Thailand is under pressure from the United States and the European Union to stop what has for several years been a thriving business of human smuggling, trafficking and slavery both on land and in its fishing fleets.

The trafficking problem poses potentially significant sanctions for Thailand's economy, which is already struggling with dwindling exports and slowing consumption following a military coup in May last year.

The EU is threatening to ban some $700 million a year in seafood imports if Thailand doesn't make a marked improvement in ensuring labour standards in an industry racked by allegations of slave labour and violence. Brussels has given Thailand six months to clean up the industry.

Thailand's efforts to combat human trafficking have come under renewed scrutiny after the discovery of more than two dozen bodies from a jungle camp that authorities suspect smugglers used to hide migrants from Myanmar and Bangladesh.

The finding is a blow for the junta and comes shortly before publication of an annual US government report on human trafficking. Bangkok expressed “deep regret and disappointment" at Washington's decision to downgrade Thailand in last year's report to the third and lowest tier of countries deemed not to be combating people

smuggling.

While the US has so far announced no plans for sanctions that can result from tier-three status, this could change if Washington feels Thai authorities are not responding to the blacklisting.

There have been multiple reports of forced and slave labour in the Thai fishing industry, which was last month issued with a "yellow card" by the EU and warned it could face trade sanctions if it did not improve regulation.

Meanwhile, Thai police have made arrests linked to a large human trafficking network.

A man called Soe Naing, known as Anwar, is believed to be a key figure behind the network. He was charged yesterday with human trafficking, false imprisonment and holding people for ransom. Three Thai government officials were also arrested on the same charges.

Speaking about Anwar's arrest, Police Colonel Anuchon Chamat said: "This is huge. He's a big guy, a top guy. ”

Phone records, financial transactions and witness testimony point to Anwar, a Rohingya living in the southern Thai province of Songkhla, allegedly playing a central role in the operation, Anuchon said. Police are also collecting DNA evidence from the grave site, which may contribute to any potential murder charges, he added.

[Based on reports of The New York Times, The Independent, Reuters, The Wall Street Journal and Financial Times[