Higher Lao tariffs could doom border market

Higher Lao tariffs could doom border market

UTTARADIT: An increase in import duties by Laos could force the closure of the border market in Ban Khok district of this northern province unless Thai authorities step in to help, local traders say.

Kai Sonsing, 52, a seafood trader at the Phu Khu market in tambon Moung Jed Ton, said trade used to flourish when the market was open only on Saturdays. The market later expanded to daily operation after the border checkpoint was upgraded to a permanent trading channel.

Business is slow at the Phu Khu border market in Uttaradit as Lao traders and customers are staying away. (Photo by Boonnam Kerdkaew)

He said business was still good on Saturdays until about two months ago, but now the market has almost died as no Lao traders or customers are visiting.

Mr Kai said he became curious and asked Lao officials what the problem was. They told him that more people were returning home with products including chicken and pork, which could be produced by Lao farmers, so Laos had to respond to keep local prices from plunging and prevent an oversupply.  

He said vehicle fees and import duties had been doubled, resulting in people deserting Phu Khu and shopping instead at other markets at "informal" border crossing points.

Mr Kai said his sales used to average 50,000 to 70,000 baht a week, more than half of that coming on Saturdays. But in the last two months, his weekly income dropped to only 3,000 baht. 

He said traders in the market want local authorities to help negotiate with their Lao counterparts before this market is forced to close. He also urged authorities to look after the facilities in the market.

Do you like the content of this article?
COMMENT (1)