Thailand dissolves parliament amid political unrest as Trump works to maintain ceasefire with Cambodia
Thailand’s king has approved the dissolution of parliament, escalating political instability as the U.S. seeks to maintain a fragile ceasefire with Cambodia.
King Maha Vajiralongkorn signed a royal decree on Friday at the request of Prime Minister Anutin Charnvirakul, whose minority government failed to reach a deal with the opposition People’s Party over proposed constitutional reforms. Under Thai law, a general election must be held within 45 to 60 days of the decree.
The opposition had threatened a no-confidence motion after Anutin’s government sought to expand the powers of elected lawmakers under the planned constitution overhaul. In a social media post on Thursday, Anutin said he would “return power to the people.”
The announcement comes amid rising tensions with Cambodia over disputed borders. Clashes at several locations along the frontier have reportedly killed at least 20 people and injured dozens of civilians this week. President Donald Trump is expected to speak with the leaders of both countries, with Anutin confirming a call scheduled for 9:20 p.m. Thailand time Friday.
Anutin, who became prime minister in September after Paetongtarn Shinawatra was removed from office by Thailand’s Constitutional Court over an ethics violation tied to the Cambodia dispute, has taken a tougher stance in the border clashes—a move that could boost nationalist support for his conservative Bhumjaithai party ahead of the election. He said the dissolution of parliament will not affect military operations along the border.
Thailand’s economy, Southeast Asia’s second largest, grew just 1.2% in the third quarter, weighed down by political uncertainty, U.S. trade tensions, and the border conflict. The country’s benchmark SET Index has fallen roughly 10% this year, though the baht has strengthened more than 7% against the dollar.
The border tensions follow the collapse of a ceasefire brokered in July by Trump, who warned he could halt trade talks with both countries if the fighting continued. Thai Foreign Minister Sihasak Phuangketkeow told U.S. officials that Thailand remains committed to a peaceful resolution but emphasized that lasting peace requires concrete action.
Economists warn that the renewed clashes could dampen Thailand’s projected 1.6% GDP growth in 2026, as the country risks losing the Cambodian export market, facing labor shortages from displaced Cambodian workers, and potential higher U.S. tariffs if trade negotiations stall. Cambodia had been Thailand’s 11th-largest export market in 2024, accounting for roughly 3% of total exports.
Bilateral trade has already collapsed this year, with border crossings closed and exports to Cambodia falling 67% in October compared with a year earlier. While petroleum exports could find alternative markets, analysts note the main concern is potential U.S. retaliation if the ceasefire breakdown continues.
A prolonged conflict could also remove between 500,000 and 1.5 million Cambodian migrant workers from Thailand’s workforce of around 40 million, further straining the economy.
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