Thailand’s refusal to lower it’s 20% import duties for incoming Malaysian exports down to AFTA’s 5% might result in UMW Toyota ending exports of the locally assembled Toyota Hiace van to Thailand. Due to the extra duties, UMW Toyota’s Hiace vans have had to be priced at a less competitive price in Thailand, so sales targets are much harder to meet. Thailand refuses to give Malaysia the 5% AFTA rates because it accused Malaysia to be non-compliant under the AFTA because of non-tariff barriers – the Approved Permits system! More details via additional readings below.
UMW Toyota facing difficulties exporting Hiace
Rafidah says we are entitled to 5% CEPT rates
Philippines joins Thailand and Indonesia in opposing Malaysian Non-Tariff Barriers
Thailand and Malaysia negotiation on tariffs
Thailand: Malaysia non-compliant under AFTA
UMW Toyota exports Toyota Hiace to Thailand