Arakan Trade - Reclaiming Arakan Economic Lifeline

By GAN

Longread: Opinions                                       July 11, 2025

Chinese investments in Kyaukpyu (photocrd)

Trade in Arakan (Rakhine State) under the United League of Arakan (ULA) and Arakan Army (AA) is a critical battleground in our struggle for self-determination, a lifeline severed by the State Administration Council (SAC)’s oppressive policies. Historically, Arakan’s coastal position made it a vibrant hub of maritime commerce, linking Southeast Asia to the Indian subcontinent and fostering a rich economic culture.

This legacy was shattered by the SAC’s Burman-centric colonial mindset, rooted in the 1784 Konbaung invasion, which redirected trade to serve Yangon and foreign interests. Since the conflict resumed on November 13, 2023, SAC blockades have choked our commerce, but the ULA/AA, inspired by the "Arakan Dream" and the "Way of Rakhita," is reclaiming this vital artery as of June 23, 2025.

The ULA’s control over 17 townships, including Paletwa and the Bangladesh border, has empowered the Arakan People’s Revolutionary Government (APRG) to establish customs posts and facilitate trade in rice, fish, timber, and other local products. However, the SAC’s restrictions have halted formal trade with Bangladesh since December 2024, with goods like rice and fish impounded at Chittagong ports, a deliberate attempt to starve our economy.

This isolation has forced the ULA/AA to explore alternative routes, such as the Kaladan River with India, where we are integrating Paletwa into the transit network, and our advances into Magwe and the Irrawaddy Delta, now within 100 km of Pathein. These efforts aim to reconnect Arakan to regional markets, bypassing SAC-dominated hubs like Yangon and Mandalay, which have historically siphoned our wealth.

The SAC’s trade exploitation is glaring in projects like the Yunnan oil and gas pipelines and the Kyaukphyu Special Economic Zone, where benefits accrue to China rather than local communities. The ULA/AA is determined to renegotiate these arrangements, demanding equitable revenue sharing, local employment, and infrastructure development that serves Arakanese interests.

A Farmer Ploughing Rice Field in Arakan (photocrd)

China’s Belt and Road Initiative and India’s Kaladan Project hold immense potential, but their success hinges on respecting our sovereignty. We are also engaging Bangladesh to resume border trade, proposing a framework that addresses Rohingya repatriation—a humanitarian and economic issue—and ensures mutual respect for our authority, fostering regional stability and cooperation.

The challenges are daunting. The SAC blockade has inflated transportation costs, with fees soaring and goods like medicine becoming scarce. Cyclone Mocha’s destruction in May 2023 damaged ports, roads, and storage facilities, complicating logistics and trade flows. The displacement of over 500,000 people, as reported by the ULA Humanitarian and Development Coordination Office, has disrupted labor markets and reduced trading capacity, yet the ULA/AA leverages community networks to sustain commerce.

The ULA’s conscription policy, enacted in March 2025, restricts youth movement to prevent trafficking by gangs exploiting the conflict, but we allow exceptions for traders to maintain economic activity. Intercommunal trade within diverse communities of Arakan is a strategic focus; despite SAC propaganda about division, we encourage their participation, offering equal opportunities under APRG governance to build a unified trade network.

Defeating the SAC is essential to lift blockades and reopen formal trade routes, while securing international cooperation—particularly with India and Bangladesh—will rebuild infrastructure and expand markets. As of June 23, 2025, our trade network is nascent, hampered by conflict and resource constraints, but it is resilient, a vital step toward economic independence and a self-determined Arakan.