Political Dynamism and the Thailand-Myanmar Border Trade in Mae Sot: From Black Market Era to the SEZ

Abstract

Border trade is a general economic activity between neighboring countries that share border lines. Border trade practices between Thailand and each of her neighboring countries are different from one another, depending on several factors. However, Thailand-Myanmar border trade is very dynamic

and unique in the sense that their trade is always influenced immensely by their political context, mostly on Myanmar’s side.

This paper argues that the Thailand-Myanmar border trade, which mainly takes place at Mae Sot, cannot be separated from the political dynamism of the two countries. The paper examines the political changes from the past up until the present, analyzes the trade practices according to the specific period of time, and points out relations between border trade and political context. The paper also argues that the new policy of the Special Economic Development Zone of the Thai military government was not purely driven by economic reasons but also the traditional concept of national security.