Japan 'committed' to setting up
Japan is committed to establishing the Automotive Human Resources Development Institute in Thailand in exchange for zero import duty on 3000-litre vehicles under the Japan-Thailand Economic Partnership Agreement (JTEPA), Industry Minister Wannarat Charnnu
Japan’s Minister of Economy, Trade and Industry Yukio Edano yesterday said during a meeting with Wannarat that Japan would like the Thai government to accelerate projects for flood protection and assistance to foreign enterprises affected by the severe flooding last year.
Yesterday, Edano, Japan’s ambassador to Thailand Seiji Kojima as well as other leaders from Japan’s economic institute, including Japan External Trade Organisation chairman (Jetro) Hiroyuki Ishige, Jetro Bangkok president Setsuo Iuchi and Masakazu Kubota, senior managing diretor of Keidanren met Wannarat. They discussed updated information on the flood-protection system, assistance to foreign investors and economic cooperation.
Wannarat said Japan’s ministry of economy, trade and industry wanted the Thai government to review the agreement to cut import tax on 3000-litre vehicles from Japan to zero as Japan is conducting a feasibility study to set up the Automotive Human Resources Development Institute in Thailand. This was a condition set under the JTEPA if Japan wants Thailand to eliminate duty on 3000-litre vehicles. Japan’s ministry said it would finalise the feasibility study within one year.
Thailand has gradually cut the import tax on 3000-litre vehicles from 80 per cent to 60 per cent currently. Japan has required Thailand to cut the duty to zero for years, but the establishment of the Automotive Human Resources Development Institute has not many any progress. Wannarat said Japan’s ministry also asked about the progress of duty reduction on import of auto parts from Japan to zero. The Industry Ministry informed them that the duty will be cut from 20 per cent to zero in April this year.
Regarding the flood-protection system and assistance for flood-affected investors, Wannarat said Japan would like the Thai government to implement the projects as soon as possible, and help Japanese investors.
"I think they are satisfied with the flood-protection system. The minister does not have any specific requirements, but wants the Thai government to pass on updated information to Japanese investors," he said.
