Short Comparison of Trade Policies in Thailand, Myanmar and Laos

Abstract

Many individuals remember the Golden Triangle as the drug trafficking center of the World. However, Thailand, Myanmar and Laos have each taken contrasting paths of economic development. The paper aims to explore the countries’ varying approaches to tariff policy and its effects on the economy. The first part of the paper describes some of the important theoretical perspectives to international trade such as comparative advantage, the Heckscher-Olin theorem and the gravity model, before discussing tariffs and other obstructions to free trade. The next part of the paper delves deeper into the tariff policies of the Golden Triangle countries and their effects. Thailand emerges as the most economically successful of the three countries and she has successfully used tariffs to implement more sustainable development. Myanmar still has several tariffs and sanctions, except for when dealing with other ASEAN countries. The instability of the government is a concern for Myanmar if they want to become more successful. The Laotian government has recently cut most tariffs and is starting to see much more development and economic growth as a result. The paper concludes that, free trade is imperative to economic success and free trade is perfectly represented in the differing stages of development that the three counties currently occupy. Hopefully, each can continue to develop and prosper through more liberalization of their economies.