Progress made in talks with Tokyo
Bangkok Post, 11 July 2005
TRADE / ASEAN-CHINA FTA AGREEMENT, BILATERAL TALKS WITH JAPAN
Progress made in talks with Tokyo
WORANUJ MANEERUNGSEE
Free-trade talks between Thailand and Japan may be edging toward a conclusion, thanks to better-than-expected results in the most recent round of discussions in Tokyo last week, according to a source close to the bilateral negotiations.
’’If everything goes well, the METI minister will come to Thailand to announce the conclusion of negotiations by the end of this month,’’ the source said, referring to Shoichi Nakagawa, the Japanese Minister of Economy, Trade and Industry.
If negotiators actually seal the deal, Thailand will be the third Asean country to establish a free-trade pact with Japan, Asia’s largest economy. Tokyo has signed FTA agreements with Singapore and Malaysia, and has also opened negotiations with the Philippines and Indonesia.
’’For now, it seems Thai proposals have been acceptable to the Japanese side. They have been considering Thai negotiators’ offers positively,’’ the source said.
The most recent round of talks, the eighth overall between the two countries, focussed again on controversial issues _ Japan’s interests of steel, automobiles and vehicle parts and Thailand’s pet interests of farm products, footwear and jewellery.
The source said that at the latest meeting, Thailand proposed an 11-year protection period for hot-rolled steel that could not be produced in Thailand, and the removal of all tariffs in the 12th year. During the protection period, Thailand would set a free-tariff quota for such steel. Negotiators of both sides reportedly agreed to let their private sector discuss the quota issue at their separate meeting next week.
On other kinds of steel, Thailand proposed to remove tariffs immediately, except for some sensitive items which would have a 10-year protection period. The source refused to reveal details on what, exactly, the Thai side wished to define as sensitive products.
Thai officials told Japanese negotiators Thailand was ready to respond to requests on automobiles, because Japan was Thailand’s largest investor in that sector and deserves more privileges. However, the Thai government would keep a balance for western carmakers.
Opening up the market for Japanese vehicles under a Thai-Japanese FTA agreement is a serious concern for European and American carmakers in Thailand. They worry Japanese cars, in particular luxury brands, will steal their market under favourable FTA agreement terms.
Thailand demanded that Japan further open up its market for farm products, at least to the level it opened up for Mexico, the Philippines and Chile. Thai officials stressed that rules of origin should not limit Thai products access to Japanese markets.
’’Best offers are up in the air,’’ one of Thai negotiators told the negotiating forum in Tokyo. ’’The Japanese side can either grasp it and respond much more positively to the Thai side’s requests, or we can go back and start talking about other options.
’’Basically, offers in these products come with a price. It [must be] based on give and take,’’ the source said.
