by 1 January 2010 (5 years).1 January 2010 (5 years).
There are 150 commodities to be granted flexibility to reduce tThere are 150 commodities to be granted flexibility to reduce tariff at zero (0) % until 2012ariff at zero (0) % until 2012
Sensitive TrackSensitive Track
It was agreed that there will be reduced tariff to be 20 % byIt was agreed that there will be reduced tariff to be 20 % by
2012, and will be final tariff at 02012, and will be final tariff at 0--5 % in 2018.5 % in 2018.
Rules of origin are applied bothRules of origin are applied both
wholly obtained and minimumwholly obtained and minimum
40% local contents40% local contents

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4) Bay of Bengal Initiative for Multi4) Bay of Bengal Initiative for Multi--SectoralSectoral
Technical and Economic CooperationTechnical and Economic Cooperation
(BIMSTEC)(BIMSTEC)
BIMSTECBIMSTEC consisted of seven countries namelyconsisted of seven countries namely
India, Sri Lanka, Thailand, Bangladesh, Bhutan,India, Sri Lanka, Thailand, Bangladesh, Bhutan,
Myanmar and Nepal.Myanmar and Nepal.
It has combined populations ofIt has combined populations of 1,300 millions or1,300 millions or
21 % of world populations21 % of world populations, but currently there are, but currently there are
limited trade transaction and values amonglimited trade transaction and values among
member countries.member countries.
BIMSTEC is sort of southBIMSTEC is sort of south--south cooperation; itsouth cooperation; it
is also a convergence of foreign policies betweenis also a convergence of foreign policies between
““Look WestLook West”” of Thailand andof Thailand and ““Look EastLook East”” ofof
IndiaIndia
Member countries have signed agreement on BIMSTECMember countries have signed agreement on BIMSTEC
Free Trade Area on 8 January 2004, and became effectiveFree Trade Area on 8 January 2004, and became effective
by 1 July 2006.by 1 July 2006.
Its principal objectives were to stimulate trade andIts principal objectives were to stimulate trade and
investments within intrainvestments within intra--BIMSTEC as well as attractingBIMSTEC as well as attracting
foreign investment into BIMSTEC Free Trade Area.foreign investment into BIMSTEC Free Trade Area.

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Time Frame for Import Trade Tariff ReductionsTime Frame for Import Trade Tariff Reductions
Normal Track Group
1 July 2007-1 July 20151 July 2007-30 June 2017Bangladesh, Bhutan,
Myanmar and Nepal
1 July 2007-30 June 20101 July 2007-30 June 2012India, Sri Lanka, and
Thailand
Time frame for LDC
party
Time frame for developing
countries
Countries
Fast Track Group
1 July 2006-30 June 20091 July 2006-30 June 2011Bangladesh, Bhutan,
Myanmar and Nepal
1 July 2006-30 June 20071 July 2006-30 June 2009India, Sri Lanka, and
Thailand
Time frame for LDC
party
Time frame for
developing country
parties
Countries
1.2 Subregional (Micro) trade agreements1.2 Subregional (Micro) trade agreements
1) Ayeyawady1) Ayeyawady -- Chao PhrayaChao Phraya -- Mekong Economic CooperationMekong Economic Cooperation
Strategy (ACMECS) in short called ECSStrategy (ACMECS) in short called ECS
It is a four nations economic cooperation strategy initiated inIt is a four nations economic cooperation strategy initiated in 20032003
consisting of Cambodia, Lao PDR, Myanmar and Thailandconsisting of Cambodia, Lao PDR, Myanmar and Thailand
Aims to reduce trade barriers, improve transport linkages andAims to reduce trade barriers, improve transport linkages and
upgrade border checkpoints.upgrade border checkpoints.
Distinct initiatives are Contract Farming by granting One Way FrDistinct initiatives are Contract Farming by granting One Way Freeee
Trade forTrade for 11 agricultural produces11 agricultural produces and sister cities programs.and sister cities programs.
In 2008, Thailand planned to import these produces at 1.2 millioIn 2008, Thailand planned to import these produces at 1.2 millionn
tons from Cambodia, 0.5 million ton from Lao PDR, and 0.2 milliotons from Cambodia, 0.5 million ton from Lao PDR, and 0.2 millionn
ton from Myanmar.ton from Myanmar.
These produces will be used as industrial raw materials and sourThese produces will be used as industrial raw materials and sourcesces
of energy substitution.of energy substitution.
The trend is robust.The trend is robust.

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2) Trade2) Trade--Relevant CooperationRelevant Cooperation
•• Greater Mekong SubGreater Mekong Sub--region Economicregion Economic
Cooperation ProgramCooperation Program
Promoting and facilitating intraPromoting and facilitating intra--GMS and extraGMS and extra--GMSGMS
trade particularly on agricultural trade, investment andtrade particularly on agricultural trade, investment and
tourism are keys to foster economic growth as well astourism are keys to foster economic growth as well as
helping alleviate poverty in the GMS.helping alleviate poverty in the GMS.
Priority is given to the main economic corridors.Priority is given to the main economic corridors.
This can be done through customs modernization,This can be done through customs modernization,
investment promotion and facilitation of crossinvestment promotion and facilitation of cross--borderborder
trade as well as mobility of tourists and business peoples.trade as well as mobility of tourists and business peoples.
CrossCross--Border Transport Agreement (CBTA) with total 20Border Transport Agreement (CBTA) with total 20
annexes was set up in 2003 aiming to deals with speedyannexes was set up in 2003 aiming to deals with speedy
facilitation of customs and immigration procedures at thefacilitation of customs and immigration procedures at the
borderborder--crossing points thus resulting in increase tradecrossing points thus resulting in increase trade
flows both intraflows both intra--GMS and extraGMS and extra--GMS.GMS.
Full implementation of this agreement and itsFull implementation of this agreement and its
annexes and protocols is expected to complete byannexes and protocols is expected to complete by
2009, but in fact it will face a delay.2009, but in fact it will face a delay.
The pilot border crossings are Lao BaoThe pilot border crossings are Lao Bao--
Dansavanh, PoipetDansavanh, Poipet--Aranyaprathet, MukdahanAranyaprathet, Mukdahan--
Savnnakhet, BavetSavnnakhet, Bavet--Mocbai, MaesodMocbai, Maesod--Myawaddy,Myawaddy,
MaesaiMaesai--Tachilek, and HekouTachilek, and Hekou--Lao Cai,Lao Cai,
(Tsuneishi, 2008).(Tsuneishi, 2008).

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Map Displaying GMS Corridors NetworkMap Displaying GMS Corridors Network
2. Cross2. Cross--border trade in the GMSborder trade in the GMS
2.1 Overall2.1 Overall CrossCross--border trade in the GMSborder trade in the GMS
2.2 Bilateral2.2 Bilateral CrossCross--border trade in the GMSborder trade in the GMS

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2.1 Overall Cross2.1 Overall Cross--border trade in the GMSborder trade in the GMS
•• The GMS market comprises of 1,594 million populationsThe GMS market comprises of 1,594 million populations
•• In 2008, IntraIn 2008, Intra--ASEAN trade was at 453,700 Million USD or 26.7ASEAN trade was at 453,700 Million USD or 26.7
% of total trade (ASEAN Secretariat)% of total trade (ASEAN Secretariat)
•• trend of crosstrend of cross--border trade in GMS is increasing.border trade in GMS is increasing.
•• There is an asymmetry of crossThere is an asymmetry of cross--borer trade balance.borer trade balance.
•• Larger countries e.g. Thailand, China and Vietnam tend to gainLarger countries e.g. Thailand, China and Vietnam tend to gain
greatly favorable trade balance leaving significant trade gaps tgreatly favorable trade balance leaving significant trade gaps too
other GMS partner countries.other GMS partner countries.
•• Agricultural trade originating from Lao PDR, Cambodia andAgricultural trade originating from Lao PDR, Cambodia and
Myanmar in particular plays heavily important role in theirMyanmar in particular plays heavily important role in their
economies.economies.
•• These countries export approximately 50These countries export approximately 50--60 % of agricultural60 % of agricultural
products to other GMS countries..products to other GMS countries..
•• There is increasing degree of regionalThere is increasing degree of regional
integration through agricultural trade.integration through agricultural trade.
•• For welfare impact, the general experienceFor welfare impact, the general experience
across all countries seems very positive,across all countries seems very positive,
although some countries or borderalthough some countries or border
communities have clearly benefited muchcommunities have clearly benefited much
more than others.more than others.
•• So crossSo cross--border trade can significantlyborder trade can significantly
contribute to poverty reduction in the GMS.contribute to poverty reduction in the GMS.

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There are 2 types of crossThere are 2 types of cross--border tradeborder trade
•• Informal flowsInformal flows:: The informal sector has strongThe informal sector has strong
implications for antiimplications for anti--poverty policy andpoverty policy and
distribution of gains from trade, mainly in Laodistribution of gains from trade, mainly in Lao
and Cambodian borders.and Cambodian borders.
•• Informal trade accounted for 20Informal trade accounted for 20--30 % of total30 % of total
border trade.border trade.
•• Formal flows:Formal flows: Formal trading channel accountFormal trading channel account
for the bulk of crossfor the bulk of cross--border trade, consisting ofborder trade, consisting of
some 70some 70--80 % of the total volume of trade80 % of the total volume of trade

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1) Lao PDR1) Lao PDR andand ChinaChina
Two Northern provinces of Lao connect with ChinaTwo Northern provinces of Lao connect with China
Oudomxay provinceOudomxay province: Export destinations include China,: Export destinations include China,
Thailand and Vietnam.Thailand and Vietnam.
--97 % of import is from China.97 % of import is from China.
-- 60 % of the imports60 % of the imports--construction materials, machinery andconstruction materials, machinery and
household goodshousehold goods--are for local consumption.are for local consumption.
--There has been a change of pattern of exports fromThere has been a change of pattern of exports from
timber to agricultural products.timber to agricultural products.
--Lao has established Boten Border Trade Zone at LaoLao has established Boten Border Trade Zone at Lao--
Chinese border at Boten village to Nateui junction.Chinese border at Boten village to Nateui junction.
Luang Namtha provinceLuang Namtha province::
•• Between 2001 and 2005,Between 2001 and 2005, exportexport grew at an average of 28 %grew at an average of 28 %
and import by 8 %.and import by 8 %.
•• The major exports are 43 %The major exports are 43 % mineralsminerals,, 30 % agricultural30 % agricultural
producesproduces, including livestock and 13 % non timber forest, including livestock and 13 % non timber forest
products (NTFPs).products (NTFPs).
•• 90 % of agricultural products exported to China and 80 % of90 % of agricultural products exported to China and 80 % of
minerals and NTFPs are exported to Thailandminerals and NTFPs are exported to Thailand..
•• Major imports are clothes and consumer goods from, vehiclesMajor imports are clothes and consumer goods from, vehicles
and spare parts, agricultural tools and food both from Chinaand spare parts, agricultural tools and food both from China
and Thailand.and Thailand.
•• The province also encourages rapid growth of transit trade.The province also encourages rapid growth of transit trade.
The trend of crossThe trend of cross--border trade is increasing.border trade is increasing.

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2) China and Vietnam2) China and Vietnam
Moung Caui Gate in Quaung Ninh province of VietnamMoung Caui Gate in Quaung Ninh province of Vietnam
and Dongxing town of Guangxi province of China areand Dongxing town of Guangxi province of China are
the most important crossthe most important cross--border gateways.border gateways.
CrossCross--border trade is now gradually being put in orderborder trade is now gradually being put in order
e.g. payment mechanism at the branches of the twoe.g. payment mechanism at the branches of the two
countriescountries’’s banks in the border area.s banks in the border area.
YunnanYunnan’’s key exports ares key exports are electroelectro--mechanical products,mechanical products,
telecommunications equipment and chemicals.telecommunications equipment and chemicals.
WhileWhile Vietnam mainly exportsVietnam mainly exports agroagro--forestryforestry--aquaticaquatic
products and minerals.products and minerals.
Vietnam has established Moc Cai border economicVietnam has established Moc Cai border economic
zone linking with China and has planned to add morezone linking with China and has planned to add more
27 border economic zones in 17 provinces across the27 border economic zones in 17 provinces across the
country.country.
3) Lao PDR and Vietnam3) Lao PDR and Vietnam
Both countries have agreed to promote trade inBoth countries have agreed to promote trade in
their border areas in order to contribute to meettheir border areas in order to contribute to meet
their target of 1 billion USD in twotheir target of 1 billion USD in two--way tradeway trade
turnover y 2010.turnover y 2010.
The key measures to reach this goal are toThe key measures to reach this goal are to
remove obstacle to policies, simplify commercialremove obstacle to policies, simplify commercial
procedures at border gates, improve infrastructureprocedures at border gates, improve infrastructure
at border areas, and facilitate crossat border areas, and facilitate cross--border tradeborder trade
and activities.and activities.

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4) Cambodia and Lao PDR4) Cambodia and Lao PDR
There is unavailable of crossThere is unavailable of cross--border tradeborder trade
data/information of both countriesdata/information of both countries
(particularly via the internet).(particularly via the internet).
5) Lao PDR and Myanmar5) Lao PDR and Myanmar
Luang Namtha province links with Myanmar.Luang Namtha province links with Myanmar.
Siengkok border checkpoint acts as a majorSiengkok border checkpoint acts as a major
channel for transit trade with Thailand.channel for transit trade with Thailand.
There is unavailable of data on crossThere is unavailable of data on cross--border tradeborder trade
between these two countries.between these two countries.

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6) Cambodia and Vietnam6) Cambodia and Vietnam
Trade between Cambodia and Vietnam reached 1.7 billion USD in thTrade between Cambodia and Vietnam reached 1.7 billion USD in the firste first
eight months of 2008.eight months of 2008.
To ease the burden of crossTo ease the burden of cross--border trade both countries have signed a newborder trade both countries have signed a new
trade facilitation agreement.trade facilitation agreement.
CambodiaCambodia exported about 250 million USD in goodsexported about 250 million USD in goods to Vietnam in 2007to Vietnam in 2007
equal to 30 % of total exports.equal to 30 % of total exports. TheThe main exports were cashews, rice andmain exports were cashews, rice and
tobacco.tobacco.
Cambodia importedCambodia imported construction materials and agricultural productsconstruction materials and agricultural products fromfrom
Vietnam.Vietnam. The two countries aim to increase twoThe two countries aim to increase two--way trade turnover by 27 %way trade turnover by 27 %
every year to reach 2.3 billion USD in 2010 and 6.5 billion in 2every year to reach 2.3 billion USD in 2010 and 6.5 billion in 2015.015.
Vietnamese authorities recently allowed Cambodians duty free accVietnamese authorities recently allowed Cambodians duty free access to 40ess to 40
types of agricultural products.types of agricultural products.
The two governments have also arranged to create seven special eThe two governments have also arranged to create seven special economicconomic
zones along the border and about 20 border crossings in order tozones along the border and about 20 border crossings in order to facilitatefacilitate
trade between these two countries.trade between these two countries.
7) Myanmar and China7) Myanmar and China
China is an important but unbalanced trading partner.China is an important but unbalanced trading partner.
Border trade with China is the main artery of the Myanmar economBorder trade with China is the main artery of the Myanmar economy.y.
There are 3 key border checkpoints namely Muse, Lwejel and LaizaThere are 3 key border checkpoints namely Muse, Lwejel and Laiza connect withconnect with
Kunming.Kunming.
After opening up of border trade inAfter opening up of border trade in 19981998, China provided the main source of, China provided the main source of
supply, and Chinese products e.g.supply, and Chinese products e.g. textiles (mostly yarn and fabricstextiles (mostly yarn and fabrics) poured into) poured into
emerging consumeremerging consumer--goods markets in Myanmar. In addition, it included roadgoods markets in Myanmar. In addition, it included road
vehicles, power generators, electrical machinery and apparatus avehicles, power generators, electrical machinery and apparatus and manufacturesnd manufactures
of metal.of metal.
Myanmar exportsMyanmar exports cork of wood, vegetables and fruit, metaliferous ores and metalcork of wood, vegetables and fruit, metaliferous ores and metal
scrap, crude fertilizers and crude materials, nonscrap, crude fertilizers and crude materials, non--metallic mineral manufacturesmetallic mineral manufactures,,
fishes, crude animal and vegetable materials, oil seeds, crude rfishes, crude animal and vegetable materials, oil seeds, crude rubber, cork andubber, cork and
wood manufactures.wood manufactures.
Border trade made up about 50 % of China exports to Myanmar andBorder trade made up about 50 % of China exports to Myanmar and about 70 %about 70 %
of its imports from Myanmar during 2000of its imports from Myanmar during 2000--2007. Yunnan2007. Yunnan’’s province share ofs province share of
Myanmar total border trade was 73 % in FY year 2003/2004.Myanmar total border trade was 73 % in FY year 2003/2004.
The crossThe cross--border trade trend is rather fluctuating.border trade trend is rather fluctuating.

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Thailand and Neighbouring CountriesThailand and Neighbouring Countries
8) Thailand and Cambodia8) Thailand and Cambodia
9)Thailand and Yunnan province of Southern9)Thailand and Yunnan province of Southern
ChinaChina
10) Thailand and Lao PDR10) Thailand and Lao PDR
11) Thailand and Myanmar11) Thailand and Myanmar
CrossCross--Border Trade and Commerce RelationsBorder Trade and Commerce Relations
Between Thailand and Neighbouring CountriesBetween Thailand and Neighbouring Countries
•• CrossCross--border trade is one of the key indicators of closerborder trade is one of the key indicators of closer
interdependence between Thailand and neighbouringinterdependence between Thailand and neighbouring
countries.countries.
•• In 1988, Thailand has proclaimed a policy of turningIn 1988, Thailand has proclaimed a policy of turning
““Indochina battlefields into a marketplaceIndochina battlefields into a marketplace””..
•• This, coupled with the GMS Regional EconomicThis, coupled with the GMS Regional Economic
Integration Program has further pushed Thailand toIntegration Program has further pushed Thailand to
deepen economic relationships with neighbouringdeepen economic relationships with neighbouring
countries.countries.

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Map Displaying Geographical Distribution of All Types of Key BorMap Displaying Geographical Distribution of All Types of Key Borderder
Checkpoints in Thailand Physically Connecting with NeighbouringCheckpoints in Thailand Physically Connecting with Neighbouring CountriesCountries
Overall Assessment of CrossOverall Assessment of Cross--border Trade andborder Trade and
Commerce Relations Between Thailand and FiveCommerce Relations Between Thailand and Five--
Neighbouring Countries (Cambodia, China, LaoNeighbouring Countries (Cambodia, China, Lao
PDR, Myanmar and Malaysia)PDR, Myanmar and Malaysia)
1)1) Cumulative CrossCumulative Cross--Border Trade Values ofBorder Trade Values of
Thailand With FiveThailand With Five--Neighbouring CountriesNeighbouring Countries
During 1996During 1996--2008 (January2008 (January--April)April)
•• The cumulative crossThe cumulative cross--border trade values ofborder trade values of
Thailand with fiveThailand with five--neighbouring countries wereneighbouring countries were
significantly amounted at 2,317.53 billion Bahtsignificantly amounted at 2,317.53 billion Baht
representedrepresented at 20.51 %at 20.51 % of cumulative trade valuesof cumulative trade values
of Thailand with fiveof Thailand with five--neighbouring countries.neighbouring countries.

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•• The cumulative share of crossThe cumulative share of cross--border export fromborder export from
Thailand to these neighbouring countries was as highThailand to these neighbouring countries was as high
atat 59.06 %.59.06 %.
•• While the share of crossWhile the share of cross--border import from theseborder import from these
neighbouring countries were atneighbouring countries were at
•• 2.31 % for Laos PDR;2.31 % for Laos PDR;
•• 17.77 % for Myanmar;17.77 % for Myanmar;
•• 0.52 % for Cambodia;0.52 % for Cambodia;
•• 0.59 % for China and0.59 % for China and
•• 19.71 % for Malaysia.19.71 % for Malaysia.
•• As a result, Thailand gained significant cumulativeAs a result, Thailand gained significant cumulative
balance of crossbalance of cross--border trade at 420.36 billion Baht.border trade at 420.36 billion Baht.
Overall Annual CrossOverall Annual Cross--Border Trade Values BetweenBorder Trade Values Between
Thailand and FiveThailand and Five--Neighbouring CountriesNeighbouring Countries
•• CrossCross--border trade has played steadily significant roleborder trade has played steadily significant role
in bridging closer relations between Thailand andin bridging closer relations between Thailand and
neighbouring countries reflecting great extent ofneighbouring countries reflecting great extent of
interdependence in the GMS.interdependence in the GMS.
•• Due to close proximity, coupled with regional tradeDue to close proximity, coupled with regional trade
agreements effects with bordering countries andagreements effects with bordering countries and
gradually convenient transport network, crossgradually convenient transport network, cross--borderborder
trade has shown on the rising trend.trade has shown on the rising trend.
•• TheThe average annual crossaverage annual cross--border trade growth ofborder trade growth of
goods during 1996goods during 1996--2007 was at 26 %.2007 was at 26 %.
•• The average annual crossThe average annual cross--border export growth ofborder export growth of
goods from 1996goods from 1996--2007 was at 25%.2007 was at 25%.

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Aggregate Annual CrossAggregate Annual Cross--Border Trade Export and ImportBorder Trade Export and Import
Between Thailand and FourBetween Thailand and Four--Neighbouring Countries and TransitNeighbouring Countries and Transit
Trade To/From China During 1996Trade To/From China During 1996--2008 (January2008 (January--April)April)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Jan-
April)
MillionBaht
Aggregate cross-border trade export values fromThailnd to four-neighbouring countries and transit trade to China
Aggregate cross-border import values fromfour-neighbouring countries and transit trade fromChina to Thailand
Aggregate cross-border trade values between Thailand and four-neighbouring countries and transit trade with China
Aggregate Balance of CrossAggregate Balance of Cross--Border Trade BetweenBorder Trade Between
Thailand and FourThailand and Four--Neighbouring Countries andNeighbouring Countries and
Transit Trade Balance With ChinaTransit Trade Balance With China
•• In general, Thailand has gained favorable tradeIn general, Thailand has gained favorable trade
balances with bordering trading partner countriesbalances with bordering trading partner countries
which were rather reasonable amount fromwhich were rather reasonable amount from
13.678 billion Baht in 1996 to 18.827 billion Baht13.678 billion Baht in 1996 to 18.827 billion Baht
in 1999.in 1999.
•• Later, it steeply escalated, despite facing negativeLater, it steeply escalated, despite facing negative
trade balance with Myanmar, from 39.887 billiontrade balance with Myanmar, from 39.887 billion
Baht in 2000 to 69.901 billion Baht in 2007Baht in 2000 to 69.901 billion Baht in 2007
reflecting as high growth at 34 % during thisreflecting as high growth at 34 % during this
period.period.

20
-65,000
-15,000
35,000
85,000
135,000
185,000
235,000
285,000
335,000
385,000
435,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
(Jan-
Apr)
Million Baht
Malaysia
China
Cambodia
Lao PDR
Myanmar
Aggregate Balanceof Cross-Border Trade Between Thailand and Four-NeighbouringCountries and Balance of Transit Trade With China
Aggregate Cross-Border Trade Values Between Thailand and Four-NeighbouringCountries and Transit Trade Values With China
•• Yet, Thailand acquired most positive balance ofYet, Thailand acquired most positive balance of
crosscross--border trade with Laos PDR, followed byborder trade with Laos PDR, followed by
Cambodia, Malaysia and China, respectively.Cambodia, Malaysia and China, respectively.
•• The average annual growth rate of balance of crossThe average annual growth rate of balance of cross--
border trade from 1996border trade from 1996--2007 was at2007 was at 28.5%28.5% which iswhich is
regarded as high performance due to certainregarded as high performance due to certain
uncontrollable factor intervened: Baht fluctuationuncontrollable factor intervened: Baht fluctuation
•• On the other hand, the average balance of crossOn the other hand, the average balance of cross--
border trade between Thailand and Myanmar duringborder trade between Thailand and Myanmar during
19961996--2007 was at2007 was at --21.81%.21.81%.
•• However, it appears that the trend of balance ofHowever, it appears that the trend of balance of
crosscross--border trade with neighbouring countries isborder trade with neighbouring countries is
slightly rising.slightly rising.

21
CrossCross--Border Trade Gaps Between ThailandBorder Trade Gaps Between Thailand
and Fiveand Five--Neighbouring CountriesNeighbouring Countries
•• Thailand generally gained significant balance ofThailand generally gained significant balance of
crosscross--border trade with neighbouring countries.border trade with neighbouring countries.
•• Consequently, there has been emerging of tradeConsequently, there has been emerging of trade
gaps.gaps.
•• During 1996During 1996--2008, (January2008, (January--April),April), CambodiaCambodia
has been experiencing such fluctuating tradehas been experiencing such fluctuating trade
gaps with Thailand the annual average atgaps with Thailand the annual average at 19.4319.43
timestimes..
•• China 9.16 times; Lao PDR 4.17 times; MalaysiaChina 9.16 times; Lao PDR 4.17 times; Malaysia
1.53 times and Myanmar1.53 times and Myanmar --0.42 time0.42 time..
Share of Aggregate CrossShare of Aggregate Cross--Border Trade ToBorder Trade To
International Trade Between Thailand andInternational Trade Between Thailand and
FiveFive--Neighbouring CountriesNeighbouring Countries
•• It to some extent indicates a diverging trend ofIt to some extent indicates a diverging trend of
trading pattern comprehensively meaning that thetrading pattern comprehensively meaning that the
share ofshare of aggregate crossaggregate cross--border trade tends to beborder trade tends to be
growinggrowing..
•• WhileWhile the share of aggregate international trade isthe share of aggregate international trade is
likely to be declininglikely to be declining, which corresponds to the, which corresponds to the
greater degree of physical connectivity andgreater degree of physical connectivity and
accessibility in the GMS.accessibility in the GMS.

22
Share of Aggregate CrossShare of Aggregate Cross--Border Trade to InternationalBorder Trade to International
Trade Between Thailand andTrade Between Thailand and--Five Neighbouring CountriesFive Neighbouring Countries
0
10
20
30
40
50
60
70
80
90
100
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(Jan-
Apr)
%
Share of totalexport of border trade Share of totalimport of border trade
Share of totalexport of internationaltrade Share of totalimport of internationaltrade
State of CrossState of Cross--Border Trade Relations WithBorder Trade Relations With
Individual Neighbouring CountriesIndividual Neighbouring Countries
This assessment found that the pattern of crossThis assessment found that the pattern of cross--borderborder
trade and commerce between Thailand and neighbouringtrade and commerce between Thailand and neighbouring
countries greatlycountries greatly varied from one countryvaried from one country to anotherto another
depending on its particulardepending on its particular comparative advantagecomparative advantage,,
division of labor anddivision of labor and specialization of productionspecialization of production..
ThailandThailand mainlymainly exportedexported consumer and intermediateconsumer and intermediate
goods, motorcycles and cars and its spare parts, oils, andgoods, motorcycles and cars and its spare parts, oils, and
some capital goods to neighbouring countries, andsome capital goods to neighbouring countries, and
importedimported primary goodsprimary goods, agricultural and fishery, agricultural and fishery
products, natural gas, and intermediate goods fromproducts, natural gas, and intermediate goods from
neighbouring countries.neighbouring countries.
In addition, crossIn addition, cross--border retail trades are alwaysborder retail trades are always
conducted at the allowed border crossings.conducted at the allowed border crossings.
Rural poor peoples along border areas are able to conductRural poor peoples along border areas are able to conduct
retail trade and gain wider access to consumer products.retail trade and gain wider access to consumer products.

23
8) Thailand and Cambodia8) Thailand and Cambodia
•• During 1996During 1996--2007, the average annual cross2007, the average annual cross--
border trade export was higher than its importborder trade export was higher than its import
for 2.40 times.for 2.40 times.
•• In 2007, the share of aggregate crossIn 2007, the share of aggregate cross--borderborder
trade values between Thailand and Cambodiatrade values between Thailand and Cambodia
accounted foraccounted for 8.43 %8.43 % of aggregate crossof aggregate cross--borderborder
trade values between Thailand and fivetrade values between Thailand and five--
•• CrossCross--Border Export Values from ThailandBorder Export Values from Thailand
To CambodiaTo Cambodia
In recent decade, the average annual crossIn recent decade, the average annual cross--borderborder
export growth was at 42.81 %, which is regardedexport growth was at 42.81 %, which is regarded
at soaring rate.at soaring rate.
Aranyaprathet border checkpointAranyaprathet border checkpoint was the mostwas the most
important gateway linking with Cambodia, whichimportant gateway linking with Cambodia, which
was responsible for as high about half of totalwas responsible for as high about half of total
crosscross--border trade export values.border trade export values.

24
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(Jan-
Apr)
MillionBaht
Aranyaprathet Klongyai Chantaburi
Chongchom Piboonmangsaharn Khaodin
Tapraya TotalExport of Border Trade TotalExport ofInternationalTrade
Cross-Border Export Values from Thailand To Cambodia From 1996-2008
Through Major Border Checkpoints
CrossCross--Border Import Values from Thailand To Cambodia From 1996Border Import Values from Thailand To Cambodia From 1996--2008 through Major Border Checkpoints2008 through Major Border Checkpoints
0
500
1,000
1,500
2,000
2,500
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(Jan-
Apr)
MillionBaht
Aranyaprathet Klongyai Chantaburi
Chongchom Piboonmangsaharn Khaodin
Tapraya Total Import of Border Trade Total Import of International Trade

25
Map Displaying Geographical CrossMap Displaying Geographical Cross--Border Trade Relationships BetweenBorder Trade Relationships Between
Thailand and Cambodia Through Aranyaprathet Border Checkpoint inThailand and Cambodia Through Aranyaprathet Border Checkpoint in 20072007
Remnant of
Copper 41,3%
Remnant of paper 84,6%
Remnant of aluminium
175,13%
Exported goods
53,4%
Soybean grain
128,10%
Corn for livestock
Feed 159,12
Ready made
Clothes 37,3%
Second-hand clothes
177,14%
,
Others
99,8%
,
Remnant of iron
336,26%
,
Motorcycles 1,443
8%
, ,
Others 10,138
59 %
, ,
Cement 1,070, 6%
, ,
Chemical fertilizers 265,2% ,Gourmet powder 310,2%
, ,
Livestock feed 839,5%, ,
Motorcycle parts 836,5%,
Woven fabrics 437,3%, ,
Engines 938,5%
,
Petroleum gas 537,3%,
Printed textiles 348,2%
,
Tapioca 17,1%
Lao PDR
9) Thailand and China9) Thailand and China (Yunnan province of Southern China)(Yunnan province of Southern China)
•• CrossCross--border trade is performed on the basis ofborder trade is performed on the basis of
transit mode mainly facilitated to/from nationtransit mode mainly facilitated to/from nation--widewide
key border checkpoints.key border checkpoints.
•• In 2007, the aggregate crossIn 2007, the aggregate cross--border trade valuesborder trade values
through transit mode between Thailand and Chinathrough transit mode between Thailand and China
were at 39.580 billion Baht accounted forwere at 39.580 billion Baht accounted for 9.86 %9.86 % ofof
aggregate crossaggregate cross--border trade values of Thailand withborder trade values of Thailand with
fivefive--neighbouring countries.neighbouring countries.
•• During 1996During 1996--2007, the average annual growth of2007, the average annual growth of
aggregate crossaggregate cross--border trade values through transitborder trade values through transit
mode between Thailand and China was at 42 %.mode between Thailand and China was at 42 %.
•• And the average crossAnd the average cross--border trade export valuesborder trade export values
were higher than its import values for 1.13 times.were higher than its import values for 1.13 times.

26
Figure 3.7: CrossFigure 3.7: Cross--Border Export Values Through Transit Mode from Thailand toBorder Export Values Through Transit Mode from Thailand to
China During 1996China During 1996--2008 Through Major Border Checkpoints2008 Through Major Border Checkpoints
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Jan-
Apr)
MillionBah
Nongkhai Maesai
Chiangsaen Chiangkhong
Sadao Padang Besar
Betong Prachuap Khiri Khan
Mukdaharn Total cross-border export values through transit mode
Total cross-border trade values through transit mode
•• CrossCross--Border Import Values Through TransitBorder Import Values Through Transit
Mode From China to ThailandMode From China to Thailand
The aggregate crossThe aggregate cross--border trade import through transitborder trade import through transit
mode from China to Thailand went up steadily frommode from China to Thailand went up steadily from
amounting 0.137 billion Baht in 1996 to 2.708 billionamounting 0.137 billion Baht in 1996 to 2.708 billion
Baht in 2007.Baht in 2007.
In recent decade, the average annual growth of crossIn recent decade, the average annual growth of cross--
border trade import through transit mode from China toborder trade import through transit mode from China to
Thailand was as high at 43.60 %.Thailand was as high at 43.60 %.
In 2007, Padang Besar was also the key entry point forIn 2007, Padang Besar was also the key entry point for
importing transit goods from China through Malaysia,importing transit goods from China through Malaysia,
which was accountable for as high at 42 % of total crosswhich was accountable for as high at 42 % of total cross--
border trade import values, followed by Chiangsaenborder trade import values, followed by Chiangsaen
at 32 %.at 32 %.

27
CrossCross--Border Import Trade Values Through Transit Mode From China To ThBorder Import Trade Values Through Transit Mode From China To Thailandailand
During 1996During 1996--2008 Through Major Border Checkpoints2008 Through Major Border Checkpoints
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Jan-
Apr)
MillionBaht
Nongkhai Maesai
Chiangsaen Chiangkhong
Mukdaharn Padang Besar
Totalcross-border import values through transit mode Totalcross-border trade values through transit mode
Thailand and China Through Chiangsaen Border Checkpoint in 2007Thailand and China Through Chiangsaen Border Checkpoint in 2007
Laos PDR
Myanmar
Hydrocarbon Ferromanganese
26, 3%
Processed woods 38, 4%
Chinese pear 86, 9%
,
Sunflower seed 34, 3%
Garlic 64 ,6%
Pomegranate 74, 7%
Multiplier Onion 18, 2%
White pumkin seed 11,1%
,
Apple 126 , 12%
Others 233
23% Fresh vegetables
298, 30%
Block Rubber
136,2%
,
Vegetable oil
253, 5%
, ,
Palm oil 560, 10%
,
Gourmet powder
136,2%
, ,
Crepe sheets 283
5%
, ,
Rubber thread 367,6%
,
Other non
alcoholic
beverages,
120,2%
-
,
Diesel oil 85,2%
,
Dry longan 1,006
18%
,
Others 1,348
24%
, ,
Rubber smoked sheets 1,361
25%,
Lao PDR
Myanmar

28
Share of Border Trade Values through Transit Mode To InternationShare of Border Trade Values through Transit Mode To Internationalal
Trade Values Between Thailand and ChinaTrade Values Between Thailand and China
During 1996During 1996--20082008 (January(January--April)April)
0
10
20
30
40
50
60
70
80
90
100
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Jan-
Apr)
%
Share of totalexport of internationaltrade Share of total import of international trade
10) Thailand and Lao PDR10) Thailand and Lao PDR
•• During 1996During 1996--2007, Thailand gained favorable2007, Thailand gained favorable
balance of crossbalance of cross--border trade, and the aggregateborder trade, and the aggregate
crosscross--border export was higher than the aggregateborder export was higher than the aggregate
crosscross--border import at 1.1 times.border import at 1.1 times.
•• In 2007, the aggregate crossIn 2007, the aggregate cross--border trade valuesborder trade values
between Thailand and Laos PDR accounted forbetween Thailand and Laos PDR accounted for
11.75 %11.75 % of aggregate crossof aggregate cross--border trade values ofborder trade values of
Thailand with fiveThailand with five--neighbouring countries.neighbouring countries.

29
CrossCross--Border Export Values From Thailand To Lao PDR From 1996Border Export Values From Thailand To Lao PDR From 1996--2008 Through2008 Through
Major Border CheckpointsMajor Border Checkpoints
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Jan-
Apr)
Million baht
Nongkhai Bungkarn Nakhonpanom
Mukdaharn Thalee Piboonmangsaharn
Chiangsan Chiangkhong Total Export of Border Trade
Total Export of International Trade
CrossCross--Border Trade Import Values From Laos PDR to Thailand DuringBorder Trade Import Values From Laos PDR to Thailand During
19961996--2008 Through Major Border Checkpoints2008 Through Major Border Checkpoints
0
2,000
4,000
6,000
8,000
10,000
12,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(Jan-
Apr)
MillionBaht
Nongkhai Bungkarn Nakhonpanom
Mukdaharn Thalee Piboonmangsaharn
Chiangsan Chiangkhong TotalImport ofBorder Trade
TotalImport ofInternationalTrade

30
Thailand and Laos PDR Through Nong Khai Border Checkpoint in 2Thailand and Laos PDR Through Nong Khai Border Checkpoint in 2007007
Parquet 41,4%
Uniforms 16,1%
Underwear for men and boys 18,2%
Zinc ore 17,2%
Resistor 18,2%
Live wire 28,3%
Papers 14,1%
Men and boy’s clothes
15,1%
Ignition wiring sets
used in vehicles 85,8%
Others 263,24%
Processed wood
567,52%
Polymers of Ethylene 129, 1%
Medical equipments 174, 1%
Pellet cement 813, 4%
Digger 133, 1%
Knitted fabrics 241, 1%,
Woven fabrics 554, 3%
Tiles 129, 1%
Tyres 127, 1%
Cars 1,632
8%
Others 12,797
62%
Oil products 3,628
17%
Myanmar Lao PDR
Share of CrossShare of Cross--Border Trade Values To International Trade ValuesBorder Trade Values To International Trade Values
Between Thailand and Laos PDR During 1996Between Thailand and Laos PDR During 1996--20082008
0
10
20
30
40
50
60
70
80
90
100
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(Jan-
Apr)
%
Shareoftotalexportofbordertrade Shareoftotalimportofbordertrade
Shareoftotalexportofinternationaltrade Shareoftotalimportofinternationaltrade

31
11) Thailand and Myanmar11) Thailand and Myanmar
•• During 1996During 1996--2007, Thailand faced deficit balance of2007, Thailand faced deficit balance of
crosscross--border trade.border trade.
•• As a result, the aggregate crossAs a result, the aggregate cross--border import was higherborder import was higher
than the aggregate crossthan the aggregate cross--border export atborder export at three timesthree times..
•• In 2007, the aggregate border trade values betweenIn 2007, the aggregate border trade values between
Thailand and Myanmar accounted forThailand and Myanmar accounted for 24.5 %24.5 % ofof
aggregate border trade values of Thailand with fiveaggregate border trade values of Thailand with five--
CrossCross--Border Export Values From Thailand To Myanmar During 1996Border Export Values From Thailand To Myanmar During 1996--20082008
Through Major Border CheckpointsThrough Major Border Checkpoints
0
5,000
10,000
15,000
20,000
25,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Jan-
Apr)
Million Baht
Maesai Chiangsan Maesariang
Maesod Ranong Sangkhlaburi
Total Export of Border Trade Total Export of International Trade

32
CrossCross--Border Trade Import Values From Myanmar To Thailand DuringBorder Trade Import Values From Myanmar To Thailand During
19961996--2008 Through Major Border Checkpoints2008 Through Major Border Checkpoints
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Jan-
Apr)
MillionBaht
Maesai Chiangsan
Maesariang Maesod
Ranong Sangkhlaburi
TotalImport of Border Trade TotalImport of InternationalTrade
Thailand and Myanmar Through Maesod Border Checkpoint in 2007Thailand and Myanmar Through Maesod Border Checkpoint in 2007
Laos PDR
Myanmar
Black matpe beans
20,2% ,
Mixed prawn shell
32, 3%
,
Mixed fish
125,13%
Dry fish maw 20,2%
Cashew nut
43,4%
,
Live cow and
Buffalo 66,7%
Bamboo 19,2%
Prawn 17,2%
Crab 187
19%
Others
141,145 Wood works 321
32%
Fishing net 190, 2%,
Lead Acid 224, 2%
Vegetable oil 305,3%
, ,
Benzene oil 221, 2%,
Woven cloth with various colours 269,3%
,
Motorcycles 289,3%
, ,
Human drugs 171,2%,
Non sweetened milk 124, 1%
,
Diesel oil 385,4%
, ,
Others 8,028
75%
, ,
Gourmet powder
396,3%
,
Lao PDR
Myanmar

33
Share of CrossShare of Cross--Border Trade Values To International Trade ValuesBorder Trade Values To International Trade Values
Between Thailand and Myanmar During 1996Between Thailand and Myanmar During 1996--20082008
0
10
20
30
40
50
60
70
80
90
100
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(Jan-
Apr)
%
Share of totalexport of internationaltrade Share of totalimport of internationaltrade
ConclusionsConclusions
•• Trade agreements in the ASEAN region in general and inTrade agreements in the ASEAN region in general and in
the GMS in particular have already driven both intrathe GMS in particular have already driven both intra--
ASEAN trade and crossASEAN trade and cross--border trade in the GMS.border trade in the GMS.
•• CrossCross--border trade gaps in the GMS need to be minimizedborder trade gaps in the GMS need to be minimized
through preferential duty free access from more advanced tothrough preferential duty free access from more advanced to
less advanced countries towardsless advanced countries towards fair tradefair trade..
•• Technical assistance, capacity building or Aid forTechnical assistance, capacity building or Aid for
Trade should be rendered to less advanced countries soTrade should be rendered to less advanced countries so
that they can be efficiently integrated into the GMS crossthat they can be efficiently integrated into the GMS cross--
border trade interaction/relations.border trade interaction/relations.

34
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