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Published on April 8, 2008

The Asean-Japan Free-Trade Agreement (FTA) will cause Asean's export value to jump more than 25 per cent, thanks to increased access to the Japanese market for 71 additional products under the trade-in-goods contract.

Asean and Japan will soon ink the Asean-Japan Economic Partnership Agreement, which is expected to take place on the Indonesian island of Bali during the upcoming Asean Economic Ministerial Meeting.

Trade Negotiations Department director-general Chutima Bunyapraphasara said the pact would enhance benefits for Thailand on top of its own bilateral trade pact with Japan.

"The country will receive greater investment cooperation and technology transfers from Japan and enjoy more tariff reductions and rules of origin for agricultural goods exported to Japan," she said.

Export value from Asean to Japan will increase an estimated US$20.63 billion (Bt652 billion), or 25.38 per cent over the present level of $81.28 billion, while imports will be worth $80.49 billion.

Additional products imme-

diately benefiting from $53 million worth of import-tariff cuts to Japan include fish products, bananas, processed foods, chemical products and wood.

Thailand will also gain rules-of-origin benefits under the Asean-Japan FTA for such goods as

non-woven textiles, alcohol, processed meat, aquacultural foods, instant cereals, milk, fruits and vegetables.

Federation of Thai Industries deputy secretary-general Nilsuwan Leelarasamee said Thailand would enjoy increased market confidence and cement its partnership with the Kingdom's largest investor.

"The tightened cooperation will ensure that Japanese investors will see Asean countries as their major target for investment, which will increase the development of many industrial sectors," he said.

Under the pact, Japan is committed to increasing cooperation with Asean in trade facilitation, business environment, energy, telecommunications technology and human-resource development.

Meanwhile, Chutima said by early next year, Thailand would benefit from the Asean-South Korea FTA, because both sides had agreed to sign the deal by this May despite dissatisfaction with the exchanged products under the talks.

Thailand and South Korea will begin an additional round of talks on sensitive products, including rice and automotive parts, after joining the pact in the near future.

Petchanet Pratruangkrai

The Nation