Malaysia, Thailand still at odds on car tariffs<\/p>\n
KUALA LUMPUR (Reuters): Malaysia said on Tuesday it was still
\nnegotiating how to compensate Thailand for delaying reductions on
\nimport tariffs for automobiles.<\/p>\n
"Nothing yet. We are still negotiating," International Trade
\nand Industries Minister Rafidah Aziz told reporters ahead of the
\nJuly 19 deadline for finding a solution to the question of non-
\nmonetary compensation.<\/p>\n
She declined to give further details.<\/p>\n
Under an Association of South East Asian Nations (ASEAN) Free
\nTrade Area (AFTA) agreement, Malaysia, Thailand, Brunei,
\nIndonesia, the Philippines and Singapore committed to slashing
\ntariffs on cars and car parts to a maximum five percent by the
\nend of 2002.<\/p>\n
But in November Malaysia persuaded its neighbors to grant it a
\ntwo-year reprieve on cutting tariffs, which are as high as 300
\npercent on imported cars, to protect its national car Proton.<\/p>\n
Thailand's auto industry stands to be hardest hit by the
\nMalaysian delay.<\/p>\n
AFTA's conflict resolution procedures give disputing countries
\n180 days to agree on compensation from the day the talks started.
\nIf they fail to reach an agreement within that time, the affected
\nparty can take retaliatory steps.<\/p>\n
Talks between the two countries started on January 19.<\/p>\n
With the deadline less than two weeks away, there have been
\ndoubts that the issue would be resolved.<\/p>\n
Rafidah said Malaysia was prepared for AFTA with 96 percent of
\nits goods having tariffs of zero to five percent.<\/p>\n
"Twenty-five percent of our exports are through the ASEAN
\ncountries. That shows the level of preparedness.<\/p>\n
"For those products with five percent tariffs for imports, if
\nthey cannot compete, they shouldn't be there. So we are quite
\nprepared for AFTA," she said.<\/p>\n
ASEAN groups Brunei, Thailand, Singapore, the Philippines,
\nMalaysia, Indonesia, Myanmar, Vietnam, Cambodia and Laos.<\/p>",
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"sponsor": "Okusi Associates",
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