Mizoram chief minister confirms Arakan Army control over strategic Kaladan project as cross-border trade shifts to rebel-taxed routes

Mizzima

Mizoram Chief Minister Lalthanhawla (Larthu Auma) announced to the State Assembly on 11 March that the Myanmar government has lost control of the territories hosting the US$484 million Kaladan Multi-Modal Transit Transport Project (KMMTTP), with the Arakan Army (AA) now governing the strategic corridor.

“The Myanmar government no longer controls the areas where the KMMTTP road project is located. The areas are now in the hands of the Arakan Army (AA). Our (Mizoram) government maintains a good relationship with the AA, and the AA is also looking forward to the time when the KMMTTP highway can be opened,” the Chief Minister said.

In response to the shifting power dynamics and an influx of displaced persons, Mizoram has established an “Impact Study Team” and mobilized security forces to manage the border until official Land Customs Stations can be formalized under these new conditions.

Furthermore, there is deep concern regarding the high influx of people from Myanmar into Lawngtlai District via the Kaladan project route. To control this movement, the District Magistrate, Police, Assam Rifles, Border Security Force (BSF), and civil society organizations will work together.

A trader told Mizzima that those using the route for commerce are currently paying taxes at checkpoints operated by the Arakan Army and within Mizoram State.

While the Mizoram government maintains a working relationship with the AA to facilitate future trade, the route is currently characterized by “extra-legal” commercial activity where traders must pay a 5% tax to the AA and informal fees to Indian border police to transport essential goods like food and fuel into Chin and Rakhine States.

“In Mizoram, there are three police checkpoints alongside the border where we have to pay, though it’s not exactly official. Once across the border at Shwe Laik Wa, there is an AA gate where we must pay a 5% tax on the value of the goods,” he said.

The trader added that since merchants face high living costs alongside payments to both sides, they hope for a reduction in tax collection.

Food, medicine, and fuel are currently being imported from Mizoram into Chin State and Rakhine State.

The agreement for the Kaladan Multi-Modal Transit Transport Project was signed between India and the Myanmar military government in April 2008, based on mutual development and bilateral relations.