Yes, of course. You must have heard about the bilateral relations between Japan and Thailand. It all started off with the Japanese trading on the Red Seal ships and installation of their communities on the Siamese soil. The contacts between both the countries soon resumed in the 19th century and now it is developed to a certain level that Japan has become Thailand’s foremost economic partner. In fact, they both share the distinction of not losing sovereignty to Europe. This being a little blast from the past, let get on to the real business, something that is of your interest.
So, here it is the Japan-Thailand Economic Partnership Agreement. It is basically a free-trade agreement signed on April 3, 2007, in Tokyo, between both the countries, signed to eliminate tariffs on 90% or more of the bilateral trade. According to the agreement;
- Japan will remove tariffs on almost all the industrial products from Thailand. Also, it should remove tariffs on the processed shrimps and tropical fruits like mango and papaya.
- On the other hand, Thailand must remove tariffs on almost half of the Japanese steel imports and the remainder should be duty –free by 2017.
- The agreement stated that over the next years, Thailand must remove tariffs on Japanese fruits like apples, yams, and pears.
- By 2011, Thailand was asked to reduce tariffs on automobiles made in Japan with an engine displacement of 3000 CC or larger to 60% from 80%.
- Japanese auto parts, excluding five, will become duty-free by 2012. However, the remaining five will become duty-free over the next seven years or so. The country will also reduce the tariff on Thai boneless chicken to almost 8.5% down from 11.9% and on cooked chicken to 3% from 6%.
- Approximately 92% of tariffs on the imports from Thailand to Japan and 97% tariffs on imports from Japan to Thailand will become duty-free by 2017.
- Additionally, Japan will allow more Thai cooks to work in their country by lessening the required minimum work experience of 10 years to 5 years.
However, the agreement didn’t happen to cover the sensitive agricultural items of Japan, including wheat, rice and dairy products and tobacco.
Well, all these are expected to have been already implemented by both the parties. So, if you are seeking to do business in Thailand, you by now, already know which businesses are safe to invest. And as far as 100% ownership is concerned or even other tax benefits are concerned, you always have the option to register your company under Board of Investment, Thailand.
