Naris Chaiyasoot, director-general of the Fiscal Policy Office, said yesterday that Thanong would join the Afta meeting on August 21 in Kuala Lumpur. Thanong met with senior officials yesterday at the Finance Ministry to prepare for the meeting.

Although Malaysia has cut tariffs on a number of items to comply with Afta's requirements, it still imposes quotas on imported cars, said Naris.

The country has long protected its automotive industry, largely because of the Proton Saga, the national car, which was the brainchild of former Malaysian prime minister Mahathir bin Mohamad. Mahathir hoped the car would help Malaysia move closer to joining the league of industrial nations.

Thanong will also negotiate with Indonesia to extend a fishing concession for Thai fishing operators to compensate for Indonesia's delay in liberalising its sugar market.

Meanwhile, other members of Asean have asked Thailand to open its markets for garlic, onions and tea.

Thailand will abide with a free-trade agreement calling for zero-per-cent tariffs on 80 per cent of traded products next year up from 60 per cent this year, said Naris.

The ministry will consult with the private sector about products that should come under the zero-per-cent rate, he said.

Six-leading members of Asean will offer tax cuts of between zero and 5 per cent on products from less developed nations. Cambodia would get a tax preference for 852 products, Laos for 301 and Burma for 855 until the end of 2009.

Wichit Chaitrong

The Nation