Japan fights to increase the quota of steel imports to Thailand

The Thai government plans to increase the quota of steel imported from Japan after strong pressure from Japan. The Japanese Chamber of Commerce in Thailand last week asked the Thai government to increase the tax-free quota for Japanese steel by another couple of million tons.

Japanese steelmakers argue that Japanese-based car companies operating in Thailand need more high-quality imported steel from Japan in order to boost their car production.

Former Thailand Secretary General for Investment, Udom Wongviwatchai, said the government understands the difficulties of Japan-based car companies in Thailand and is asking for clarification on the amount of steel required by companies before making a final decision on the matter.

The current production of the Thai auto industry is 2 million units per year and the companies plan to increase production next year. According to Japanese experts, the production of cars in Thailand in 2015 will be increased to 2.5 million units.

Thai and Japanese officials will meet next week regarding the final decision on granting quotas to Japanese companies. Over the past several months, steelmakers in Japan and Japanese steel mills operating in Thailand have repeatedly asked the government to increase the quota of high-quality Japanese steel that is tax-free in Thailand.