Thai car exports to Vietnam could face non-tariff barriers

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FTI’s automotive club vice-chairman Surapong Paisitpatanapong said the FTI is surveying automakers about how they will respond to the new trade rule, as manufacturers that cannot adjust to the stricter environmental standard could lose sales.

The automotive club of the Federation of Thai Industries (FTI) expects that car exports to Vietnam could face non-tariff barriers after Vietnam enforces the new Euro 5 emission standard from Jan 1 next year.

FTI’s automotive club vice-chairman Surapong Paisitpatanapong said the FTI is surveying automakers about how they will respond to the new trade rule, as manufacturers that cannot adjust to the stricter environmental standard could lose sales.



He said the FTI is aware that the Euro 5 measure is used by countries which need to protect their domestic industries and is worried that car exports will be affected, but the FTI cannot yet predict the scale of the issue.

Meanwhile, Thailand Automotive Institute (TAI) President Pisit Rangsaritwutikul said the impact will not be serious, because he believes the Thai and Vietnamese governments can negotiate a solution. (NNT)