Speaking in Bangkok yesterday at the "Malaysia-Thailand Business Opportunities" seminar, Aziz said that even though both governments had cut import tariffs under the Asean Free Trade Area (Afta) agreement, governments of both countries had failed to address "non-tariff measures," which continue to hinder trade.

Aziz said Thailand had 138 non-tariff measures in place and Malaysia had 134. "These non-tariff measures are never counted in Afta tariff-cut schemes. So the products [they relate to] never make it to Thailand," she said.

In an exchange at the seminar over one such tariff, Deputy Prime Minister Suriya Jungrungreangkit asked if Malaysia could cut tariffs on completely built-up (CBU) automobiles from Thailand to realise Afta's vision of promoting regional industry. In response, Aziz said that Malaysia would require a two-year grace period before CBU tariffs could be included in Afta tariff cuts.

Regional tariff agreements have resulted in increased trade between the two countries. Aziz said that total trade between Malaysia and Thailand had tripled in the past decade, reaching US$13.6 billion (Bt507.8 billion) last year. Thailand's share of Malaysia's global trade has increased from 3.7 per cent in 1996 to 5.3 per cent in 2005, during which time the Kingdom moved up two spots to become Malaysia's fifth-largest trading partner. Since 2000, Malaysian companies have invested a total of $446.6 million in Thailand.

A number of issues were raised by both sides during the seminar, especially from Thai investors wishing to gain entry to the Malaysian market.

For instance, one Thai investor asked Aziz about transport regulations under which Malaysian trucks can cross the border and enter Thailand while Thai trucks have to park at the border and hire Malaysian trucks to finish transporting their goods.

Suriya said he had been aware of this problem since he started working at the Transport Ministry and urged Aziz to open up transport routes to promote a free flow of goods.

Also, a representative from Saha Farm Group said he had difficulties selling chickens directly to Malaysia even though Saha Farm processes its chicken in accordance with Islamic beliefs.

Jeerawat Na Thalang

The Nation