Kuala Lumpur, Malaysia — The handshake between Thai Prime Minister Srettha Thavisin and Cambodian Prime Minister Hun Manet was more than a diplomatic courtesy; it was the final act in a high-stakes, 90-day diplomatic journey that pulled two neighboring nations back from the brink of a full-scale border war. Under the gaze of world leaders at the ASEAN Summit, they signed the Kuala Lumpur Peace Accord, an expanded ceasefire agreement that represents the most comprehensive framework for peace between Thailand and Cambodia in over a decade.
The accord builds upon a fragile truce reached in July, which ended five days of deadly clashes that had turned the disputed 800-kilometer border into a conflict zone. The skirmishes, the deadliest in years, resulted in dozens of casualties, displaced hundreds of thousands of civilians, and sent shockwaves through the region. The signing ceremony, personally witnessed by U.S. President Donald Trump, marks a rare and tangible moment of peace diplomacy in Southeast Asia.
The U.S. Role: Leveraging Tariffs for Truce
The initial ceasefire on July 28 was fragile, achieved only after what White House officials described as intense, personal intervention by President Trump. According to U.S. and ASEAN officials, the President leveraged significant economic leverage to force a resolution.
“He made it clear to both capitals that continued hostilities would lead to an immediate freeze and potential imposition of higher tariffs on their respective trade talks with Washington,” a White House official confirmed. “That threat proved decisive.”
President Trump’s attendance at the signing ceremony underscored the U.S. commitment to the region and provided a symbolic victory for his "peacemaker" reputation. "We did something that a lot of people said couldn’t be done," he stated. "This is going to be a very long peace."
The Accord: From Ceasefire to Lasting De-escalation
The Kuala Lumpur Peace Accord goes far beyond merely stopping the shooting. It establishes concrete, verifiable steps for genuine de-escalation and confidence-building:
- Cessation of Hostilities: A complete halt to all military activity along the disputed border.
- Prisoner Exchange: Thailand will promptly release 18 Cambodian soldiers detained during the July clashes.
- Weapons Withdrawal: A phased removal of heavy artillery and other destructive weapons, returning them to regular bases under mutual supervision.
- ASEAN Observer Team (AOT): A multilateral mission, with personnel from ASEAN member states, will monitor compliance and verify the ceasefire's implementation, a notable departure from the bloc’s traditionally cautious approach.
- Humanitarian De-mining: A joint commitment to clear landmines from affected border regions, supported by funding from Japan, the U.S., and the European Union.
- Media Restraint: Both countries committed to avoiding false information and inflammatory rhetoric to sustain public confidence.
Linking Peace to Prosperity: The Economic Incentive
Immediately following the peace signing, the U.S. strategy of coupling diplomacy with economic incentives was put on full display. President Trump announced two complementary agreements: a reciprocal trade pact with Cambodia focused on textiles and agriculture, and a critical minerals partnership with Thailand.
“The peace deal is not just about stopping the fighting,” said Dr. Surin Kasem, a political economist at Chulalongkorn University. “It’s about embedding cooperation into trade, energy, and infrastructure. That’s how you make peace profitable and durable.”
This dual focus highlights a pragmatic U.S. approach: pairing security assurance with economic incentives to solidify strategic partnerships and counter regional instability.
Challenges and a Cautious Outlook
Despite the optimism, experts caution that the real test lies ahead. The core issue of border demarcation, centered on a 4.6-square-kilometer area near the Preah Vihear Temple, remains unresolved. Both militaries have a long history of mutual suspicion.
“Signing a peace accord is the easy part,” said Cambodian political analyst Vann Rith. “Implementing it, keeping soldiers disciplined and communities calm is much harder.”
The success of the ASEAN Observer Team, set to deploy within two weeks, will be critical. If effective, it could serve as a template for future ASEAN-mediated conflicts, restoring faith in the bloc’s conflict-resolution capacity at a time of rising geopolitical tensions.
As the summit concluded, the sight of both leaders shaking hands under the ASEAN flag captured a rare moment of consensus. For now, the mood is one of cautious optimism. The Kuala Lumpur Peace Accord has created the necessary space for diplomacy; the arduous work of building a lasting peace from this ceasefire is just beginning.
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