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Thai-Malaysian Negotiations Experience Setback.
Byline: Woranuj Maneerungsee
Sep. 7--Negotiations between Thailand and Malaysia may be back to square one with Kuala Lumpur's trade minister claiming that Thailand does not deserve trade compensation as it supplies an "insignificant" number of vehicles and auto parts to Malaysia.
Rafidah Aziz, the international trade and industry minister, last week told the Thai Commerce Ministry that Thailand is not a substantial supplier of the products, contradicting a prior consensus among senior officials of both nations that Thailand's shipments are significant.
Thailand responded to the minister's claim on Monday, saying that Thailand could not export a large volume of vehicles to Malaysia because they faced import tariff barriers, Surakiart Sathirathai, the foreign affairs minister, said yesterday.
However, Thailand and Malaysia will discuss this point at an Afta Council meeting in Vietnam next week. The council, the body that oversees the tax reduction programme under the free-trade pact, brings together the 10 Asean finance ministers who may rule on the issue.
Malaysia wants to delay its compliance with import tariff reductions on automobiles and vehicle parts by two years from the previously agreed target of 2003, in order to protect its national car ...
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