Thailand and Cambodia agree to 'immediate and unconditional' ceasefire, says Malaysian PM
Anwar, who chaired the talks as head of the ASEAN regional bloc, said both sides have reached a common understanding to take steps to return to normalcy.
Cambodian Prime Minister Hun Manet and Thai Acting Prime Minister Phumtham Wechayachai have agreed to 'an immediate and unconditional ceasefire with effect from... midnight of 28 July,' Anwar said as he read out a joint statement.
Hun Manet and Phuntam hailed the outcome of the meeting and shook hands at the conclusion of the brief press conference.
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Mint
2 hours ago
- Mint
Centre scrambles to revamp export plan as US tariffs hit Indian goods, favour ASEAN rivals
New Delhi: Faced with steep tariffs imposed by the US government, the Centre is huddling with export promotion councils and manufacturers to find a way to rework the country's exports strategy, two government officials aware of the development said. The development comes on the back of a deadlock in bilateral trade agreement (BTA) negotiations between India and the US, which the two countries have been grappling with since June, as reported by Mint on 11 June. The new plan involves diversifying into markets such as the UK, with which India recently signed a free trade agreement (FTA), and the European Union (EU), where negotiations are in the final stage and a deal could be signed before the end of the year, the officials cited above said on the condition of anonymity. India's plan would also focus on sector-specific challenges and policy measures to support exports, including exploring new markets with the help of Indian missions overseas, the officials said. The government sees strong export potential in regions like Saudi Arabia, France, Vietnam, the Netherlands, Mexico, and Ethiopia, among other countries. The review will additionally focus on India's growing competitiveness gap with Bangladesh and with ASEAN countries such as Vietnam and Indonesia, which have received significant tariff relief under the latest US executive order. While India faces a 25% duty — just 1 percentage point down from 26% in the 2 April notification — Vietnam's tariffs have been reduced from 46% to 20%, Indonesia's from 32% to 19%, and Bangladesh's from 37% to 20%, giving these exporters a clear edge in the US market. 'Sectoral discussions will have special attention to cases like Vietnam, which imports Indian shrimp, processes it, and re-exports it to the US under a more favourable tariff, and Indonesia, which enjoys a lower duty on electronics exports," one of the officials said. 'Bangladesh, a major garments exporter, now benefits from a lower 20% rate compared to the 25% levied on Indian textiles." The meetings will also examine the implications of the new US rules on transshipment, which impose a 40% punitive duty on goods rerouted to evade tariffs, this person said. Queries sent to the commerce ministry, which is spearheading the consultations with industry, remained unanswered till press time. The tariffs explained On Thursday, the US imposed a 25% tariff on the value of all goods shipped from India that will come into effect on 7 August. To be sure, Indian goods will also attract existing MFN (most-favoured nation) duties, which average 3% but differ across sectors. Goods that are already on their way to the US and will reach ports there before 5 October will have to pay 10% duty. Further, certain sectors are exempted from the new 25% tariff, but they still have to pay the MFN duty. 'As of now, exports worth around $30 billion — comprising sectors like petrochemicals ($4 billion), pharmaceuticals ($15 billion), and electronic goods ($11 billion) — would not be impacted, as these are exempt from the additional duty," said the first among the two officials mentioned above. The first official added that sectors that are of concern are textiles (exports worth $10.91 billion), engineering goods ($19.16 billion), agriculture ($2.53 billion), gems and jewellery ($9.94 billion), leather ($948.47 million), marine products ($2.68 billion), and plastics ($1.92 billion). Notably, India exported goods worth $86.5 billion to the US in FY25, which is 20% of the country's total merchandise exports of $433.56 billion in FY25. Industry reactions According to the Global Trade Research Initiative (GTRI), a Delhi-based think tank, India's goods exports to the US may decline by 30% to $60.6 billion in FY2026. 'This order is more than just a tariff measure — it's a pressure tactic," said Ajay Srivastava, founder of GTRI, adding that the US is using access to its markets through tariffs as leverage to advance its geopolitical goals and extract one-sided trade concessions. 'Countries like China have retained exemptions on critical goods such as pharmaceuticals, semiconductors, and energy. But India has been singled out for harsher treatment, with no product-level exemptions whatsoever," Srivastava added. Tariffs on China have not been revised under the latest order and will continue at 30%. Vipul Shah, former chairman of the Gem & Jewellery Export Promotion Council (GJEPC), said the government should consider incentivising exporters, especially those heavily dependent on the US market, as the new tariffs are a significant blow to sectors like gems and jewellery. 'Immediate support is crucial to help these industries navigate the shock," he said. However, Ashwani Mahajan of the Swadeshi Jagran Manch, which opposes a one-sided trade deal, said India should not be overly worried about higher US tariffs, as the country is not as export-dependent as China. 'Work is already underway to diversify and explore new markets," he said. Mithileshwar Thakur, secretary general of the Apparel Export Promotion Council (AEPC), said the Indian apparel industry has an exposure of about 33% to the US market. He added that the FTA with the UK and ongoing FTA negotiations with the EU together can offer significant opportunities for the Indian apparel industry, and partly offset losses in US business. But, to tide over the current crisis, the government should offer incentive in the immediate term to the exporting community to stay afloat in the US market. 'It is unfortunate that India has been hit with the highest tariffs. This will definitely impact our competitiveness. We are in a wait-and-watch mode to see whether prices rise in the US market and if American buyers can absorb the increased costs or not," said Pankaj Chadha, chairman of Engineering Export Promotion Council (EEPC). Exploring newer markets For engineering goods, the government is focusing on expanding exports to new target markets such as Sao Tome, Macao, Georgia, Croatia, Guinea-Bissau, Belize, Azerbaijan, Myanmar, Lithuania, Norway, Somalia, and Greece. Currently, key export destinations for Indian engineering goods include the U.S., UAE, Saudi Arabia, Germany, and Italy. The Netherlands, South Korea, Belgium, Mexico, Japan, and Kuwait are also seen as promising markets. For pharmaceuticals, new destinations identified include Montenegro, South Sudan, Chad, Comoros, Brunei, Latvia, Ireland, Sweden, Haiti, and Ethiopia, while Greece is listed as a promising market. Traditional export markets for Indian drugs are— US, UK, Netherlands, South Africa, and Brazil. In electronics, the government has listed Sao Tome, Montenegro, Cayman Islands, St. Vincent, Mongolia, El Salvador, Turkmenistan, Honduras, Bahrain, Somalia, Puerto Rico, Vietnam, and Sweden as new export destinations. Russia, Mexico, and Turkey are marked as promising markets. For agricultural and processed food products, the focus will be on Nigeria, Switzerland, Lithuania, Slovenia, Mexico, Sweden, Portugal, Cameroon, Djibouti, Latvia, Egypt, Senegal, Canada, Argentina, and Brazil.
The Hindu
2 hours ago
- The Hindu
Nationalist agendas fuelled the border fight between Thailand and Cambodia
On the morning of July 24, Thai and Cambodian troops clashed at multiple locations along their 800-km border. Following five days of fighting that resulted in 43 deaths (including civilians) and the displacement of more than 300,000 people, both sides arrived at a ceasefire that took effect on July 29. Mediated by ASEAN chair Malaysia, with help from China, and under the looming threat of U.S. tariffs, the truce appeared to largely hold despite claims of breach by both parties. After the agreement came Cambodia's call on July 31 for the release of its 20 soldiers detained for crossing into Thai-held territory after the truce. Bangkok has acceded, but only upon the fulfilment of legal procedures — proof that the peace deal, despite putting a temporary halt to the fighting, is a minor respite at best. For the roots of the conflict can be traced back to pre-colonial times; and with domestic politics, international scam centres and nationalism coming to the mix, multiple interests are at stake, complicating matters further. Rise of tensions Prior to the latest clashes was the May 28 incident in which a Cambodian soldier was killed. Tensions ran high, forcing the then-Thai Prime Minister, Paetongtarn Shinawatra, to ring up strongman and Cambodia's former Premier Hun Sen on June 15 to placate the situation. As a leaked version of their conversation showed, Ms. Paetongtarn, whose family shares close ties with the Cambodian leader, sounded deferential by referring to him as 'uncle' and labelling a Thai military General as 'opponent'. The ensuing fallout, which cost Ms. Paetongtarn her job, is widely believed to have been orchestrated by Mr. Hun Sen to deflect attention from the international cyberscam centres operating in his country. Apart from inviting global scrutiny, these scam offices are also alleged to be run by the Cambodian government's allies and possess links to China — Phnom Penh's biggest benefactor. Another incentive for Mr. Hun Sen to stir the pot is to whip up nationalist sentiments and boost the credentials of his son Hun Manet, sworn to office in 2024, 33 years after his father relinquished power. For Mr. Hun Sen — who once called Ms. Paetongtarn's father and former Prime Minister Thaksin Shinawatra his 'god brother' — Thailand, with its delicate political landscape owing to the presence of the monarchy and the military, presents itself as a soft target. Separately, Mr. Hun Sen is also accused by his opponents of adopting a soft stance towards Vietnam, whose Army in 1979 overthrew the Khmer Rouge and installed the 72-year-old Cambodian People's Party in power. Also on Mr. Hun Sen's mind is the Thai government's proposed casino legalisation Bill, which may adversely impact Cambodia's gambling sector. Thus, bringing down the Shinawatras' Pheu Thai party is a one-stop solution to all his problems and seemed plausible too, given that, with Ms. Paetongtarn suspended from duty and Mr. Thaksin facinglese majestecharges for 'insulting the monarchy', the Shinawatras are already out of favour with the Thai citizens. Nationalist rhetoric However, nationalist rhetoric is not restricted to Cambodia alone but is an overarching sentiment in Thailand, too. A 2003 remark by a Thai actress, in which she said Cambodia had 'stolen' Angkor Wat and that she would not visit the country until the monument was returned, sparked anti-Thai riots. Taken in isolation, the statement may not carry much weight. But when placed in the larger context, it reflects the overall mood of a country, which, while priding itself as the only one in the region to be not subjected to Western colonisation, still perceives itself as a victim. This is because history has been equally unkind to both Cambodia and Thailand. Between the 7th century and the 14th century, the Khmer Empire ruled over a vast tract of the mainland in Southeast Asia. During its heyday in the 12th century, the Khmer empire comprised Cambodia as well as parts of present-day northeastern Thailand and southern Vietnam. The power structure was based on the Mandala system, which consisted of concentric circles of centre-peripheral relations. Weak territoriality and a loose central authority marked the setup, writes Path Kosal in a chapter in the book,Cambodia's Foreign Relations in Regional and Global Contexts. This ensured that Angkor kings were able to rule unchallenged over their allies and vassals who presided over the periphery independently. Trouble began to brew for the Khmer empire from the time of Angkor's fall in 1431. It faced threats from Siam (Thailand), which began conquering land from the northeast, and Annam (Vietnam) from the southeast; to the point that King Norodom turned Cambodia into a French protectorate in 1863 in the hope of security. While Cambodia's apprehensions of shrinking boundaries and constant threats have roots in pre-colonial times, Thailand's fears partially stem from the happenings that followed the establishment of the French protectorate. Though the multiple treaties signed between the French and Siamese in 1904 and 1907 serve as the bases for the present-day border between Cambodia and Thailand, many discrepancies exist to date; one of the prime examples being the tussle over the Preah Vihear temple — a 12th-century monument claimed by both countries. While the temple and a 1 sq. km area around it were ruled in Cambodia's favour by the International Court of Justice, a 4.6 sq. km patch near it is still contested territory. The verdict spurred a conflict between the two nations over the area in 2011, resulting in 28 casualties, including both military personnel and civilians. Preah Vihear is merely emblematic of the crisis. Similar temples, such as the Ta Moan Thom around which the latest shootout transpired, exist as bones of contention. The temples were built during the reign of the Khmer Empire. As is the case with empires, they rise and fall. And wars fought among the neighbouring kingdoms have seen the borders shift and temples change ownership. Like in many other conflicts, here too, the fire may have been lit during the time of conquests and colonialism. However, the nationalists and the ruling class of both countries – Cambodia has an authoritarian regime and Thailand's is a coup-prone establishment — have seen to it that the flames were fanned throughout history to suit them.
New Indian Express
7 hours ago
- New Indian Express
Why two Buddhist nations are fighting over a Hindu temple
A century-old dispute along the 817-km border between Cambodia and Thailand suddenly degenerated into a military conflict when the world's eyes were firmly on Gaza. The conflict jolted ASEAN, the regional association focused largely on economic issues. A shooting war over a dispute that includes the ownership of a 11thcentury Hindu temple—Preah Vihar, a Unesco heritage site perched on a hilltop overlooking the two Buddhist-majority countries—was unexpected. Direct talks between the Thai and Cambodian prime ministers, mediated by the Malaysian PM, have resulted in an unconditional ceasefire, though Thailand had earlier rejected third-party mediation. Cambodia alleged that Thailand had agreed to a Malaysian proposal but then backed off, possibly owing to pressure from the Thai military. The Thai foreign minister made the ceasefire conditional on Cambodia showing 'genuine sincerity in ending the conflict' and indicated his country was open to dialogue. The UN Security Council held an emergency meeting to discuss the situation; China and the US also offered to mediate. For Donald Trump, it was yet another opportunity to grandly announce that he had called upon both countries to accept a ceasefire and threatened to withhold trade deals if they didn't comply. He added slyly that he was reminded of his role in the India-Pakistan ceasefire. Trump seems desperate to shore up his peacemaking credentials that have been severely dented by his failure in Ukraine and Gaza despite threats and deadlines. In the short and sharp conflict, the two Asian militaries lobbed rockets and artillery shells into each other's territories claiming self-defence. Thailand deployed drones on Cambodia's military targets. Thailand, a non-Nato ally of the US, is better equipped with American weaponry; whereas Cambodia's smaller military is armed with old Chinese and Russian weaponry. An estimated 45 civilians and soldiers were killed and over 2 lakh inhabitants fled their villages near the border. It was the second skirmish in 3 months since a Cambodian soldier was shot dead after landmine explosions injured five Thai soldiers. Both countries recalled their ambassadors accused the other of 'war crimes'. Thailand blamed Cambodia for targeting villages, civilian establishments like a hospital and petrol stations, while Cambodia alleged that Thailand had used banned cluster bombs.
