Rice compensation proposed

Rice compensation proposed

BANGKOK (DPA): Thailand will propose that Malaysia imports an additional 100,000 tons of rice each year to compensate for its refusal to open its domestic market to Thai-made automobiles, a news report said on Monday.

Malaysia, which already imports approximately 300,000 tons of rice from Thailand annually, is expected to respond to the rice proposal some time next month, said the Bangkok Post newspaper.

Under the ASEAN Free Trade Area (AFTA), Malaysia was scheduled to open its domestic market to imports from other members of the Association of Southeast Asian Nations (ASEAN) this year.

Malaysia, however, chose to exclude the automobile sector in an effort to protect the Proton Saga, a national car project.

Under AFTA rules Malaysia must compensate Thailand, the leading hub for automobile manufacturing in Southeast Asia, for its lost business opportunities.