Japan and Thailand Eliminate Steel Trade Tax

Japanese and Thai governments signed Economic Partnership Agreement (EPA) on Tuesday. Total export amount from Japan to Thailand is 2.1922 trillion yen and total import amount from Thailand to Japan is 1.5253 trillion yen. Thailand is the 6th largest importer from Japan and the 10th exporter to Japan. Within 10 years after EPA becomes effective, trade taxes will be eliminated for 97% of the total export and 92% of the total import. Steel export from Japan to Thailand is 356 billion yen or approximately 3.63 million tonnes, which accounts for 16% of total export in value. Export tax will be eliminated as soon as EPA becomes effective for 1.82 million tonnes of steel export such as hot-rolled sheet, including pickled sheet for automobiles and home appliances and re-rolling coil for automobiles, cold-rolled sheet, including electric steel sheet for motors, coated sheet, including galvanized sheet for automobiles and galvanized alloy sheet, and hot-rolled stainless steel sheet for tanks. Export tax will become free for 110,000 tonnes or 3% of steel export in 6 years from the effect. Export tax will be cancelled for 860,000 tonnes or 24% of steel export in 2 years after the tax keeps present rate for 7 years. Export tax will be eliminated for 840,000 tonnes or 23% of steel export in 10 years from the effect. Export tax for pickled steel sheet, hot-rolled steel sheet for re-rolling for automobiles and IF steel for cold rolling will become free at 950,000 tonnes in the first year after the effect. Export tax will be immediately eliminated for electric steel sheet for motors, hot sheet for cans, cold sheet, surface treated sheet, hot stainless steel sheet for tanks, alloyed electric steel sheet for transformers and motors and seamless steel pipe for gas and oil. These steel products are imposed export tax at 1-5% at present.