英语论文网

ost important markets for Thai automotive industry. As Thailand become more efficient in production of vehicles and technological level has reached its standard level accepted by most developed countries. As a result export of vehicles to Japanese market has been important market for Thai automotive industry. Thailand has signed free trade agreements with Japan called Japan Thai Economic Partnership Agreement (JTEPA) in 2007. The purpose of this deal is not just the reduction or elimination of tariff but also focuses on training and technological transfer which will make Thai producer become more competitive in World market. Thailand immediately removed tariff on imported Japanese steel by 50% after signing of JTEPA and will fully eliminate tariff on imported Japanese steel in 2017. This will definitely reduce cost to automotive assemblers in Thailand and makes it more attractive to international markets. Another benefit from JTEPA is the elimination of tariff on most of auto-parts by 2012. All auto-parts will be duty free in 2017. Again this will benefit Thai automotive industry.

Another free trade agreement that Thai made with Japan is AJCEP which stands for (ASEAN-Japan Comprehensive Economic Partnership). Actually this agreement is not between Thai and Japan but its ASEAN and Japan. The objectives of this free trade agreement are transfer of technology into ASEAN and improve human resource. Of course, the main objective is to reduce or eliminate tariff between ASEAN nations and Japan. However AJECP does not have any benefit to Thai automotive industry since Tariff for this industry is exactly the same as JTEPA. There are only 71 products that benefit from AJECP that are agricultural products. These 2 free trade agreements, JTEPA and AJCEP does not increase the export value to Japanese market but these 2 agreements definitely increase Thailand’s competitiveness to ASEAN and world market because of reduction or elimination of tariff on Japanese imported steel and automotive parts.

The figure 10 shows the export value of automobile to Japan compare with ASEAN markets. The values of exports are compared in 3 year starting from year 2008, 2009 and 2010.

Figure 10: Export value of Automobile to Japan.

A

(Source: The Customs Department)

From figure 10 point A, we can see that Thailand export small value of vehicles to Japan especially in year 2009. We can rarely see the bar on the figure. As mention above those 2 free trade agreements do not increase the size of export value to Japan. However, in year 2010 we can see huge increase in export value of vehicles to Japan. This huge increase is due to shift in production base of Nissan, March. On July 2010, Nissan has announced to shift their Nissan, March production base to Thailand. The main reason behind this decision is to lower the production cost. Nissan said that Thailand has high level of technology in production of automobiles and advantages in location since Thailand is located in center of South-East Asia. By shifting the production base to Thailand, Nissan can lower their production cost by 10%. Currently Nissan, March is sold at less than 1 million yen or less than 370,000 baht. Japan. Shift in production base means that Nissan, March are no longer produced in Japan and demand for Nissan, March is served by Thailand. Thus the export value of vehicles to Japan sky rocketed. In addition, shiftin