regional trade agreements and cross-border trade in the greater mekong sub-region

1

Choen KrainaraChoen Krainara 11

A Guest Lecture A Guest Lecture onon

Trade Agreements andTrade Agreements and CrossCross--Border Trade Border Trade in the Greater Mekong Subin the Greater Mekong Sub--region region

at at Regional Economic Integration and the People in the Regional Economic Integration and the People in the Greater Mekong SubGreater Mekong Sub--region Interregion Inter--Semester Course, Semester Course,

SERD, AITSERD, AIT

bybyChoen Krainara, Choen Krainara, PhD CandidatePhD Candidate

Regional and Rural Development Planning Field of StudyRegional and Rural Development Planning Field of StudySERD, AITSERD, AIT2 July 20092 July 2009


ContentsContentsConsist of 2 major partsConsist of 2 major parts1.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.g 1.2 Subregional (Micro) trade agreements e.g Ayeyawady Ayeyawady -- Chao Phraya Chao Phraya -- Mekong Economic Mekong Economic Cooperation Strategy (ACMECS)Cooperation Strategy (ACMECS)


1.1 Regional (Macro) trade agreements1.1 Regional (Macro) trade agreements1) ASEAN Free Trade Area (AFTA)1) ASEAN Free Trade Area (AFTA)

The old six member countries of ASEAN comprise The old six member countries of ASEAN comprise Brunei, Indonesia, Malaysia, the Philippines, Singapore Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailandand Thailand, while the new members, while the new members’’ countries are countries are Vietnam, Laos PDR, Myanmar and CambodiaVietnam, Laos PDR, Myanmar and Cambodia. . The old member countries will reduce import duties of The old member countries will reduce import duties of Inclusion List (IL)Inclusion List (IL) within the Common Effective within the Common Effective Preferential Tariff Scheme (CEPT) to 0Preferential Tariff Scheme (CEPT) to 0--5 % within 2003 5 % within 2003 and and to become zero (0) % within 2010to become zero (0) % within 2010..Whereas the newer member countriesWhereas the newer member countries will lower import will 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 2010 Laos PDR and Myanmar in 2008; Cambodia in 2010 and and 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 105,123 The 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 content In any case, it do not wholly obtain local content materials from an ASEAN member country; materials from an ASEAN member country; a minimum a minimum of 40% of local content of F.O.B prices will be accepted of 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 of In addition, it can also be calculated cumulative rules of origin within ASEAN with required minimum of origin within ASEAN with required minimum of combined local content at 20 %.combined local content at 20 %.It is also compulsory among member countries to It is also compulsory among member countries to concurrently concurrently phase out nonphase out non--tariff barrierstariff barriers so that it can so that it can help advance towards help advance towards ASEAN Economic Community ASEAN 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 six It is a measure to grant special treatment from old six countries of ASEAN to new members comprising countries of ASEAN to new members comprising Cambodia, Laos PDR, Myanmar and VietnamCambodia, Laos PDR, Myanmar and Vietnam under under Initiative for ASEAN Integration: IAI which is bilaterally Initiative for ASEAN Integration: IAI which is bilaterally given One Way Free Trade basis of import without prior given One Way Free Trade basis of import without prior negotiation, negotiation, Its main objectives were Its main objectives were to promote and expand trade and to promote and expand trade and investments within intrainvestments within intra--ASEAN region, as well as ASEAN region, as well as reducing development gaps between old and new reducing 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 some wood 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 grantedAISP treatment

Year

Cumulative Numbers of Commodity that Thailand Granted AISP Cumulative 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 AgreementAgreement on Trade in Goods of the FrameworkAgreement on Trade in Goods of the Framework

Agreement on Comprehensive Economic CooperationAgreement on Comprehensive Economic Cooperationbetween the ASEAN and China has been signed on between the ASEAN and China has been signed on 29 November 2004, leading to gradual trade 29 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 agricultural consisted of agricultural

products within the customs Harmonized Standard products within the customs Harmonized Standard numbers 01numbers 01--08 comprising livestock, meat and other 08 comprising livestock, meat and other edible parts of animal, fish, dairy products, eggs of edible parts of animal, fish, dairy products, eggs of chicken and duck, animal products, trees, vegetables and chicken and duck, animal products, trees, vegetables and fruits and edible nuts, including specific products which fruits 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 started China and old ASEAN member countries started reducing import tariffs on 1 January 2004, and were reducing 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 were The rest of newer ASEAN member countries were given flexible treatment on tariff lines and time frame given flexible treatment on tariff lines and time frame for tariffs reduction, for tariffs reduction, but there must bebut there must be zero (0) % by zero (0) % by 20102010. . It was conditionally reduced tariffs only within It was conditionally reduced tariffs only within import quotas particularly on onion and garlicimport quotas particularly on onion and garlic. . Furthermore, Thailand and China bilaterally Furthermore, Thailand and China bilaterally accelerated tariff elimination for the Early Harvest accelerated tariff elimination for the Early Harvest Program of the customs Harmonized Standard Program of the customs Harmonized Standard number 07number 07--08 consisting of vegetables and fruits08 consisting of vegetables and fruits to to become zero (0) % by 1 October 2003.become zero (0) % by 1 October 2003.


Tariff Reduction for General Tariff Reduction for General Commodities ProgramCommodities Program

Normal TrackNormal TrackTariff rate of all commodities will be reduced to zero (0) % by Tariff 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 TrackIt was agreed that there will be reduced tariff to be 20 % by It 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 both Rules of origin are applied both wholly obtained and minimum wholly 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--Sectoral Sectoral Technical and Economic Cooperation Technical and Economic Cooperation (BIMSTEC)(BIMSTEC)BIMSTEC BIMSTEC consisted of seven countries namely consisted 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 of It has combined populations of 1,300 millions or 1,300 millions or 21 % of world populations21 % of world populations, but currently there are , but currently there are limited trade transaction and values among limited trade transaction and values among member countries.member countries.

BIMSTEC is sort of southBIMSTEC is sort of south--south cooperation; it south cooperation; it is also a convergence of foreign policies between is also a convergence of foreign policies between ““Look WestLook West”” of Thailand and of Thailand and ““Look EastLook East”” of of IndiaIndia


Member countries have signed agreement on BIMSTEC Member countries have signed agreement on BIMSTEC Free Trade Area on 8 January 2004, and became effective Free Trade Area on 8 January 2004, and became effective by 1 July 2006.by 1 July 2006.Its principal objectives were to stimulate trade and Its principal objectives were to stimulate trade and investments within intrainvestments within intra--BIMSTEC as well as attracting BIMSTEC 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 ReductionsNormal 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 countriesCountries

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, andThailand

Time frame for LDC party

Time frame for developing country

partiesCountries


1.2 Subregional (Micro) trade agreements1.2 Subregional (Micro) trade agreements1) Ayeyawady 1) Ayeyawady -- Chao Phraya Chao Phraya -- Mekong Economic Cooperation Mekong Economic Cooperation

Strategy (ACMECS) in short called ECSStrategy (ACMECS) in short called ECSIt is a four nations economic cooperation strategy initiated in It is a four nations economic cooperation strategy initiated in 2003 2003 consisting of Cambodia, Lao PDR, Myanmar and Thailandconsisting of Cambodia, Lao PDR, Myanmar and ThailandAims to reduce trade barriers, improve transport linkages and Aims 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 Free ee Trade for Trade 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 million n 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 million n 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 sources ces 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 Economic region Economic

Cooperation ProgramCooperation ProgramPromoting and facilitating intraPromoting and facilitating intra--GMS and extraGMS and extra--GMS GMS trade particularly on agricultural trade, investment and trade particularly on agricultural trade, investment and tourism are keys to foster economic growth as well as tourism 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--border border 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 20 Border Transport Agreement (CBTA) with total 20 annexes was set up in 2003 aiming to deals with speedy annexes was set up in 2003 aiming to deals with speedy facilitation of customs and immigration procedures at the facilitation of customs and immigration procedures at the borderborder--crossing points thus resulting in increase trade crossing points thus resulting in increase trade flows both intraflows both intra--GMS and extraGMS and extra--GMS. GMS.


Full implementation of this agreement and its Full implementation of this agreement and its annexes and protocols is expected to complete by annexes 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 GMS2.1 Overall 2.1 Overall CrossCross--border trade in the GMSborder trade in the GMS

2.2 Bilateral 2.2 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 26.7 ASEAN 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 gain Larger 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 to o other GMS partner countries.other GMS partner countries.

•• Agricultural trade originating from Lao PDR, Cambodia and Agricultural trade originating from Lao PDR, Cambodia and Myanmar in particular plays heavily important role in their Myanmar in particular plays heavily important role in their economies. economies.

•• These countries export approximately 50These countries export approximately 50--60 % of agricultural 60 % of agricultural products to other GMS countries.. products to other GMS countries..


•• There is increasing degree of regional There is increasing degree of regional integration through agricultural trade. integration through agricultural trade.

•• For welfare impact, the general experience For welfare impact, the general experience across all countries seems very positive, across all countries seems very positive, although some countries or border although some countries or border communities have clearly benefited much communities have clearly benefited much more than others. more than others.

•• So crossSo cross--border trade can significantly border 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 strong The informal sector has strong

implications for antiimplications for anti--poverty policy and poverty policy and distribution of gains from trade, mainly in Lao distribution of gains from trade, mainly in Lao and Cambodian borders. and Cambodian borders.

•• Informal trade accounted for 20Informal trade accounted for 20--30 % of total 30 % of total border trade.border trade.

•• Formal flows:Formal flows: Formal trading channel account Formal trading channel account for the bulk of crossfor the bulk of cross--border trade, consisting of border 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 PDR 1) Lao PDR andand ChinaChinaTwo Northern provinces of Lao connect with ChinaTwo Northern provinces of Lao connect with ChinaOudomxay 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 and construction materials, machinery and

household goodshousehold goods--are for local consumption. are for local consumption.

--There has been a change of pattern of exports from There 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 % agricultural 30 % 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 % of 90 % 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, vehicles Major imports are clothes and consumer goods from, vehicles and spare parts, agricultural tools and food both from China and 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 VietnamMoung Caui Gate in Quaung Ninh province of Vietnam Moung Caui Gate in Quaung Ninh province of Vietnam and Dongxing town of Guangxi province of China are and 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 order border trade is now gradually being put in order e.g. payment mechanism at the branches of the two e.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 are s key exports are electroelectro--mechanical products, mechanical products, telecommunications equipment and chemicals.telecommunications equipment and chemicals.While While Vietnam mainly exports Vietnam mainly exports agroagro--forestryforestry--aquatic aquatic products and minerals. products and minerals. Vietnam has established Moc Cai border economic Vietnam has established Moc Cai border economic zone linking with China and has planned to add more zone linking with China and has planned to add more 27 border economic zones in 17 provinces across the 27 border economic zones in 17 provinces across the country.country.


3) Lao PDR and Vietnam3) Lao PDR and VietnamBoth countries have agreed to promote trade in Both countries have agreed to promote trade in their border areas in order to contribute to meet their border areas in order to contribute to meet their target of 1 billion USD in twotheir target of 1 billion USD in two--way trade way trade turnover y 2010.turnover y 2010.The key measures to reach this goal are to The key measures to reach this goal are to

remove obstacle to policies, simplify commercial remove obstacle to policies, simplify commercial procedures at border gates, improve infrastructure procedures at border gates, improve infrastructure at border areas, and facilitate crossat border areas, and facilitate cross--border trade border trade and activities.and activities.

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4) Cambodia and Lao PDR4) Cambodia and Lao PDRThere is unavailable of crossThere is unavailable of cross--border trade border trade data/information of both countries data/information of both countries (particularly via the internet). (particularly via the internet).


5) Lao PDR and Myanmar5) Lao PDR and MyanmarLuang Namtha province links with Myanmar. Luang Namtha province links with Myanmar.

Siengkok border checkpoint acts as a major Siengkok 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 trade border trade between these two countries.between these two countries.

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6) Cambodia and Vietnam6) Cambodia and VietnamTrade between Cambodia and Vietnam reached 1.7 billion USD in thTrade between Cambodia and Vietnam reached 1.7 billion USD in the first e 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 new border trade both countries have signed a new trade facilitation agreement. trade facilitation agreement.

Cambodia Cambodia exported about 250 million USD in goodsexported about 250 million USD in goods to Vietnam in 2007 to Vietnam in 2007 equal to 30 % of total exports.equal to 30 % of total exports. The The main exports were cashews, rice and main exports were cashews, rice and tobacco. tobacco.

Cambodia imported Cambodia imported construction materials and agricultural productsconstruction materials and agricultural products from from 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 40 ess 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 economic conomic zones along the border and about 20 border crossings in order tozones along the border and about 20 border crossings in order to facilitate facilitate trade between these two countries.trade between these two countries.


7) Myanmar and China7) Myanmar and ChinaChina 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 with connect with Kunming. Kunming. After opening up of border trade in After 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 road goods markets in Myanmar. In addition, it included road vehicles, power generators, electrical machinery and apparatus avehicles, power generators, electrical machinery and apparatus and manufactures nd manufactures of metal. of metal.

Myanmar exports Myanmar exports cork of wood, vegetables and fruit, metaliferous ores and metal cork 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 and ubber, cork and wood manufactures.wood manufactures.

Border trade made up about 50 % of China exports to Myanmar and Border 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 of s 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 Cambodia9)Thailand and Yunnan province of Southern 9)Thailand and Yunnan province of Southern

ChinaChina10) Thailand and Lao PDR10) Thailand and Lao PDR11) Thailand and Myanmar11) Thailand and Myanmar


CrossCross--Border Trade and Commerce Relations Border Trade and Commerce Relations Between Thailand and Neighbouring CountriesBetween Thailand and Neighbouring Countries

•• CrossCross--border trade is one of the key indicators of closer border trade is one of the key indicators of closer interdependence between Thailand and neighbouring interdependence between Thailand and neighbouring countries.countries.

•• In 1988, Thailand has proclaimed a policy of turning In 1988, Thailand has proclaimed a policy of turning ““Indochina battlefields into a marketplaceIndochina battlefields into a marketplace””..

•• This, coupled with the GMS Regional Economic This, coupled with the GMS Regional Economic Integration Program has further pushed Thailand to Integration Program has further pushed Thailand to deepen economic relationships with neighbouring deepen 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 Border der Checkpoints in Thailand Physically Connecting with Neighbouring Checkpoints in Thailand Physically Connecting with Neighbouring CountriesCountries


Overall Assessment of CrossOverall Assessment of Cross--border Trade and border Trade and Commerce Relations Between Thailand and FiveCommerce Relations Between Thailand and Five--Neighbouring Countries (Cambodia, China, Lao Neighbouring Countries (Cambodia, China, Lao

PDR, Myanmar and Malaysia)PDR, Myanmar and Malaysia)

1)1) Cumulative CrossCumulative Cross--Border Trade Values of Border Trade Values of Thailand With FiveThailand With Five--Neighbouring Countries Neighbouring Countries During 1996During 1996--2008 (January2008 (January--April)April)

•• The cumulative crossThe cumulative cross--border trade values of border trade values of Thailand with fiveThailand with five--neighbouring countries were neighbouring countries were significantly amounted at 2,317.53 billion Baht significantly amounted at 2,317.53 billion Baht represented represented at 20.51 %at 20.51 % of cumulative trade values of 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 from border export from Thailand to these neighbouring countries was as high Thailand to these neighbouring countries was as high at at 59.06 %.59.06 %.

•• While the share of crossWhile the share of cross--border import from these border import from these neighbouring countries were at neighbouring 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 cumulative As 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 Between Border Trade Values Between Thailand and FiveThailand and Five--Neighbouring CountriesNeighbouring Countries

•• CrossCross--border trade has played steadily significant role border trade has played steadily significant role in bridging closer relations between Thailand and in bridging closer relations between Thailand and neighbouring countries reflecting great extent of neighbouring countries reflecting great extent of interdependence in the GMS. interdependence in the GMS.

•• Due to close proximity, coupled with regional trade Due to close proximity, coupled with regional trade agreements effects with bordering countries and agreements effects with bordering countries and gradually convenient transport network, crossgradually convenient transport network, cross--border border trade has shown on the rising trend.trade has shown on the rising trend.

•• The The average annual crossaverage annual cross--border trade growth of border 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 of border 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 Import Border Trade Export and Import Between Thailand and FourBetween Thailand and Four--Neighbouring Countries and Transit Neighbouring 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)

Mill

ion

Baht

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


Aggregate Balance of CrossAggregate Balance of Cross--Border Trade Between Border Trade Between Thailand and FourThailand and Four--Neighbouring Countries and Neighbouring Countries and

Transit Trade Balance With ChinaTransit Trade Balance With China

•• In general, Thailand has gained favorable trade In general, Thailand has gained favorable trade balances with bordering trading partner countries balances with bordering trading partner countries which were rather reasonable amount from which were rather reasonable amount from 13.678 billion Baht in 1996 to 18.827 billion Baht 13.678 billion Baht in 1996 to 18.827 billion Baht in 1999. in 1999.

•• Later, it steeply escalated, despite facing negative Later, it steeply escalated, despite facing negative trade balance with Myanmar, from 39.887 billion trade balance with Myanmar, from 39.887 billion Baht in 2000 to 69.901 billion Baht in 2007 Baht in 2000 to 69.901 billion Baht in 2007 reflecting as high growth at 34 % during this reflecting as high growth at 34 % during this period. period.

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-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

MalaysiaChinaCambodiaLao PDRMyanmarAggregate Balance of Cross-Border Trade Between Thailand and Four-Neighbouring Countries and Balance of Transit Trade With ChinaAggregate Cross-Border Trade Values Between Thailand and Four-Neighbouring Countries and Transit Trade Values With China


•• Yet, Thailand acquired most positive balance of Yet, Thailand acquired most positive balance of crosscross--border trade with Laos PDR, followed by border 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 at 2007 was at 28.5%28.5% which is which is regarded as high performance due to certain regarded 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 during border trade between Thailand and Myanmar during 19961996--2007 was at 2007 was at --21.81%. 21.81%.

•• However, it appears that the trend of balance of However, it appears that the trend of balance of crosscross--border trade with neighbouring countries is border trade with neighbouring countries is slightly rising. slightly rising.

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CrossCross--Border Trade Gaps Between Thailand Border Trade Gaps Between Thailand and Fiveand Five--Neighbouring CountriesNeighbouring Countries

•• Thailand generally gained significant balance of Thailand generally gained significant balance of crosscross--border trade with neighbouring countries. border trade with neighbouring countries.

•• Consequently, there has been emerging of trade Consequently, there has been emerging of trade gaps.gaps.

•• During 1996During 1996--2008, (January2008, (January--April), April), Cambodia Cambodia has been experiencing such fluctuating trade has been experiencing such fluctuating trade gaps with Thailand the annual average at gaps with Thailand the annual average at 19.43 19.43 timestimes..

•• China 9.16 times; Lao PDR 4.17 times; Malaysia China 9.16 times; Lao PDR 4.17 times; Malaysia 1.53 times and Myanmar 1.53 times and Myanmar --0.42 time0.42 time. .


Share of Aggregate CrossShare of Aggregate Cross--Border Trade To Border Trade To International Trade Between Thailand and International Trade Between Thailand and

FiveFive--Neighbouring CountriesNeighbouring Countries•• It to some extent indicates a diverging trend of It to some extent indicates a diverging trend of

trading pattern comprehensively meaning that the trading pattern comprehensively meaning that the share of share of aggregate crossaggregate cross--border trade tends to be border trade tends to be growinggrowing..

•• While While the share of aggregate international trade is the 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 and greater degree of physical connectivity and accessibility in the GMS. accessibility in the GMS.

22


Share of Aggregate CrossShare of Aggregate Cross--Border Trade to International Border 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 total export of border trade Share of total import of border tradeShare of total export of international trade Share of total import of international trade


State of CrossState of Cross--Border Trade Relations With Border Trade Relations With Individual Neighbouring CountriesIndividual Neighbouring Countries

This assessment found that the pattern of crossThis assessment found that the pattern of cross--border border trade and commerce between Thailand and neighbouring trade and commerce between Thailand and neighbouring countries greatly countries greatly varied from one countryvaried from one country to another to another depending on its particular depending on its particular comparative advantagecomparative advantage, , division of labor anddivision of labor and specialization of productionspecialization of production. . ThailandThailand mainly mainly exportedexported consumer and intermediate consumer and intermediate goods, motorcycles and cars and its spare parts, oils, and goods, motorcycles and cars and its spare parts, oils, and some capital goods to neighbouring countries, and some capital goods to neighbouring countries, and importedimported primary goodsprimary goods, agricultural and fishery , agricultural and fishery products, natural gas, and intermediate goods from products, natural gas, and intermediate goods from neighbouring countries. neighbouring countries. In addition, crossIn addition, cross--border retail trades are always border 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 conduct Rural 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 import border 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--border border trade values between Thailand and Cambodia trade values between Thailand and Cambodia accounted for accounted for 8.43 %8.43 % of aggregate crossof aggregate cross--border border trade values between Thailand and fivetrade values between Thailand and five--neighbouring countries.neighbouring countries.


•• CrossCross--Border Export Values from Thailand Border Export Values from Thailand To CambodiaTo CambodiaIn recent decade, the average annual crossIn recent decade, the average annual cross--border border export growth was at 42.81 %, which is regarded export growth was at 42.81 %, which is regarded at soaring rate.at soaring rate.Aranyaprathet border checkpointAranyaprathet border checkpoint was the most was the most important gateway linking with Cambodia, which important gateway linking with Cambodia, which was responsible for as high about half of total was 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)

Million Baht

Aranyaprathet Klongyai ChantaburiChongchom Piboonmangsaharn KhaodinTapraya Total Export of Border Trade Total Export of International Trade

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)

Million Baht

Aranyaprathet Klongyai ChantaburiChongchom Piboonmangsaharn KhaodinTapraya Total Import of Border Trade Total Import of International Trade

25


Map Displaying Geographical CrossMap Displaying Geographical Cross--Border Trade Relationships Between Border 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 aluminium175,13%

Exported goods53,4%

Soybean grain128,10%

Corn for livestock Feed 159,12

Ready made Clothes 37,3%

Second-hand clothes177,14%

,

Others99,8%

,

Remnant of iron336,26% ,

Motorcycles 1,4438%

, ,

Others 10,13859 %, ,

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 of border trade is performed on the basis of transit mode mainly facilitated to/from nationtransit mode mainly facilitated to/from nation--wide wide key border checkpoints. key border checkpoints.

•• In 2007, the aggregate crossIn 2007, the aggregate cross--border trade values border trade values through transit mode between Thailand and China through transit mode between Thailand and China were at 39.580 billion Baht accounted for were at 39.580 billion Baht accounted for 9.86 %9.86 % of of aggregate crossaggregate cross--border trade values of Thailand with border trade values of Thailand with fivefive--neighbouring countries.neighbouring countries.

•• During 1996During 1996--2007, the average annual growth of 2007, the average annual growth of aggregate crossaggregate cross--border trade values through transit border 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 values border 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 to Border 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)

Mill

ion

Bah

Nongkhai MaesaiChiangsaen ChiangkhongSadao Padang BesarBetong Prachuap Khiri KhanMukdaharn Total cross-border export values through transit modeTotal cross-border trade values through transit mode


•• CrossCross--Border Import Values Through Transit Border Import Values Through Transit Mode From China to ThailandMode From China to Thailand

The aggregate crossThe aggregate cross--border trade import through transit border trade import through transit mode from China to Thailand went up steadily from mode from China to Thailand went up steadily from amounting 0.137 billion Baht in 1996 to 2.708 billion amounting 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 to border 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 for In 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 Chiangsaen border 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 Thailand ailand During 1996During 1996--2008 Through Major Border Checkpoints 2008 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)

Mill

ion

Baht

Nongkhai MaesaiChiangsaen ChiangkhongMukdaharn Padang BesarTotal cross-border import values through transit mode Total cross-border trade values through transit mode


Map Displaying Geographical CrossMap Displaying Geographical Cross--Border Trade Relationships Between Border Trade Relationships Between Thailand and China Through Chiangsaen Border Checkpoint in 2007Thailand and China Through Chiangsaen Border Checkpoint in 2007

Laos PDR

Myanmar

Hydrocarbon Ferromanganese26, 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 23323% Fresh vegetables

298, 30%

Block Rubber136,2% ,

Vegetable oil253, 5%

, ,

Palm oil 560, 10%,

Gourmet powder136,2%

, ,

Crepe sheets 2835%

, ,

Rubber thread 367,6%,

Other non alcoholic beverages,

120,2%

-,

Diesel oil 85,2%

,

Dry longan 1,00618%

,

Others 1,34824%

, ,

Rubber smoked sheets 1,36125%,

Lao PDR

Myanmar

28


Share of Border Trade Values through Transit Mode To InternationShare of Border Trade Values through Transit Mode To International al Trade Values Between Thailand and China Trade 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 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


10) Thailand and Lao PDR10) Thailand and Lao PDR•• During 1996During 1996--2007, Thailand gained favorable 2007, Thailand gained favorable

balance of crossbalance of cross--border trade, and the aggregate border trade, and the aggregate crosscross--border export was higher than the aggregate border 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 values border trade values between Thailand and Laos PDR accounted for between Thailand and Laos PDR accounted for 11.75 %11.75 % of aggregate crossof aggregate cross--border trade values of border 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 ThroughMajor 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 NakhonpanomMukdaharn Thalee PiboonmangsaharnChiangsan Chiangkhong Total Export of Border TradeTotal Export of International Trade


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

Million Baht

Nongkhai Bungkarn NakhonpanomMukdaharn Thalee PiboonmangsaharnChiangsan Chiangkhong Total Import of Border TradeTotal Import of International Trade

30


Map Displaying Geographical CrossMap Displaying Geographical Cross--Border Trade Relationships Between Border Trade Relationships Between 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 setsused in vehicles 85,8%

Others 263,24%

Processed wood567,52%

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 1,6328%

Others 12,79762%

Oil products 3,62817%

Myanmar Lao PDR


Share of CrossShare of Cross--Border Trade Values To International Trade Values Border 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)

%

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

31


11) Thailand and Myanmar11) Thailand and Myanmar

•• During 1996During 1996--2007, Thailand faced deficit balance of 2007, Thailand faced deficit balance of crosscross--border trade. border trade.

•• As a result, the aggregate crossAs a result, the aggregate cross--border import was higher border import was higher than the aggregate crossthan the aggregate cross--border export at border export at three timesthree times. .

•• In 2007, the aggregate border trade values between In 2007, the aggregate border trade values between Thailand and Myanmar accounted for Thailand and Myanmar accounted for 24.5 %24.5 % of of aggregate border trade values of Thailand with fiveaggregate border trade values of Thailand with five--neighbouring countries. neighbouring countries.


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 MaesariangMaesod Ranong SangkhlaburiTotal Export of Border Trade Total Export of International Trade

32


CrossCross--Border Trade Import Values From Myanmar To Thailand During Border 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)

Million Baht

Maesai ChiangsanMaesariang MaesodRanong SangkhlaburiTotal Import of Border Trade Total Import of International Trade


Map Displaying Geographical CrossMap Displaying Geographical Cross--Border Trade Relationships Between Border Trade Relationships Between Thailand and Myanmar Through Maesod Border Checkpoint in 2007Thailand and Myanmar Through Maesod Border Checkpoint in 2007

Laos PDRMyanmar

Black matpe beans20,2% ,

Mixed prawn shell32, 3%

,

Mixed fish125,13%

Dry fish maw 20,2%

Cashew nut43,4%

,

Live cow and Buffalo 66,7%

Bamboo 19,2%

Prawn 17,2%

Crab 18719%

Others141,145 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 8,02875%

, ,

Gourmet powder396,3%

,

Lao PDRMyanmar

33


Share of CrossShare of Cross--Border Trade Values To International Trade Values Border 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 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


ConclusionsConclusions•• Trade agreements in the ASEAN region in general and in Trade 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 minimized border trade gaps in the GMS need to be minimized through preferential duty free access from more advanced to through preferential duty free access from more advanced to less advanced countries towards less advanced countries towards fair tradefair trade..•• Technical assistance, capacity building or Aid for Technical assistance, capacity building or Aid for Trade should be rendered to less advanced countries so Trade 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


Thank YouThank You

regional trade agreements and cross-border trade in the greater mekong sub-region

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