Strategic Diplomacy for Arakan’s Regional Role

By GAN

Longread: Opinions                                       June 28, 2025

AA transferring illegal Bengaladeshi Fishermen (photocrd)

The Arakan Army (AA) leverages its control over a 271-km border with Bangladesh and strategic areas like Paletwa to position Arakan as a pivotal regional player. The AA has initiated trade discussions with Bangladesh, aiming to export 7,000 tons of agricultural surplus annually, potentially generating $15 million in revenue. These engagements, facilitated through unofficial channels, involve 50 trade delegations since 2023, fostering economic cooperation.

The AA’s partnership with India focuses on securing Sittwe Port, part of the $484 million Kaladan Multi-Modal Transit Transport Project, which supports connectivity to India’s northeastern states. By engaging regional partners, the AA enhances Arakan’s economic and diplomatic influence, aligning with its vision of autonomy.

The AA’s diplomatic strategy includes addressing shared challenges, such as coordinating with Bangladesh on humanitarian efforts for 1 million refugees. By fostering pragmatic partnerships, the AA ensures that Arakan’s interests are advanced while maintaining its sovereignty, reflecting the “Arakan Dream” of regional prominence.

Chinese Ships at Kyaukphyu Port (photoirrawaddy)

Protecting Strategic Investments

The AA’s control over Arakan’s infrastructure, including China’s $8 billion Kyaukphyu deepwater port, underscores its commitment to safeguarding foreign investments that benefit Arakan. The AA’s participation in China-brokered ceasefire negotiations in 2024, involving high-level meetings, ensures stability for economic projects. The AA’s investment strategy enhances Arakan’s economic resilience, positioning it as a reliable partner in regional geopolitics.