Thailand to approve Ford AICO scheme

Thailand is reportedly relenting on it earlier stand of delaying the approval of an ASEAN Industrial Cooperation (AICO) scheme between Ford Motor Philippines Inc. and its Thai counterpart.

This was disclosed by Trade and Industry Secretary Manuel Roxas II following a briefing from Trade Undersecretary and BOI managing director Gregory Domingo.

Domingo had met recently with Thai officials and according to Roxas, there was some discussion about the Ford AICO arrangement.

The DTI chief said that Domingo informed him that there was finally some "movement" from the Thai government.

In fact, Roxas said, only the "I and T have to be crossed."

Earlier, sources said that Thai authorities were delaying approval of the Ford AICO scheme following the Philippines’ success in securing approval from the ASEAN AFTA council to defer the lowering of its tariff on sugar.

The Philippines, along with Indonesia, were able to get the nod of the ASEAN AFTA council to delay the lowering of their prevailing tariff on sugar.

Sources said Thailand was reportedly disappointed with the ASEAN AFTA council decision because it would adversely affect its sugar exports Thailand is a net exporter of sugar.

Thailand had been eagerly expecting the lowering of existing tariff walls on sugar so that it could export its sugar to ASEAN countries.

Under the AICO scheme, Ford Philippines will be able to export certain models to Thailand and would, in turn, import other models from Ford Thailand.

However, under the AICO scheme, Ford would enjoy preferential tariff rates for its completely built-up (CBU) units.