KL scorns damage claims for car tariff delay<\/p>\n
KUALA LUMPUR (Reuters): Malaysia on Thursday dismissed
\nregional neighbors' complaints about its plans to delay import
\ntariff cuts on cars, adding critics had scant cause for
\ncompensation.<\/p>\n
Without referring by name to Thailand, with whom Malaysia is
\nin dispute on the car tariffs issue, Malaysian Trade Minister
\nRafidah Aziz said countries seeking redress for the planned two-
\nyear delay sold very few vehicles in the country.<\/p>\n
\"Really, they do not have ground to stand on, they do not have
\nsignificant supply,\" Rafidah said in a speech to Malaysian
\nbusiness executives.<\/p>\n
\"They should not be aggrieved really if we delay by two years.
\nThey are not really principal automobile suppliers to Malaysia,\"
\nshe said, adding Japan and South Korea held far bigger shares.<\/p>\n
Malaysia, Thailand, Brunei, Indonesia, the Philippines and
\nSingapore have an Association of South East Asian Nations Free
\nTrade Area (AFTA) agreement to slash tariffs on cars and car
\nparts to a maximum five percent by the end of 2002.<\/p>\n
But Malaysia persuaded its neighbors to grant it a two-year
\nreprieve on cutting car tariffs, which can be as high as 300
\npercent on imported vehicles and about 42 percent on average, to
\nprotect its national car Proton.<\/p>\n
\"The reason is because of the recession, that's affected very
\nbadly the automotive industry. We want to ensure our automotive
\nindustry gets back on its feet,\" Rafidah said.<\/p>\n
Last month, Thailand gave Malaysia until August 10 to come up
\nwith a list of trade concessions to compensate for its decision
\nto retain the tariffs.<\/p>\n
Boontipa Simaskul, head of Thailand's Department of Business
\nEconomics, said the government would announce a retaliation plan
\nafter October 16 if it was unsatisfied with Malaysia's proposals.<\/p>\n
The Association of South East Asian Nations groups the
\ncountries of Brunei, Cambodia, Indonesia, Laos, Malaysia,
\nMyanmar, the Philippines, Singapore, Thailand, and Vietnam.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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