M'sia given August deadline in tariff row<\/p>\n
BANGKOK (Reuters): Thailand said on Tuesday it has given
\nMalaysia until Aug. 10 to come up with a list of trade
\nconcessions to compensate for Kuala Lumpur's decision to retain
\ntariffs on automobile imports.<\/p>\n
A trade protocol agreed last November gave Malaysia until July
\n19 to negotiate with Thailand on non-monetary compensation. After
\nthat, it must offer Thailand a proposal. If Thailand does not
\naccept the offer, it can then take retaliatory action.<\/p>\n
Boontipa Simaskul, head of Thailand's Department of Business
\nEconomics, told reporters the government would announce a
\nretaliation plan by mid-October if it was not satisfied with
\nMalaysia's proposals.<\/p>\n
\"We are now waiting for Malaysia to reply on the compensation
\nproposal,\" Boontipa said. \"If we are not satisfied with the
\nproposals, we will retaliate after October 16.\"<\/p>\n
Under the Association of Southeast Asian Nations (ASEAN) Free
\nTrade Agreement (AFTA), Brunei, Indonesia, Malaysia, the
\nPhilippines, Singapore and Thailand are committed to slashing
\ntariffs on automobiles and automobile parts to a maximum five
\npercent by the end of 2002.<\/p>\n
But Malaysia persuaded its fellow member countries to grant it
\na two-year reprieve on cutting the tariffs, which are as high as
\n300 percent on imported automobiles, to protect the market for
\nthe Proton, its national car.<\/p>\n
Thailand's auto industry stands to be hardest hit by the
\nMalaysian delay, and so under an AFTA protocol Malaysia has to
\nagree non-monetary compensation with its northern neighbor.<\/p>\n
AFTA's conflict resolution procedures give disputing countries
\n180 days from the day talks start to agree on compensation. Talks
\nbetween the two countries started on January 19.<\/p>\n
Malaysian International Trade and Industries Minister Rafidah
\nAziz told reporters last week both sides had been unable to find
\na solution to the question of non-monetary compensation.<\/p>\n
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia,
\nMyanmar, the Philippines, Singapore, Thailand, and Vietnam.<\/p>",
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"sponsor": "Okusi Associates",
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