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Thailand and Cambodia sign an enhanced ceasefire agreement following a deadly five-day conflict along their border in July.

Thailand and Cambodia have signed an expanded ceasefire agreement in the presence of United States President Donald Trump in Kuala Lumpur, Malaysia, building on a deal that ended deadly border fighting in July.

Cambodian Prime Minister Hun Manet and Thai Prime Minister Anutin Charnvirakul signed the agreement on Sunday on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur, shortly after Trump’s arrival.

​​”We did something that a lot of people said couldn’t be done,” said Trump, who co-signed the agreement along with summit host Malaysian Prime Minister Anwar Ibrahim, as he made his first trip to Asia since returning to the White House.

Thailand’s Anutin said the agreement creates “the building blocks for a lasting peace”, while the Cambodian premier Hun called it a “historic day”.

Tariffs wielded as threat

The agreement builds on a truce reached three months ago when Trump used the threat of higher tariffs against both countries to persuade them to end five days of fighting that resulted in dozens of deaths and the displacement of hundreds of thousands.

The first phase of the agreement involves Thailand releasing 18 Cambodian soldiers, and the removal of heavy weapons from the border region, with Malaysian troops to be deployed to ensure fighting does not restart.

Territory along the 800km (500-mile) frontier between Thailand and Cambodia has been disputed for decades.

Following the signing of the ceasefire agreement on Sunday, Trump inked separate economic deals with Cambodia and Thailand, involving an agreement on reciprocal trade with Phnom Penh and a deal on critical minerals with Bangkok.

Malaysia’s Anwar, who was also present at the signing, praised the agreement during his opening remarks at the summit, saying “it reminds us that reconciliation is not concession, but an act of courage.”

Thais cautious

Reporting from Sa Kaeo, Thailand, Al Jazeera’s Tony Cheng said the agreement signed on Sunday essentially reinforced “agreements that have already been made”.

Malaysian troops had been supposed to deploy under the initial peace agreement signed in July, but had not yet arrived, he said.

He said that while Thais welcomed “any kind of move towards peace”, they were viewing the agreement as “the beginning of the end” to the conflict, rather than hailing it as having resolved the dispute in itself.

“The devil is going to be in the details of this agreement,” he said.

He said the Thai military had been working to clear some disputed border areas, at the same time as some villages had been building new bomb shelters in recent weeks.

“So people here are still concerned this could go either way,” he said.

Ou Virak, president of Phnom Penh’s Future Forum think tank, told The Associated Press news agency that Trump wielding the threat of tariffs had been a significant factor in bringing the fighting to a halt.

“That’s probably the main reason, if not the only reason, but definitely the main reason why the two sides agreed immediately to the ceasefire.”

Now, he said, “there’s a ceremony for Trump to be in front of cameras” so he can be “seen as the champion that brings an end to wars and conflicts”, giving him “more ammunition for his bid for [the] Nobel Peace Prize”.

Saudi and Qatari efforts aim to stabilise Syria by funding public-sector salaries and boosting economic recovery plans.

Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan Al Saud has said that the kingdom and Qatar will offer joint financial support to state employees in Syria.

His statements came on Saturday during a joint press conference with his Syrian counterpart Asaad al-Shibani in Damascus.

The two Gulf nations have been among the most important regional supporters of Syria’s new authorities, who ousted longtime ruler Bashar al-Assad in December after nearly 14 years of war.

Saturday’s statement did not provide details on the exact amount of the support for Syria’s public sector. However, it comes after Syrian Finance Minister Mohammed Yosr Bernieh said earlier in May that Qatar was going to provide Syria with $29m per month for an initial three months to pay civilian public sector worker salaries.

The Reuters news agency had also reported that the United States had given its blessing to the Qatari initiative, which came a few days before President Donald Trump announced that sanctions on Syria imposed during the al-Assad regime would be lifted. The European Union has since also lifted sanctions on Syria.

Further evidence of Saudi Arabian and Qatari support came in mid-May, when it was announced that the two countries had paid off Syria’s debt to the World Bank, a sum of roughly $15m.

International ties

Syria’s new government, led by interim President Ahmed al-Sharaa, has sought to rebuild the country’s diplomatic ties and convince wary Western states that he has turned his back on past ties with groups such as al-Qaeda.

The Syrian leader has repeatedly disavowed extremism and expressed support for minorities, but incidents of violence that has led to hundreds of deaths continue to cause international trepidation – even as the government and al-Sharaa denounce the killings.

Syria’s new government has also made a concerted effort to solidify ties to Gulf Arab states who have begun to play a pivotal role in financing the reconstruction of Syria’s war-ravaged infrastructure and reviving its economy.

On Tuesday, the European Union announced it had adopted legal acts lifting all economic restrictive measures on Syria except those based on security grounds. It also removed 24 entities from the EU list of those subject to the freesing of funds and economic resources, including the Central Bank of Syria.

And after Saudi Arabia and Qatar cleared Syria’s debt to the World Bank, the US-based financial institution said that it would restart operations in the country following a 14-year pause.

The World Bank has begun to prepare its first project in Syria, which will focus on improving electricity access – a key pillar for revitalising essential services like healthcare, education, and water supply. It also marked the start of expanded support to stabilise Syria and boost long-term growth.

Syria’s gradual re-integration into the global economy is in large part due to Trump’s dramatic shift in Washington’s policies towards the country. After announcing the lifting of US sanctions on May 13, Trump also became the first US president in 25 years to meet with a Syrian counterpart.

The US had already removed a $10m reward for the capture of al-Sharaa, and the Syrian president has been able to travel internationally and meet world leaders, including in Saudi Arabia and France.

Still, there is a lot to be done. A February report by the United Nations Development Programme (UNDP) estimated that at current growth rates, Syria would need more than 50 years to return to the economic level it had before the war, and it called for massive investment to accelerate the process.

The UNDP study said nine out of 10 Syrians now live in poverty, one-quarter are jobless and Syria’s gross domestic product “has shrunk to less than half of its value” in 2011, the year the war began.