Thailand has scrapped import tariffs on more than 140 categories of automotive components imported from Japan as part of the Japan-Thailand Economic Partnership Agreement (JTEPA).
The tariff cuts, from between 10-20% to zero, apply to major assemblies, such as fuel tanks, brake systems, axles, transmissions and engines, and will be retroactive to April 2012.
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The move is part of Thailand’s bid to become a major automotive production hub for Japanese vehicles.
The tariff cuts will help reduce the local cost of production of vehicles. Last year, Thailand’s imports of automotive parts from Japan exceeded USD3bn.
