Japan 'edgy' about unelected govt

Japan 'edgy' about unelected govt

Japan remains concerned about the unelected Thai government, but local officials insist the administration will adhere to clear-cut investment and trade promotion guidelines and comply with all laws.

"Although the government did not come from an election, everything will still be run under the law and with transparency," Deputy Commerce Minister Apiradi Tantraporn said after meeting with Daishiro Yamagiwa, Japan's state minister for economy, trade and industry.

Chakramon: Seeking Thailand's fair share

Mr Yamagiwa is the highest-ranking Japanese official to visit Thailand since the May 22 coup.

Mrs Apiradi said Japan called on the Thai government to proceed with free-trade talks under the Asean+6 grouping, which includes China, Japan, South Korea, India, Australia and New Zealand.

Japan also asked the Thai government to extend the Japan-Thailand Economic Partnership Agreement (JTEPA). Talks to review the partnership have stalled since 2009 due internal political problems in both countries.

In a separate meeting yesterday with Industry Minister Chakramon Phasukvanich, Mr Yamagiwa asked the government to increase imports of high-quality Japanese steel for use in the automotive sector, tax-free under the JTEPA, from 1.2 million tonnes last year.

He did not elaborate on the desired amount of increase.

The Industry Ministry said Thailand had lost 5.97 billion baht in customs duties under the quota since 2007.

Mr Chakramon said Japan also wanted Thailand to cut tariffs on imported Japanese cars with engines greater than 3,000cc.

A 60% tax is now levied on such cars under the JTEPA, down from the previous 80%.

"Under the JTEPA, we've already waived the tariff on imported automotive parts from Japan and cut the tariff on imported vehicles with 3,000cc engines since 2010, leading the country to lose about 17 billion baht in tax revenue," Mr Chakramon said. "But what we got was human resource training that was worth only 100 million baht."

The industry minister was non-committal about Japan's requests, saying only that the Foreign Ministry would speak to Japan.

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