logo
Thailand, Cambodia agree to truce after Trump, Anwar outreach

Thailand, Cambodia agree to truce after Trump, Anwar outreach

Business Times3 days ago
[PUTRAJAYA] Thai and Cambodian leaders agreed to halt hostilities in their deadliest border conflict in more than a decade, after a push by the US and regional powers for a diplomatic resolution.
Thailand's Acting Prime Minister Phumtham Wechayachai and Cambodian Prime Minister Hun Manet held discussions on Monday (Jul 28) in Malaysia, hosted by Prime Minister Anwar Ibrahim. Anwar facilitated the dialogue in his role as the chair of the Association of Southeast Asian Nations, with Washington and Beijing dispatching envoys.
Anwar, speaking after the talks, said the sides agreed to a ceasefire as of midnight.
The talks mark the first formal dialogue since fresh clashes erupted on July 24, with at least 36 people killed and more than 150,000 civilians displaced on both sides of their 800-kilometre border. Tensions escalated rapidly over the weekend, as heavy artillery fire and aerial strikes were reported, and both sides accused each other of targeting civilian areas.
US President Donald Trump had said before the discussions that the Thai and Cambodian leaders had agreed to 'quickly work out a ceasefire.' After separate calls with Phumtham and Hun Manet on Saturday, Trump had threatened that Washington would not do a trade deal with either as long as the fighting continued.
Before departing for the talks, Phumtham questioned Cambodia's sincerity in halting fighting as clashes continued into early Monday. The discussions were set to focus on ending the hostilities and maintaining Thailand's sovereignty, he told reporters.
A NEWSLETTER FOR YOU
Friday, 8.30 am Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Sign Up
Sign Up
Thailand has insisted that any ceasefire must include troop withdrawals, an end to lethal force and an agreement to resolve conflict through bilateral mechanisms. Cambodia, by contrast, says it supports an unconditional end to hostilities.
The current conflict traces its roots to long-standing disputes stemming from colonial-era maps and treaties that defined the two countries' boundaries. Relations had remained relatively stable since a 2011 clash that left dozens dead, but renewed tensions have triggered fears of escalated fighting.
Trump threatened to block trade deals with both countries unless the violence stopped. 'We're not going to make a trade deal unless you settle the war,' Trump said on Sunday, adding that both leaders expressed willingness to negotiate after speaking with him directly.
Secretary of State Marco Rubio said earlier that US officials are on the ground in Malaysia 'to assist these peace efforts.' China, the top trading partner for both South-east Asian nations and a major backer of Phnom Penh, is due to participate in the talks, the Cambodian leader said.
'Both President Trump and I remain engaged with our respective counterparts for each country and are monitoring the situation very closely,' Rubio said earlier in a statement. 'We want this conflict to end as soon as possible.'
With Trump's Aug 1 tariff deadline looming, trade-reliant Thailand wants to avoid antagonizing the US president, especially as its officials have been holding talks to lower the steep 36% planned levy on its exports. Trump has claimed credit for helping halt border clashes earlier this year between India and Pakistan by leveraging trade measures. It's an assertion India has consistently denied but Pakistan has embraced.
Thailand's trade talks with the US have included offering expanded access for American goods to narrow a US$46 billion trade surplus. Neighbouring Indonesia, the Philippines, and Vietnam have already secured trade deals with the US in recent weeks.
'President Trump's pressure tactic seems to be working as both the Thai and Cambodian governments are struggling economically,' said Tita Sanglee, associate fellow at the ISEAS-Yusof Ishak Institute in Singapore. 'Failure to lower Thailand's tariff rate will be politically costly.'
But yielding to a ceasefire agreement when the Cambodian threat to take the territorial disputes to the International Court of Justice is still alive, won't likely be accepted by the Thai public or the military, she said.
Cambodia has said it wants the court to help settle the disputed status of four border areas, after a skirmish broke out in May. Thailand doesn't recognise the court's jurisdiction. BLOOMBERG
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump's call broke deadlock in Thailand-Cambodia border crisis
Trump's call broke deadlock in Thailand-Cambodia border crisis

Straits Times

timea few seconds ago

  • Straits Times

Trump's call broke deadlock in Thailand-Cambodia border crisis

Sign up now: Get ST's newsletters delivered to your inbox Military vehicles are seen on the road, after the leaders of Cambodia and Thailand agreed to a ceasefire on Monday effective midnight, in a bid to bring an end to their deadliest conflict in more than a decade, while Thailand's military accuses Cambodia of second ceasefire violation and waits for Cambodia's invitation for bilateral talks on August 4, in Oddar Meanchey province, Cambodia, July 30, 2025. REUTERS/Tyrone Siu BANGKOK - First came a push from the Malaysian premier, then China reached out, but it was only after U.S. President Donald Trump called Thailand's leader last week that Bangkok agreed to talks with Cambodia to end an escalating military conflict. A flurry of diplomatic efforts over a 20-hour window sealed Thailand's participation in ceasefire negotiations with Cambodia, hosted in Malaysia, halting the heaviest fighting between two Southeast Asian countries in over a decade. Reuters interviewed four people on both sides of the border to piece together the most detailed account of how the truce was achieved, including previously unreported Thai conditions for joining the talks and the extent of Chinese involvement in the process. When Trump called Thai Acting Prime Minister Phumtham Wechayachai on Saturday, two days after fighting erupted along a 200-km-long stretch of the border, Bangkok had not responded to mediation offers from Malaysia and China, said a Thai government source with direct knowledge. "We told him that we want bilateral talks first before declaring a ceasefire," the source said, asking not to be named because of the sensitivity of the issue. Thailand had already made it clear that it favoured bilateral negotiation and initially did not want third-party mediation to resolve the conflict. On Sunday, a day after his initial call, Trump said that Thailand and Cambodia had agreed to meet to work out a ceasefire, and that Washington wouldn't move ahead with tariff negotiations with both until the conflict had ended. The source said as the Thai and Cambodian foreign ministries started talking, following Trump's call, Bangkok set out its terms: the meeting must be between the two prime ministers and at a neutral location. "We proposed Malaysia because we want this to be a regional matter," the source said. "The U.S. really pushed for the meeting," a second Thai source said, "We want a peaceful solution to the conflict so we had to show good faith and accept." A Thai government spokesperson did not immediately respond to questions from Reuters. Cambodia had accepted the initial Malaysian offer for talks but it was Thailand that did not move ahead until Trump's intervention, said Lim Menghour, a Cambodian government official working on foreign policy. Prime Minister Hun Manet's government also kept a channel open with China, which had shown interest in joining any peace talks between the neighbours, he said, reflecting Phnom Penh's close ties to Beijing. "We exchanged regular communication," Lim Menghour said. GOOD FAITH On Monday, Phumtham and Hun Manet went to the Malaysian administrative capital of Putrajaya, where they were hosted by Prime Minister Anwar Ibrahim, also the current chair of the 10-member Association of Southeast Asian Nations regional bloc. At the end of their talks, the two leaders stood on either side of Anwar, who read out a joint statement that said Thailand and Cambodia would enter into a ceasefire from midnight and continue dialogue. The rapid parleys echoed efforts to diffuse severe border clashes between Thailand and Cambodia in 2011, which took several months including mediation efforts by Indonesia, then chair of ASEAN. But those talks had not directly involved the U.S. and China. The fragile ceasefire was holding as of Thursday, despite distrust on both sides, and neither military has scaled down troop deployment along the frontier. Thailand and Cambodia have, for decades, quarrelled over undemarcated parts of their 817 km (508 miles) land border, which was first mapped by France in 1907 when the latter was its colony. In recent months, tensions began building between the neighbours after the death of a Cambodian soldiers in a skirmish in May and escalated into both militaries bolstering border deployments, alongside a full-blown diplomatic crisis. After a second Thai soldier lost a limb last week to a landmine that Thailand alleged Cambodian troops had planted, Bangkok recalled its ambassador to Phnom Penh and expelled Cambodia's envoy. Cambodia has denied the charge. The fighting began soon after. Since the ceasefire deal, Hun Manet and Phumtham have been effusive in their praise for Trump, who had threatened 36% tariffs on goods from both countries coming to the U.S., their biggest export market. The Thai sources did not say whether tariff talks had been impacted by the border clashes. Lim Menghour said after the "positive talks, President Donald Trump also showed positive developments" regarding tariffs, without elaborating. Trump said tariff negotiations with both countries resumed after the ceasefire agreement. U.S. Commerce Secretary Howard Lutnick said on Wednesday that Washington has made trade deals with Cambodia and Thailand, but they are yet to be announced. REUTERS

Taiwan's economy accelerates in second quarter
Taiwan's economy accelerates in second quarter

Business Times

timea few seconds ago

  • Business Times

Taiwan's economy accelerates in second quarter

[TAIPEI] Taiwan's economy grew at a forecast-busting pace in the second quarter, official data showed on Thursday (Jul 31), fuelled by demand for AI technology and firms placing orders before threatened US tariffs hit. The democratic island dominates the global semiconductor industry, with nearly all of the world's most advanced chips made there. Gross domestic product expanded 7.96 per cent in the three months to June, the government's statistics agency said. That was higher than the 5.7 per cent forecast in a survey of economists by Bloomberg News. And it was the fastest quarterly growth since the second quarter of 2021 when the economy grew by 8.28 per cent, government data show. 'Tariff front-running is almost certainly playing some role here as US importers take advantage of the current exemption from tariffs for electronics,' said Jason Tuvey, deputy chief emerging markets economist at London-based Capital Economics. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'The boom in exports helped to offset a slowdown in domestic demand as household consumption recorded its weakest growth, of 0.6 per cent year-on-year, since late-2021.' US President Donald Trump has threatened to slap a 32 per cent tariff on Taiwan's shipments to the United States if the island doesn't strike a deal by Friday. Taiwan said Thursday it has reached 'a certain consensus' with Washington over levies on its shipments, but did not release details. Cabinet spokeswoman Michelle Lee said Taipei was 'still waiting for the US government's decision-making process to conclude'. 'Both sides have also conducted negotiations on a joint statement,' she said. Soaring demand for AI-related chips in recent years has fuelled Taiwan's trade surplus with the United States – and put it in the cross-hairs of Trump's global tariff war. Around 60 per cent of Taiwan's exports to the United States are information and communications technology, which includes chips. Trump has previously accused the island of 23 million people of stealing the US chip industry. To avoid Trump's punitive tariffs, Taipei has pledged to increase investment in the United States, buy more of its energy and increase its own defence spending. Tuvey said Taiwan's economic 'boost from tariff front-running is likely to start to fade soon', but he expected exports 'to hold up well' on AI-related demand. Several economies – the European Union, Britain, Vietnam, Japan, Indonesia, the Philippines and South Korea – have struck initial tariff deals with Washington, while China managed to temporarily lower tit-for-tat duties. AFP

Trump tariffs face key test at US appeals court
Trump tariffs face key test at US appeals court

Straits Times

time30 minutes ago

  • Straits Times

Trump tariffs face key test at US appeals court

Sign up now: Get ST's newsletters delivered to your inbox U.S. President Donald Trump speaks after signing the VA Home Loan Program Reform Act at the White House in Washington, D.C., U.S., July 30, 2025. REUTERS/Evelyn Hockstein A U.S. appeals court on Thursday will review President Donald Trump's power to impose tariffs, after a lower court said he exceeded his authority with sweeping levies on imported goods. The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., will consider the legality of "reciprocal" tariffs that Trump imposed on a broad range of U.S. trading partners in April, as well as tariffs imposed in February against China, Canada and Mexico. A panel of all of the court's active judges, eight appointed by Democratic presidents and three appointed by former Republican presidents, will hear arguments scheduled to begin at 10 a.m. ET in two cases brought by five small U.S. businesses and 12 Democratic-led U.S. states. The arguments - one day before Trump plans to increase tariff rates on imported goods from nearly all U.S. trading partners - mark the first test before a U.S. appeals court of the scope of his tariff authority. The president has made tariffs a central instrument of his foreign policy, wielding them aggressively in his second term as leverage in trade negotiations and to push back against what he has called unfair practices. The states and businesses challenging the tariffs argued that they are not permissible under emergency presidential powers that Trump cited to justify them. They say the U.S. Constitution grants Congress, and not the president, authority over tariffs and other taxes. Trump claimed broad authority to set tariffs under the International Emergency Economic Powers Act (IEEPA), a 1977 law historically used for sanctioning enemies or freezing their assets. Trump is the first president to use it to impose tariffs. Trump has said the April tariffs were a response to persistent U.S. trade imbalances and declining U.S. manufacturing power. Top stories Swipe. Select. Stay informed. Singapore No entry: ICA to bar high-risk, undesirable travellers from boarding S'pore-bound ships, flights Singapore 5 foreign women suspected of trafficking 27kg of cocaine nabbed in Changi Airport Singapore Over half of job applications by retrenched Jetstar Asia staff led to offers or interviews: CEO Singapore 17-member committee to drive roll-out of autonomous vehicles in Singapore Business Singapore gold investment soars 37% to 2.2 tonnes in Q2 while jewellery demand wanes Singapore Underground pipe leak likely reason for water supply issues during Toa Payoh fire: Town council Multimedia 60 years, 60 items: A National Day game challenge Singapore 'Switching careers just as I became a dad was risky, but I had to do it for my family' He said the tariffs against China, Canada and Mexico were appropriate because those countries were not doing enough to stop illegal fentanyl from crossing U.S. borders. The countries have denied that claim. On May 28, a three-judge panel of the U.S. Court of International Trade sided with the Democratic states and small businesses that challenged Trump. It said that the IEEPA, a law intended to address "unusual and extraordinary" threats during national emergencies, did not authorize tariffs related to longstanding trade deficits. The Federal Circuit has allowed the tariffs to remain in place while it considers the administration's appeal. The timing of the court's decision is uncertain, and the losing side will likely appeal quickly to the U.S. Supreme Court. The case will have no impact on tariffs levied under more traditional legal authority, such as duties on steel and aluminum imports. Trump's on-again, off-again tariff threats have roiled financial markets and disrupted U.S. companies' ability to manage supply chains, production, staffing and prices. The president recently announced trade deals that set tariff rates on goods from the European Union and Japan, following smaller trade agreements with Britain, Indonesia and Vietnam. Trump's Department of Justice has argued that limiting the president's tariff authority could undermine ongoing trade negotiations, while other Trump officials have said that negotiations have continued with little change after the initial setback in court. Trump has set an August 1 date for higher tariffs on countries that don't negotiate new trade deals. There are at least seven other lawsuits challenging Trump's invocation of IEEPA, including cases brought by other small businesses and California. A federal judge in Washington, D.C., ruled against Trump in one of those cases, and no judge has yet backed Trump's claim of unlimited emergency tariff authority. REUTERS

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store