December 02, 2008

HR import quota approved under Thailand Japan FTA

Thailand’s Foreign Trade Department has set a quota of 950,000 tonnes of hot rolled steel to be imported from Japan in the first year of the Japan Thailand free trade agreement starting on November 1st 2007. Imports within the quota will carry a zero tariff.

The quota will be allocated to three main users: 440,000 tonnes for the hot rolled coil industry, 230,000 tonnes for making cold-rolled steel used in the electrical and electronics industries and the rest for the automobile industry.

Of the total quota, 230,000 tonnes will go to Siam United Steel, a JV between Siam Cement and Nippon Steel and Thai Cold Rolled Sheet Plc, a JV between Sahaviriya Steel Industries and Japanese steelmakers including NKK and Marubeni.

Last year, Thai coil industry imported 509,812 tonnes of hot rolled steel from Japan, electrical and electronics businesses 155,883 tonnes, and automakers 543,530 tonnes.