Closer Thailand-Myanmar Ties Expected with U.S. Sanctions

The U.S. government’s decision to extend a ban on Myanmar imports for three years is expected to forge closer trade ties withThailand according to experts from the Thai Industry Ministry.  

President Thain Sein signed three Memoranda of Understanding with Thai Prime Minister Yingluck Shinawatra for assistance in promoting security, logistic, and infrastructure.

Both countries also renewed their commitment to the controversial Dawei (Tavoy) deep-sea port and special economic zone in southern Myanmar.

PTT Plc, Thailand’s state-owned energy giant pledged to return excess gas to alleviate a chronic power shortfall in Myanmar while also signing a deal with the Burmese Energy Ministry to explore two blocks with Myanmar energy company Win Precious Resources Pte Ltd as a joint venture. PTT already has four natural gas blocks in Myanmar which can produce 1.1 billion cubic feet per day for the Thai domestic market.

Bilateral trade between Myanmar and Thailand increased by around 25 per cent in the last fiscal year and the value of trade between the two countries stood at US$ 4.5 billion in 2011-2012.

Before 2009-2010 fiscal year, Thailand was the largest investor in Burma for six consecutive years until China overtook the Kingdom in 2010-2011 with large energy sector outlays, according to the Myanmar Investment Committee.