The plan is being drawn up mainly to control the Kingdom's steel imports from Japan after the agreement's implementation, scheduled for early next year. The strategy is also aimed at ensuring fair practices for relevant importers and manufacturers in the private sector.

The two nations must sign the agreement before Prime Minister Junichiro Koizumi's term ends in September.

The ministry said Jtepa-related documents were submitted to both countries' parliaments on June 2. Tokyo will send legal experts to Bangkok on Thursday, to wrap up the documentation process.

A ministry source said yesterday that the two countries needed to conclude the documentation process by the end of next month, in order to ensure that the agreement's signing ceremony takes place on schedule.

The ministry's Foreign Trade Department will soon inform private companies of details of the quota allocations. Because the plan is a protective measure, the volume of imports of Japanese steel is predicted to increase.

The ministry will also set up a committee to oversee the quota allocation of steel imports from Japan.

The FTA's implementation will involve representatives from Thailand's Industry Ministry, Iron and Steel Institute and domestic steel companies.

Meanwhile, a Commerce Ministry source said Japan would like to manage the tapioca export quota from Thailand itself, because there were concerns that Thai tapioca exports might affect the domestic Japanese market.

The pact offers Thailand a chance to increase its exports of agricultural goods, because Japan has agreed to reduce tariff rates. So far, the Kingdom is expected to gain greater export quotas for rice, sugar, garlic, onions and bananas.

Petchanet Pratruangkrai

The Nation