Recent Thai-Cambodian border clashes: a threat to trade stability?
Despite ongoing border tensions and temporary checkpoint closures, trade between Thailand and Cambodia saw notable growth in early 2025, reflecting both resilience and underlying fragility in their cross-border economic ties. According to data released by Thailand’s Commerce Ministry on Monday, bilateral trade rose by 3.33 per cent year-on-year in the first half of 2025, reaching baht 95.147 billion, even as geopolitical tensions began to strain logistics and erode market confidence.
The 2025 conflict between Thailand and Cambodia was triggered in late May when a Cambodian soldier was killed, reigniting a long-standing territorial dispute. The situation escalated sharply on July 24, when heavy fighting broke out. By July 27, clashes had spread to 12 border locations, resulting in significant casualties and civilian displacement. A ceasefire agreement described as “immediate and unconditional”—was reached on July 28, following peace talks in Kuala Lumpur mediated by Malaysia, with backing from the US and China.
Border trade remains strong – for now
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