Gov't will not seek further delay of auto opening under Afta

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Malaysia will not seek to extend a two-year reprieve to liberalise its auto sector in 2005 under a regional free trade plan, a minister said today.

Under the Association of Southeast Asian Nations (Asean) Free Trade Area (Afta), most members must cut tariffs on imports for agreed products to a maximum of five percent by next year. Malaysia has been allowed to delay opening its auto industry until 2005.

"We are not extending it. There is no reason why. We have already said 2005," Trade Minister Rafidah Aziz told reporters.

"In fact, the industry is telling us that they are even willing to offer a much faster market opening for some categories."

Rafidah has in May said the government may introduce measures such as higher sales tax and surcharges or certificates of eligibility allowed under Afta to protect local carmakers.

The government would also find new ways to equalise treatment for local and imported products without losing revenue from the lowering of tariffs, she said. -AFP



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