Trade Minister Datuk Seri Rafidah Aziz disagrees with Thailand’s decision to not give Malaysian imports the ASEAN Common Effective Preferential Tariff (CEPT) rate of 5%, instead keeping it at a higher 20% rate.
According to Rafidah, the interpretation of the ASEAN secretariat backed Malaysia’s position on the matter. As long as Malaysia lowers it’s own tax rates to 5% for countries that qualify for the CEPT rate, it should receive the same treatment and should not be linked to anything else. According to Rafidah, Thailand also has non-tarriff barriers in place for palm oil.
Though the amount of vehicles from Thailand going into Malaysia is much more than the other way around, companies like Toyota have decided to assemble certain models here for the region, like the Toyota Hiace van.
I wonder if Thailand is also unhappy with the fact that Toyota, which is something like a national car of sorts to them decided to build some Hiace vans in Malaysia and export them to Thailand instead of building them in Thailand.