Thailand asked Japan to import more agricultural products and promote technology transfers Sept. 2 to help the Southeast Asian country through its economic problems.
Pitak Intrawitraityanunt, deputy minister of foreign affairs of Thailand, made the request at the start of a two-day bilateral economic structural meeting in Tokyo. The meeting is the fifth since 1985 to promote economic cooperation between the two nations.
Noting that Thailand continues to suffer from a structural trade deficit with Japan equivalent to 208.6 billion baht, or 66 percent of total deficits in 1996, Pitak said that Japan can do a lot to help the situation. He suggested that Japan reduce tariffs on agricultural products, such as boneless chicken and tapioca, and increase imports of Thai rice.
Pitak also called on the government to encourage automakers, whose presence is overwhelming in the Thai market, to export more Thai-made cars and auto parts to Japan and other countries. While pointing to the importance of Japanese automakers' presence in Thailand, Pitak said domestic auto demand is now shrinking and it is becoming necessary to expand auto exports from Thailand to help reduce the trade deficit.
Masahiko Komura, vice minister for foreign affairs, acknowledged the ongoing economic difficulties in Thailand and said that Japan will continue to support its economic and financial reform programs. Thailand has been suffering slackening exports and nonperforming asset problems, and recently entered a currency crisis following the introduction in July of the managed float system in foreign exchange.
Last month, Japan pledged $4 billion in financial support in line with a bailout package organized by the International Monetary Fund. At the meeting, Komura said that Japan will consider further possible cooperation to help Thailand rehabilitate its economy.