Border Closings Slow Thai-Myanmar Trade

By Mick Elmore · Bangkok Correspondent

BANGKOK — Relations between Thailand and Myanmar (formerly Burma) hit a new low in June and July as Myanmar shut down border crossings between the two countries.

Myanmar claims Thailand is supporting the Shan State Army, an ethnic group fighting for more autonomy from Myanmar's central government in Yangon. Shan State is in the northeastern corner of Myanmar, bordering Thailand along the northern part of their shared border. Thailand denies that it is supporting the Shan, but will not allow troops from Myanmar to enter Thai territory to pursue anti-Yangon forces.

As a result, Myanmar closed all checkpoints along the 2,400-kilometer (1,500-mile) border on May 21. Economists in Bangkok say the closing costs border traders, including gem merchants, more than $3 million a day.

The current closing — there have been several the past few years — is more severe than past closings and has slowed the flow of gemstones coming across the border.

The closings are only adding to the difficulties of getting gems from Myanmar. According to Myanmar-watchers, the government is giving the best mining areas to military generals and powerful people, forcing the independent miners out of the mining areas. The high-ranking military personnel are using the claims as a hedge against the countries collapsing currency, the khat.

"The khat is worthless on the world market now and in a tailspin. So the military people are taking the stones [mines], the better stones, and burying them for later use," one Myanmar expert told Colored Stone.

He added that the border situation was being aggravated by the generals in Myanmar, perhaps as a way for them to divert attention from the country's contracting economy.

However, the market for stones in Bangkok is so down right now that it's numb to the border closings.

Bangkok dealers say the slow market is the result of many things, the biggest one being the recent orange sapphire controversy. Some Bangkok dealers blame the locals' unwillingness to address the issue for the continued contraction of the sapphire market.

The situation between Thailand and Myanmar continued to deteriorate in June and July with tit-for-tat banning of journalists. First Thailand on June 28 declared two reporters from Myanmar personas non grata for offending the Thai monarchy. Not to be outdone, on July 12 Myanmar blacklisted 15 Thai journalists. At press time the border remained closed, and relations between the two countries showed no sign of improving.

Posted: July 24, 2002