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Report No.230205
Vol.23
No. 2
October 2005


NEWS

- International -

A Deal in Principle Reached for Japan-Thailand Economic Partnership Agreement

On 1 September 2005, Mr. Junichiro Koizumi, Prime Minister of Japan and Mr. Thaksin Shinawatra, Prime Minister of the Kingdom of Thailand met in Tokyo to jointly announce that agreement in principle has been reached between the Japanese side and the Thai side on all major elements of the Japan-Thailand Economic Partnership Agreement (hereinafter referred to as the "JTEPA"), on the basis of a series of negotiations since February 2004, including meetings at ministerial level held in Bangkok on 31 July and 1 August 2005.
The major elements of the agreement in principle in the field of agricultural, forestry and fishery products are as follows: 
Both sides will eliminate or reduce tariffs comprehensively on agricultural, forestry, and fishery products. Both sides will also cooperate in the field of agriculture, forestry and fisheries, i.e. on food safety and on Local-to-Local Linkage. 

1. General

Tariffs on most agricultural, forestry and fishery products will be eliminated within 10 years from the date of the entry into force of the JTEPA.

2. Market Access Improvement by Japan includes:

(a) Agricultural Products

* Mangoes, Mangosteens, Durians, Papayas, Rambutan, Okra, Coconut: 

- Tariff Elimination on the date of entry into force of the JTEPA

* Bananas: 

- Introduction of Tariff Rate Quota (TRQ) on fresh bananas:
- In-quota rate: Duty free
- TRQ quantity: 4,000 metric tons in year 1 8,000 metric tons in year 5.

* Fresh small pineapples: 

- Introduction of TRQ
- In-quota rate: Duty free
- TRQ quantity: 100 metric tons in year 1 300 metric tons in year 5.

* Fresh, frozen vegetables: 

- Tariff elimination within 5-10 years

* Mixed fruit, fruit salad and fruit cocktail prepared, preserved:

- Immediate tariff elimination

* Prepared, preserved chicken meat: 

- Tariff reduction from 6% to 3 % in 5 years

* Prepared, preserved pork and ham:

- Introduction of TRQ:
- In-quota rate: Reduction by 20% of MFN rate on the date of entry into force
- TRQ quantity: 1,200 metric tons from the 1st year

* Rice bran oil: 

- Tariff reduction by 55.5% in 5 years

* Pet food: 

- Tariff elimination in 10 years

* Cane molasses: 

- Introduction of TRQ on cane molasses in the 3rd year:
- In-quota rate: Reduction by 50% of out-quota rate
- TRQ quantity: 4,000 metric tons in year 3 5,000 metric tons in year 4

* Esterified Starch:

- Introduction of TRQ:
- In- quota tariff rate: Duty free
- TRQ quantity: 200,000 metric tons from 1st year

(b) Fishery Products

* Shrimp and prawn prepared, preserved and frozen or boiled shrimps and prawn: 

- Tariff elimination on the date of entry into force of the JTEPA

* Fish Fillet and jellyfish, fresh and frozen Mongo Ika:

- Tariff elimination in 5 years

* Prepared, preserved tuna, skipjack, other bonito and crab:

- Tariff elimination in 5 years

(c) Forestry Products

* Forestry products other than plywood, particle board and fiberboard: 

- Immediate tariff elimination

* Particle board and fibreboard: 

- Tariff elimination in 10 years 

(d) Exclusion or Re-negotiation includes:

E Rice, wheat, barley; fresh, frozen and chilled beef and pork; raw cane and beet sugar, refined sugar, starches, canned pineapple, plywood, fishery products under import quota, tuna and skipjack, most items of prepared beef and pork and designated items of dairy products.

3. Market access improvement by Thailand includes:

* Apples, Pears and Peaches : 
- Tariff elimination on the date of entry into force of the JTEPA

* Fishes as Thailand's raw materials in fishery industry

- Yellowfin Tuna, Skipjack Tuna, Sardines: Tariff elimination in 5 years 
- Herrings, Cod: Tariff elimination on the date of entry into force of the JTEPA
* Exclusion or Re-negotiation includes: mackerel, tobacco, raw silk, bird's egg, dried egg yolks, and some designated items of fish

4. Cooperation in the field of Agriculture, Forestry and Fisheries

Japan and Thailand will cooperate closely and establish a special sub-committee on food safety with the participation of relevant government agencies to facilitate cooperation in areas including holding science-based consultation to identify and address specific issues that may arise from the application of sanitary and phytosanitary measures with the objective of obtaining mutually acceptable solutions, and strengthening quality control, inspection and certification system, and the application of risk analysis.
Special subcommittee on Local-to-Local Linkage will also be established to identify areas and forms of cooperation between relevant cooperatives of the two countries and to implement cooperation activities accordingly, e.g. promotion of marketing and purchasing, including the development of One Village One Product projects.
(An excerpt from the Joint Press Statement as published on the homepage of the Ministry of Foreign Affairs)

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