'Upgrade quality to gain from Jtepa'
Operators could see their exports under the Japan-Thailand Economic Partner-ship Agreement (Jtepa) rise by 14-30 per cent if they can upgrade product quality to meet the high standards required by the Japanese market, a seminar heard yesterday.
The Thai products benefiting from tariff cuts are garments and textiles, shrimp and seafood, fresh fruit, chicken, jewellery, leather goods and shoes, and agricultural commodities except rice. Seminar panellists suggested enterprises develop manufacturing standards for their products to facilitate access to Japan. The pact signed in April is expected to be implemented by October after the Japanese parliament ratifies its details. Nilsuwan Leelarasamee, deputy secretary-general of the Federation of Thai Industries, said exporters that focus on Japan were in a position to take full advantage of the Jtepa as they already had a good understanding of the market's needs. "New exporters may find some difficulties in penetrating the market because of a lack of knowledge of Japan's import regulations. So they have to study not only market demands but also the requirements for standards," he said. Japan imposes stringent import restrictions on all products, but particularly for furniture and food, which closely concern personal safety and health. Manufacturers that succeed in Japan will also enjoy market expansion to other countries, he added. To maximise benefits from the Jtepa, exporters must study the rules of origin required by the market as well as improve their product quality, said Nuntawan Sakuntanaga, deputy director-general of the department. Despite Jtepa's zero rate on many goods, Thai exports may face other restrictions such as local-content rules, which would apply to jewellery, shoes, fish, frozen octopus, canned fruits and vegetables, and fruit juice. Piyanuch Malakul, vice chairman of the trade rules and international trade committee of the Thai Chamber of Commerce, said exporters must also be aware of non-tariff barriers after the pact's implementation. Japan has put a high concern on people's lives and the environment, so exporters must proactively improve their product standards to avoid future import barriers, she said. Japan is Thailand's second-largest export market after the United States, with two-way trade reaching US$41.9 billion (Bt1.45 trillion) last year. Exports to Japan rose 8.8 per cent to $16.4 billion, while imports dropped 2.1 per cent to $25.4 billion, leaving a trade deficit of $9 billion.
Petchanet Pratruangkrai The Nation
|
