A Guest Lecture

on

Trade Agreements and Cross-Border Trade

in the Greater Mekong Sub-region
at

Regional Economic Integration and the People in the

Greater Mekong Sub-region Inter-Semester Course,
SERD, AIT
by

Choen Krainara, PhD Candidate

Regional and Rural Development Planning Field of Study
SERD, AIT
2Choen
JulyKrainara
2009

Contents
Consist of 2 major parts
1.Trade agreements in the GMS
2.Cross-border trade in the GMS

Choen Krainara

1.Trade agreements in the GMS

1.1 Regional (Macro) trade agreements e.g. AFTA
1.2 Subregional (Micro) trade agreements e.g
Ayeyawady - Chao Phraya - Mekong Economic
Cooperation Strategy (ACMECS)

Choen Krainara

1.1 Regional (Macro) trade agreements

1) ASEAN Free Trade Area (AFTA)
The old six member countries of ASEAN comprise
Brunei, Indonesia, Malaysia, the Philippines, Singapore
and Thailand, while the new members countries are
Vietnam, Laos PDR, Myanmar and Cambodia.
The old member countries will reduce import duties of
Inclusion List (IL) within the Common Effective
Preferential Tariff Scheme (CEPT) to 0-5 % within 2003
and to become zero (0) % within 2010.
Whereas the newer member countries will lower import
duties of IL within CEPT to 0-5% in 2006 for Vietnam;
Laos PDR and Myanmar in 2008; Cambodia in 2010 and
all four countries to become zero (0)% in 2015.
Choen Krainara

The list of commodities under CEPT covers 105,123

items, (ASEAN Secretariat, 2008).
Export commodities must totally be used local contents.
In any case, it do not wholly obtain local content
materials from an ASEAN member country; a minimum
of 40% of local content of F.O.B prices will be accepted
as ASEAN product origin.
In addition, it can also be calculated cumulative rules of
origin within ASEAN with required minimum of
combined local content at 20 %.
It is also compulsory among member countries to
concurrently phase out non-tariff barriers so that it can
help advance towards ASEAN Economic Community
(AEC) within 2015. Choen Krainara
5

2) ASEAN Integration System of Preferences (AISP)

It is a measure to grant special treatment from old six
countries of ASEAN to new members comprising
Cambodia, Laos PDR, Myanmar and Vietnam under
Initiative for ASEAN Integration: IAI which is bilaterally
given One Way Free Trade basis of import without prior
negotiation,
Its main objectives were to promote and expand trade and
investments within intra-ASEAN region, as well as
reducing development gaps between old and new
ASEAN member countries.
Key commodities were agricultural produces, textiles,
wood products, aquatic products, leathers and some
intermediate goods.
Choen Krainara

Cumulative Numbers of Commodity that Thailand Granted AISP

Treatment to CLMV Countries
Unit: Commodity
Cumulative Numbers of Commodity that Thailand granted
AISP treatment
Year
Cambodia
Lao PDR
Myanmar
Vietnam

2002

48

26

72

19

2003

49

27

72

19

2004

309

187

160

34

2005

340

300

850

63

Choen Krainara

3) ASEAN-China Free Trade Agreement

Agreement on Trade in Goods of the Framework
Agreement on Comprehensive Economic Cooperation
between the ASEAN and China has been signed on
29 November 2004, leading to gradual trade
liberalization of both parties for two major categories.
1) The Early Harvest Program consisted of agricultural
products within the customs Harmonized Standard
numbers 01-08 comprising livestock, meat and other
edible parts of animal, fish, dairy products, eggs of
chicken and duck, animal products, trees, vegetables and
fruits and edible nuts, including specific products which
were effective only on bilateral basis.
Choen Krainara

 China and old ASEAN member countries started

reducing import tariffs on 1 January 2004, and were

lowered to zero (0) % by 1 January 2006.
The rest of newer ASEAN member countries were
given flexible treatment on tariff lines and time frame
for tariffs reduction, but there must be zero (0) % by
2010. It was conditionally reduced tariffs only within
import quotas particularly on onion and garlic.
Furthermore, Thailand and China bilaterally
accelerated tariff elimination for the Early Harvest
Program of the customs Harmonized Standard
number 07-08 consisting of vegetables and fruits to
become zero (0) % by 1 October 2003.
Choen Krainara

Tariff Reduction for General

Commodities Program

Normal Track
Tariff rate of all commodities will be reduced to zero (0) % by 1 January 2010 (5 years).
There are 150 commodities to be granted flexibility to reduce tariff
tariff at zero (0) % until 2012

Sensitive Track

It was agreed that there will be reduced tariff to be 20 % by

2012, and will be final tariff at 00-5 % in 2018.
z

Rules of origin are applied both

wholly obtained and minimum
40% local contents
Choen Krainara

10

4) Bay of Bengal Initiative for Multi-Sectoral

Technical and Economic Cooperation
(BIMSTEC)

BIMSTEC consisted of seven countries namely

India, Sri Lanka, Thailand, Bangladesh, Bhutan,

Myanmar and Nepal.
It has combined populations of 1,300 millions or
21 % of world populations, but currently there are
limited trade transaction and values among
member countries.
BIMSTEC is sort of south-south cooperation; it
is also a convergence of foreign policies between
Look West of Thailand and Look East of
India
Choen Krainara
11

Member countries have signed agreement on BIMSTEC

Free Trade Area on 8 January 2004, and became effective
by 1 July 2006.
Its principal objectives were to stimulate trade and
investments within intra-BIMSTEC as well as attracting
foreign investment into BIMSTEC Free Trade Area.

Choen Krainara

12

Time Frame for Import Trade Tariff Reductions

Normal Track Group
Time frame for developing
countries

Time frame for LDC

party

India, Sri Lanka, and

Thailand

1 July 2007-30 June 2012

1 July 2007-30 June 2010

Bangladesh, Bhutan,
Myanmar and Nepal

1 July 2007-30 June 2017

1 July 2007-1 July 2015

Countries

Fast Track Group

Countries

Time frame for

developing country
parties

Time frame for LDC

party

India, Sri Lanka, and

Thailand

1 July 2006-30 June 2009

1 July 2006-30 June 2007

Bangladesh, Bhutan,
Myanmar and Nepal

1 July 2006-30 June 2011

1 July 2006-30 June 2009

Choen Krainara

13

1.2 Subregional (Micro) trade agreements

1) Ayeyawady - Chao Phraya - Mekong Economic Cooperation
Strategy (ACMECS) in short called ECS
It is a four nations economic cooperation strategy initiated in 2003
consisting of Cambodia, Lao PDR, Myanmar and Thailand
Aims to reduce trade barriers, improve transport linkages and
upgrade border checkpoints.
Distinct initiatives are Contract Farming by granting One Way Free
Free
Trade for 11 agricultural produces and sister cities programs.
In 2008, Thailand planned to import these produces at 1.2 million
million
tons from Cambodia, 0.5 million ton from Lao PDR, and 0.2 million
million
ton from Myanmar.
These produces will be used as industrial raw materials and sources
sources
of energy substitution.
The trend is robust.
Choen Krainara

14

2) Trade-Relevant Cooperation
Greater Mekong Sub-region Economic
Cooperation Program

Promoting and facilitating intra-GMS and extra-GMS

trade particularly on agricultural trade, investment and
tourism are keys to foster economic growth as well as
helping alleviate poverty in the GMS.
Priority is given to the main economic corridors.
This can be done through customs modernization,
investment promotion and facilitation of cross-border
trade as well as mobility of tourists and business peoples.
Cross-Border Transport Agreement (CBTA) with total 20
annexes was set up in 2003 aiming to deals with speedy
facilitation of customs and immigration procedures at the
border-crossing points thus resulting in increase trade
flows both intra-GMS and extra-GMS.
Choen Krainara

15

Full implementation of this agreement and its

annexes and protocols is expected to complete by

2009, but in fact it will face a delay.
The pilot border crossings are Lao BaoDansavanh, Poipet-Aranyaprathet, MukdahanSavnnakhet, Bavet-Mocbai, Maesod-Myawaddy,
Maesai-Tachilek, and Hekou-Lao Cai,
(Tsuneishi, 2008).

Choen Krainara

16

Map Displaying GMS Corridors Network

Choen Krainara

17

2. Cross-border trade in the GMS

2.1 Overall Cross-border trade in the GMS
2.2 Bilateral Cross-border trade in the GMS

Choen Krainara

18

2.1 Overall Cross-border trade in the GMS

The GMS market comprises of 1,594 million populations

In 2008, IntraIntra-ASEAN trade was at 453,700 Million USD or 26.7

% of total trade (ASEAN Secretariat)

trend of crosscross-border trade in GMS is increasing.

There is an asymmetry of crosscross-borer trade balance.

Larger countries e.g. Thailand, China and Vietnam tend to gain
greatly favorable trade balance leaving significant trade gaps to
to
other GMS partner countries.

Agricultural trade originating from Lao PDR, Cambodia and

Myanmar in particular plays heavily important role in their
economies.

These countries export approximately 5050-60 % of agricultural

products to other GMS countries..
Choen Krainara

19

There is increasing degree of regional

integration through agricultural trade.
For welfare impact, the general experience
across all countries seems very positive,
although some countries or border
communities have clearly benefited much
more than others.
So cross-border trade can significantly
contribute to poverty reduction in the GMS.

Choen Krainara

20

10

There are 2 types of cross-border trade

Informal flows: The informal sector has strong
implications for anti-poverty policy and
distribution of gains from trade, mainly in Lao
and Cambodian borders.
Informal trade accounted for 20-30 % of total
border trade.
Formal flows: Formal trading channel account
for the bulk of cross-border trade, consisting of
some 70-80 % of the total volume of trade

Choen Krainara

21

Choen Krainara

22

11

1) Lao PDR and China

Two Northern provinces of Lao connect with China

Oudomxay province: Export destinations include China,
Thailand and Vietnam.
-97 % of import is from China.
- 60 % of the importsimports-construction materials, machinery and
household goodsgoods-are for local consumption.

-There has been a change of pattern of exports from

timber to agricultural products.
-Lao has established Boten Border Trade Zone at LaoChinese border at Boten village to Nateui junction.
Choen Krainara

23

Luang Namtha province:

Between 2001 and 2005, export grew at an average of 28 %
and import by 8 %.
The major exports are 43 % minerals, 30 % agricultural
produces, including livestock and 13 % non timber forest
products (NTFPs).
90 % of agricultural products exported to China and 80 % of
minerals and NTFPs are exported to Thailand.

Major imports are clothes and consumer goods from, vehicles

and spare parts, agricultural tools and food both from China
and Thailand.

The province also encourages rapid growth of transit trade.

The trend of cross-border trade is increasing.
Choen Krainara

24

12

2) China and Vietnam

Moung Caui Gate in Quaung Ninh province of Vietnam

and Dongxing town of Guangxi province of China are
the most important cross-border gateways.
Cross-border trade is now gradually being put in order
e.g. payment mechanism at the branches of the two
countriess banks in the border area.
Yunnans key exports are electro-mechanical products,
telecommunications equipment and chemicals.
While Vietnam mainly exports agro-forestry-aquatic
products and minerals.
Vietnam has established Moc Cai border economic
zone linking with China and has planned to add more
27 border economic zones in 17 provinces across the
country.
Choen Krainara
25

3) Lao PDR and Vietnam

Both countries have agreed to promote trade in

their border areas in order to contribute to meet

their target of 1 billion USD in two-way trade
turnover y 2010.
The key measures to reach this goal are to
remove obstacle to policies, simplify commercial
procedures at border gates, improve infrastructure
at border areas, and facilitate cross-border trade
and activities.

Choen Krainara

26

13

4) Cambodia and Lao PDR

There is unavailable of cross-border trade

data/information of both countries

(particularly via the internet).

Choen Krainara

27

5) Lao PDR and Myanmar

Luang Namtha province links with Myanmar.
Siengkok border checkpoint acts as a major

channel for transit trade with Thailand.

There is unavailable of data on cross-border trade

between these two countries.

Choen Krainara

28

14

6) Cambodia and Vietnam

Trade between Cambodia and Vietnam reached 1.7 billion USD in the
the first
eight months of 2008.

To ease the burden of crosscross-border trade both countries have signed a new
trade facilitation agreement.

Cambodia exported about 250 million USD in goods to Vietnam in 2007

equal to 30 % of total exports. The main exports were cashews, rice and
tobacco.

Cambodia imported construction materials and agricultural products from

Vietnam. The two countries aim to increase twotwo-way trade turnover by 27 %
every year to reach 2.3 billion USD in 2010 and 6.5 billion in 2015.
2015.

Vietnamese authorities recently allowed Cambodians duty free access

access to 40
types of agricultural products.

The two governments have also arranged to create seven special economic
economic
zones along the border and about 20 border crossings in order to facilitate
trade between these two countries.
Choen Krainara

29

7) Myanmar and China

China is an important but unbalanced trading partner.

Border trade with China is the main artery of the Myanmar economy.
economy.

There are 3 key border checkpoints namely Muse, Lwejel and Laiza connect with
Kunming.
After opening up of border trade in 1998,
1998, China provided the main source of
supply, and Chinese products e.g. textiles (mostly yarn and fabrics)
fabrics) poured into
emerging consumerconsumer-goods markets in Myanmar. In addition, it included road
vehicles, power generators, electrical machinery and apparatus and
and manufactures
of metal.

Myanmar exports cork of wood, vegetables and fruit, metaliferous ores and metal
scrap, crude fertilizers and crude materials, nonnon-metallic mineral manufactures,
manufactures,
fishes, crude animal and vegetable materials, oil seeds, crude rubber,
rubber, cork and
wood manufactures.

Border trade made up about 50 % of China exports to Myanmar and about 70 %

of its imports from Myanmar during 20002000-2007. Yunnan
Yunnans province share of
Myanmar total border trade was 73 % in FY year 2003/2004.
The crosscross-border trade trend is rather fluctuating.

Choen Krainara

30

15

Thailand and Neighbouring Countries

8) Thailand and Cambodia
9)Thailand and Yunnan province of Southern
China
10) Thailand and Lao PDR
11) Thailand and Myanmar

Choen Krainara

31

Cross-Border Trade and Commerce Relations

Between Thailand and Neighbouring Countries

Cross-border trade is one of the key indicators of closer

interdependence between Thailand and neighbouring
countries.
In 1988, Thailand has proclaimed a policy of turning
Indochina battlefields into a marketplace.
This, coupled with the GMS Regional Economic
Integration Program has further pushed Thailand to
deepen economic relationships with neighbouring
countries.

Choen Krainara

32

16

Map Displaying Geographical Distribution of All Types of Key Border

Border
Checkpoints in Thailand Physically Connecting with Neighbouring Countries

Choen Krainara

33

Overall Assessment of Cross-border Trade and

Commerce Relations Between Thailand and FiveNeighbouring Countries (Cambodia, China, Lao
PDR, Myanmar and Malaysia)
1)

Cumulative Cross-Border Trade Values of

Thailand With Five-Neighbouring Countries
During 1996-2008 (January-April)
The cumulative cross-border trade values of
Thailand with five-neighbouring countries were
significantly amounted at 2,317.53 billion Baht
represented at 20.51 % of cumulative trade values
of Thailand with five-neighbouring countries.
Choen Krainara

34

17

The cumulative share of cross-border export from

Thailand to these neighbouring countries was as high
at 59.06 %.
While the share of cross-border import from these
neighbouring countries were at

2.31 % for Laos PDR;

17.77 % for Myanmar;
0.52 % for Cambodia;
0.59 % for China and
19.71 % for Malaysia.

As a result, Thailand gained significant cumulative

balance of cross-border trade at 420.36 billion Baht.

Choen Krainara

35

Overall Annual Cross-Border Trade Values Between

Thailand and Five-Neighbouring Countries

Cross-border trade has played steadily significant role

in bridging closer relations between Thailand and
neighbouring countries reflecting great extent of
interdependence in the GMS.
Due to close proximity, coupled with regional trade
agreements effects with bordering countries and
gradually convenient transport network, cross-border
trade has shown on the rising trend.
The average annual cross-border trade growth of
goods during 1996-2007 was at 26 %.
The average annual cross-border export growth of
goods from 1996-2007Choen
was
at 25%.
Krainara
36

18

Aggregate Annual CrossCross-Border Trade Export and Import

Between Thailand and FourFour-Neighbouring Countries and Transit
Trade To/From China During 19961996-2008 (January(January-April)
450,000

400,000

350,000

Million Baht

300,000

250,000

200,000

150,000

100,000

50,000

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008 (JanApril)

Aggregate cross-border trade export values from Thailnd to four-neighbouring countries and transit trade to China
Aggregate cross-border import values from four-neighbouring countries and transit trade from China to Thailand
Aggregate cross-border trade values between Thailand and four-neighbouring countries and transit trade with China

Choen Krainara

37

Aggregate Balance of Cross-Border Trade Between

Thailand and Four-Neighbouring Countries and
Transit Trade Balance With China

In general, Thailand has gained favorable trade

balances with bordering trading partner countries
which were rather reasonable amount from
13.678 billion Baht in 1996 to 18.827 billion Baht
in 1999.
Later, it steeply escalated, despite facing negative
trade balance with Myanmar, from 39.887 billion
Baht in 2000 to 69.901 billion Baht in 2007
reflecting as high growth at 34 % during this
period.

Choen Krainara

38

19

435,000

Million Baht

385,000

335,000

285,000

235,000

185,000

135,000

85,000

35,000

-15,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008
(JanApr)

-65,000
Malaysia
China
Cambodia
Lao PDR
Myanmar
Aggregate Balance of Cross-Border Trade Between Thailand and Four-Neighbouring Countries and Balance of Transit Trade With China
Aggregate Cross-Border Trade Values Between Thailand and Four-Neighbouring Countries and Transit Trade Values With China

Choen Krainara

39

Yet, Thailand acquired most positive balance of

cross-border trade with Laos PDR, followed by
Cambodia, Malaysia and China, respectively.
The average annual growth rate of balance of crossborder trade from 1996-2007 was at 28.5% which is
regarded as high performance due to certain
uncontrollable factor intervened: Baht fluctuation
On the other hand, the average balance of crossborder trade between Thailand and Myanmar during
1996-2007 was at -21.81%.
However, it appears that the trend of balance of
cross-border trade with neighbouring countries is
slightly rising.
Choen Krainara

40

20

Cross-Border Trade Gaps Between Thailand

and Five-Neighbouring Countries

Thailand generally gained significant balance of

cross-border trade with neighbouring countries.
Consequently, there has been emerging of trade
gaps.
During 1996-2008, (January-April), Cambodia
has been experiencing such fluctuating trade
gaps with Thailand the annual average at 19.43
times.
China 9.16 times; Lao PDR 4.17 times; Malaysia
1.53 times and Myanmar -0.42 time.
Choen Krainara

41

Share of Aggregate Cross-Border Trade To

International Trade Between Thailand and
Five-Neighbouring Countries

It to some extent indicates a diverging trend of

trading pattern comprehensively meaning that the
share of aggregate cross-border trade tends to be
growing.
While the share of aggregate international trade is
likely to be declining, which corresponds to the
greater degree of physical connectivity and
accessibility in the GMS.

Choen Krainara

42

21

Share of Aggregate CrossCross-Border Trade to International

Trade Between Thailand andand-Five Neighbouring Countries
%
100
90
80
70
60
50
40
30
20
10
0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Share of total export of border trade

Share of total import of border trade

Share of total export of international trade

Share of total import of international trade

Choen Krainara

2008 (JanApr)

43

State of Cross-Border Trade Relations With

Individual Neighbouring Countries

This assessment found that the pattern of cross-border

trade and commerce between Thailand and neighbouring
countries greatly varied from one country to another
depending on its particular comparative advantage,
division of labor and specialization of production.
Thailand mainly exported consumer and intermediate
goods, motorcycles and cars and its spare parts, oils, and
some capital goods to neighbouring countries, and
imported primary goods, agricultural and fishery
products, natural gas, and intermediate goods from
neighbouring countries.
In addition, cross-border retail trades are always
conducted at the allowed border crossings.
Rural poor peoples along border areas are able to conduct
retail trade and gain wider
access to consumer products.44
Choen Krainara

22

8) Thailand and Cambodia

During 1996-2007, the average annual crossborder trade export was higher than its import
for 2.40 times.
In 2007, the share of aggregate cross-border
trade values between Thailand and Cambodia
accounted for 8.43 % of aggregate cross-border
trade values between Thailand and fiveneighbouring countries.

Choen Krainara

45

Cross-Border Export Values from Thailand

To Cambodia
In recent decade, the average annual cross-border
export growth was at 42.81 %, which is regarded
at soaring rate.
Aranyaprathet border checkpoint was the most
important gateway linking with Cambodia, which
was responsible for as high about half of total
cross-border trade export values.

Choen Krainara

46

23

Cross-Border Export Values from Thailand To Cambodia From 1996-2008

Through Major Border Checkpoints
35,000

Million Baht

30,000

25,000

20,000

15,000

10,000

5,000

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Aranyaprathet

Klongyai

Chantaburi

Chongchom

Piboonmangsaharn

Khaodin

Total Export of Border Trade

Total Export of International Trade

Tapraya

Choen Krainara

2008 (JanApr)

47

CrossCross-Border Import Values from Thailand To Cambodia From 19961996-2008 through Major Border Checkpoints
2,500

Million Baht

2,000

1,500

1,000

500

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Aranyaprathet

Klongyai

Chantaburi

Chongchom

Piboonmangsaharn

Khaodin

Tapraya

Total Import of Border Trade

Total Import of International Trade

Choen Krainara

2008 (JanApr)

48

24

Map Displaying Geographical CrossCross-Border Trade Relationships Between

Thailand and Cambodia Through Aranyaprathet Border Checkpoint in 2007
Motorcycles 1,443
8%
Cement
,
, 1,070, 6%
,

Lao PDR

Engines 938,5%
,

,
,
Livestock feed
839,5%

Others 10,138
,
,
59 %

Chemical fertilizers 265,2%

Motorcycle, parts 836,5%

,
Petroleum
gas 537,3%
,
,
Woven fabrics
437,3%
,
,
,
Printed textiles
348,2%
Gourmet, powder 310,2%

Ready made Tapioca 17,1%

Clothes 37,3%
Remnant of
,
Others
Copper 41,3%
99,8%
Exported goods
Remnant of iron
,
53,4%
336,26%
Remnant of paper 84,6%
Soybean grain
128,10%

,
Second-hand clothes
177,14%

Corn for livestock

Feed 159,12
Remnant of aluminium
175,13%

Choen Krainara

49

9) Thailand and China (Yunnan province of Southern China)

Cross-border trade is performed on the basis of

transit mode mainly facilitated to/from nation-wide
key border checkpoints.
In 2007, the aggregate cross-border trade values
through transit mode between Thailand and China
were at 39.580 billion Baht accounted for 9.86 % of
aggregate cross-border trade values of Thailand with
five-neighbouring countries.
During 1996-2007, the average annual growth of
aggregate cross-border trade values through transit
mode between Thailand and China was at 42 %.
And the average cross-border trade export values
were higher than its import
values for 1.13 times. 50
Choen Krainara

25

Figure 3.7: CrossCross-Border Export Values Through Transit Mode from Thailand to
China During 19961996-2008 Through Major Border Checkpoints
45,000

40,000

35,000

MillionBah

30,000

25,000

20,000

15,000

10,000

5,000

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008 (JanApr)

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

Choen Krainara

51

Cross-Border Import Values Through Transit

Mode From China to Thailand

The aggregate cross-border trade import through transit

mode from China to Thailand went up steadily from
amounting 0.137 billion Baht in 1996 to 2.708 billion
Baht in 2007.

In recent decade, the average annual growth of crossborder trade import through transit mode from China to
Thailand was as high at 43.60 %.

In 2007, Padang Besar was also the key entry point for
importing transit goods from China through Malaysia,
which was accountable for as high at 42 % of total crossborder trade import values, followed by Chiangsaen
at 32 %.
Choen Krainara

52

26

CrossCross-Border Import Trade Values Through Transit Mode From China To Thailand
Thailand
During 19961996-2008 Through Major Border Checkpoints
45,000
40,000
35,000

M illio n Bah t

30,000
25,000
20,000
15,000
10,000
5,000
0
1996

1997

1998

1999

2000

2001

2002

Nongkhai
Chiangsaen
Mukdaharn
Total cross-border import values through transit mode

2003

2004

2005

2006

2007

2008 (JanApr)

Maesai
Chiangkhong
Padang Besar
Total cross-border trade values through transit mode

Choen Krainara

53

Map Displaying Geographical CrossCross-Border Trade Relationships Between

Thailand and China Through Chiangsaen Border Checkpoint in 2007

Others 233
23%

White pumkin seed 11,1%

Fresh vegetables
298, 30%

Multiplier Onion 18, 2%

Hydrocarbon Ferromanganese
26, 3%
Apple 126 , 12%

Sunflower seed 34, 3%

Processed woods 38, 4%
Garlic 64 ,6%
Pomegranate 74, 7%

,
Chinese
pear 86, 9%

Myanmar
Myanmar
Others 1,348
24%
Diesel oil 85,2%

LaoPDR
PDR
Laos

Other non
alcoholic
beverages,
120,2%

Rubber smoked sheets 1,361

25%

,
-

Block Rubber
136,2%
Gourmet powder
136,2%
Vegetable oil
253, 5%
Crepe sheets 283
5%
Rubber thread 367,6%
,

Dry longan 1,006

18%
,

Palm oil 560, 10%

Choen Krainara

54

27

Share of Border Trade Values through Transit Mode To International

International
Trade Values Between Thailand and China
During 19961996-2008 (January(January-April)
%
100
90
80
70
60
50
40
30
20
10
0
1996

1997

1998

1999

2000

2001

Share of total export of border trade

2002

2003

2004

2005

2006

2007

2008 (JanApr)

Share of total import of border trade

Share of total export of international trade

Share of total import of international trade

Choen Krainara

55

10) Thailand and Lao PDR

During 1996-2007, Thailand gained favorable
balance of cross-border trade, and the aggregate
cross-border export was higher than the aggregate
cross-border import at 1.1 times.
In 2007, the aggregate cross-border trade values
between Thailand and Laos PDR accounted for
11.75 % of aggregate cross-border trade values of
Thailand with five-neighbouring countries.

Choen Krainara

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28

CrossCross-Border Export Values From Thailand To Lao PDR From 19961996-2008 Through
Major Border Checkpoints
45,000

Million baht

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008 (JanApr)

Nongkhai

Bungkarn

Nakhonpanom

Mukdaharn

Thalee

Piboonmangsaharn

Chiangsan

Chiangkhong

Total Export of Border Trade

Total Export of International Trade

Choen Krainara

57

CrossCross-Border Trade Import Values From Laos PDR to Thailand During

19961996-2008 Through Major Border Checkpoints
12,000

Million Baht

10,000

8,000

6,000

4,000

2,000

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008 (JanApr)

Nongkhai
Mukdaharn

Bungkarn
Thalee

Nakhonpanom
Piboonmangsaharn

Chiangsan
Total Import of International Trade

Chiangkhong

Total Import of Border Trade

Choen Krainara

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29

Map Displaying Geographical CrossCross-Border Trade Relationships Between

Thailand and Laos PDR Through Nong Khai Border Checkpoint in 2007
2007

Lao PDR

Myanmar

Others 263,24%
Men and boys clothes
15,1%
Papers 14,1%
Uniforms 16,1%
Zinc ore 17,2%
Underwear for men and boys 18,2%
Resistor 18,2%
Live wire 28,3%
Parquet 41,4%

Processed wood
567,52%

Ignition wiring sets

used in vehicles 85,8%

Oil products 3,628

17%
Cars 1,632
8%
Others 12,797
62%

Pellet cement 813, 4%

Tyres 127, 1%

Woven fabrics 554, 3%

Knitted, fabrics 241, 1%
Medical equipments 174, 1%
Digger 133, 1%
Tiles 129, 1%
Polymers of Ethylene 129, 1%

Choen Krainara

59

Share of CrossCross-Border Trade Values To International Trade Values

Between Thailand and Laos PDR During 19961996-2008
100

90
80
70
60
50
40
30
20
10
0
1996

1997

1998

1999

2000

2001

Share of total export of border trade

Share of total export of international trade

2002

2003

2004

2005

2006

2007

2008 (JanApr)

Share of total import of border trade

Share of total import of international trade

Choen Krainara

60

30

11) Thailand and Myanmar

During 1996-2007, Thailand faced deficit balance of

cross-border trade.
As a result, the aggregate cross-border import was higher
than the aggregate cross-border export at three times.
In 2007, the aggregate border trade values between
Thailand and Myanmar accounted for 24.5 % of
aggregate border trade values of Thailand with fiveneighbouring countries.

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61

CrossCross-Border Export Values From Thailand To Myanmar During 19961996-2008

Through Major Border Checkpoints
25,000

Million Baht

20,000

15,000

10,000

5,000

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Maesai

Chiangsan

Maesariang

Maesod

Ranong

Sangkhlaburi

Total Export of Border Trade

Total Export of International Trade

Choen Krainara

2007

2008 (JanApr)

62

31

CrossCross-Border Trade Import Values From Myanmar To Thailand During

19961996-2008 Through Major Border Checkpoints
90,000

Million Baht

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Maesai

Chiangsan

Maesariang

Maesod

Ranong

Sangkhlaburi

Total Import of Border Trade

2006

2007

2008 (JanApr)

Total Import of International Trade

Choen Krainara

63

Map Displaying Geographical CrossCross-Border Trade Relationships Between

Thailand and Myanmar Through Maesod Border Checkpoint in 2007

Lao PDR
Laos PDR

Myanmar
Myanmar

Prawn 17,2%
Bamboo 19,2%
Black matpe beans
,
20,2%
Dry fish maw 20,2%

Others
141,145

Wood works 321

32%

Diesel oil 385,4%

Gourmet powder
396,3%
Vegetable oil 305,3%
,
,

Live cow and

Buffalo 66,7%
Mixed fish
125,13%

Motorcycles 289,3%
,

Mixed prawn shell,

32, 3%
Cashew nut ,
43,4%

,
,

Woven cloth with various colours 269,3%

,

Lead Acid 224, 2%

Benzene oil 221, 2%
Fishing net 190, 2%
Human drugs 171,2%
,

Crab 187
19%

Non sweetened milk 124, 1%

Others 8,028
75%
,

Choen Krainara

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32

Share of CrossCross-Border Trade Values To International Trade Values

Between Thailand and Myanmar During 19961996-2008
100

90
80
70
60
50
40
30
20
10
0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Share of total export of border trade

Share of total import of border trade

Share of total export of international trade

Share of total import of international trade

Choen Krainara

2006

2007

2008 (JanApr)

65

Conclusions
Trade agreements in the ASEAN region in general and in
the GMS in particular have already driven both intraASEAN trade and cross-border trade in the GMS.
Cross-border trade gaps in the GMS need to be minimized
through preferential duty free access from more advanced to
less advanced countries towards fair trade.
Technical assistance, capacity building or Aid for
Trade should be rendered to less advanced countries so
that they can be efficiently integrated into the GMS crossborder trade interaction/relations.

Choen Krainara

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33

Thank You

Choen Krainara

67

34