September 08, 2008

Japan seeks higher HRPO import quotas in Thailand

Bangkok Post reported that Japanese exporters asked the Thai government to more than triple the import quota for steel products for this year saying that domestic demand is far higher than the amount allowed.

Mr Mitsuhiro Sonada, the president of the Japanese Chamber of Commerce said that members recommended lifting the quota for pickled and oiled steel products to 730,000 tonnes from the 227,500 tonnes allowed under the free trade agreement between Thailand and Japan.

Mr Suwit Khunkitti industry minister of Thailand said that the government would review steel market conditions before this year's quota takes effect in July.

Steel was a highly contentious issue during the negotiation leading up to the signing of the Japan Thai Economic Partnership Agreement in last November. Local steel producers asked the government to help protect them by forcing Japanese manufacturing plants in Thailand to use local content instead of allowing them to import their own products freely. The Japanese side countered that certain types of high quality steel required by big Japanese invested automobile and electrical goods makers were not made in Thailand.