Border dispute spills into trade: Cambodia slams Thai import fee proposal as ASEAN violation

PHNOM PENH, Cambodia (Oct. 3, 2025) — Tensions along the Cambodia–Thailand border are spilling into the economic sphere, as Thai economists propose new trade barriers that Cambodian officials say would violate ASEAN’s free trade framework.

Thai economist Chartchai Parasuk, quoted in the Bangkok Post, suggested Thailand impose permit fees—19% on imports and 5% on exports—as economic retaliation for the ongoing border dispute. He argued the fees could be framed as administrative charges rather than tariffs, sidestepping ASEAN trade rules.

Cambodian economist Ky Sereyvath of the Royal Academy of Cambodia rejected the proposal as legally flawed and economically reckless. “Thailand is an ASEAN member. No country in ASEAN can impose exclusive trade permits on another member state under the existing framework,” Sereyvath said. “That’s the law.”

He added such measures would only be legal “if Thailand withdraws from ASEAN,” a move he called highly unlikely and regionally damaging.

The proposal comes as Thai military forces maintain a unilateral border closure, citing national security concerns. Thai Prime Minister Anutin Charnvirakul said the closure would remain until Cambodia “no longer poses a threat.”

Senate President Samdech Techo Hun Sen responded firmly: “Thailand closed it. Thailand must reopen it. Even if they keep it closed for 100 years, Cambodia will not perish.”

The trade freeze has disrupted key sectors including food, fuel, and cassava. Thai authorities are rolling out tax relief for affected provinces, while Cambodian exporters reroute goods through Laos or shift to sea and air transport.

The standoff threatens ASEAN’s credibility as a zone of economic integration and peaceful cooperation.

Bilateral trade between Cambodia and Thailand totaled $2.66 billion from January to August 2025, marking a 4.6% decline compared to the same period last year, according to the General Department of Customs and Excise.

Cambodia’s exports to Thailand reached approximately $535 million, down 6.4%, while imports from Thailand fell 4.1% to $2.12 billion. The drop reflects mounting disruptions caused by border closures and geopolitical tensions, particularly following the Thai military’s unilateral shutdown of key crossings in July.

Despite the closures, trade continues through alternative routes, including sea ports and land corridors via Laos. However, restricted goods—such as fuel, electricity, fruits, and vegetables—remain heavily affected.

In 2024, Cambodia–Thailand trade reached $4.28 billion, up 15.5% year-on-year. Cambodia exported nearly $845 million worth of goods to Thailand, while imports rose 18.9% to $3.44 billion