Thailand and Myanmar signed an investment protection agreement during the one-day visit of Thai Prime Minister Samak Sundaravej to Myanmar last week. The agreement was signed following a meeting between Samak, his counterpart, Prime Minister Thein Sein, and other senior officials of Myanmar’s State Peace and Development Council (SPDC) government in the capital, Naypyidaw. Both sides also discussed the construction of a deep-sea port in Tavoy in south-east Myanmar. Samak’s visit to Myanmar was the first since his People Power Party (PPP)-led government took office on 7 February.

Significance: The investment accord intends to protect Thai investors operating in Myanmar while increasing foreign investment in the country. Myanmar is facing increasing international isolation following the military junta’s crackdown on pro-democracy protestors last August-September, the lack of genuine reform in its seven-step “roadmap to democracy”, and the continued detention of pro-democracy leaders, including Aung San Suu Kyi.

Nonetheless, the military regime continues to receive crucial support from neighbouring countries, notably China, India and nations in South-East Asia. Thailand has continued its conciliatory approach toward Myanmar under Prime Minister Samak Sundaravej. Aside from being Myanmar’s largest buyer of natural gas, Thailand is also the second-largest buyer of Myanmar’s precious stones after China. Notably, Myanmar began a 12-day auction to sell an estimated $153US-million worth of gems yesterday. Despite a boycott on buying gems produced in Myanmar by major jewellers, including Tiffany, Cartier and Bulgari–a move backed by the European Union and United States–20 countries are represented at this week’s auction. An estimated 90% of the world’s rubies are from Myanmar; these are often sold internationally via a loophole that allows the sale of Myanmar gem stones cut in Thailand.