Thailand and Cambodia do squabble often. Their current spat centres around the fugitive former premier of Thailand, Thaksin Shinawatra. Cambodian PM Hun Sen has invited Thaksin — convicted for corruption charges, and living under self-imposed exile — to be his economic advisor, irking Thai nationalists. Thai officials allege that Thaksin’s involvement not only jeopardises national interests but also complicates an already complex relationship. What’s more, calls from the Thai government for Thaksin’s extradition may be fruitless as no formal extradition treaty exists between the countries.

The dispute has built up over the past few days with both countries re-calling their respective ambassadors. Further it strains a crucial memorandum of understanding (MoU) between Thailand and Cambodia on overlapping maritime boundaries. The MoU signed in 2001, when Thaksin was PM, enables Thailand and Cambodia to develop oil and gas projects on their shared 26,000 sq km maritime area. Members of the government of Abhisit Vejjajiva have gone as far as suggesting the deal be “torn up.” This is particularly harmful for development of the resource-rich Mekong Delta, the “last frontier of an emerging Asia.”

Though Thaksin no longer holds the reins in Thailand, he is hardly a spent force. Cambodia serves as a powerful base for his political ambitions. Elections are scheduled for the coming year and Cambodia borders Thaksin’s core support base: the vote-rich northeastern provinces. His banned Thai Rak Thai party has been reincarnated as the Puea Thai Party and has begun mobilising support, angering the Bangkok elite. Thaksin’s new stint has the capacity to both thrust Thailand into political chaos yet again as well as disturbing the already fragile relationship with Cambodia.