Malaysia and Thailand at odds over auto imports TEAMCAR - Malaysia and Thailand are embroiled in a wrangle over auto imports, with Kuala Lumpur insisting that it should be granted lowered rates in the sensitive sector.

Malaysia is arguing that under a regional free trade deal, its auto exports to Thailand should only carry a five percent tariff.

However, Thailand is maintaining a 20 percent tariff until Malaysia removes its national scheme for imports under which only ethnic Malay entrepreneurs are given permits to bring in vehicles.

"Malaysia has conformed to the ASEAN Common Effective Preferential Tariff(CEPT) rates," Malaysia's Trade Minister Rafidah Aziz told reporters ahead of ASEAN economic ministerial talks in Kuala Lumpur.

"We are entitled to get it," she said after chairing the Association of Southeast Asian Nations (ASEAN) Free Trade Area council meeting where she said the issue was raised. Rafidah said Thailand will send a delegation to Malaysia next month to discuss the issue, but that the interpretation of the ASEAN secretariat clearly backed Malaysia's position.

"It is that once the country has brought the tariffs down to the required level and the rule of origin is in line with what is being stated, then we the countries are entitled to receive the CEPT treatment," she said. "It is not linked to any other thing.

" Malaysia announced in March that it will cut taxes in an attempt to enhance the competitiveness of national carmakers Proton and Perodua, and as part of a bid to become a regional hub for car manufacturing and exports.

One of the key changes was the reduction in the ASEAN Common Effective Preferential Tariff import duty to five percent for qualifying vehicles.  ¶ 12:22 PM