Trade Disrupted by Border Restrictions
The escalating Thai-Cambodian border dispute, intensified by a May 28, 2025, clash that illiminated a Cambodian soldier, is severely impacting Trat province’s economy, particularly its fruit export sector, as reported on June 22, 2025. Local businesses report declining trade and investor confidence due to restricted border hours and Cambodia’s ban on Thai agricultural products, which has left cargo trucks stranded at crossings like Ban Hat Lek.
Fruit Exports Take a Hit
Mangosteen Farmers Face Losses
Trat’s fruit farmers, reliant on Cambodia for 5–10% of their mangosteen exports, are struggling as Cambodia enforces a ban on Thai produce, effective June 17, 2025, following a 24-hour ultimatum by former Cambodian leader Hun Sen. With 50,000 tonnes of mangosteen ready for distribution in 2025, farmers like those in Trat’s agricultural cooperatives fear significant losses if the ban persists, threatening their livelihoods.
Tourism and Trade Decline
Border Closures Deter Visitors
Beyond agriculture, Trat’s tourism sector is suffering as tightened border controls deter Cambodian visitors and restrict Thai travelers. The province’s 30 billion baht export market to Cambodia, compared to 3–4 billion baht in imports, faces disruption, with reduced product flow impacting local manufacturing and sales. A permanent border closure could devastate Trat’s economy, warns the local Chamber of Commerce.
Business Leaders Demand Action
Calls for Diplomatic Resolution
Wipa Sunate, chairwoman of Trat’s Chamber of Commerce, is pressing the Thai government to resolve the dispute diplomatically to restore trade stability. Plans are underway to escalate concerns to the national Thai Chamber of Commerce, urging preventive measures to protect Trat’s economy. The private sector emphasizes swift dialogue to avoid further harm to the 175.53 billion baht Thai-Cambodian border trade recorded in 2024.
Government Steps In to Support Farmers
Thai Fruit Festival Planned
The Thai-Cambodian Border Operations Centre announced initiatives on June 21, 2025, to aid affected farmers, including the “Thai Fruit Festival 2025” with malls and wholesalers, free mango distribution at 1,097 gas stations, and partnerships with companies like AirAsia and Tao Bin for fruit-based products. These efforts aim to offset losses from Cambodia’s ban, which blocks access to key markets like Koh Kong.
Tighter Controls on Cambodian Imports
Protecting Thai Farmers
Commerce Minister Pichai Naripthaphan has directed the Foreign Trade Department to scrutinize cassava imports from Cambodia, citing concerns over low-quality products destabilizing Thai markets. This retaliatory measure, announced on June 22, 2025, seeks to shield local farmers amid tit-for-tat trade restrictions, as Cambodia also halts Thai media and internet links, deepening the economic rift.
Uncertain Path to Recovery
Diplomatic Talks Stall
With bilateral talks, including a June 14, 2025, meeting in Phnom Penh, yielding no breakthrough, and Cambodia’s push for International Court of Justice arbitration rejected by Thailand, the border dispute remains unresolved. Local economies in Trat face mounting losses, with potential monthly economic damage estimated at 10 billion baht if all crossings close. Urgent negotiations are critical to revive Trat’s fruit exports and stabilize regional trade.
