Japan and Thailand to Discuss Application of TSI

Japanese delegation from government and steel industry agreed with Thai counterpart in Bangkok, Thailand to adjust tariff-free quota for Japanese steel export in fiscal 2010 under Economy Partnership Agreement. They agreed to reduce the quota for automotive steel for re-roll in fiscal 2010 from 307,000 tonnes in fiscal 2009 and increase the quota for interstitial free steel from 170,000 tonnes. A committee of Thai Ministry of Commerce will decide the quota volume for pickling steel while Japan required the quota for 600,000 tonnes and Thailand answered 440,000 tonnes.

They agreed to discuss on better application for Thai steel import restriction when Thai standard obligation impacts on Japanese steel export. Japan seeks improvement of the restriction by clearing the approval process and exempting some high grade steel items without production in Thailand. Japan requested Thai authorities shall check the safety of finished products instead of intermediate material such as steel and the smooth trade system would also benefit Thai automotive industry. Thailand refused to make exemptions arguing the exempted items could increase. The application will be discussed by working group with Japanese delegation.