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Trade / Agriculture
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2000-03-16 12:54:00-05
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Thailand claims other Asean Partners 'not abiding by rules'
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April summit will allow exporters to air grievances, report to be issued to Asean Secretariat
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Thai exporters, experiencing friction and non-cooperation with Asean trading partners, will get an opportunity to express their concerns when an Export Summit will be held in April. There are concerns that other Asean states have failed to implement the Asean Free Trade Agreement and continue to assess tariffs on imported products. Under the Afta agreement, Asean countries agreed to cut taxes on a range of 15 industrial and agricultural goods to between zero and 5%, starting January 1 of this year. Thai concern is focused on Malaysia and conflicts that have arisen on automobiles and parts and palm oil. Malaysia appears to want to protect its domestic auto industry while Thailand is reluctant to open up its palm oil industry. The
palm oil produced in Malaysia is lower in cost and of higher quality then Thai palm oil. However, the most contentious trade items are electronic products and parts, because they represented more than one third of the total export volume for each Asean country. Of the 16 categories in which tariffs are to be reduced to 0% by 2002, Thailand is seen as having trade advantages in cement, fertilizer, leather products, pulp and paper, textiles, jewelry, electrical appliances and wooden furniture. Thailand is disadvantaged in vegetable oil, chemicals and medicine, plastic, rubber, ceramics, glass copper and electronic components. New standards for electrical appliances initiated by Singapore also pose a trade barrier for other Asean nations.
Results of the Export Summit will be reported to the Asean Secretariat with the hope that conflicts can be ameliorated.
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