Thailand facilitates auto-parts imports from Japan

 

The additional items will enjoy zero per cent tariffs during 2012 and 2014.

Since the free trade agreement took effect on Nov 1, 2007, Thailand has imposed the zero tariff rate on 72.33 per cent on imports from Japan. Vice versa, Japan's privileges cover 81.11 per cent of imports from Thailand.

Srirat Ratspana, director-general of the Trade Negotiations Department, said that the Finance Ministry's Customs Department on May 15 announced the zero tariff rate for over 140 automotive parts, which were slapped the 10-20 per cent rates before this. 

The items to benefit from this included axel shaft, gear boxes, power units, safety belts, brakes, wheels, shock absorbers, clutches, exhaust pipe, and fuel tanks. Last year, Thailand's imports of such products from Japan had been worth over US$3 billion and the value has been on the rise. The value was $5.868 billion in 2011, or 63 per cent of imports from all origins. Japanese auto-makers during 2005-2011 poured over $36 billion of investment into Thailand, or 24 per cent of their combined investment from Japan to Asia. 

 

"The zero tariff rate will be retroactive to April 1, 2012," Srirat said. 

She envisioned the cheaper supply of raw materials for automakers in Thailand. This should allow Thailand to strengthen its automotive industry and achieve its goal to become a regional production hub in Asean.