Japan FTA opens gates to cheaper cars, parts
Sunday, June 24, 2007
USED car dealers are glad that the free-trade deal between Brunei Darussalam and Japan will lead to cheaper car imports, but at the same time they are apprehensive this may force them to lose their markup during the months when the pact takes effect.
The two trading partners on Monday signed a free-trade agreement which is aimed at cutting tariffs or import duties and ensuring a stable supply of natural gas to Japan.
Brunei will abolish its 20 per cent tariff imposed on automobiles and auto parts from Japan within three years of the implementation of the agreement.
With most of the general public looking forward to seeing the tariff eliminated, there are some who remain uncertain, such as second hand car dealers.
"Currently we aren't certain when the exact date the tariff will be eliminated and depending on how much cars are left in the stock yard or how much we purchase the cars for, in the end the price of our existing Japanese cars will have to be reduced," a dealer said. "It's bitter-sweet in a way that the next shipment after the announcement will also be cheaper. But right now it's uncertain what will happen."
Bruneian consumers who prefer Japanese automobiles are happy about the prospect of Japanese cars selling at much lower prices due to the elimination of import duties.
"The (tariff elimination) will definitely make me want to purchase a Japanese car because maintenance will be cheaper and car parts will also be cheaper," one car enthusiast said.
Dennis Yong Teck Leong, a lighting shop owner who drives a Mitsubishi Pajero, said, "I'm very happy with (the elimination of tariffs on Japanese automobiles and parts). This now means that cars will be more affordable. It is definitely better for the Brunei economy."
A Mitsubishi Pajero is estimated to cost about $60, 000 now, but without import duties, it will cost $12,000 less, a car industry expert surmised, adding that the same will apply to other Japanese car brands, such as Toyota, Honda, Daihatsu, Mazda and so on.
"I hope it (the elimination of the said import duties) happens by the end of this year because I'm thinking of buying a car now," said a young professional in Bandar.
The Brunei Times
The two trading partners on Monday signed a free-trade agreement which is aimed at cutting tariffs or import duties and ensuring a stable supply of natural gas to Japan.
Brunei will abolish its 20 per cent tariff imposed on automobiles and auto parts from Japan within three years of the implementation of the agreement.
With most of the general public looking forward to seeing the tariff eliminated, there are some who remain uncertain, such as second hand car dealers.
"Currently we aren't certain when the exact date the tariff will be eliminated and depending on how much cars are left in the stock yard or how much we purchase the cars for, in the end the price of our existing Japanese cars will have to be reduced," a dealer said. "It's bitter-sweet in a way that the next shipment after the announcement will also be cheaper. But right now it's uncertain what will happen."
Bruneian consumers who prefer Japanese automobiles are happy about the prospect of Japanese cars selling at much lower prices due to the elimination of import duties.
"The (tariff elimination) will definitely make me want to purchase a Japanese car because maintenance will be cheaper and car parts will also be cheaper," one car enthusiast said.
Dennis Yong Teck Leong, a lighting shop owner who drives a Mitsubishi Pajero, said, "I'm very happy with (the elimination of tariffs on Japanese automobiles and parts). This now means that cars will be more affordable. It is definitely better for the Brunei economy."
A Mitsubishi Pajero is estimated to cost about $60, 000 now, but without import duties, it will cost $12,000 less, a car industry expert surmised, adding that the same will apply to other Japanese car brands, such as Toyota, Honda, Daihatsu, Mazda and so on.
"I hope it (the elimination of the said import duties) happens by the end of this year because I'm thinking of buying a car now," said a young professional in Bandar.
The Brunei Times
Business Besides Oil
