Resumed Bangladesh–Arakan border trade still fails to attract private entrepreneurs

Although border trade between Bangladesh and Arakan (Rakhine) State has resumed, commercial activity remains sluggish, with private entrepreneurs still largely absent from participation, according to traders operating along the border.

Bilateral trade between Teknaf in Bangladesh and the Kanyinchaung jetty in Maungdaw Township, Arakan State, restarted on May 1. However, traders said operations are currently handled almost exclusively by a merchants’ association formed under the United League of Arakan (ULA), the political wing of the Arakan Army (AA), with little visible involvement from private sector actors so far.

“Even though trade has started again, business activity is still not really moving. Timber from Arakan State is going to Bangladesh, while only small quantities of potatoes and onions are coming back into Arakan State from Bangladesh. Private entrepreneurs are still not taking part at all. Right now, only traders from the merchants’ association are involved,” a trader based in Maungdaw said.

Traders also noted that the timber currently being exported had already been prepared for shipment prior to 2023, suggesting limited new commercial flow since the reopening. Meanwhile, small-scale private trading is reportedly taking place only in Taungpyo Letwe Town and Bandoola Village in Mindat Township.

Sources close to the merchants’ association said Bangladesh is treating the arrangement as part of broader Myanmar–Bangladesh trade, but has not formally recognized trade relations with the ULA.

“The situation is still not picking up because everything is at a very early stage. There’re attempts to encourage more trade activity. Stronger bilateral relations will also be necessary to boost trade,” another trader in Maungdaw said.

According to figures released by the coup regime, annual trade between Bangladesh and Arakan State reached nearly 260 million USD in the 2022–2023 fiscal year, before armed clashes escalated in Arakan State.

Trade across the Bangladesh–Arakan border was later suspended following intensified fighting, and only resumed again in May 2026.

At the same time, the trade route linking Arakan State with Saw Township in Magway Region—long considered a key artery for regional commerce—has been disrupted due to ongoing conflict. As a result, the route connecting India’s Mizoram State has become the primary remaining trade corridor for Arakan State.

Traders and business operators are increasingly calling for greater focus on Bangladesh–Arakan trade, warning that transport delays and difficult travel conditions along the India route could worsen further during the upcoming rainy season.

Separately, the ULA stated on May 26 that while Bangladesh and Arakan State still lack official diplomatic relations, both sides have already reached understandings and cooperation in areas such as socio-economic affairs, healthcare, and humanitarian support for border communities.