Japan-Thailand Free Trade Agreement Goes Into Effect

November 1, 2007 7:23 a.m. EST

Tokyo, Japan (AHN) - Japanese Foreign Minister Masahiko Komura and his Thai counterpart, Nit Piboonsongkram met in Tokyo Thursday to mark the start of a free-trade agreement between the two countries.

The agreement, which was signed in April, aims to remove tariffs on almost all trade between the two countries within the next 10 years. 97 percent of Japanese exports to Thailand and 92 percent of Thai export to Japan will become tariff-free.

Under the deal, Japan has agreed to remove tariffs on Thai shrimp and tropical fruit such as mangoes and durian. It is also set to ease immigration regulations for chefs from Thailand.

However, it will ensure that its politically powerful rice farmers stay protected.

In return, Thailand will reduce tariffs from 80 percent to 60 percent on automobiles with engines of 3,000cc or larger over the next four years and eventually scrap all tariffs on steel imports.

Agence France-Presse reports that there are fears in Thailand the deal means Japan will dump its toxic waste into the country. Thai train drivers also staged a strike Wednesday amidst fears of job threats as a result of the trade agreement.

Japan, world's second largest economy, also has free trade agreement with Singapore, Mexico, Malaysia and Chile.

The deal with Thailand is significant since, of these five countries, Thailand is Japan's biggest trading partner.