Thailand is asking Malaysia to relax non-tariff barriers on vehicles produced in Thailand, in return for allowing Malaysia to export more cars to Thailand, according the Thai News Agency.

Thailand's finance ministry is in the process of restructuring automotive taxes, but exports are impeded by non-tariff measures imposed by Malaysia.

Currently Thailand is limited to exporting 50,000 cars annually to Malaysia. This is equivalent to around 10% of all vehicle exports from Thailand.

The two countries have agreed to reduce import tariffs on vehicles traded between the countries from 20% to 5%.