Time to Expand Automotive Ties With ASEAN

Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh discussed expansion of bilateral ties with his counterparts and private sector directors from ASEAN member states.

During a recent visit to several ASEAN members, Nematzadeh accompanied President Hassan Rouhani, SAMT news agency reported.

The minister visited the production sites of Proton in Malaysia and Toyota in Thailand, and held talks with the directors of these two companies, although no details have been released yet.

Nematzadeh also explored the possibility of collaboration with members of Thai Summit Group, a leading auto parts manufacturer of Thailand.

Established in 1977, the group is a leading auto parts manufacturer for cars, motorcycles, electrical appliances and agricultural machinery. It has global manufacturing facilities in China, India, Indonesia, Japan, Malaysia, USA and Vietnam.

With 1.9 million vehicles produced in 2015, Thailand has the largest share in Asia’s auto industry and can be a powerful partner of Iran in boosting its economy and getting a bigger share of the international car market.

According to earlier reports, Iran and Thailand are to conduct feasibility studies on a preferential trade agreement on lower tariffs.

Thailand’s Commerce Minister Apiradi Tantraporn has been quoted by Thailand’s local media as saying recently that the two countries are looking forward to establishing a better bilateral trade infrastructure and a PTA might be one way of doing that.

She said such a pact could help the two sides achieve their bilateral trade target of $3 billion by 2021, a goal previously set by the two governments.

According to the official, under the PTA, the two countries will exchange lists of about 100 goods each for reducing tariffs by 10% to 20%.

Goods most likely to be on the list include agricultural and oil products. Such a deal on its own can boost industrial ties between Iran and Thailand since it would help overcome banking barriers that still bar Iran from forging deals with the country’s private sector.