Washington has exerted influence on the Thai administration to recommit to a truce deal with Cambodia, warning that trade negotiations could be suspended as efforts are made to prevent a Donald Trump-brokered peace agreement from falling apart.
Border Tensions Escalate
Earlier this week, Thailand announced it was putting on hold the ceasefire deal, alleging Cambodian forces of planting new explosives along the mutual frontier, among them an incident that reportedly injured a Thai soldier on duty, who lost a foot in the explosion.
Following this, one person has been killed and several others wounded by exchanges of fire along the Thai-Cambodia frontier, sparking fears of a new round of retaliatory clashes.
American Economic Leverage
Over the weekend, a Thai foreign ministry spokesperson told journalists that a official communication from the U.S. trade office announcing the pause in trade negotiations was received on Friday night.
He quoted the document as saying that discussions on trade – which are addressing a 19 percent American duty – could resume once the Thai government reaffirmed its commitment to carrying out the mutual truce agreement.
“Tariff negotiations will continue and remain separate from border issues,” stated another government spokesperson.
President’s Economic Warning
Addressing reporters aboard the presidential plane as he flew to Florida on Friday, the US leader suggested that he had used the “threat of tariffs” in calls with the south-east Asian leaders.
The US president said, “I stopped a war just today through the use of tariffs, the threat of tariffs,” adding, “they are performing well. I believe they will be okay.”
Truce Deal Origins
The President witnessed the finalization of a ceasefire agreement, conducted in Malaysian territory this last autumn, and has touted it as one of multiple agreements around the world he says should win him the prestigious peace award.
The most severe clashes in a decade between military forces of both nations broke out in July, with gunfire, artillery and airstrikes causing numerous fatalities and 300,000 displaced.
Longstanding Border Dispute
Thailand and Cambodia have a longstanding border dispute that originates from disagreements over colonial-era maps created by French cartographers. Historic shrines along the border are claimed by both sides.
Reuters provided input for this coverage.