Japan, Thailand agree basic accord on FTA

Japan, Thailand agree basic accord on FTA

Japan and Thailand have agreed to forge a free trade agreement (FTA) and expect to sign the deal next April unless disagreements arise over details, recent market reports suggest. The agreement aims to reduce tariffs on the $35 billion trade between the two countries. Under the proposed agreement, Thailand will reduce tariffs on steel products imported from Japan over the next 8 – 10 years. Thailand has also agreed to reduce import tariffs on cars with engines larger than 3'000 cc to 60 percent by 2009. The current import tariff is 80 percent. Thailand will completely abolish tariffs on auto parts during the sixth year of the agreement, which would be 2011 assuming that it passes next spring. Total trade between Japan and Thailand reached $35.79 billion last year. Thailand exported $13.5 billion worth of goods to Japan and imported $22.29 billion worth of goods, according to data released by the Thai Ministry of Commerce. During the first six months of 2005, the trading value between the two countries reached $20.56 billion.